Bangladesh News Bangladesh Economy & Development Thread

[F-6 enthusiast]

that's interesting, i thought Huwawei had monopoly on 5G

 

[Isa Khan]

that's interesting, i thought Huwawei had monopoly on 5G

State-owned telecom operator Teletalk has partnered with leading global ICT solution provider Huawei to roll out 5G in Bangladesh. Huawei Bangladesh will provide infrastructure and technical support to Teletalk for deploying 5G network and to be launched on Friday, says a press release.

Huawei is leading the 5G technology standard with superior chipset, algorithm, and products. A signing ceremony between Teletalk and Huawei was held at the Teletalk office a few months back. Under this contract, Huawei is to provide the industry-leading and globally acclaimed technology to Teletalk for ensuring a seamless 5G experience.

Kevin Xu, chief technical officer of Huawei Bangladesh said, “4G has changed life, 5G will change the society. And we are happy to be a part of this key initiative towards that journey. We shall partner with Teletalk to build the necessary infrastructure for a superior 5G network. Initially, we have been chosen to provide more than 65% of the initial 5G sites. Huawei has been working in Bangladesh for Bangladesh to build a fully connected, intelligent nation for more than 21 years and we will responsibly continue this journey.”

Teletalk partners with Huawei

State-owned telecom operator Teletalk has partnered with leading global ICT solution provider Huawei to roll out 5G in Bangladesh. Huawei Bangladesh will provide infrastructure and technical support to Teletalk for deploying 5G network and to be launched on Friday, says a press release. Huawei...

www.theindependentbd.com

 

[Isa Khan]

The Chittagong Port Authority is all set to inaugurate a service jetty on 20 December this year to facilitate the port's operation and protect its vessels from damage.

For the last 13 years, the country's premier port did not have any service jetty from which it could provide the necessary support to inbound and outbound ships, though it has a total of 18 jetties for loading and unloading goods.

"The port had a service jetty in the Jetty-17 area, which expired in 2008. Later, the authorities appointed local firm Wahab and Barik (JV) to build a new service Jetty in 2018. At the end of last year, the construction of the jetty was completed," said Mizanur Rahman Sarkar, executive engineer at the port.

He told The Business Standard that after completing the necessary paperwork, they fixed 20 December to inaugurate the jetty.

State Minister for shipping Khalid Mahmud Chowdhury is scheduled to inaugurate the jetty along with a new ship – Kandari 7 – for the port rescue fleet. Local company Western Marine Shipyard has built the ship.

Currently, the seaport has a total of 35 vessels for rescue, tug, survey, fire-fighting, water-carrying and other necessary services.

Officials said the port-owned vessels have been anchoring here and there on the Karnaphuli River shore. As a result, the ships used to take extra time in regular operations. Besides, the authorities needed to spend more on fuel.

The new service jetty would bring momentum in operating vessels of the port and keep them protected, hopes Mohammad Omar Faruq, the port secretary.

The jetty would help release goods from ships, as well, he told The Business Standard.

Located in the Jetty-1 area on the edge of Karnaphuli River, the service jetty has a capacity of accommodating two ships with a 5-metre draft and 100-metre length at a time.

Meanwhile, the port authorities constructed a three-story office on 2,650 square feet of land, a steel-structure warehouse on 3,000 square feet, and an underground water reservoir, retaining walls, riverbank and shore protection structures, drainage system, electric substation, and a signal tower centring the jetty.

Ctg port starts service jetty next week

State Minister for shipping Khalid Mahmud Chowdhury is scheduled to inaugurate the jetty along with a new ship – Kandari 7 – for the port rescue fleet

www.tbsnews.net

Bangladesh has already conquered the international apparel market and is currently the second-largest exporter of garment items worldwide after China with a 6.8 per cent global market share.

Although Bangladesh depends on imports for cotton, a key raw material for textile, the country is fast becoming a major source for yarn and fabrics for textile and garment producers.

The shipment of the raw materials and intermediate goods is rising fast thanks to a government incentive.

Yarn, fabrics and waste yarn worth $80.48 million were exported from Bangladesh in the July to November period, registering a 38.73 per cent year-on-year growth, according to data from the Export Promotion Bureau.

Bangladesh shipped yarn and fabrics worth $154.29 million in the last financial year of 2020-21, up 15.52 per cent year-on-year.

Well Group, one of the yarn exporters, ships $7 million to $8 million worth of spun polyester yarn, synthetic, sewing thread and embroidery thread mainly to Turkey.

The same yarn that the company exports is also re-exported to some central Asian countries, said Syed Nurul Islam, chairman and chief executive officer of Well Group.

He said the government's incentive for new markets and products in 2009 inspired him and other local spinners and weavers to begin exporting yarn and fabrics after meeting the demand of local garment factories.

Envoy Group, a major fabrics and garment manufacturer, is another fabrics exporter that sells denim fabrics in Turkey, China, Vietnam, Sri Lanka, and India.

The company exports eight lakh yards of denim fabric per month, according to Kutubuddin Ahmed, chairman of Envoy Group.

"The prospects of denim yarn and fabric are very high as local spinners and weavers are producing a lot of yarn and fabrics and expanding their manufacturing capacity," he said.

"Exports of denim yarn and fabrics are growing," he said, adding that local entrepreneurs have installed a lot of denim fabric production capacity.

Well Group produces 1,000 tonnes of yarn a month and is planning to expand its capacity as the demand is rising, both locally and globally.

"The export of yarn and fabrics is not very profitable. The export incentive from the government has made the business viable," said Mohammad Ali Khokon, president of Bangladesh Textile Mills Association (BTMA).

Vietnam has recently agreed to buy yarn from Bangladesh. The garment producing country purchases one lakh tonne of yarn from India every year.

Similarly, textile millers and yarn and fabrics users in Turkey, South Korea, Egypt and Taiwan are lobbying with the BTMA to buy more yarn and fabrics from Bangladesh, Khokon said.

Local spinners and weavers are expanding their capacity to produce man-made fibres because of its growing demand.

In the next two years, Bangladesh's yarn production capacity will see an addition of 2.5 million spindles. Currently, 13.5 million spindles are used to manufacture textile raw materials, according to Khokon.

Bangladesh steps up yarn, fabrics export

Bangladesh has already conquered the international apparel market and is currently the second-largest exporter of garment items worldwide after China with a 6.8 per cent global market share.

www.thedailystar.net

The government is planning to hold 5G spectrum auctions in March next year for private mobile phone operators, said Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Shyam Sunder Sikder yesterday.

The BTRC has already allotted 60MHz spectrum to state-owned mobile phone operator Teletalk on a refundable condition to launch 5G services by December 12 this year.

Sikder was addressing views with members of Telecom Reporters' Network, Bangladesh, an association of journalists focusing the telecommunications and information technology sector.

The auction will have 65 MHz allocated in the 2,300 MHz band, 100 MHz in the 2,600 MHz band and 460 MHz in the 3,500 MHz band.

In response to a question, Sikder said the quality of 4G services has not been fully ensured so far and this issue was also being monitored by the BTRC.

He said the BTRC tested out service quality in 12,600 square kilometres of 228 upazilas and found none of the mobile operators to be providing top-notch service.

Grameenphone accounted for the highest number of call drops, he said.

The two main causes for the call drops are inadequate spectrum and low connectivity through fiber optic cables among base transceiver stations.

He hoped for the 5G spectrum auction to increase operators' wireless capacity and thereby, ensuring better 4G services.

Operating on high-frequency bands, the 5G will offer a lot of capacity but cover short distances, meaning it will primarily be an urban service for densely populated areas, says the BBC.

Lower-frequency bands (600-800Mhz typically) are better over longer distances, so network operators will concentrate on improving their 4G LTE coverage in parallel with 5G roll-out, it said.

5G spectrum auction in March

The government is planning to hold 5G spectrum auctions in March next year for private mobile phone operators, said Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Shyam Sunder Sikder yesterday.

www.thedailystar.net

 

[Isa Khan]

Today's corporate Bangladesh grew mainly from the small trading businesses that met the immediate needs of the people of war-torn newborn Bangladesh. From the humble beginnings, the post-independence private sector rose to a new height blossoming to a wide range of manufacturing sectors and positioned itself as a main driver of growth.

Victory in the Liberation War was instrumental behind the transformation, as senior economist Prof Rehman Sobhan pointed out, as it also gave rise to an entrepreneurial revolution.

Another economist Dr Hossain Zillur Rahman said the country's independence has transformed a people of "fatalistic mindset into an aspirational population" instilling the sense of entrepreneurship among people to rebuild from the rubble.

A self-made businessman Fazlur Rahman also echoed the sentiment, saying Bangladesh's independence was the key factor that made him a factory owner.


"Pakistani businessmen were ruling our market and before independence we barely dared to dream of our own business," he noted.

The entrepreneur initiated his small mustard oil mill in 1972 on a small plot in Gendaria, Dhaka.

The humble venture with a capital of Tk50,000 and 20-25 employees transformed into today's City Group's multibillion dollar empire that include more than 35 gigantic businesses covering "Teer" brand edible oil, sugar, flour, shipyard, tea-estate, economic zone, financial services and others.

In the five decades of his business career, the entrepreneur created earning opportunities for more than one lakh people, while over 15,000 permanent employees are working to generate over Tk25,000 crore in annual revenue for City Group factories right now.

City Group is now meeting one-third of the national market demand for branded consumer goods, while it is also exporting many products with more than 50% of value addition on average.

The group is now working to open six factories in its economic zone soon with an investment target of $800 million and 3,000 jobs, which will add to its current annual contribution of over Tk2,500 crore to the national exchequer.

The story of corporate Bangladesh's rise is similar to that of the City Group, where a number of brave entrepreneurs like the founders of Beximco, TK, Concord, and Jamuna groups opted into the collective dream for nation-building.

Their beginning was mainly with export-imports of key commodities that extended to the next level industries gradually in line with the maturity of the economy and the groups of companies are now engaged in a wide variety of businesses.

Abu Tayab and Abul Kalam – sons of a Chattogram-based merchant – began their commodity trading business in 1972.

Their father gave them a capital of Tk2,000 from his farm earnings and that was the seed money for today's TK Group.

Within two years in business, the two brothers co-founded their edible oil mill in Chattogram, which now is a top player in the market.

Their dreams of manufacturing goods and providing quality services in the country gave birth to over 60 business entities in a wide range of industries, including edible oil, steel, board, paper, textile, packaging, tree plantation, shipbuilding, securities trading, insurance, and many more that are generating an annual turnover of over Tk25,800 crore now.

Tariq Ahmed, director of Operations and Marketing at TK Group, said new Bangladeshi entrepreneurs, such as TK Group founders, got the opportunity for doing businesses after the country's independence following the vacuum created by the departure of the previously dominating non-Bengali business families.

"Independence fueled their growth in their own land," he added.

The story of Beximco Group is the same as it began with exports of jute and some uncommon commodities available in the newly independent country.

Beximco's empire now includes one of the largest textile villages in the region, a world famous pharmaceutical company with its shares trading at the London Stock Exchange's over the counter market, ceramic, fashion house, media, petrochemical, jute, IT, bank, solar power, sports and many others.

Beginning its journey in 1974, Jamuna Group now owns large textiles, chemicals, construction, leather, engineering, beverages, media and advertisement businesses.

The group also built the largest shopping mall of the sub-continent in Dhaka.

The independence of the country not only helped create new entrepreneurs, but it also gave space to the previously-founded ventures in the land to flourish.

BSRM Group, the steel pioneer in the country, was in business since the early 1950s, but with a lack of economic opportunity until independence, said Aameir Alihussain, the managing director of the group.

"In the two pre-independence decades, our business barely grew. All we have now has mainly flourished in the independent Bangladesh," he said.

After the Liberation War, like other mills and factories, their steel mill in Chattogram was nationalised. Bangabandhu Sheikh Mujibur Rahman handed over the mill to the founders in 1974, observing the Gujarati-origin entrepreneur family's skill and devotion in the business and their love for Chattogram.

In the post-independence time, when Bangladesh was struggling for its economic survival, the steel business that was not doing that great in the 1970s, began to grow in the 1980s in tune with the increasing economic activities and constructions.

Real take-off in 1990s

The real take-off came in the 1990s when the country adopted the private sector-led growth strategy. "Our businesses have now kept on growing with time, said Aameir Alihussain.

BSRM Group is generating around Tk10,000 crore turnover each year, having over 4,000 employees and around Tk8,000 crore in cumulative investments.

The list of ventures in the land older than Bangladesh include MM Ispahani, Habib Group, AK Khan Group, Akij Group, Sikder Group, Rahimafrooz, Square Group, Partex, Navana and Islam Group, A Monem, Abul Khair, Bengal Group, Mir Akhter, and PHP.

They were in businesses, and most of them, except the old elites such as Ispahani or AK Khan, were the contenders in their respective industries. And, each has demonstrated their legendary rise in the independent Bangladesh.

AK Khan Group Director and former DCCI President Abul Kasem Khan said independence was the biggest factor behind the creation of businessmen in Bangladesh.

"Prior to independence, the people of this land were neglected in every sphere of life ," he said, adding that doing business, getting licences for lucrative businesses, availing bank loans, and having the right infrastructure for businesses, everything favoured the West Pakistanis.

In the independent Bangladesh, the situation began to change and everything now belongs to Bangladeshis.

The transformation was spectacular as the private sector enterprises are running the economic engine, which made Bangladesh a land of opportunities for entrepreneurs, consumers and skilled professionals.

"Freedom fueled entrepreneurship here debunking the old myth that Bengalis only can work for others," Abul Kasem, who is also the chairperson of Business Initiative Leading Development.

The then young founders of PHP and some other of today's conglomerates stepped in for businesses just before the independence as they got the courage following the mass political movement for freedom, led by Bangabandhu Sheikh Mujibur Rahman.

Mohammad Mohsin, managing director of PHP Group, a son of its founder Sufi Mohammad Mizanur Rahman, said his father left his bank job and started an import business with a seed capital of Tk1,483 as he observed the demand for many products in independent Bangladesh.

The desire for import substitution made PHP invest in state-of-the-art glass factories, shipyards, car assembly and automotive manufacturing and many other products.

Since the mid-1970s, Bangladesh began to get brand new entrepreneurs as the country began to open for private ventures targeting economic growth and employment.

Today's giant conglomerates, including Meghna Group of Industries, Nasir Group, and United Group, had their beginning in the second half of the first decade of independence.

Manpower exports, increasing agricultural production, development projects, and local jobs began to lead to an increase in people's purchasing power in the 1980s and the trend only grew stronger in the following decades in all areas.

The game changing event happened in the 1980s when the country began apparel exports and the availability of low-cost labour, government support, and rise of hundreds of new entrepreneurs in the export-oriented apparel industry created another legend.

Bangladesh now is the home to the maximum number of green apparel factories in the world, while it is the second largest apparel exporting nation.

Pharmaceuticals

The rise of Bangladesh's pharmaceutical industry still is a wonder to many despite the fact that local entrepreneurs in the sector began their journey before independence.

Square Pharmaceuticals, the country's pharmaceutical leader, began in 1958 with a small plant in Pabna and Square Group is now serving the big markets of drugs, FMCG products, private healthcare, media and many others.

The supportive pharmaceuticals industry policy in the 1980s helped unleash the best within the local pharmaceutical talents. Local companies, such as Square and Beximco, have emerged strongly to cater to the demand of the entire local market collectively alongside extending their market reach to over 130 countries, including many stringent developed markets.

In the 1980s, 1990s and onwards, both the existing and hundreds of new entrepreneurs explored dozens of business fields, including leather, plastic, processed foods and many with a view to exporting such goods or substituting imports, and grabbing the opportunities offered by the rising purchasing power of consumers.

In the 2000s, the country's entrepreneurs began to focus on modern and comparatively higher-end manufacturing alongside flourishing in services industries.

Existing industries, such as apparel, pharmaceuticals, only kept thriving through their manufacturing excellence and increased the level of local value addition.

Electronics, home appliances, bikes

Electrical appliances and electronics companies, including Walton, emerged as the new wonders in the 2010s and many global brands have built their factories here. Almost phasing out imports, local companies are confidently targeting to conquer international markets.

In pharmaceuticals, cement, home appliances, imports now are almost a matter of the past.

After decades of imports, Bangladesh has got its two-wheeler industry over the last decade as home-grown Runner Automobile's ambition and the supportive government policy attracted all the popular mass market brands in manufacturing motorcycles in the country, when Runner already began exporting their bikes.

The growing customer base and rapidly developing road infrastructure are drawing in affordable car manufacturers to set up factories in the economic zones here.

Also, the country's technology entrepreneurs are on the display of their strength in respective fields.

Financial Services

Mobile financial services giant Bkash has recently attracted investments from Japanese Softbank-led venture capital fund for the first time in the country, while startups, such as Pathao and Shopup, are making international media headlines.

Local firm DataSoft is working in the background of smart-home transformation in Japan.

A mix of professional and entrepreneurial skills helped many Bangladeshi executives take over foreign firms they worked for, while the companies were leaving the market after decades of operations.

From Imperial Chemical Industries to today's Advanced Chemical Industries, from Pfizer Bangladesh to Renata are the examples in the pharmaceuticals sector, while the growth hunger helped ACI to turn into a big conglomerate, having several dozen businesses under the umbrella of the mother pharmaceutical company.

Freedom fuels rise of corporate Bangladesh

Since the mid-1970s, Bangladesh began to get brand new entrepreneurs as the country began to open for private ventures targeting economic growth and employment

www.tbsnews.net

https://www.facebook.com/madeinrussianfederation/posts/2100624673424544

 

[Isa Khan]

Bangladesh strides ahead

www.tbsnews.net

The construction of a cargo terminal at the MAG Osmani International Airport in Sylhet is expected to be completed by next January.

Traders and expatriates of the district think that the construction of the cargo terminal will remove the obstacles to exporting goods by air from Sylhet.

Hilkil Gulzar, a trader from Sylhet, exports citrus fruits to several European countries, including the United Kingdom. However, as there is no cargo terminal at the Sylhet airport, he has to export goods from Dhaka's Shahjalal Airport, bearing additional expenses.


Hilkil said, "Osmani became an international airport a long time ago. There are a large number of expatriates from Sylhet. A cargo terminal at the airport has been a longstanding need."

According to traders, once completed, the cargo terminal will create opportunities to export agricultural and cottage industry products to various countries in the Middle East and Europe through direct flights from Sylhet. Besides, it will be possible to export garment products produced in Dhaka and Narayanganj through the Osmani Airport.

They have also demanded that a warehouse be built next to the cargo terminal.

"Due to the lack of designated warehouses, exports to the UK, the USA and European countries will be a problem. So, we requested the agriculture ministry in black and white about two years ago to build a warehouse in Sylhet but no initiative has been taken yet," said Abu Taher Md Shoaib, the president of the Sylhet Chamber of Commerce.

Hafiz Ahmed, the airport's manager, said, "The first phase of construction of the Export Cargo Complex at the airport started in February 2020. The second phase of construction began in August this year. Construction of the cargo terminal will be completed by January next."

He said the capacity of the cargo complex is about 100 tonnes and the cost of the whole project has been estimated at Tk26 crore. An exclusively dedicated system scanner machine has already been installed for the export cargo complex.

"The European Union delegation will visit the airport after the completion of the cargo terminal and ancillary works. Once we get their approval, the door of export from Sylhet will be opened," he added.

Traders said vegetables, pineapple, citrus fruits, betel, frozen fish, fragrant rice, cane furniture, and handicrafts produced in Sylhet have huge markets in Europe, America and the Middle East. Since a large part of the UK expatriates are residents of Sylhet, there is a huge demand for products from Sylhet.

Manjur Ahmed, president of Jalalabad Vegetable and Frozen Fish Export Group, said the construction of a cargo terminal in Sylhet will open the door for export potential. From now on, traders of Sylhet will be able to export goods to different countries from this airport.

Recently, Foreign Minister AK Abdul Momen visited the cargo terminal construction site.

He said, "At present, those who send cargo from Sylhet, first take it to Dhaka, and then send the cargo abroad. This increases the cost a lot. If the cargo can be sent directly from Sylhet, the cost will come down."

Osmani Airport cargo terminal to be launched in January

Sylhet traders also demand a warehouse by the terminal so that they can truly benefit from export through flights

www.tbsnews.net

The National Data Centre has enabled Bangladesh to discard foreign dependence simultaneously creating scopes to save foreign currency worth millions of dollars, after its inauguration two years ago as the world's seventh largest high security data storage facility.

Officials said the centre, a four-tier ICT facility in terms of cyber security, at Bangabandhu High Tech City (BHTC) in suburban Gazipur by now is saving Tk353 crore annually through data localisation in the country.

"This is a four-tier data centre having 'zero downtime', meaning no service interruption, and 99.995 percent uptime" said a spokesman of the facility run by state-owned Bangladesh Data Centre Company Limited (BDCCL).

BDCCL officials said the cyber and infrastructure security of the centre was ensured further developing a three-tier backup storage facility called "disaster-recovery data centre" at Sheikh Hasina Software Technology Park in southwestern Jashore district.

The main data centre and the backup one was developed at Prime Minister Sheikh Hasina's directive and supervision of her ICT affairs adviser Sajeeb Wazed Joy and opened in November 2019.

BDCCL Secretary AKM Latiful Kabir said so far the Election Commission and nine government offices, including Bangladesh Bureau of Statistics and state-run banks and government's e-filing systems and a2i, were preserving their data at the facility.

"A process is underway to bring 12 more organizations under the centre's fold but we are looking forward to serve the domestic and foreign entities with our unlimited capacity," he said.

The official said the centre was a cloud computing technology-based facility which was launched with two petabyte but by now "we have increased the capacity to 22 petabyte and planned to increase it to 200 petabyte soon."

"Our eventual goal is to turn it into a G-Cloud facility using Oracle technology with unlimited capacity and render three services "Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS)," he added.

Having the Data Localised and Standalone Backup, Kabir said, the G-Cloud facility will ensure safe protection of all data.

Currently, he said, the centre required to spend $45 million annually as licensing and renewing fees but switching to the G-Cloud facility would save the amount.

The data centre certified by the Uptime Institute as the 'Tier IV' facility in cloud computing and G-cloud technology was awarded the Asia Specific 'DCD-APAC Award 2019' by the UK based Data Center Dynamics on 17 September, 2019.

State Minister for ICT Division Zunaid Ahmed Palak termed the National Four Tier Data Centre as the "brain" of the "Digital Bangladesh" since there are hosted all the country's data, including 55,000 websites, 11 crore National Identity Cards, e-Nothi, Surokkha and registration system.

Noting that the G-Cloud based data centre will have unlimited capacity of preserving data, he said, "We hope we could launch the G-Cloud of Oracle technology within the next six or 12 months. And it will be the largest G-Cloud platform in the Southeast Asia".

National Data Centre enables Bangladesh to discard foreign dependence

Officials said the centre, a four-tier ICT facility in terms of cyber security, at Bangabandhu High Tech City (BHTC) in suburban Gazipur by now is saving Tk353 crore annually through data localisation in the country

www.tbsnews.net

Cotton imports to Bangladesh may fall in the current marketing year (MY) of June-May despite an increase in consumption of the major raw material of the garment industry, predicted US Department of Agriculture (USDA).

In a recent report, they said the spinners may be inclined to use more cotton from their stock instead of import as cotton price is shooting up.

The USDA report was published on 13 December this year.

In the report USDA said cotton imports in Bangladesh may fall to 8.2 million bales in the MY22 from 8.75 million in the MY21.

"Due to the high international price of cotton, local spinning mills will consume more out of stocks," said the report.

Referring to the rise in domestic cotton consumption that rose by 23 per cent in MY21, the USDA report also projected that in MY22, cotton consumption may increase to 8.81 million bales.

But local cotton importers disagreed with the prediction of the USDA although they approved the estimated rise in consumption of cotton.

They said spinning mills have to keep a security stock of cotton to avert any future uncertainty.

After facing the blow of the covid pandemic, readymade garment export has increased 28% in the first 10 months of the current calendar year reaching $28.5 billion. Orders in Bangladesh increased as production was hindered in China and Vietnam.

Industry insiders expect the rising trend may continue for the next couple of months increasing cotton consumption.

Talking to the TBS, cotton importer Rising Group managing director Mahmad Hasan Khan said no one will take the risk of reducing stock in such a volatile cotton market which is prevailing now. That's why it is unlikely that cotton imports will fall, he added.

Bangladesh Textile Mills Association (BTMA) chief executive officer Monsoor Ahmed told the TBS that a number of spinning mills are in the process of expansion with the rise in garment export. This will drive more import instead of reduced volume, he added.

He however questioned how the USDA was sure of the actual stock of cotton with the factories.

Cotton imports in Bangladesh may fall despite rise in garment exports: USDA report

Importers differ on the prediction

www.tbsnews.net

 

[Isa Khan]

The country's largest solar park in Mongla is all set to begin supplying 134.3 megawatts peak (solar power measuring unit) of electricity to the national grid from 25 December.

Energon Renewables, a subsidiary of the industrial conglomerate Orion Group, has built the plant on a 350-acre site that had originally been developed for a coal power project in 2014.

The Orion Group shelved the coal project and struck a deal with the Bangladesh Power Development Board (BPDB) in February 2019 on building the solar park.

The solar plant is a milestone in Bangladesh's efforts to reduce emissions as Prime Minister Sheikh Hasina at the COP26 announced a "target of generating 40% of our energy from renewable sources by 2041".

The $196 million green power plant project stands in striking contrast to the Rampal coal power plant, located just nearby in Bagerhat district.

"The project is undergoing a trial run and is set to start its commercial operations next week," said Ahmed Jahir Khan, director of Renewable Energy, Research and Development Directorate at the BPDB.

The Power Development Board will purchase electricity from this solar plant for 20 years under a "no electricity, no payment" term. A kilowatt-hour of electricity will cost ¢13.8.

"We developed the project against many odds," said Salman Obaidul Karim, managing director of Orion Group.

"We had to deal with all the disruptions caused by the Covid-19 pandemic. We also had to change our [solar solutions] supplier. And then there was the huge container congestion that created a global supply chain chaos," he added.

Salman Obaidul Karim pointed out that the project was a good way to go forward in the post-COP26 world, which aimed at a drastic reduction of carbon emissions by all nations of the world.

"We are very proud that the commercial operation date of this project coincides with our 50th year as an independent nation in the month of victory," he noted.

The Chinese manufacturer Longi Solar has provided the photovoltaics (PV) while Sungrow Power Supply Co Ltd supplied its central inverter solutions. ABB Singapore is the Engineering Procurement Contractor of the project and Mahindra Susten Pvt Ltd worked as an Owner's Engineer and Project Management Consultancy.

The project has been financed by a combination of local and foreign lenders. This green project will contribute to reducing around 1,80,000 tonnes of CO2 emission a year.

Energon uses energy-efficient Mono Perc cells to capture solar rays and convert them to power, which will then be supplied as Alternating Current electricity to the main grid in Mongla, some 13km away from the plant. Mono Perc cells have the highest efficiency in generating power among the four types of solar cells available in the market.

With this, the share of renewable energy in Bangladesh's total power generation capacity reaches 907.24MW, whereas the total generation capacity is above 25,000MW.

Under the Mujib Climate Prosperity Plan, Bangladesh intends to obtain 30% of energy from renewable sources by 2030 and this project is a significant initiative in achieving the government's goal of diversifying the sustainable energy infrastructure of the country.

Bagerhat is now home to Bangladesh's largest solar PV plant after overtaking the 73MW Mymensingh solar power facility. It is connected to the 132/33-kV Mongla PGCB Grid Substation through a newly-built 9km transmission line.

Orion Group has five fuel-based power plants with a capacity to generate 511MW of electricity.

Country’s largest solar project in Mongla set to begin operations 25 December

Orion Group has built the plant on a 350-acre site, originally developed for a coal power project

www.tbsnews.net

Another consignment of two sets of metro rail having six coaches each arrived at Mongla port on Tuesday.

The consignment reached Bangladesh 21 days after starting its journey from the Post of Kobe in Japan.

ABM Arifur Rahman, project manager of MRT Line-6, confirmed the news to The Business Standard and said eight sets of trains had reached Dhaka earlier. The new consignment is expected to reach Dhaka by the third week of February.

The vessel, SPM Bangkok, carrying the latest consignment anchored at jetty number eight of Mongla port around 3.50pm on Tuesday. The unloading process began on Wednesday.

Mass Rapid Transit Line-6, the country's first-ever metro rail system, is being built at a cost of around TK 21,985 crore.

Twenty-four metro trains will be required for the route from Uttara to Motijheel. The DMTCL aims to commence the commercial operation of metro rail from Uttara to Agargaon in December next year with eight sets of trains.

The Kawasaki-Mitshubishi Consortium of Japan started construction of 24 passenger trains and one relief train for MRT-6 in April 2019 under an Tk2,870 crore agreement signed in 2017.

The first set of metro trains arrived in Dhaka on 23 April this year.

Two more sets of metro rail reach Mongla port

The consignment reached Bangladesh 21 days after starting its journey from the Post of Kobe in Japan

www.tbsnews.net

Legal protection, tax benefits and rising freight charges – all these have encouraged new entrepreneurs to sign up in the ocean going shipping sector with intent to take a bigger slice of freight charges that now largely go to foreign ship operators.

Industry insiders say a provision for local vessels to carry 50% cargos, berthing priority at local ports, VAT exemption during imports and ballooning exports and imports have mainly spurred the sector's growth.

To top it all, the pandemic came as a blessing in disguise for flag vessels when the cost of a used vessel halved to $5-6 million from $10-12 million amid a trade downturn globally. And, Bangladeshi businesses cashed in on it handsomely, they added.

Over the last two years since the pandemic made inroads in the country, 32 new flag vessels have joined the country's fleet. As of December this year, the number of vessels increased to 80 from 48 in 2019.

Bangladesh spends at least $9 billion in freight charges per annum, while local ocean going vessels could tap only 8-10% at best owing to a dearth of vessels. Now it has the opportunity to retain at least 20% or $2 billion annually with the number of flag-carrier ships increasing, according to businessmen and Mercantile Marine Office of the shipping department.

Huge employment opportunities will be created as well, they said.

Surging freight rates stemming from global supply chain disruptions during the pandemic also drew in a good amount of investments. Thus, investments in the industry went up to nearly $2 billion with a new investment of $500 million.

Chattogram-based Kabir Group's SR Shipping Limited, which currently owns 23 vessels, added five new ones to its fleet over the last three years and its investment in the sector totalled $345 million since 2003.

Shahriar Jahan Rahat, deputy managing director at Kabir Group, told The Business Standard, "Bangladesh should be self-sufficient with oceangoing vessels to retain freight charges now going to foreign ocean liners."

"We have invested in flag vessels to retain our share."

To further boost the industry, Shahriar demanded a more business-friendly policy.

Mentioning that they are retaining a pie of freight charges from going abroad, he also proposed withdrawing the existing 3% income tax on freight as they are fetching foreign currency this way, and providing them with a cash incentive.

Last year alone, his company brought home $100 million in freight charges with oceangoing vessels.

Captain Md Giyashuddin Ahmed, principal officer at the Department of Shipping, told TBS that the highest number of ships in the history of Bangladesh has been added to the domestic fleet over the last two years, thanks to the enactment of flag vessel protection law that encouraged private entrepreneurs to invest in the sector.

"There are still plenty of investment opportunities in this sector. At present, Bangladesh has the capacity to transport about 20% of import and export goods through local flag vessels," he noted.

Other big names that entered the industry include Meghna Group with 15 ships, Akij Group with 10, Karnaphuli Group with six, Bashundhara Group with four and Orion Group with one ship. Bangladesh Shipping Corporation also owns eight vessels, according to the Mercantile Marine Office.

Meghna Group pressed into service the highest number of vessels in the pandemic time. Some 10 out of 32 new ships that sailed in high seas belong to the group.

Its 15 ships carry 7.5 lakh tonnes of goods per month and their annual transportation to different ports across the world stands at 90 lakh tonnes.

Mohammad Abu Taher, technical manager at Mercantile Shipping Lines Ltd, a sister concern of Meghna Group, said they have invested $375 million in their 15 ships. Four more ships are expected to join the fleet by December 2022.

According to Meghna Group sources, their ships carry 60% of the company's own products. The remaining 40% capacity is used to cater to domestic and foreign companies.

In 2013 Bangladesh had 85 ocean-going cargo vessels, but the number had dropped to 35 in 2018 owing to declining freight charges, higher operating costs and withdrawal of VAT exemption on imports and manufacture of vessels.

High bank interests, image crisis, delay in registration, double taxation in various international ports and a lack of protection policy are other factors responsible for a dwindling number of merchant ships in Bangladesh.

The newly enacted Bangladesh Flag Vessels (Protection) Act 2019 has given businessmen VAT exemption for registration of vessels with over 5,000 DWT capacity, priority berthing for Bangladeshi flag carrier vessels at local ports, allowed 50% goods to be carried by local ships from the earlier 40%, and ensured hassle-free registration. So investors are showing renewed interest in oceangoing vessels.

Sources at Bangladesh Ocean Going Ship Owners' Association said the oceangoing shipping sector has potential to create six lakh jobs and rake in $4 billion in additional earnings.

Meherul Karim, chief executive officer at SR Shipping Ltd, a sister concern of Kabir Group, said the flag vessel protection law has created huge opportunities for investment in the sector. Moreover, prices of ships came down a bit. That is why entrepreneurs in this sector have made new investments and there are more opportunities to invest in this sector.

After a decade, Karnaphuli Group restarted business in this sector by buying two container ships at a cost of Tk116 crore in 2020. This year, the number of ships in the group's fleet now stands at six.

Bashundhara Group has made new investments in the LPG tanker sector. At present, Bashundhara Group has three ships for LPG transportation. The group also owns another cargo ship.

Lured by global shipping heydays?

While major ports are backlogged and there is a huge dearth of containers, global shipping companies are making record profits, some reaching highest in 117 years or even rivalling the profit of Apple Inc.

The world's biggest container shipping line, AP Moller-Maersk A/S hopes to make more than three-time profits this year than the previous estimate and 15 times the amount the Danish shipping giant saw in 2019. Six months' earnings of Germany's Hapag-Lloyd AG have surpassed its earnings of the previous ten years combined.

Surging freight rates stemming from global supply chain snarl-ups mean headache for businesses, manufacturers and consumers, but big profits for ocean liners.

Cancelled or delayed voyages, high freight rates and congestion surcharges—all add to their income.

While record numbers of ocean liners are waiting off the coast of congested ports like Los Angeles and Long Beach in the USA, ocean freight companies continue to make money.

Freight cost to send a 40-foot container from China to California surged 10-fold to the range of $15,000 to $17,000, and the trend is predicted to remain through Christmas days to the middle of next year.

Are local companies putting money into ships in the hope to grab a pie from the global shipping bonanza out of the crisis?

Business executives said it might be a part of the strategy, but they in fact started relooking in the ocean container freights after the favourable law was enacted two years back.

Azam J Chowdhury, president at Bangladesh Ocean Going Ship Owners Association, told TBS most investments made in Bangladeshi flag carrier vessels over the last two years are for transporting their own goods. Bangladeshi entrepreneurs have the potential to invest more in this sector.

But the government has to fully implement the provisions of the flag vessel protection act, he added.

Anis Ud Daula, executive director at HR Lines Ltd, an affiliate of the Karnaphuli Group, told TBS that since the company has been involved in the shipping business for a long time, it has added six feeder vessels to its fleet over time.

At present, these ships can transport 25,000 TEU or Twenty-foot Equivalent Unit of import and export containers per month.

The deputy managing director of Kabir Group said surging freight costs is also a factor that brought in investments in the oceangoing shipping sector.

In pandemic time local shippers added 32 vessels to fleet

Bangladesh spends at least $9 billion in freight charges per annum, while local ocean going vessels could tap only 8-10% at best owing to a dearth of vessels

www.tbsnews.net

 

[Isa Khan]

UAE-based Bangladeshi auto parts traders and automobile service providers are planning to set up several parts manufacturing plants in Bangladesh's fast-growing $4.42 billion automotive markets.

"We are ready to invest in Bangladesh to support the industry's growth," said Mohin Uddin, a leading member of the Bangladeshi auto parts traders in the UAE, at a recent meeting with the leaders of Bangladesh Automobiles Assemblers and Manufacturers Association (BAAMA).

"We have experienced and skilled human resources, capital and the know-how," added Mohin, also chairman of the Dubai Royal Group.

At the meeting held on the sideline of Dubai Expo 2020, the UAE-based Bangladeshi auto traders also said, they are in a unique position to market Made in Bangladesh auto parts in the UAE market that will help the Bangladeshi parts manufacturers expand in the Gulf Cooperation Council (GCC) markets.

Over 5,000 Bangladeshi traders dominate the UAE's automotive aftermarket sector, especially the used auto spare parts market.

They are involved in the imports, wholesale, retail, servicing and re-export of the auto parts sector while a large number of them also own auto electric service centres, garages that take care of all types of auto servicing and repairs.

These businesses employ more than 50,000 skilled and semi-skilled professionals who have the complete know-how of maintenance, repair, knock-down, overhaul and re-assembly of various models and brands of automobiles.

The annual automobile market in Bangladesh is around $2.35 billion while the annual parts and components market is estimated to be more than $2.05 billion, according to a research report.

More than 4.7 million vehicles are currently registered in Bangladesh of which more than 60% are Japanese brands while Indian brands represent 25%, according to an industry report.

Of the 4.7 million registered vehicles, 66% are two-wheelers that have been growing at a compound annual growth rate (CAGR) of 15% over the last five years.

Bangladeshi automobile assemblers and manufacturers import 35% of the parts from China and 30% from India, the report shows.

"The Bangladesh government is keen to develop the automobile industry," said Mohammad Sirazul Islam, executive chairman of the Bangladesh Investment Development Authority (Bida), which organised a seminar at the expo to invite UAE businesses to invest in Bangladesh's automotive industry, where the manufacturing and assembly plants rely mostly on imported auto parts.

"It will need massive investment to acquire technology, know-how and produce components to support the automobile manufacturing plants," he added.

Abdul Matlub Ahmad, president of the BAAMA, said, "The automobile industry is going to be the next big contributor to Bangladesh's economy if we can attract foreign investment in the automobile component and parts industry, which we currently import for our manufacturing plants.

"The industry is currently catering to the domestic market. However, if we could develop the industry properly, Bangladesh could become a major automobile exporter to the rest of the world – the same way we developed the ready-made garments industry," he added.

"Currently we are scouting for investment in the auto parts industry, that could produce vital auto parts to support the local auto assemblers and manufacturers so that we don't have to import them from other countries," concluded Abdul Matlub Ahmad, who is also the president of the India-Bangladesh Chamber of Commerce and Industry (IBCCI).

UAE-based Bangladeshi auto industry traders plan to invest in homeland

Over 5,000 Bangladeshi traders dominate the UAE’s automotive aftermarket sector, especially the used auto spare parts market

www.tbsnews.net

https://twitter.com/i/web/status/1475754767364284423

 

[Agha Sher]

@Isa Khan, brother, many of your posts are long articles. I doubt many people actually read them, which I think is a pity as BD is making stunning progress. I think it would be better if you could summerize the articles in a few bullet point along with posting a link to the full article. In this way, many would be able to follow BD more efficiently. What do you think?

 

[Isa Khan]

@Isa Khan, brother, many of your posts are long articles. I doubt many people actually read them, which I think is a pity as BD is making stunning progress. I think it would be better if you could summerize the articles in a few bullet point along with posting a link to the full article. In this way, many would be able to follow BD more efficiently. What do you think?

Well certainly not a bad idea, less work for me. But whoever wants to read them, can do it here. Why waste another click to open another page/tab?

 

[Isa Khan]

Welcoming the New Year, the country's first university campus-based business incubator is set to begin its journey at Chittagong University of Engineering and Technology (CUET) in the last week of January.

Named Sheikh Kamal IT Business Incubator, in memory of Sheikh Kamal, the eldest son of Father of the Nation Bangabandhu Sheikh Mujibur Rahman, the incubator will provide 250 entrepreneurs, freelancers and potential startups with financial and logistical services, alongside mentorships.

Most of those who have applied for the opportunity so far are students, especially fourth-year and master's students from CUET and other universities in Chattogram, who do a lot of projects and theses, said Professor Dr M Moshiul Hoque, dean, Faculty of Electrical and Computer Engineering, and director of the incubator.

If a project in the incubator does not take off, steps will be taken to help students gain job placements, while nurturing the creativity of the youth and utilising the experience they gained in the facility, he said.

Constructed on 4.7 acres on the CUET campus at a cost of Tk125 crore, this will be another feather in the cap of the Digital Bangladesh campaign, first unveiled in the election manifesto of the present government in 2008.

CUET Vice-Chancellor Prof Dr Mohammad Rafiqul Alam said to The Business Standard, "The Fourth Industrial Revolution is now a reality. China and India have already made a name for themselves in the world by creating jobs by setting up business incubators. Bangladesh is now on that path too.

"The IT business incubator will be run by qualified manpower…it will open the door to endless possibilities for creative youth."

Professor Moshiul Hoque said, "Initially, we will give 20 startups a chance to work. The selection for this is going on. In the first round, we selected 250 people after evaluating 7,500 ideas. In the next step, 20 people will be selected from there; we will get those names by this month.

"Everyone selected will get financial assistance of Tk10 lakh for the implementation of their project. In addition, for the next one year, they will be able to use the incubator's lab, internet, telephone, and office for free. Besides, there are facilities to eat and stay here as well."

The director also said office space in the facility will be rented out at a very low cost.

"Companies will be able to continue their initial work by employing fresh graduates and the students will also acquire skills for the future."

He said many of these projects showed promise, but lacked proper guidance, mentoring and finances, which resulted in those not seeing the light of day. "We will give them priority. We are working on how to convert university projects into real projects and products. The Sheikh Kamal Incubator will act as the bridge," he said.

Fahim Uddin, a student of the 18th batch, said, "CUET students are always interested in new innovations in the use of information technology. But due to lack of financial support and necessary guidance, the initiatives never take off. We hope that students can get a fair assessment of their merits if we can avail facilities like the business incubator."

The projects in the incubator will be kept under "high-level monitoring", for which an expert panel will be formed.

Each project will be assigned a mentor, and as it develops the entrepreneurs will be given the opportunity to network within their chosen industry and be assisted in obtaining intellectual property.

Architecture department student Tasnia Masiat, a student of the 16th batch, said, "With Sheikh Kamal IT Incubator, we can easily work on more IT-related platforms. However, we ask the authorities to keep in mind the challenges faced by women and keep special opportunities for them."

What's in the IT Business Incubator?

Under the Sheikh Kamal IT Business Incubator project, a 10-storey incubation building comprising 50,000 square feet and two multipurpose training buildings, six-storeyed and four-storeyed, taking up 36,000 sq ft have been constructed on five acres of land.

The incubation building has a startup zone, innovation zone, industry-academic zone, brainstorming zone, an exhibition centre, an e-library zone, a data centre, research lab, video conferencing room and a conference room.

There will also be separate corners for banks and IT firms, cyber cafes, food courts, cafeterias, recreation zones, display zones and media rooms.

Additionally, the multipurpose training building boasts a state-of-the-art auditorium with a capacity of 250 people, and four computer/seminar rooms with a capacity of 50 people.

Besides, there are two separate dormitory buildings (one for women, one for men) with four floors each covering an area of 20,000 sq ft. Each dormitory has 40 rooms.

An Artificial Intelligence (AI) lab, a machine learning lab, an optical fibre backbone, a substation and a solar panel are also being set up.

"Although there are only a couple of business incubators in different parts of the country, including in Jashore-Sylhet, our project will have the most technological advantages in the country. Besides, it will be run by talented scientists and trainers from local and foreign universities," said Vice Chancellor of the University Prof Dr Mohammad Rafiqul Alam.

A business incubator is considered an effective mechanism for research innovation and entrepreneurship within academic institutions.

Considering this, in 2012 the Bangladesh Hi-Tech Park Authority under the Ministry of Information Technology, took the initiative to set up an IT Business Incubator.

The project was approved by Prime Minister Sheikh Hasina at the 26th meeting of the Executive Committee of the National Economic Council (ECNEC) on June 8, 2017. The cost of the project was initially estimated at Tk82.02 cr, before increasing to Tk125 cr.

Hosne Ara Begum, managing director, Bangladesh Hi-Tech Park Authority, said, "This is a dream project of the current government. It wants the first-of-its-kind initiative to succeed. In addition, Sheikh Kamal IT Training and Incubation Center in Chandgaon area of Chattogram city, Software Technology Park and IT Park at Singapore-Bangkok Market in Agrabad, construction of a world class IT Park at Chittagong University and construction of an "IT Business Hub" around Chattogram are also ongoing."

The business incubation centre project is being implemented by CUET in collaboration with the Ministry of Posts, Telecommunications and Information Technology and under the supervision of the Bangladesh Hi-Tech Park Authority.

First campus-based business incubator opens in January

It will provide 250 entrepreneurs, freelancers and potential startups with financial and logistical services, alongside mentorships

www.tbsnews.net

https://www.facebook.com/chinaembd/posts/474697474000688

 

[Isa Khan]

The government is going to build a 660-megawatt gas or liquified natural gas-based power plant in Mirsarai of Chattogram.

The cabinet committee on purchase yesterday approved the plant, which will be implemented by the Bangladesh Power Development Board.

A consortium of Confidence Power Holdings Ltd, GE Capital US Holding Inc, Confidence Power Ltd, and Electropac Industries Ltd will implement the project.

A unit of electricity from the plant will cost 3.037 US cents, or Tk 2.943, if the plant is gas-based, while it will be 6.796 US cents, or Tk 5.436, it is based on re-gasified liquified natural gas.

The move came after the government scrapped plans to build eight coal-fired power projects recently considering the environmental issues.

While briefing reporters after the meeting, Finance Minister AHM Mustafa Kamal said the government would build more new power plants using alternative fuels due to the cancellation of the coal-based power plants.

He said the government had cancelled the coal-fired power plants as they are harmful to the environment.

The purchase committee also approved the proposals of extending the term of four quick rental power plants for one to five years.

The delay in the construction of several other plants was a reason for the extension of the quick rental power plants.

Shamsul Arefin, additional secretary of the cabinet division, said the unit prices of the extended projects will be lower than the previous rates.

The four plants are: 50MW gas-based power plant in Sylhet's Kumargaon; Fenchuganj 50MW gas-based plant; Bogura 20MW gas-based plant; and Ashuganj 53MW gas-based plant.

The purchase committee also approved a proposal allowing the government to import 50,000 tonnes of wheat from Bagadiya Brothers Pvt Ltd of India.

Govt to build 660MW plant in Mirsarai

The government is going to build a 660-megawatt gas or liquified natural gas-based power plant in Mirsarai of Chattogram.

www.thedailystar.net

 

[Isa Khan]

The New Mooring Overflow Container Yard at the Chattogram port started its journey on Sunday.

The yard can accommodate 4,000 TEUs (twenty-foot equivalent units) of containers, which increases the port's container capacity from 49,000 TEUs to 53,000 TEUs.

Port officials said the yard built at the Freeport Junction in Chattogram will greatly reduce the possibility of container congestion in the future.

Bad weather and delays in unloading goods cause container congestion at the port. Besides, containers pile up in the port if importers take longer for delivery of goods than usual.

According to Chattogram port officials, the foundation stone of the New Mooring Overflow Container Yard was laid in 2016. The yard, sprawling over 34 acres of land, was constructed in two phases and it cost around Tk175 crore.

In 2021, the Chattogram port handled 32.14 lakh TEUs of containers, which was the highest in the last 44 years.

Port Chairman Rear Admiral M Shahjahan said, "Mobility has increased in the port, which is good news for us. The whole country is moving forward through this. The port is the main gateway to the progress of Bangladesh. Different countries want to invest in the Chattogram port."

Port Secretary Omar Faruk said, "The port's capacity is increasing through the implementation of various projects. The port can now hold more than 50,000 TEUs of containers."

New container yard opens at Ctg port, ups capacity by 4000 TEUs

The New Mooring Overflow Container Yard at the Chattogram port started its journey on Sunday. The yard can accommodate 4,000 TEUs (twenty-foot equivalent units) of containers, which increases the port's container capacity from 49,000 TEUs to 53,000 TEUs. Port officials said the yard built at the...

www.tbsnews.net

After retirement from the police, Mostafa Golam Quddus established a sweater factory in Bangladesh in 1987 – marking the country's entrance into the global sweater market mostly dominated by China at that time.

He flew in 43 Chinese experts for his factory and what happened next astounded the local business community – he exported products worth $3 million in the first year of the experimental start. Quddus's Cheung Hing Sweater has not looked back ever since.

The $3 million export has grown to more than $4 billion over time, and is expanding further as Bangladesh continues to gain more and more of the international sweater market.

Automated production lines now hum round the clock in nearly 400 sweater factories while manual hand flat knitting devices have been replaced by modern and automated Jacquard machines.

Pullovers, cardigans, jumpers and mufflers are included in the basic knitwear category.

Sweater has logged 27% export growth in the past six years as China pulled out from sweater-making, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Exporters say the growth in this area is relatively higher compared to other items.

With a supercharged demand as economies reopened shaking off Covid fear, sweater-makers now eye fresh investment and factory expansion.

In 2021, there were five new investments while several sweater-making units expanded production capacity, says BGMEA Vice-President Shahidullah Azim.

Two entrepreneurs tell The Business Standard that they will put more money in sweater-making in the next two years. Shahidullah Azim also hopes investment in sweater manufacturing will increase in upcoming months.

Mostafa Golam Quddus, who had to hire Chinese workers for making sweaters, says creating a trained local workforce was a game changer for Bangladesh's business.

The former president of the BGMEA is now well-known for his Dragon Sweater, a knitting and spinning project he launched in 1993 after training the local workforce.

"Our success inspired many to invest in sweater making and paved the way for bringing in modern technology and upgraded machines," he notes.

Local entrepreneurs in expansion mood as China pulls out

With China as the major supplier, the current size of the international sweater market is around $104 billion. The other key players are Bangladesh, Cambodia, Turkiye, Vietnam and Myanmar.

Mohiuddin Alamgir Romel, managing director of Global Knitwear, says China is leaving the global sweater market owing to rise in production costs and because sweaters are a basic knitwear item. Bangladeshi entrepreneurs are to gain hugely in the upcoming years from the exit.

Designtex Knitwear, which now owns three factories, began producing sweaters in the 2000s. The owner of the company Khandoker Rafiqul Islam plans to increase investment in sweater-making by the end of 2022.

Rafiqul Islam, whose production units currently employ over 8,000 workers, tells TBS that the existing factories have increased their capacity in recent years rather than setting up new ones.

Mohiuddin Alamgir Romel also says they will scale up sweater investment – although he gives no details.

Low-cost items dominate the basket

Entrepreneurs say they mainly manufacture low-cost sweaters and export those for only $4-$6 per piece. Only a few factories export high-value items but in a low quantity.

Local sweater-makers can boost their earnings through making expensive items like "Cashmere wool sweaters", which are valued at $100-$150 apiece. Raw materials meant for producing it are available in India, China, and Mongolia.

Mohiuddin Alamgir Romel said an entrepreneur took an initiative to make this expensive item in his factory inside Cumilla EPZ but was not successful.

Bangladeshi makers now export sweaters made of acrylic fiber and some fashionable accessories to get some extra prices.

Some 20 to 25 factories are engaged in the large-scale export of sweaters in the country.

The list includes Pioneer Knitwear (BD) Ltd., Refat Garments, Square Fashions, Flamingo Fashion, Eurozone Fashion, Pakiza Knit Composite Ltd, AG Dresses Ltd. GMS Composite Knitting Ind Ltd, Nipa Fashion Wear Industry Ltd, AKH Knitting & Dying, Aswad Composite Mills, Cotton Club (BD), Matrix Sweater, Target Sweater, and Rupayan Sweaters.

Skilled sweater-maker crisis

Even more than three decades after the initial sweater-making journey, a severe scarcity of skilled workforce still dogs the entrepreneurs. The owners also said unusual price hikes of cotton in recent times also threw challenges at them.

Besides, they are lagging behind in terms of innovation, setting up design centres and a strong backward linkage.

To top it all, harmonised system code related complexities got in the way of raw material imports. Sweater-makers are also struggling to get orders from most of the big brands.

Moreover, a huge investment is required for setting up a factory in this sector, which is not possible for entrepreneurs with relatively small capital.

Mohiuddin said setting up a small factory with 200 machines would need $1.6 million on machines alone. As a result, investing in this sector is not easy.

This type of factory has to be kept running 24 hours a day, he said, adding at least half of these workers work at piece rates.

"The churn rate of these workers is high, which hampers production. Workers could be found easily in the past but now they have become scarce."

Sweater emerges as next big bet as China exits market

Sweater has logged 27% export growth in the past six years

www.tbsnews.net

Pran-RFL Group, one of the largest conglomerates in the country, plans to make huge investments to manufacture edible oil, flour, pulses, salt and other consumer staples to reposition itself as a leader in the consumer goods market.

The business group has already completed the construction of a large part of its new industrial park on a 180-bigha plot of land in Gazipur's Moktarpur to produce essential products. It is also setting up poultry farms in Moulvibazar and Habiganj, and a mobile phone manufacturing plant in Narsingdi.

Also, the group has taken initiatives to expand the production capacity of its garments, footwear and glassware factories.

Pran-RFL is set to invest at least Tk1,700 crore in 2022 alone, officials of the conglomerate have told The Business Standard. This will create 20,000 new jobs, they expect.

"We are investing in sectors that can meet the demand of local consumers and increase exports. We also want to help the agriculture sector grow and create employment," said Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group.

Staples such as edible oil, flour, semolina, pulses, sugar, salt etc. constitute a significant portion of the huge consumer goods market, mentioned Kamruzzaman Kamal, director (marketing) of Pran-RFL Group, adding they are currently working on a plan to produce all types of essential goods except sugar.

Company officials said the new industrial park in Gazipur called Kaliganj Agro Processing Limited will have plants to process soybean and refine oil. There will also be units to produce flour, salt, pulses, starch, and feed meals, among other products.

The group plans to invest Tk1,500 crore in this sector this year, they said, adding goods produced in this industrial park are expected to hit the market by the end of the year.

As per Light Castle, a global market research company, Bangladesh has a consumer goods market of $200 billion or roughly Tk17,00,000 crore.

Currently, the market leaders in the consumer goods sector in the country are City Group, Meghna Group, TK Group, Bashundhara Group, S Alam Group, Abul Khair Group, etc. City Group alone has an annual turnover to the tune of around Tk25,000 crore.

Mobile handsets, garments and poultry

Pran-RFL Group has been in the country's electronics market for a long time with their brands Vision and Click. Now, they are going to produce mobile handsets under the brand name Proton.

For this, the company has already set up a factory at Pran Industrial Park in Narsingdi. The factory will produce smart and feature phones as well as various types of mobile accessories including headphones, batteries and chargers.

Pran's Proton phones will enter the country's Tk12,000-crore mobile phone market and compete with other brands including Samsung, Symphony, Walton, Vivo, Oppo, Realme, Techno, iTel, Infinix, Five Star, and Nokia among others.

Kamruzzaman Kamal, director (marketing) of Pran-RFL Group, said, "Our factory has the capacity to manufacture one lakh smartphones and 1.5 lakh feature phones per month. Proton phones will hit the market next March."

Even though Pran-RFL is a pioneer in agro-processing in the country, the group was not directly involved in poultry farming. This time they are setting up a poultry industry on 150 bighas of land in Moulvibazar and Chunarughat of Habiganj.

The company has already completed the infrastructural construction at a cost of Tk40 crore. Around 15 crore eggs and 360 tonnes of chicken meat would be produced here annually, officials said.

According to sources, the poultry market in Bangladesh has already exceeded Tk30,000 crore mark. Currently, there are more than one lakh poultry farms in the country and the number of registered parent stock farms is 206.

The country produces about 4.5 crore eggs and 3,000 tonnes of chicken meat per day.

Pran-RFL also looks to produce different types of underwear and polo shirts at the Barindra Industrial Park in Godagari of Rajshahi with an investment of Tk50 crore. Kamruzzaman Kamal said initially, 2,500 rural women will be employed here.

Expansion of footwear and glassware production

Officials at Pran-RFL Group also outlined the company's plans to expand its footwear and glassware plant amid the Covid-19 pandemic.

The existing shoe production capacity at their footwear factory at Narsingdi Industrial Park will be increased from six lakh pairs to nine lakh pairs at a cost of Tk35 crore, while the production capacity of the glassware factory will be tripled to 7.5 lakh square feet with an investment of Tk55 crore.

Founded by Amjad Khan Chowdhury at an initial investment of Tk5 lakh, Pran-RFL Group started its journey in 1981 as Rangpur Foundry Limited (RFL) with tubewells and agricultural equipment to provide pure drinking water and irrigation facilities to the poor.

In 1985, the company entered the food processing business with a small-scale cultivation of banana, papaya, pineapple, tuberose, etc in Narsingdi by forming Agricultural Marketing Company Limited.

Since then, Pran-RFL Group has been one of the market leaders in the country with a wide range of products including drinks, sauces, jellies, chanachur, chips, spices, chocolates, bakeries, frozen foods, toiletries, dairy products, housewares, and electronics.

At present, the company has an array of 2,800 products under 10 categories.

About 1,29,000 workers are working directly with the group, which is the highest in the private sector in Bangladesh. But, around 15 lakh people are directly and indirectly dependent on the group. The group has an annual turnover of over Tk20,000 crore.

Currently, Pran's products are available in 145 countries of five geographic regions including Southeast Asia, Middle East, Africa, Europe and North America. It has sales and distribution networks in the USA, Australia, UAE, Saudi-Arabia, Qatar, India, Oman, Malaysia, Singapore, and Somalia with full-fledged offices, warehouses and other support.

The group has started its own production plant in India to accelerate its continuous growth.

Pran to enter essentials market with big investment

Pran-RFL Group, one of the largest conglomerates in the country, plans to make huge investments to manufacture edible oil, flour, pulses, salt and other consumer staples to reposition itself as a leader in the consumer goods market. The business group has already completed the construction of a...

www.tbsnews.net

The Cabinet Committee on Public Purchase (CCPP) has approved a proposal for setting up two solar power plants with a capacity of 120 MW at Muktagacha in Mymensingh and Ishwardi in Pabna.

The government will buy electricity from these two power plants at Tk8.12 per unit.

The committee approved the projects at a meeting chaired by Finance Minister AHM Mustafa Kamal on Wednesday, said Shamsul Arefin, additional secretary to the Cabinet Division.

"On the proposal of the Bangladesh Power Development Board, a 70 MW (AC) grid-tied solar power plant will be set up in Ishwardi. A consortium of Dihan Green Energy Limited, HI Korea Limited and Pabna Solar Power Limited will jointly implement the project."

The consortium signed a 20-year contract for the project that will cost Tk1,843 crore.

"A consortium of Total Eren of France, Norwegian Renewables Group of Norway and Urban Services Limited of Bangladesh has been awarded the contract to set up a 50 MW grid-tied solar power plant at Muktagacha. The total cost of the 20-year project is estimated at Tk1,315 crore," said Shamsul Arefin.

The committee also extended a contract with Venture Energy Resources Limited regarding the 40 MW power plant in Bhola. In the extended period, the government will purchase electricity from the gas-based rental power plant at Tk2.71 per unit, which was Tk2.79 earlier.

In addition to that, the committee has approved the Bangladesh Rural Electrification Board's proposal to buy 32,400 poles for Tk31 crore. Each pole will cost Tk9,677. Castle Construction and Poles and Concrete Limited will supply the poles.

The committee also approved a proposal of Bangladesh Chemical Industries Corporation (BCIC) to import 60,000 tonnes of urea fertiliser at Tk494 crore from the United Arab Emirates and Qatar.

The cabinet committee also approved the BCIC's proposal to import 25,000 tonnes of rock phosphate at Tk81.49 crore through Desh Trading Corporation.

Solar power plants in Pabna, Mymensingh get nod

The government will buy electricity from these two power plants at Tk8.12 per unit

www.tbsnews.net

The Asian Infrastructure Investment Bank (AIIB) has expressed its interest in financing the 88-kilometre Dhaka Inner Ring Road project, aimed at ensuring smooth travel from one end of the city to the other.

"The multilateral development bank has given its consent after we sent it a proposal seeking funds for the project," Kawsar Jahan, a deputy secretary at the Economic Relations Divisions (ERD), told The Business Standard.

"But the government has made a fresh plan to seek finance for a bunch of projects in Dhaka to eliminate traffic congestions in the country's busiest city. Currently, the Prime Minister's Office is handling the matter and we are yet to receive any update."

The Roads and Highways Department (RHD) is implementing the project at a cost of over Tk12,478 crore.

"In 2018, the department completed a feasibility study and then sent a preliminary development project proposal (PDPP) to the ERD on funding," said Md Sabuj Uddin Khan, additional chief engineer at the RHD.

"After getting approval from the Planning Commission, the ERD sent a proposal to the AIIB."

Sabuj Uddin said it is estimated that the acquisition of 61.87 hectares of land will cost Tk5,356 crore while the remaining Tk7,050 crore will be spent on construction work.

In line with the Revised Strategic Transport Plan (RSTP) of 2016, the government has taken up the project to make travelling from one end of Dhaka to the other without having to enter the city and in a faster way by avoiding tailbacks.

The project will be implemented in two parts. The first part – eastern bypass – will be 25km from Demra to Abdullahpur via Beraid, Purbachal and Teromukh.

And the 63km second part will cover Abdullahpur Rail Gate-Dhur-Birulia-Gabtoli-Swarighat-Babubazar-Kadamtali-Teghariya-Postagola-Chashara-Shimrail-Demra.

Under the project, two eight-lane bridges and nine overpasses, flyovers and U-loops will be built. Additionally, 29 underpasses, 47km pavements, six switch-gates and 86km drain-cum-footpath will be built.

In line with the RSTP, the government has taken up another project to build the Dhaka Outer Ring Road – a bypass road outside the periphery of the capital with a length of 132km for long-haul vehicles.

Through the bypass, vehicles from different districts will be able to go to another district without entering city traffic, said Md Rokibul Hasan, a transport planner at the Dhaka Transport Coordination Authority (DTCA) and in-charge of the project.

This project too will be implemented in two parts.

The 48km southern part will be from Hemayetpur (on the Dhaka-Aricha Highway) to Madanpur (on the Dhaka-Chattogram Highway) via Kalakandi (on the Dhaka-Mawa Highway) and 3rd Shitalakshya Bridge.

In April 2020, the authorities appointed a consultant to conduct the feasibility study and prepare a preliminary design of this part, which is nearing completion.

On the other hand, the DTCA is hiring consultants to conduct a field-level feasibility study on the remaining 64km.

In September 2019, the Cabinet Committee on Economic Affairs gave its assent for the implementation of the project on a public-private partnership (PPP) basis.

Currently, the PPP Authority is searching for an organisation that can provide funds for the project.

"We are considering Japan's Marubeni Corporation in the matter of a financing of the project. We have already had primary discussions, but could not proceed further as a detailed feasibility study remains to be done," Dr Najmus Sayadat, director (Investment Promotion) of the PPP Authority, told TBS.

"However, to conduct a study on economic viability, we will appoint a transaction advisory consultant. The appointment process may begin in two to three months and we hope the study will end in mid-2023."

About a field-level study, DTCA's Rokibul Hasan said, "We are going to appoint another consultant to conduct a detailed feasibility study and prepare a design. The appointment process will start in January and, hopefully, a consultant may be appointed by mid-February."

The consultant firm will then complete the study in 12 months. So the final feasibility study also may end in 2023, he added.

The existing Dhaka-Mawa Highway and the Dhaka-Narsingdi Highway will cover the rest 20km length of the 132km outer ring road.

AIIB keen to finance Dhaka Inner Ring Road

The Roads and Highways Department (RHD) is implementing the project at a cost of over Tk12,478 crore

www.tbsnews.net

Chattogram is going to have a metro rail network as the second city in the country after Dhaka where the service is due to be launched in December this year.

Prime Minister Sheikh Hasina on Tuesday asked the authorities concerned to build the metro rail from the Shah Amanat International Airport to the Chattogram Railway Station in the port city.

She issued the directive at a meeting of the Executive Committee of the National Economic Council (Ecnec).

Planning Minister MA Mannan briefed journalists on the outcome of the meeting and said the Chattogram City Corporation has been asked to send a project proposal to this end.

The Planning Commission will then complete the process of approving the project proposal with due importance, he added.

The planning minister also said they should also plan metro rail-like development projects in other big cities of the country where there are large old airports.

The prime minister joined the meeting virtually from her official residence Ganabhaban while ministers and secretaries from the NEC meeting room at the city's Sher-e-Bangla Nagar.

The implementation of the first metro rail or Mass Rapid Transit (MRT-6) Line in Dhaka started in 2012 with Japanese funding. Initially, the project was supposed to be completed in 2024, but the work of the Uttara-Agargaon portion of MRT-6 will end in December this year following the PM's directive to finish it early.

The construction of the Agargaon-Motijheel portion will be completed in December 2023.

Till November last year, the progress of the MRT-6 Line was 89.88%.

The construction of two more metro rail routes in Dhaka is scheduled to begin this year.

The prime minister also instructed the authorities concerned to make arrangements for the water of the Chaktai canal in Chattogram to go underground, said MA Mannan.

She said the Chaktai canal water cannot move underground as the canal bed has been paved and this is causing waterlogging in the port city. She asked the authorities to take care of the matter.

At the Ecnec meeting, the premier emphasised setting up satellite towns instead of expanding the area of the Chattogram City Corporation, said MA Mannan.

The meeting also discussed the MRT-6 and other projects that are scheduled to end this year, he added.

The planning minister said work on two other mega projects – Padma Bridge and Karnaphuli Tunnel – would be completed this year.

He said once the projects are completed, economists believe that the country's economic growth will increase by 2-2.5%.

State Minister for Planning Dr Shamsul Alam said work on the Padma Bridge and Karnaphuli tunnel would be completed in June and October, respectively.

According to the feasibility study, once the Padma Bridge opens to traffic, the growth will increase by 1.2%. Although the survey report of the other two projects did not mention growth, the transportation of goods will increase.

He said once these three projects are completed, the growth could go up by 1.5-2%.

Meanwhile, the state minister for planning said that despite feasibility studies, the designs of development projects are being revised two to three times.

The contractors of the development projects are held responsible for such work, but no action is taken against organisations that conduct feasibility studies, he added.

"The prime minister has directed the authorities concerned to consider the matter with due importance," he added.

Build metro rail in Chattogram too: PM

Sheikh Hasina also orders steps to end waterlogging in the port city

www.tbsnews.net

 

[Isa Khan]

The ‘Hilsa Research’ ship has been built in the country by Khulna Shipyard Limited for Bangladesh Fisheries Research Institute.​

The ship was handed over on Tuesday afternoon. Fisheries and Livestock Minister SM Rezaul Karim was the chief guest at the handover ceremony at Khulna Shipyard Limited premises.

Speaking on the occasion, Fisheries and Livestock Minister SM Rezaul Karim said “the construction of the research ship is proof of the capability of Independent Bangladesh”. Only 11 countries in the world produce hilsa – among them, Bangladesh is at the top. We produce 80% of the total Hilsa. As a result, Hilsa has already been recognized as a Geographical Indication (GI) product in Bangladesh.

Mentioning that the life of hilsa is varied, Fisheries and Livestock Minister said hilsa is born in freshwater, spends a large part of its life in the saltwater of sea, and then moves to freshwater to lay eggs during the breeding season. Due to climate change, the life cycle of Hilsa has changed a lot. “So far, there has been no ship to study these matters. This ship will open new doors for hilsa and fish research,” he added.

Fisheries and Livestock Minister SM Rezaul Karim called upon the Fisheries Research Institute to play an effective role in hilsa production by using this modern vessel through proper maintenance.

Dr. Muhammad Yamin Chowdhury, Secretary of the Ministry of Fisheries and Livestock, Dr. Yahya Mahmud, director general of Bangladesh Fisheries Research Institute, Managing Director of Khulna Shipyard Limited Commodore Khandaker Akhter Hossain, Khulna Naval Area Commander Rear Admiral M Anwar Hossain, Khulna Divisional Commissioner Md. Ismail Hossain and others were also present at the handover ceremony.
Noted that there is an ultramodern Hilsa research laboratory inside the MV BFRI research vessel which is the specialty of the ship. The length of this fishery vessel is 25 meters, width is 6 meters, depth is 2.80 meters, displacement is 90 metric tons, maximum speed is 10 nautical miles, hull material – steel and aluminum.

‘Hilsa Research’: An ultramodern ship proof Bangladesh’s ability

The ‘Hilsa Research’ ship has been built in the country by Khulna Shipyard Limited for Bangladesh Fisheries Research Institute.

www.daily-bangladesh.com

01 x Fisheries Research Vessel – Khulna Shipyard Ltd

www.khulnashipyard.com

In the first week of January this year, the Bangladesh Overseas Employment and Services Limited advertised jobs for nurses and medical technologists in oil-rich Kuwait, with close to Tk1 lakh monthly salaries, increments, accommodations and travel expenditures to be paid by the employers.

The ad belies the current state of the understaffed government hospitals struggling to tackle Covid patient rush and nearly half a dozen protests by medical technologists seeking job nationalisation in recently concluded 2021.

In a major shift from unskilled manpower exporter to healthcare sourcing country, Bangladesh now plans to send health professionals to at least six countries – Kuwait, the Maldives, the United Arab Emirates, Qatar, Germany and Japan. According to the authorities, the countries have already shown interest to hire doctors, nurses, hygienists, caregivers and dental technicians thanks to Covid-led health worker shortage across the globe.

"They have shown interest and we are very keen to capitalise on the newly emerged demand," Md Hamidul Hoque, joint secretary (Nursing & Midwifery) at the health ministry, told The Business Standard.

According to the Bangladesh Overseas Employment and Services Limited, Kuwait will recruit 735 nurses and technicians in six categories for its different government hospitals in the first phase. Besides, the Maldives recently signed a memorandum of understanding with Bangladesh to recruit doctors and nurses.

Besides, the authorities say there are two other potential markets – the UK and Greece – for medical professional export. The manpower bureau and nursing directorate have joined hands to oversee the recruitments.

Hamidul Hoque said some nurses, who got the jobs on their own, are already working abroad. But the government has undertaken the initiatives for the first time to export medical professionals.

However, government officials could not elaborate how many health workers Bangladesh would send abroad, or when they would be sent.

Md Shahidul Alam, director general of the manpower bureau, said the countries are yet to mention their demand and talks are going on in this regard.

"Our target is to hit the ground running so that nursing students who would graduate this year qualify for the foreign jobs. We will enlist even the fourth-year nursing students who want to go abroad," he noted.

According to the Bangladesh Nursing and Midwifery Council, there are 271 BSc and 547 diploma nursing and midwifery colleges (public and private) in the country with more than 39,000 seats. Around 15,000 nurses enter the job market every year.

Until December last year, there were 80,739 nurses, while around 55,000 of them have been working at government health facilities. Others are employed at private hospitals and clinics.

To tackle the Covid surge, the government last year recruited nearly 6,000 nurses. However, Shahidul Alam said there will be enough nurses graduating from the colleges in 2022 to meet the foreign demand.

Besides, Nursing and Midwifery Council Registrar Shuriya Begum said the colleges will scale up their capacity, doubling the annual number of graduates to 30,000.

In 2020, the World Health Organization (WHO) stated the global nursing workforce was at 2.79 crore and estimated there was a global shortfall of 59 lakh nurses.

With the aging of the nursing workforce, 17% of nurses globally are expected to retire within the next ten years, and 47 lakh additional nurses will need to be educated and employed just to maintain current workforce numbers, let alone address the shortages.

In total, more than one crore additional nurses will be needed by 2030. According to a report, India and the Philippines are the major source countries for the high-income destinations. Some 2.4 lakh Filipinos and 90,000 Indians are now working in the countries.

Quality matters

Though the interest of the foreign recruiters is not fully matured yet to conclude whether the skills of Bangladeshi doctors and nurses are in line with the requirements, the authorities say the recruiters' willingness is evident enough that the potential workforce has required skills and standards.

However, officials say there is no alternative to gaining skills further to unlock bigger markets such as the UK.
Ahmed Munirus Saleheen, secretary at the Ministry of Expatriates' Welfare and Overseas Employment, said the UK needs a lot of nurses.

"Though the country did not indicate such, we want to catch the market. For that, we need to get ready by producing a quality workforce in line with the global standard," he told The Business Standard.
Md Zakir Hossain, first secretary at the Bangladesh Embassy in Tokyo, told TBS that they were working to send skilled Bangladeshi caregivers to Japan.

He said the island nation will recruit a total of 45,000-60,000 skilled workers from different countries, and will come to Bangladesh too to select the workers.

Md Sohel Parvez, first secretary at the Bangladesh Embassy in Male, told TBS that around 200 Bangladeshi doctors are currently working in the Maldives in both public and private hospitals. The Maldives is building three new hospitals that will need more health professionals.

"Under the MoU between Dhaka and Male, we will send more doctors to the Maldives – obviously with better salaries than home," he added.

Expatriates' Welfare and Overseas Employment Minister Imran Ahmad told The Business Standard that their technical training centres currently do not have any arrangement for health workers. But major changes will be brought to the curricula soon to support export of medical staff.

According to the manpower bureau, nearly 74% of exported Bangladeshi workers last year were unskilled.

The average monthly remittance sent by a Bangladeshi expat is around $203, while it is $564 for a Filipino worker, International Organization for Migration (IOM) data show. The monthly average income of a Pakistani expat is around $275, while it is $395 for an Indian and $532 for a Chinese citizen.

Authorities confident about export overlooking shortage at home

According to the guidelines of the World Health Organization (WHO), three nurses have to be recruited against one doctor.

According to the health directorate, there are 102,997 registered doctors in Bangladesh suggesting the number of nurses to be more than 3 lakh. That means the country has only 27% of the nurses it needs.

Nursing and Midwifery Council Registrar Shuriya Begum says, "If some of our graduates go abroad, it will not affect our local demand. If they get a better salary at foreign hospitals, then why would they not fly there?"

A nurse starts a career with Tk30,000 monthly salary at a government hospital, while Kuwait offers Tk73,000-Tk90,000 for nurses and technicians with three to four years of experience.

Ismat Ara, president of the Bangladesh Nurses Association, said private hospitals do not have any specific salary for the nurses. The amount varies from Tk20,000 to Tk1 lakh depending on the medical facility.

Health staff export: Bangladesh looks to get a piece of the pie

Dhaka intends to switch from unskilled manpower exporter to a healthcare sourcing country to earn more

www.tbsnews.net

Bangladesh Cards Ltd, a joint venture between Japanese, Australian and Bangladeshi investors, is going to invest $100 million in a local hi-tech park to manufacture high-end technology products, including smart cards and specialised security items, to cater to the growing domestic and international markets.

Seven acres of land were recently allotted for the project at the Bangabandhu Hi-Tech City in Kaliakair, Gazipur, where a five lakh square feet manufacturing hub will be set up. The company aims to construct the factory in line with US Green Building Council guidelines to gain green building certification.

"We will make all types of smart cards, such as bank cards, national identification cards and driving licences at the facility," Abu Sarwar, managing director of Bangladesh Cards, told The Daily Star.

The firm, which is owned by a majority of Bangladeshi investors, also wants to be certified to make e-passports in order to supply to the governments of various countries.

The company plans to invest the money in the next five years.

"This investment will give Bangladesh self-sufficiency as an alternative to importing ICT-related products. After meeting local demand, we will also export Bangladeshi products to the international market," Sarwar said.

"In the short term, we want to cut import dependency for such products by 50 per cent and in the long run, we want local manufacturing to completely cover imports," he added.

The move comes at a time when Bangladesh has set a target to export $5 billion in IT services and digital devices by 2025, up from about $1.1 billion now.

In recent months, dozens of companies have been investing in the high-tech parks, 12 of which are now operational, to make and assemble semiconductors, digital devices, medical equipment, automated teller machines (ATMs), smartphones, televisions, networking devices, security surveillance and other electronics items thanks to generous incentive packages.

Companies that invest in the high-tech parks get lucrative tax breaks that include a 10-year tax holiday, duty-free import of capital machinery, tax waiver on foreign expats' salaries, and duty-free utility bills while foreign investors can withdraw their investment anytime.

Other than the incentives, another formidable strength of the company is its connections around the world, according to Sarwar.

"Almost all of the board directors of the company are of Bangladesh origin and have been living abroad and working for top firms around the world while the chairman of the company is Japanese," he said.

Most of the technology to be used at the unit will come from Japan and Australia.

"And since we have a big technology partner in Germany, international standards will be maintained while manufacturing these high-end technology products," the managing director said.

The company has formed partnerships with some foreign companies that have over 10 factories around the world, some of which manufacture cards while others make passports and driving licences, and everything will be integrated with the Bangladesh factory, he added.

There are currently around 12,500 ATMs in Bangladesh but the number should be 35,000 if the country's total population is taken into account.

"The price of an ATM machine depends on its functionality and we will offer prices that will be as much as 25 per cent less than that of imported ones," Sarwar said.

More than 35 per cent tax is usually levied on the import of ATMs.

"So, we will get a competitive edge thanks to the incentive packages dedicated to local manufacturing," he added.

Another big segment for the company would be making radio-frequency identification (RFID) clothing tags.

International buyers are increasingly asking local garment makers to include RFID tags with their products to ensure better tracking and and management.

"And we will be able to capture this big market since local manufacturers are mostly import-dependent for such tags," Sarwar said.

Of the 660 employment opportunities to be created by the project, 400 people will be deployed as skilled technicians and about 99 per cent of the employed will be locals trained abroad.

"At least $1 billion worth of imports will be cut once we go at full throttle," he added.

Bikarna Kumar Ghosh, managing director of the Bangladesh Hi-Tech Park Authority, said this is a big investment and will not only support the local market, but also diversify the country's export basket.

So far, 175 companies have been allotted space in the country's high-tech parks and 148 local startups have been allotted space/co-working space.

The Bangladesh Hi-Tech Park Authority has so far created skilled manpower of 36,000 individuals in the ICT sector through various training programmes considering the demand for manpower in the industry.

The Bangladesh Hi-Tech Park Authority has created direct employment for about 22,000 people in the ICT sector as well, Ghosh said.

And to ensure the fastest and best service to investors, the authority now provides a total of 148 services through its One-Stop Service portal.

"These services are easy to get, take short time and are of low cost. Of these, 43 services are being provided online," he said, adding that there will be over 100 hi-tech parks in Bangladesh by 2030.

JV to invest $100m in hi-tech park

Bangladesh Cards Ltd, a joint venture between Japanese, Australian and Bangladeshi investors, is going to invest $100 million in a local hi-tech park to manufacture high-end technology products, including smart cards and specialised security items, to cater to the growing domestic and...

www.thedailystar.net

 

[Isa Khan]

Dhaka, January 12: Finally, the much awaited bridge of the Chittagong Hill Tracts over the Chengi River has been inaugurated at Naniyarchar in Rangamati. Prime Minister Sheikh Hasina inaugurated the bridge via video conference from Ganobhaban at 10 am on Wednesday.
At the same time, he inaugurated the Ghumdhum border link road from Balukhali in Cox's Bazar to Bandarban.

Road Transport and Bridges Minister Obaidul Quader, Army Chief SM Shafiuddin Ahmed and other concerned officials were present in the video conference from Ganobhaban.

In her inaugural address, the Prime Minister said that the construction of the longest bridge in the Chittagong Hill Tracts at Naniyarchar has taken the implementation of the peace agreement one step further. This will play a role in improving the livelihood of the locals and marketing the products. "We signed the peace agreement in 1997 after coming to power," she said. The implementation of the peace agreement is still ongoing.

Regarding the Bandarban border road, the Prime Minister said the border road from Balukhali in Cox's Bazar to Ghumdhum in Bandarban has been constructed for the security of the border area. The construction of this road will make a significant contribution to the local transportation and border security. Besides, the army is working to build border roads in the hilly areas.

Rangamati MP Dipankar Talukder from Naniyarchar was present in the video conference; Rangamati University of Science and Technology (RUST) Vice Chancellor Dr. Pradayendu Bikash Chakma; Rangamati Deputy Commissioner Mohammad Mizanur Rahman; Officers of various ranks in the army; District RHD Executive Engineer Md. Shahe Arefin; Shiuli Rahman Tinni, UNO, Naniyarchar.

The 20th Engineering Battalion (ECB) under the 34th Engineering Construction Brigade of the Bangladesh Army constructed the Chengi Bridge at Naniyarchar in Rangamati. The bridge over the Chengi River is 500 meters long and 10.2 meters wide. The construction cost of the bridge including the approach road is Tk 227 crore.

PM Hasina inaugurates longest bridge in the Chittagong Hill Tracts | Bangladesh Live News

Dhaka, January 12: Finally, the much awaited bridge of the Chittagong Hill Tracts over the Chengi River has been inaugurated at Naniyarchar in Rangamati. Prime Minister Sheikh Hasina inaugurated the bridge via video conference from Ganobhaban at 10 am on Wednesday.

www.bangladeshlivenews.com

Dhaka Tangail Highway

 

[Isa Khan]

Work is underway to set up an export processing zone (EPZ) in Patuakhali centering the Payra sea port.

For this, the district administration has initiated the process of acquiring 413.03 acres of land in Pachakoralia Mouza of Auliapur union under Sadar upazila. An Investors' Club is also being set up on 2.25 acres of land in Kuakata for investors.

According to the Patuakhali deputy commissioner's office, the Prime Minister's Office gave administrative approval to acquire the land in favour of the Bangladesh Export Processing Zones Authority (Bepza) for setting up 'Patuakhali EPZ' on August 8, 2021.

In a letter signed by Abdullah Al Mamun, director of the Prime Minister's Office, it was said that land acquisition of 410.78 acres in Pachakoralia mouza of Sadar upazila for the EPZ and 2.25 acres land in Kuakata for the investors club has already begun.

"If the land acquisition is completed by next June, we would be able to start the infrastructural activities from July. Our target is to complete the construction of this EPZ, which wil employ one lakh people, by 2025," said Md Ashraful Kabir, project director of the Patuakhali EPZ.

"It is difficult to say now how much the project will cost and how much investment can be made here but we think the EPZ will make a positive change in the socio-economic perspective of the lives of local people and the country as well," he added.

Other than the Patuakhali EPZ, a couple of EPZs will also be set up in Rangpur and Jashore, where land acquisitions are also ongoing, a BEPZA official said.

Currently, there are eight EPZ's in Bangladesh -- Chittagong EPZ, Dhaka EPZ, Mongla EPZ, Ishwardi EPZ, Cumilla EPZ, Uttara EPZ, Adamjee EPZ and Karnaphuli EPZ.

Obaidur Rahman, Patuakhali additional deputy commissioner (revenue), said notices would soon be issued to the owners of plots in the land required.

If anyone has any objections to the notices in regard to the land accuisition, they will be dealth with within 15 days before being sent to the land ministry for final approval.

The value of the land would be paid to the owners within the next two months after completion of all the procedures, Rahman added.

The EPZ is being set up along the Patuakhali-Kuakata highway, just 10 kilometres south of Patuakhali district town, only 40 kilometres away from Payra Sea Port, and 62 kilometres away from Kuakata sea beach.

Md. Humayun Kabir, chairman of the local Union Parishad, said they are very happy that an EPZ is being set up in Patuakhali.

Most of the land to be acquired falls in agricultural zones while there are only 15 houses there.

Locals are also happy about the initiative as it will lead to massive development in the area.

Forkan Hawlader, a farmer from Pachakoralia village, said three acres of his own agricultural land, including the plot his house sits on, is being acquired for the EPZ area.

"We are happy to have EPZ here but we demand the district administration to take measures so that we can get the real value of the land," he added.

Another farmer, Abdus Sattar, said 2.50 acres of his land, including his house and agricultural land, are being acquired.

"So, I am seeking the goodwill of the administration so that there is no obstacle for us to get the value of this land," Sattar added.

EPZ to be set up in Patuakhali

Work is underway to set up an export processing zone (EPZ) in Patuakhali centering the Payra sea port.

www.thedailystar.net

All highways in the country will be upgraded into four- to six-lane ones in phases, said Md Nazrul Islam, secretary to the Road Transport and Highways Division.

"The country currently has a 22,000-kilometre road network, of which 4,000 kilometres are highways. Work has already begun to develop the existing four-lane highways into six-lane ones."

Around 56 km of flyovers will also be constructed across the country in near future, he added while addressing a contract signing ceremony between the Roads and Highways Department (RHD) and a consortium of the Chinese state-owned Communications Construction Company Limited, and its sister concern China Road and Bridge Corporation on Sunday to upgrade the Hatirjheel-Demra highway via Banasree, Sheikherjayga and Amulia into a four-lane expressway.

The Chinese consortium will invest Tk2,094 crore to construct the expressway, which will have two separate service lanes and separate connections from Demra to Chittagong Road and Tarabo.

After the completion of the construction work, the investors will receive Tk4,523 crore in revenue from the government in the next 21 years – at the rate of Tk107.70 crore every six months.

As such, the Chinese consortium will earn Tk2,429 crore in profit by implementing the project.

Abdus Sabur, chief engineer of the Roads and Highways Department, and Fang Ming of the investor consortium signed the agreement on behalf of their respective organistations at a programme held at the InterContinental hotel in the capital.

The Executive Committee of the National Economic Council (Ecnec) has approved a separate project involving a cost of Tk1,210 crore to acquire land, rehabilitate and compensate the affected people, and transfer utilities for the implementation of the project.

In all, the expenditure on 13.50-km road development stands at Tk3,304 crore. The cost per kilometre will be Tk244.74 crore.

The planned thoroughfare will work as an alternative gateway to Dhaka's centre from Chattogram and Sylhet, and help reduce traffic congestion.

Nonetheless, vehicles will be allowed to use the expressway paying tolls, people concerned said at the signing ceremony.

Officials told the event that a public-private partnership (PPP) proposal was made in 2015 to upgrade Rampura-Amulia-Demra highway to a four-lane one. The PPP project was approved in principle by the Cabinet Committee on Economic Affairs on 26 January 2016.

The Asian Development Bank (ADB) has said the Hatirjheel-Demra expressway, if implemented, will be used by about 32,000 vehicles per day by 2025. By 2035, this number will increase to 55,000 and by 2050 to 85,000.

The ADB further says the demand for transportation in the country is increasing at a rate of 8-10% every year, and 80% of these vehicles are Dhaka-centric.

Vehicles carrying people and goods from the country's most important Dhaka-Chattogram and Dhaka-Sylhet highways enter the capital through the same route. As a result, a huge amount of working hours is wasted in traffic jams. In this situation, it is necessary to facilitate the entrance of vehicles to the capital from the south, continues the ADB.

Country’s 4,000km highways to be 4-6 lanes: Govt

Final deal inked to turn Hatirjheel-Demra highway into 4-lane expressway

www.tbsnews.net

The government has adopted a year-based plan to generate more 2,883 megawatt (MW) electricity by the next six years, an official said.

"Activities are being carried out in accordance with the plant for generation of 2,883 MW power through both public and private initiatives," the official familiar with the process told BSS here today.

According to the plan adopted this month, 553-MW electricity will add this year, 923 MW will come in 2023, 603 MW in 2024, 200 MW in 2025, 502 MW in 2026 and 102 MW in 2027.

With the present government's sincere efforts and timely initiatives, the power sector will continue to increase, as the government increased power generation to 25,284 MW, a power cell source said.

It said the government has provided power connections to 3.10 crore new consumers with expansion of 3.57 lakh kilometres new distribution line and 5,011 circuit kilometer of transmission line in the last 13 years.

Talking to BSS, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that the electricity generation capacity reached 25,284 MW (including captive) from 4,942 MW in 2009, with around 99.75 percent of the population having access to electricity due to bold and dynamic leadership of Prime Minister Sheikh Hasina.

He said the Awami League-led government has achieved tremendous successes in the power sector in last 13 years and given top priority to the development of the sector considering its importance in the overall development of the country.

"We have successfully constructed 121 power plants having generation capacity of 20,342 MW after assuming office in 2009," Nasrul Hamid said.

According to the Power System Master Plan (PSMP) 2016, Bangladesh has an aspiration to become a high-income country by 2041 increasing the country's power generation capacity to 60,000 MW.

Prime Minister Sheikh Hasina-led Awami League government has a target to generate 60,000-MW electricity by 2041, as the government materialized its earlier Vision-2021 by increasing generation capacity to 25,284 MW from 24,000 MW, it said.

Director General of Power Cell under the Ministry of Power, Energy and Mineral Resources Engineer Mohammad Hossain said construction works are going on fast at Moheshkhali area aimed at generating 2400 MW electricity from Matarbari Ultra Super Critical Coal Fired Power Plant.

"The government is very much optimistic of bringing 1200 MW power from Matarbari Coal Fired Power Plant by 2024 and another 1200 MW in phases," he said.

Govt plans generating more 2,883 MW power in next 6 yrs

According to the plan adopted this month, 553-MW electricity will add this year, 923 MW will come in 2023, 603 MW in 2024, 200 MW in 2025, 502 MW in 2026 and 102 MW in 2027

www.tbsnews.net

 

[Isa Khan]

Two Matarbari jetties, which the Chattogram Port Authority (CPA) experimentally built to provide dedicated services to a power generation project, witnessed 53 ships anchoring in a year, saving both money and time.

The deep-sea port at Matarbari is being constructed in Maheshkhali to facilitate anchoring of large ships as the existing seaports in Chattogram and Mongla cannot take mother vessels. Both use feeder vessels to transfer containers.

"We are happy to see more than 50 ships at the jetties, before constructing the deep-sea port there. It is very good news for the country's businesses," Rear Admiral M Shahjahan, chairman of the CPA, told The Business Standard.

"This experience can also be useful to make the deep-sea port," said the official of the CPA, under which the Matarbari Port is also being built.

Meanwhile, the Matarbari Ultra Super Critical Coal-Fired Power Project was able to save some $3.58 million capitalising on the jetties, nearly 100 kilometres away from the Chattogram port, the country's main gateway for international trade.

It released 61,200 tonnes of project materials without counting lighter fares and some other costs that were must in the premier seaport. The jetties situated in the power project area helped the project cut demurrage charge, freight and transportation costs, he added.

The port authorities started construction of the wharves – one having the capability of releasing oil and another of coal – in 2015.

A channel of 250 metres width, 14 kilometres length and 18 metres depth has also been built to facilitate the entry of the vessels.

For the first time on 29 December 2020, the Matarbari jetty received a foreign ship carrying instruments for the project, and on 15 July 2021, it saw the second one. All the 53 ships brought materials for the power project.

How the power project saved $3.58m

According to the CPA, releasing a tonne of goods costs Tk1,200 at main jetties of Chattogram port. However, it came down to Tk400 at Matarbari jetties.

Ataul Kabir Ranju, joint secretary (operations) of Water Transport Cell, a non-government organisation operating lighter vessels, told TBS that the fares for transporting goods from Chattogram port to Matarbari by lighter vessels are Tk517 per tonne. In that calculation, the power project saved Tk3.17 crore in transport fare of 61,200 tonnes of goods.

According to Chattogram Port sources, a ship has to wait for 5-7 days at the outer anchorage to get berthing at a jetty here. In that case, shipping agents had to pay $8,000-10,000 shipping demurrage depending on the size of the ship. They would have to pay $50,000 for five days of waiting for each ship.

But ships can anchor directly at Matarbari jetties without any waiting. As a result, $50,000 can be saved in shipping demurrage per vessel.

In that calculation, the power project has saved $2.65 million in shipping demurrage against 53 ships in the last year.

Matarbari Ultra Super Critical Coal-Fired Power Project

Coal Power Generation Company Bangladesh Limited is implementing the 1,200MW Matarbari Ultra Super Critical Coal-Fired Power Project at Matarbari in the south-eastern part of the country.

The cost of the project approved in 2014 was estimated at Tk35,984 crore but it was later raised to Tk51,855 crore. The project will be completed in December 2026.

The power plant will go into production in 2024. The first ship carrying coal for the project will arrive in 2023. At that time, large ships will be able to enter the jetties. That would be a huge milestone for this project.

Abul Kalam Azad, executive director at the Coal Power Generation Company Bangladesh Limited, told TBS, "So far 52% of the power project has been completed. We are able to unload imported goods very quickly using two jetties. Shipping directly to the jetties in the project area is saving both time and money."

Deep-sea port

Initially, a jetty was constructed for importing goods for the power project, but later the government took the initiative to build Matarbari deep seaport at that place.

Once the construction is completed in 2025 at a cost of Tk17,777 crore, ships with a depth of 18 metres will be able to dock at Matarbari port jetties.

In addition to transporting Bangladeshi goods, India's landlocked seven sisters Assam, Arunachal, Meghalaya, Nagaland, Manipur, Mizoram, Tripura and Nepal Bhutan will also benefit from the port, according to the CPA.

They will be able to transport goods from Kolkata and Haldia in India by feeder vessels. Under the transit and transhipment facility, containers or cargoes will arrive from India, Nepal and Bhutan and at the same time, feeder vessel service will be launched from Matarbari to nearby ports such as Kolkata and Haldia, it added.

Bangladesh will be able to earn a lot of foreign currency

Of the country's total trade, 92% is done through the Chattogram port. With the pace of business growth, the port has reached the last stage of its capacity.

Therefore, the government took the initiative to build the Matarbari deep seaport. Following the agreement signed with the consultant in September 2020, the development work of this project officially started in November. The project is still in the land acquisition stage.

Due to the shallow depth, ships with a depth of more than 9.5 metres cannot enter jetties at the Chattogram port. Owing to this, container goods are transported using feeder vessels.

At the port jetties, an average of 1,878 TEUs containers are transported on each ship. Whereas ships carrying 8,000-10,000 containers will be able to enter Matarbari port jetties once the seaport construction is completed.

Matarbari jetties show signs of deep-sea port viability

53 ships anchor at the power generation project jetties in a year, saving $3.58m

www.tbsnews.net

State-run telecom operator Teletalk Bangladesh has a massive plan of setting up 2,500 base stations for providing uninterrupted fifth-generation (5G) network services across the country, its top official has said.

"We are working to widen our 5G services. Keeping the importance of the new generation network in mind, we designed a plan to establish 2,500 base stations," Md Shahab Uddin, managing director of the company, told this at a programme at its headquarters in the capital on Wednesday.

At the event, the first 5G launching operator inked a deal with Summit Towers Limited, under which the mobile phone operator will be able to use the telecom towers, set up by Summit, for its base stations.

A base station is referred to a transmission and reception station in a fixed location, consisting of one or more receiving or transmitting antennas, microwave dishes, and electronic circuitry, to handle cellular traffic.

Summit has, currently, some 700 towers in 56 districts. After receiving a licence from the Bangladesh Telecommunication Regulatory Commission (BTRC), the sister concern of Summit Communications has been developing telecom tower infrastructure across the country.

Apart from Summit, three more companies – edotco Bangladesh, ISON Tower Bangladesh Private Limited, and AB Hightech Consortium – are providing such services to the telecom operators.

Meanwhile, on December 12 last year, Teletalk, in collaboration with global tech giant Huawei, launched 5G on an experimental basis in six areas in the country – the Prime Minister's Office, Parliament, Secretariat, Bangabandhu Museum on Dhanmondi 32, Gopalganj's Tungipara, and the National Martyrs' Memorial in Savar. The network will be rolled out at the district level in phases.

Currently, the mobile phone operator has a network coverage (4G and 3G) at 402 upazilas in 64 districts.

Summit Communications Chairman Md Farid Uddin Khan, its Managing Director and Chief Executive Officer Md Arif Al Islam, senior officials of Teletalk were present, at Wednesday's event.

Teletalk plans to set up 2,500 base stations for 5G services

On Wednesday, the telecom operator inked a tower-sharing deal with Summit Towers

www.tbsnews.net

 

[Isa Khan]

With an easy location, enough manpower and world class facilities, Sirajganj Economic Zone, the largest and 100% green private economic zone in the country, is waiting for investments from local and foreign companies.

Around 60% of the land development work of the 1,041-acre economic zone located beside the River Jamuna has already been completed. So far, 14 local companies have been allotted 110 acres of land.

However, the Bangladesh Economic Zone Authority (Beza), which is constructing the economic zone, is preferring investors from Saudi Arabia, Japan, China, the United States, South Korea, Australia, India, Norway and other countries.

Sheikh Monwar Hossain, director, Sirajganj Economic Zone Ltd, told The Business Standard, "There will be 400 plots in the economic zone and will create employment for around five lakh people. Many local companies are trying to allocate land. However, as it is the first green economic zone in the country, we are waiting for foreign investors. We will give them priority."

"To make the economic zone fully green, maintaining international standards, we are using hundred percent local natural resources. PricewaterhouseCoopers (PwC) and Japan Development Institute (JDI) have jointly developed the detailed plan," he said.

The economic zone authorities say that green environmental standards would be maintained at all levels of the construction work including infrastructure, production, transportation, education, treatment and accommodation of the people concerned etc.

According to people concerned, only 60% of the land is being allocated for factories to keep the whole project green. There are plans to build various green infrastructures including playground, lake, recreation center, hospital, technical institute, rain water harvesting system and solar panel park on the remaining land.

Monwar Hossain said, "All the companies in the economic zone will use 100% surface water. Water will be taken from the Jamuna and supplied to the factories. The water and wastes used in the factory will be reused through CETP. Rainwater harvesting systems will be installed to use rainwater all the year round. There will also be sophisticated technology to protect air and noise pollution."

"There will be no chance of environmental pollution in this economic zone as per our master plan. Gas, electricity and water will not be wasted. There will be technology to use 100% of the natural resources," he added.

Agro-based industry, foreign investment preferred

The economic zone is giving special importance to the agro-based companies to include the agricultural products of the northern part of the country in the processing industry.

However, 14 local companies have been allotted plots to set up factories to produce textile, RMG, dyeing products, textile-oriented yarn products, backward linkage products and electric products.

Sheikh Monwar Hossain said, "Many local companies are coming to take plots for agro-based industry. They will create value added products. An Indian company is interested in taking the plot for preserving seeds collected from the local market. Jahangir Alam, a Bangladeshi businessman living in Australia and founder of TELEAUS, is interested in IT, telecom service and agro-based industry."

"First of all, we want more investment from foreign companies. We have contacted investors from several countries including Saudi Arabia, Japan, China, and the USA. We will get much more response after the completion of the economic zone. That's why we have halted allocation for now," he added.

Technical institute and hospital

The master plan of the economic zone includes plans to set up a technical institute to supply manpower to the factories of the companies investing in the economic zone. For this, people from the local areas and the northern part of the country will get preference.

There will also be a separate educational institution for people with disabilities. The companies will be asked to employ at least 1% physically disabled people for factories in the economic zone. There will also be accommodation for factory workers, schools and colleges for the education of their children and a world class hospital.

Sheikh Monwar Hossain said, "We have allotted 100 acres of land as a commercial block to make a world class hospital. A Norwegian company wants to build a hospital here. They are now looking for partners in Bangladesh. We can also work as a developer with them."

Companies that got land

The Bangladesh Economic Zone Authority gave licence to 14 companies in 2018 for construction of infrastructure in Sirajganj Economic Zone.

So far, the authorities have allocated five acres of land to Apex Footwear Limited, eight acres to Continental Garments Industries (Private) Limited, two acres to Dynamic Dredging, eight acres to Neet Asia Limited, four acres to MK Chemical Industries Limited, five acres to Ratul Fabric Limited.

It has also allocated two acres to Active Composite Mills Limited, 10 acres to Rising Holdings Limited, five acres to Rising Spinning Mills Limited, 16 acres to Jessore Feed Limited, 21 acres to Merina Properties (BD) Limited, five acres to Text Town Limited, 12 acres to Square Accessories Limited and seven acres to Square Electronics Limited.

Syed Nasim Manzur, managing director of Apex Footwear, told The Business Standard, "We will produce backward linkage products. We have a raw material crisis. We have built an eco-friendly factory and taken a plot here for sustainable business."

"The location here is perfect for building factories. Workers can be found easily. And above all, this is an environment-friendly economic zone. There will be all modern facilities including school, college, fire station here. Workers will have a better living environment," he added.

The economic zone is being set up beside the main road of Dhaka-Rajshahi Highway near the banks of the Jamuna River and Bangabandhu Bridge. As a result, communication will be easy by road, rail, air and river. The investors will get manpower easily as there are no big industrial establishments in the northern area of the country.

Monwar Hossain said easy access to gas, electricity and water will make this economic zone more attractive.

"A river port, an Inland Container Depot, a railway bridge over the Jamuna next to the Bangabandhu Bridge and a four-lane road are being built here keeping the economic zone in view. You can reach the economic zone in 3-4 hours from Dhaka Airport. Due to these facilities, this economic zone is at the center of interest of investors," he said.

Shaikh Yusuf Harun, executive chairman of Bangladesh Economic Zones Authority (BEZA), said, "Sirajganj Economic Zone will be developed under Platinum Green Concept where the natural environment of the village will not be harmed while facilities of modern industrial city with housing and employment opportunities for skilled people will be created. There will be quality education, housing, healthcare, entertainment and communication system for the workers within the economic zone."

"People will reach the doorstep of development keeping intact the distinct qualities and uniqueness of rural life. An efficient and productive population will be formed in a healthy environment free from air and water pollution," he added.

Country’s first green economic zone awaits local, foreign investment

Around 60% of the land development work of the 1,041-acre economic zone has been completed

www.tbsnews.net

Arial Kha Railway Bridge

 

[Isa Khan]

An intense competition is ongoing among private inland container depots (ICDs) to see who can handle the most import and export cargoes, which is helping ease congestion at Chittagong Port by facilitating the quick clearance of shipments.

At present, there are 19 private ICDs located in and around Chittagong city.

Among these, six ICDs have remained in the top position for handling both export and import containers in the last five years.

Around 10.12 lakh TEUs (twenty-feet equivalent units) of import and export containers were handled by the 19 ICDs in the just concluded calendar year. However, the six leading ICDs jointly handled around 60 per cent of the total volume.

The six ICDs are: KDS Logistics Ltd, Portlink Logistics Centre Ltd, two units of Summit Alliance Port Ltd (East and West), Esack Brothers Industries Ltd, and Incontrade Ltd.

In total, the 19 ICDs handled about 7.2 lakh TEUs of export containers last year while the six leading ICDs jointly handled 3.95 lakh TEUs, equivalent to 55.81 per cent of the total volume.

The 19 depots handled some 3.03 lakh TEUs of import containers altogether while the same six leading ICDs handled 2.03 lakh TEUs, or 66.97 per cent, of the total volume.

KDS Logistics has maintained top position in handling export containers for the last five years while it also maintained second position in handling import containers for the last two years.

Portlink Logistics has been in top position in handling import containers for the last two years while KDS held this rank in 2019 and 2018.

These two ICDs have been seen engaged in an intense competition to clinch the top position in handling cargo containers since 2016.

Md Jahangir Alam, deputy general manager of KDS Logistics, said clients always prioritise quality of service.

"Since we are maintaining all the international standards in delivering our services, reputed international buyers who always prefer compliance nominate our depot," Alam said.

The depot has more than 90 container carrying vehicles of its own that remain in operation round the clock. It also has the heavy equipment required to handle container movement as smoothly as possible, he added.

Ruhul Amin Sikder, secretary of the Bangladesh Inland Container Depot Association, said the six leading ICDs are handling a major portion of containers mainly for their comparatively larger storage capacities.

All 19 ICDs are playing an important role in facilitating Bangladesh's foreign trade by handling a huge portion of the total export and import cargoes that are transported through Chittagong Port.

The private ICDs handled 93 per cent of the total export containers transported through the port while they handled around 23 per cent of the total imports in 2021.

"We have long been demanding to increase the number of import items to be handled in the private ICDs," Sikder said.

Currently, only 38 types of import goods are sent to private ICDs from the port for delivery to consignees.

Mentioning that in most global container ports almost all the import containers are delivered outside the port yards, Sikder said if more types of import goods are allowed to be delivered by the ICDs, the efficiency of Chittagong Port would be enhanced.

Six inland container depots taking up 60% of cargo volume

An intense competition is ongoing among private inland container depots (ICDs) to see who can handle the most import and export cargoes, which is helping ease congestion at Chittagong Port by facilitating the quick clearance of shipments.

www.thedailystar.net

Ice cream manufacturers are enjoying robust sales after launching awareness campaigns on how consuming the sweetened frozen food does not increase the risk of contracting a serious case of Covid-19.

The market size for ice cream reached at least Tk 1,410 crore in 2021, up by about 93 per cent year-on-year from Tk 730 crore.

Considering the current rising trend, the industry's market value could reach as much as Tk 2,600 crore by 2025.

But before the advent of Covid-19, the market size for ice cream was valued at Tk 1,240 crore in 2019.

"The sector achieved robust growth with the slow return to normalcy as people understood that ice cream does not spread coronavirus," said Shamim Ahmed, chief operating officer of Igloo, a popular local ice cream brand.

Besides, market players want to expand their businesses to recover losses incurred due to Covid-19 ," he added.

The market is also growing since consumption increased in recent years in line with the peoples' growing spending capacity, urbanisation, and access to the power grid in rural areas.

"Shopkeepers now keep ice cream in stock even in remote villages," he said.

So, there is huge potential in Bangladesh's ice cream industry, where at least Tk 3,000 crore has already been invested, creating more than 10,000 opportunities for both direct and indirect employment, Ahmed added.

Seven companies, namely Igloo, Polar, Lovello, Kwality, Za n Zee, Bloop, and Savoy are available in the market, catering to a domestic demand of about six crore litres per year.

Igloo is the market leader with a 38 per cent share followed by Polar with 27 per cent, Lovello with 14 per cent, and Kwality 9 per cent.

The remaining market share is divided between other companies, according to industry insiders.

There is no credible data regarding total investment in the sector but it is believed to be no less than Tk 3,000 crore.

Before the pandemic hit, the industry had achieved total growth of about 15 per cent in the past few years, Ahmed said.

However, the per capita consumption is still just 333 millilitres per year, he added.

Ice cream companies collectively offer around 40 variants, including sticks, cups, cones, sorbets, tubs, cakes, and more.

Among these variants, vanilla flavoured ones are the most highly consumed in Bangladesh.

The industry is mainly import dependent for raw materials like milk, milk fat, vegetable fat, and sugar that come from Europe, Australia and New Zealand.

Saiful Islam, general manager of Kwality Ice Cream, said sales increased significantly with the slowing coronavirus infection rate but profit margins fell due to higher ingredient and transport costs.

According to him, unhealthy competition among market players is also affecting business.

AKM Zakaria Hossain, company secretary of Taufika Foods and Lovello Ice-cream, said since the country was not severely hit by Covid-19, the industry was able to quickly recover.

He now hopes the disease will not resurge as it has in the past and the robust sales growth will continue as Ice cream is becoming more popular among all ages.

Besides, ice cream is a favoured product among retailers as it is easy to store and make good profit.

"This is helping the market grow rapidly," Hossain said.

Nirmal Chandra Sardar, company secretary of Golden Harvest Ice-Cream Ltd (Bloop), said ice cream manufacturers witnessed better sales in 2021 compared to previous years despite having had one of the worst periods the year before.

Ice cream market sees good growth

Ice cream manufacturers are enjoying robust sales after launching awareness campaigns on how consuming the sweetened frozen food does not increase the risk of contracting a serious case of Covid-19.

www.thedailystar.net

 

[Isa Khan]

The country's largest industrial city, Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), being constructed in an area of 30,000 acres of land in Mirsarai and Sitakunda upazilas of Chattogram and Sonagazi upazila of Feni, is going to witness the operation of its very first factory – Asian Paints – in March this year.

"The construction of several factories out of hundreds are about to be completed. In March, Asian Paints will go to production as the first. Prime Minister Sheikh Hasina is expected to inaugurate its operation," said Abdullah Al Mahmud Faruk, director of the Bangabandhu Sheikh Mujib Shilpa Nagar Development Project.

He told The Business Standard that another factory named MacDonald Steel would also start production in the same month.

"The opening of the factories will mark a landmark achievement for the country's economy," added Faruk, a joint secretary at the Bangladesh Economic Zones Authority (Beza).

The India-based Asian Paints and Bangladesh's MacDonald Steel Building Products have invested a total of $40 million, $20 million each, to run the factories.

The Asian Paints facility on 20 acres of land would produce different types of paints and other ingredients, employing some 200 workers, said Parsha Sanzana, brand manager of Asian Paints.

https://www.facebook.com/tbsnews.net/posts/4799512833429961

She told The Business Standard that the factory with state-of-the-art facilities would be the largest in Asia.

The paint manufacturer started construction of the factory in early 2020 and tried to begin operations in mid-2021, but failed as it could not complete preparations due to the Covid-19 pandemic situation. "Now, 90% of the construction work is complete, and the rest will be done within February," said Shangkar Ranjan Bhowmic, another senior official of the company.

He told TBS that the company had decided to launch the facility in March. However, he did not mention any specific date.

Meanwhile, Project Manager for the MacDonald Steel factory Abdullah Al Mamun said the company was also being prepared to roll out the facility in March by any means.

"We will produce mild steel plates, and nearly 62 people will be employed here."

The visionary industrial city BSMSN, it is believed, will shape the future of the country, as it will generate at least 15 lakh jobs, as well as produce hundreds of products and export items. Being one of the largest economic and industrial zones in South Asia, it is expected to enhance the country's image.

The state-of-the-art industrial city having multi-dimensional features is a great junction of domestic and foreign investment, industrialisation and economy at the entry to the south-eastern part of the country.

"The Bangabandhu Shilpa Nagar will fulfil one of our big dreams. The inauguration of the factories' operations in the industrial city will be a great success in the history of the country's economic zones," said Mahbubul Alam, president of the Chittagong Chamber of Commerce and Industries.

However, the authorities did not construct the designed marine drive road to increase connectivity with the Chattogram Port, he said. The construction of roads inside the economic zone had not been completed properly.

The business leader called for ensuring a completion of the infrastructure as early as possible.

According to the BEZA, a total of 153 companies have so far been awarded 6,500 acres of land for setting up factories there.

The BSMSN on the spot

A visit to the Bangabandhu Sheikh Mujib Shilpa Nagar on Tuesday revealed that the Mirsarai portion was being prepared fast, while the Sitakundu and Sonagazi sides were awaiting land allocation.

Some 6,000 acres of land in the portion have already been filled with soil. Now roads, bridges and other infrastructure are being constructed. The authorities are installing gas and electricity lines for different under-constructed factories. Besides, solar systems have been set up for roads inside the industrial city.

Apart from Asian Paints and MacDonald Steel, Healthcare Pharma was seen developing its facility on 40 acres of land, Bangladesh Auto Industries on 100 acres, SQ Cable on 40 acres, Jingyuan on 10 acres, Modern Syntex on 20 acres, Nippon and others on 100 acres, and Berger Paints on 30 acres.

Besides, the local company Samuda Foods, and Indian Berger Paints are planning to open their factories by the next year (2023).

Among the special zones, the 1,150-acre Bepza Economic Zone started construction while the 500-acre Garment Village and the 500-acre SBG Economic Zone are yet to see development. Bashundhara Group is preparing its 500-acre zone fast.

"We have already ensured gas and electricity for under-constructed factories. For water, they temporarily use groundwater," said Ferdous Wahid, assistant engineer of the Beza.

He is hopeful about the fast completion of the Mirsarai portion of the industrial city.

Bangabandhu Shilpa Nagar to have its first operational factory in March

The 20-acre-factory of Asian Paints is the largest of its kind in Asia

www.tbsnews.net

https://www.facebook.com/BDAviationHub/posts/4763992966982525

 

[Isa Khan]

After a long red-tape delay, the megaproject to set up 12 hi-tech parks in Dhaka and other districts is finally all set to take off next month.

"The construction of eight of these parks will begin in February 2022," said State Minister for ICT Zunaid Ahmed Palak on Monday.

Of the project cost, India will provide Tk1,746.4 crore while the rest Tk50 crore will come from the Bangladesh government, he told journalists after a meeting with Indian High Commissioner to Bangladesh Vikram Kumar Doraiswami at the Bangladesh Hi-Tech Park Authority in the capital.

The Executive Committee of the National Economic Council (Ecnec) approved the project in 2017.

Although the four-year project was due to end in June last year, its consulting firm was appointed in June 2018 and the tender process was completed in 2021. Now the work of the project will continue for an extended time, officials at the Hi-Tech Park Authority say.

They say work on the tender process has been delayed as permission from the Indian government is required in every step of the project.

India will also give Tk50 crore and Tk25 crore for setting up the Bangladesh-Bharat Digital Edutainment Centre and the Bangladesh-Bharat Digital Service and Employment Training (BDSET) Centre, respectively.

Under the Bangladesh-Bharat Digital Service and Employment Training (BDSET) Centre project, the government will set up six specialised labs at software technology parks, high-tech parks and Sheikh Kamal IT Training and Incubation Centre to provide training.

The project is being implemented at Kaliakair in Dhaka, Rajshahi, Natore, Chattogram, Jashore and Khulna at a cost of over Tk61 crore. Tk36 crore will come from the Bangladesh government and the rest Tk25 crore from India.

Regarding this project, the state minister for ICT said 2,400 people will receive training in the Internet of Things, machine learning, robotics, artificial intelligence, extended reality and other advanced subjects in the next two years.

Besides, another project aimed at setting up a Bangladesh-India Digital Edutainment Centre is also nearing completion, said Palak.

The project has been estimated at Tk150-200 crore, in which Tk50 crore will come from the Indian government.

Under the proposed project, the two countries will work together to set up digital edutainment centres at 64 locations across the country, where education, training and entertainment will be provided simultaneously.

Finally, 8 hi-tech park construction starts in February

After a long red-tape delay, the megaproject to set up 12 hi-tech parks in Dhaka and other districts is finally all set to take off next month. "The construction of eight of these parks will begin in February 2022," said State Minister for ICT Zunaid Ahmed Palak on Monday. Of the project cost...

www.tbsnews.net

With the use of new technologies in the country's agriculture, the power thresher manufacturing industry in Naogaon has been growing. There has been increasing demand for power threshers among farmers as the machines save time and lessen the hassles farmers had to go through in threshing paddy and other crops.

Currently there are around 80 power thresher manufacturing factories in the Patnitala and Dhamoirhat upazilas of Naogaon, employing more than 700 labourers. On average, these factories produce and supply the country with around 2,000 threshers, worth Tk56 crore.

Around 10 years ago when the power thresher manufacturing industry began to emerge in the district, 500-600 power threshers were produced yearly. Gradually, demand increased and in 2015, annual production grew to 800-1,000 units.

Farmers say government subsidies halve the cost of a thresher, which has motivated farmers to buy more machines.

Usually it takes about six days for six people to make a threshing machine in a factory. The price of each fully prepared threshing machine is Tk2.80 lakh. As such, the price of 2,000 instruments stands at around Tk56 crore.

Threshers produced in Naogaon go to Noakhali, Jashore, Chuadanga, Kushtia, Meherpur, Nilphamari, Dinajpur, Rangpur and a few more districts, where threshing machines are used more in Boro and Aman seasons. Besides threshing paddy, they are used to thresh other crops such as mustard, sesame, linseed, wheat, coriander, and kalai.

Farmers find the machines useful since they do not have to depend on scarce labour and spend less on threshing and cleaning. In the past, there were times when many crops were damaged due to a lack of workers for threshing crops.

Shahinur Islam, owner of Satata Engineering Workshop, manufactures 80-90 threshing machines a year. He says demand for auto threshing machines is high in the market at present because it is possible to thresh paddy from an acre of land in an hour with a power thresher.

In Najipur bazar of the district, Harun Ur Rashid has been manufacturing power threshers since 2010 with 18 labourers working at his factory.

He says he has an agreement with thresher manufacturing workers who make a thresher machine for Tk18,000-20,000. He also provides them free lunch. Threshers are manufactured on orders from various businessmen across the country.

"The demand for power threshers has increased in the last five to six years with government subsidies to farmers for buying threshers and other agricultural machinery. If we also get loans on easy terms, we can expand our business and manufacture more machines," he added.

Thresher manufacturers are working on upgrading the machines so that dry stalks of paddy and other crops remain intact after threshing instead of being cut into pieces, he said.

Najipur power thresher traders' association General Secretary Masum Reza said traders find it difficult to get loans from public banks that demand collateral. As most of them are small entrepreneurs they cannot afford collateral.

"No bank has come up with any special facility for us. Some private organisations are interested to provide loans but at a very high interest rate. A little help from the government can greatly help move the industry forward," he added.

Deputy Director of Naogaon's Agriculture Extension Department, Md Shamsul Wadud, said quality rice threshing machines are being manufactured in Patnitala and Dhamairhat where senior officials regularly inspect factories.

"We are trying to expand this industry and are also thinking of ways to make bank loans easier for entrepreneurs," he added.

Naogaon’s power thresher manufacturing booming

Government subsidies halve manufacturing costs, save crops

www.tbsnews.net