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Bangladesh News Bangladesh Economy & Development
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Bangladesh's export to Europe is going to have a much less lead time and cost from February as a direct freight service is starting from Chattogram port to Europe – the country's biggest apparel export destination.
The first ship on the route, carrying export goods, will leave Chattogram for the Port of Ravenna in Italy in the first week next month.
Initially, two ships will transport export containers from Chattogram on the route every 25 days.
It will take just 16 days to reach Italy for a ship through this route, which currently takes about 40 days as they have to travel via several transshipment ports.
Businessmen and Chattogram port officials expect that the direct route will reduce the shipment cost by around 40%.
Italian shipping company Kalypso Compagnia di Navigazione SPA Italy will transport Bangladeshi export goods via two container vessels – the Cape Flores and the Songa Cheetah.
The Cape Flores is the flagship of the Marshall Islands with a draught of 8.66 metres – the depth of water needed for a ship to float – and a container capacity of 1,200 twenty-foot equivalent units (TEUs). Its length is 154.47 metres and width 25.19 metres.
The Songa Cheetah is currently on its way to Chattogram port. The Liberian flagship with a draft of 6.2 metres will arrive at the port on 5 February.
Reliance Shipping and Logistics is working as the local agent of the two ships in Bangladesh.
Mohammed Rashed, chairman of Reliance Shipping and Logistics, said, "Songa Cheetah left the port of Ravenna, Italy on 17 January with 945 TEUs of empty containers and 7 TEUs of containers with garments and raw materials. It will reach Chattogram port on 5 February. The ship will sail for Italy on 7 or 8 February with containers."
"The ship will carry about 16,500 tonnes of export goods in around 1,100 TEUs of containers. Of this, 98% are readymade garments and the remaining 2% are handicraft, leather and jute products. Once the goods reach the port of Ravenna, they will be delivered to various destinations in Europe as per the demand of the buyers."
The Cape Flores had already arrived at Chattogram port on 24 December with empty containers.
Currently, Italy-bound container ships from Chattogram port first have to reach a European base port such as the Port of Rotterdam in the Netherlands, the Port of Antwerp in Belgium and the Port of Hamburg in Germany via transshipment ports such as Singapore, Colombo in Sri Lanka, Tanjum Palapas and Kelang in Malaysia and a few in China. From there, they can go to Italy.
In some cases, goods are carried to Italy in mother vessels directly from the transhipment ports. But, most of the time, containers are unloaded at European base ports in the absence of the mother vessel's schedule in Italy. From there, goods are shipped to Italy in feeder vessels.
A shot in the arms for export trade
Traders said this initiative will reduce costs in export-import trade including the fixed operating cost of ships and strengthen Bangladesh's position in the competitive market.
According to people concerned, 51% of Bangladesh's export trade is with Europe.
Therefore, if this route becomes popular, it will create a new milestone in the export sector of the country, they said, adding it will attract new buyers and expand the country's export sector.
Rear Admiral M Shahjahan, chairman of the Chattogram Port Authority (CPA), told The Business Standard, experimental shipping on this route has already been completed successfully.
In April last year, about 25,000 Bangladeshi containers with imported goods were stuck at transshipment ports in Sri Lanka and Malaysia which affected traders as their production was stopped as the raw materials could not reach the factory on time. These containers were later brought to Chattogram port by additional feeder vessels.
Traders said the import-export trade of Bangladesh is being affected due to congestion in transshipment ports.
According to data provided by the Chittagong Port authorities, the premier seaport in the country handled over 15.25 lakh TEUs of export containers in 2021. Last December, it handled over 1.30 lakh TEUs of export containers.
Port sources told TBS that they do not have any statistics as to how much of these goods is transported to Europe or to other continents since they are shipped to their destinations after being unloaded in transshipment ports.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Shipping Agents' Association, however, say 55% of the overall export trade of the country is done with European countries.
Apparel accounts for some 82% of Bangladesh's total exports. Therefore, considering that on an average some 1.27 lakh TEUs of export containers left Chattogram port for various destinations every month last year, the volume of average monthly apparel exports last year was about 1.4 lakh TEUs, of which over 57,200 TEUs went to Europe alone.
Syed Nazrul Islam, first vice-president of Bangladesh Garments Manufacturers and Exorters Association (BGMEA), said, "Europe is the largest market for the garments industry of Bangladesh. The new route will halve the current shipping cost. It is very positive news for the country's export sector."
Syed Iqbal Ali Shimul, senior vice president of Bangladesh Shipping Agents Association, said at present, about 51% of Bangladesh's export products go to Europe, 25% to America, 20% to Asia and 4% to Canada.
Sources with shipping lines said foreign buyers take products from Bangladesh on Free on Board (FOB) basis, in which case the buyers bear the shipping fare.
At present, the fare for transporting a 40-foot container ship from the transhipment ports to Italy ranges between $10,000 and $14,000 depending on shipping lines, people concerned said, adding the freight charge could be $6,000-$7,000 on the new route.
Chattogram port accounts for 92% of the total export-import trade of Bangladesh. Besides, 98% of the container shipment is done here. However, the exporters are sometimes forced to send their products by air after missing the schedule of the export ships. This increases the transport cost manifold.
Rakibul Alam Chowdhury, vice president of BGMEA, said, "There remains a risk of missing the mother vessel even if the feeder vessels are late for one day to reach the transshipment port. In many cases, ships leave the Chattogram port without taking the goods to get the schedule of the mother vessel. This makes it uncertain to send the product to the customers at the stipulated time. In this situation, the new shipping route with Europe has created huge potential for Bangladesh's export sector."
Traders have also suggested the authorities create more routes for direct container ship movement to other ports in Europe and America.
Mahbubul Alam, president of Chattogram Chamber of Commerce and Industry, said, "This is a great achievement for Bangladesh. Direct shipping with Europe will add a new dimension to the country's export sector. However, the authorities must ensure that the service continues without any disruption."
Syed Mohammad Arif, chairman of Bangladesh Shipping Agents Association, said, "Various charges have to be paid in different stages to send products to Europe. Direct transport of goods will save a huge amount of money. Foreign buyers will be benefitted as the cost of transporting goods will be reduced. This will play a big role in creating new buyers."
What led to the initiative?
The main-line operators (MLOs) previously did not take any steps to launch direct container services with Italy because getting enough cargo would be a big challenge if such services were launched. Main-line operators are carriers employing vessels in the main or principal routes in a trade but not participating within a consortium.
Rashed said the main lines are not providing adequate containers amid the pandemic situation, leading to as high as 10 times increase in freight charges, in some cases.
"The principals are currently suffering because of these issues. They are struggling to deliver products on time even after spending extra money. So our principal has decided to hire ships and carry the containers themselves.
"Against such a backdrop, the Chattogram-Italy direct container shipping has started. It is expected that other main-line operators will also take initiatives to start shipping on this route. Then, freight charges will go down further."
Principal means the firm or person who is the owner or charterer or manager of the vessel represented by a company and/or the carrier under the bill of lading in connection with which services are provided by the company.
Most of the European countries have road connectivity between them, Rashed mentioned, adding, "After the goods arrive in Italy, a majority of those will be delivered to their destinations by road. The goods that need to be transported by waterway will be delivered to their destinations in feeder vessels."
Large shipping lines still less interested
Ajmir Hossain Chowdhury, assistant general manager of Mediterranean Shipping Company, told TBS that they view the issue of direct shipping with Italy in a positive light. But it remains to be seen how successful this initiative becomes, he added.
"Here goods of a particular shipping line will be transported, the amount of which is very low. Besides, mother vessels cannot anchor at the inner anchorage of the Chittagong Port because of its shallow depth. Therefore, goods have to be transported to Italy by small ships. This involves the risk of accidents."
Mentioning that large shipping lines are less interested in shipping to Italy with smaller ships, he said the shipping lines will come forward to transport goods directly to Europe once the Bay Terminal becomes operational.
Faster, cheaper export to Europe from Feb
Ctg-Italy direct freight route to reduce shipment time and cost significantly
Setting up the viaduct of the country's first metro rail from Uttara to Motijheel has been fully completed.
The entire 20.1-kilometre viaduct of the metro rail became visible after the last segment of the last span was installed near the National Press Club on Thursday morning.
Installing the last segment of the last span began at 11am and the engineers completed the work in 15 minutes.
"The completion of the viaduct installation is an important milestone for the metro rail project. This achievement will play an important role in meeting the target of launching the Uttara to Agargaon portion of the metro rail by December this year. It has also paved the way to launching the metro rail fully, from Uttara to Motijheel, by December next year," said Dhaka Mass Transit Company Limited (DMTCL) Managing Director MAN Siddique, at a virtual press briefing marking the achievement.
He said, "The biggest challenge at the moment is to move the metro rail work forward by tackling the spread of Omicron variant of coronavirus. During the previous waves of the ongoing pandemic, we succeeded maintaining the momentum of project implementation. Hopefully, we will be able to carry on the construction of the metro rail will facing the challenge of the pandemic."
"Around 74% work of the project has been completed. Construction of the Uttara-Agargaon portion has been completed by 90% while 73% work of Agargaon-Motijheel portion has been finished," he added.
According to sources, with an aim to build an effective transport system free of traffic congestion in the capital, the Dhaka Mass Rapid Transit Development Project (MRT Line-6) was approved in 2012. The project is being implemented with financial and technical assistance from Japan under the Strategic Transport Plan (STP).
Under the project, 20.10km metro rail will be constructed from Diabari area under Uttara Sector-3 to Motijheel by 2024. Meanwhile, Prime Minister Sheikh Hasina instructed to expand the rail line from Motijheel to Kamalapur. As a result, the length of the line will be 21.60 kilometers.
At the press briefing, the DMTCL MD said due to this expansion of the rail line to Kamalapur and the addition of some new features, the total cost of the ongoing Tk22,000 crore project will increase by Tk8,000 crore.
In reply to a query from reporters, MAN Siddique said some new features are being added to the existing infrastructure to ensure that passengers could travel in comfort. There will be separate staircases to enter and exit the station. At some places, the sidewalk is being expanded.
He said the roads are not equally wide everywhere. At some places new land has to be acquired as there is no government land available.
The ancillary works will be completed before the launch of the metro rail. However, the construction of Station Plaza and Transit Oriented Development (TOD) hub will take time, he added.
Once the survey of metro rail started at field level, suffering of the people living or doing businesses in the project areas including Agargaon, Taltala, Shewrapara, Mirpur, Farmgate, Karwanbazar, Banglamotor and Shahbag also started.
Sound and air pollutions multiplied once the construction work began, in addition to the reduced trading of business organisations beside the main road. However, with the completion of the construction, the suffering of the people is also decreasing. They are now hoping for a bright future.
Once operational, the metro rail will be able to transport 60,000 people per hour and reduce travel time from Uttara to Motijheel from about two hours to only 40 minutes.
Viaduct installation of metro rail completes
The Uttara-Agargaon portion scheduled to be launched in December this year
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The government is working relentlessly to establish an economic zone in the northern frontier district of Lalmonirhat, says Commerce Minister Tipu Munshi.
"The present government is working tirelessly to establish an economic zone in Lalmonirhat. All necessary steps have been taken in this regard.
"Development works will be completed in 3-4 years," he said while distributing winter clothes, blankets among the poor in Lalmonirhat.
The minister was attending an event organised by Lalmonirhat Rotary Club at the Sheikh Shafiuddin Commerce College premises on Saturday.
Lalmonirhat Sheikh Shafi Uddin was the chief guest at the distribution of winter clothes at the premises of Commerce College.
"Maize is the cash crop of Lalmonirhat. The industries here will be built while keeping that in mind. Also, works are also underway to implement the government's master plan for River Teesta dredging," he added.
Deputy Commissioner (DC) Abu Jafar, Lalmonirhat Awami League General Secretary, Lalmonirhat Zilla Parishad Chairman Matiar Rahman, Lalmonirhat Chamber of Commerce President Sheikh Abdul Hamid Babu, Lalmonirhat Additional Superintendent of Police (SP) Rabiul Islam, and poet Ferdousi Begum Beauty were also present at the programme.
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The Bangladesh Inland Water Transport Corporation (BIWTC) has added two shallow draft oil tankers – OT BIWTC Safa and OT BIWTC Marwa – to its fleet to help refuel vessels operating on the Paturia-Daulatdia, Shimulia-Bangla Bazar and Dhaka-Barishal-Khulna routes.
The inland water transport body also added a floating workshop – the decommissioned ferry Lang Ting-K repurposed to provide vessels on Bhola-Lakshmipur naval route with repair and maintenance support.
The additions of both the refuelling oil tankers and the floating workshop – which are first of its kind for the BIWTC – were inaugurated by the State Minister for Shipping Khalid Mahmud Chowdhury on Sunday.
The construction of the two oil tankers, which has a capacity of carrying 4 lakh litres of oil each, took nearly Tk21.80 crore. Each of the vessels, which are able to move in less than 2 metre depth, are 47-metre-long and 9.50-metre-wide.
Currently the vessels refuel by purchasing oil barrels, which are transported via land routes – the process is both expensive and time consuming.
"The addition of oil tankers will make refuelling less time-consuming and cost effective," said BIWTC Chairman Shamim Alrazi.
"The two vessels have been added to the fleet to modernise BIWTC's fuel supply system and to ensure transparency and accountability in the supply of fuel to the fleet," State Minister Khalid Mahmud said on Sunday while inaugurating the tankers at the Meghna River in Munshiganj.
"This will improve the overall BIWTC operation, which includes the providing of uninterrupted ferry and passenger services," added the state minister.
BIWTC Chairman Shamim said that the oil tanker will initially provide refuelling services to ferries and vessels operating on Manikganj, Rajbari, Munshiganj and Madaripur routes.
"Each of the tankers will have four officers and eight operation crew," said Shamim.
Earlier on 20 November, 2019, a deal was inked with Three Angle Marine Ltd to build the two oil tankers. The company handed over the refuelling oil tankers with five months to spare.
The same company, which was contracted to convert the Lang Ting K ferry to a floating workshop in February 2021, completed the conversion at a cost of nearly Tk2.37 crore.
"Thanks to this floating workshop, vessels will not require to be anchored at dockyards for minor repair works," said Khalid Mahmud Chowdhury.
Bangladesh Inland Water Transport Authority, another regulator under the shipping ministry owns a similar floating workshop, which is not currently operational.
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The government has formulated a new design to transform Dhaka Medical College Hospital into a state-of-the-art medical facility by constructing 27 new multi-storey buildings and increasing bed numbers to 5,000 to provide better treatment to more people and improve the quality of medical and nursing education.
According to people concerned, the new design would be implemented at an estimated cost of Tk18,000 crore on the current premise of the hospital, keeping all the historical buildings intact. A target has been set to inaugurate the new facilities by 2027.
According to the new design, 27 buildings for hospital, medical college, library, seminar, dormitory will be constructed on the 108.5 bighas of land of Dhaka Medical College Hospital. Of these, there will be six hospital buildings each with 17 floors. Other buildings including the residential ones will have 20 floors.
Hospitals, medical colleges, nursing institutes, seminars, doctor's lounges will be interlinked. The hospital will have two emergency wards and two outdoors, as per the design.
The design suggested no vehicle movement on the hospital premise except for ambulances. All the vehicles will be in the basement where a three-storey underground parking space will be made with a capacity for parking 5,000 cars. There will also be an automated car parking facility. The hospital will have several entry points that will be used based on traffic analysis.
The current frontal look of the Dhaka Medical College has been kept intact in the new design and excluding the historic buildings, all the other infrastructures will be demolished to make way for new constructions.
Dhaka Medical College now has more than 60 departments and sub-specialist departments. However, each department will be shifted to new buildings in a way that the medical and educational activities are not hampered.
DMCH sources said a project proposal has already been prepared for the implementation of the mega project as per the feasibility study. It will be sent to the Planning Commission within this year for final approval.
Brigadier General Nazmul Haque, director of Dhaka Medical College, told the Business Standard, "As a 100-year-old building, Dhaka Medical College is an archaeological heritage site. The construction work will continue by preserving the tradition and keeping the daily activities of the hospital running."
He said, "The new buildings would be constructed keeping all the modern and digital facilities. The medical record system would also be modernised. Also, since 80% of our clients are low-income people from remote areas, their comfort would be prioritised."
At present, more than 3,500 patients are admitted daily to the 2,600-bed hospital. However, the additional patients receive treatment by staying on the hospital floor, veranda or side of the stairs.
Nazmul Hoque said, "Dhaka Medical College never sends any patient back without treatment. If we can arrange 5,000 beds then we will be able to provide adequate bed services to the patients who are now admitted in the wards, verandas and stairs. There will be 1,000 floating beds outside for patients who would come for minor surgery or chemotherapy and stay there only for a day."
According to the people concerned, the new design of the entire complex has been made as per the directive of the Prime Minister. Although the DPP proposed to complete the construction work within six years, it has been changed to four years as per the Prime Minister's instructions.
With the expansion of medical services and educational activities in the hospital, the option for practical training for nurses, third-class staff and doctors will be expanded. Besides, international seminars on health will also be organised regularly, the medical college authorities said.
Nazmul Haque said, "The MBBS, FCPS programmes will continue here and options for PhD research will be added. New departments will also be introduced that will increase the scope of our knowledge. The number of skilled doctors and health workers will increase," said Nazmul Haque.
"The tendency of our people to go abroad for better treatment will decrease after the implementation of the new design. Then people will get an improved service at a lower cost," he added.
The new design of the hospital has been done by Professional Associates Ltd.
Manju Ara Begum, chairman of Professional Associates, told The Business Standard, "DMCH is a historic infrastructure, so, the design has been done keeping the historical part intact. The IT system of the hospital will be fully digitalised. Now, our challenge is to complete the project of upgrading Dhaka Medical College Hospital to a gold standard hospital within the stipulated time."
www.tbsnews.net
"The present government is working tirelessly to establish an economic zone in Lalmonirhat. All necessary steps have been taken in this regard.
"Development works will be completed in 3-4 years," he said while distributing winter clothes, blankets among the poor in Lalmonirhat.
The minister was attending an event organised by Lalmonirhat Rotary Club at the Sheikh Shafiuddin Commerce College premises on Saturday.
Lalmonirhat Sheikh Shafi Uddin was the chief guest at the distribution of winter clothes at the premises of Commerce College.
"Maize is the cash crop of Lalmonirhat. The industries here will be built while keeping that in mind. Also, works are also underway to implement the government's master plan for River Teesta dredging," he added.
Deputy Commissioner (DC) Abu Jafar, Lalmonirhat Awami League General Secretary, Lalmonirhat Zilla Parishad Chairman Matiar Rahman, Lalmonirhat Chamber of Commerce President Sheikh Abdul Hamid Babu, Lalmonirhat Additional Superintendent of Police (SP) Rabiul Islam, and poet Ferdousi Begum Beauty were also present at the programme.
Govt working to establish economic zone in Lalmonirhat: Commerce minister
The government is working relentlessly to establish an economic zone in the northern frontier district of Lalmonirhat, says Commerce Minister Tipu Munshi. "The present government is working tirelessly to establish an economic zone in Lalmonirhat.
The Bangladesh Inland Water Transport Corporation (BIWTC) has added two shallow draft oil tankers – OT BIWTC Safa and OT BIWTC Marwa – to its fleet to help refuel vessels operating on the Paturia-Daulatdia, Shimulia-Bangla Bazar and Dhaka-Barishal-Khulna routes.
The inland water transport body also added a floating workshop – the decommissioned ferry Lang Ting-K repurposed to provide vessels on Bhola-Lakshmipur naval route with repair and maintenance support.
The additions of both the refuelling oil tankers and the floating workshop – which are first of its kind for the BIWTC – were inaugurated by the State Minister for Shipping Khalid Mahmud Chowdhury on Sunday.
The construction of the two oil tankers, which has a capacity of carrying 4 lakh litres of oil each, took nearly Tk21.80 crore. Each of the vessels, which are able to move in less than 2 metre depth, are 47-metre-long and 9.50-metre-wide.
Currently the vessels refuel by purchasing oil barrels, which are transported via land routes – the process is both expensive and time consuming.
"The addition of oil tankers will make refuelling less time-consuming and cost effective," said BIWTC Chairman Shamim Alrazi.
"The two vessels have been added to the fleet to modernise BIWTC's fuel supply system and to ensure transparency and accountability in the supply of fuel to the fleet," State Minister Khalid Mahmud said on Sunday while inaugurating the tankers at the Meghna River in Munshiganj.
"This will improve the overall BIWTC operation, which includes the providing of uninterrupted ferry and passenger services," added the state minister.
BIWTC Chairman Shamim said that the oil tanker will initially provide refuelling services to ferries and vessels operating on Manikganj, Rajbari, Munshiganj and Madaripur routes.
"Each of the tankers will have four officers and eight operation crew," said Shamim.
Earlier on 20 November, 2019, a deal was inked with Three Angle Marine Ltd to build the two oil tankers. The company handed over the refuelling oil tankers with five months to spare.
The same company, which was contracted to convert the Lang Ting K ferry to a floating workshop in February 2021, completed the conversion at a cost of nearly Tk2.37 crore.
"Thanks to this floating workshop, vessels will not require to be anchored at dockyards for minor repair works," said Khalid Mahmud Chowdhury.
Bangladesh Inland Water Transport Authority, another regulator under the shipping ministry owns a similar floating workshop, which is not currently operational.
BIWTC adds floating workshop, two oil tankers to its fleet
The addition of oil tankers will make refuelling cost effective, less time-consuming
The government has formulated a new design to transform Dhaka Medical College Hospital into a state-of-the-art medical facility by constructing 27 new multi-storey buildings and increasing bed numbers to 5,000 to provide better treatment to more people and improve the quality of medical and nursing education.
According to people concerned, the new design would be implemented at an estimated cost of Tk18,000 crore on the current premise of the hospital, keeping all the historical buildings intact. A target has been set to inaugurate the new facilities by 2027.
According to the new design, 27 buildings for hospital, medical college, library, seminar, dormitory will be constructed on the 108.5 bighas of land of Dhaka Medical College Hospital. Of these, there will be six hospital buildings each with 17 floors. Other buildings including the residential ones will have 20 floors.
Hospitals, medical colleges, nursing institutes, seminars, doctor's lounges will be interlinked. The hospital will have two emergency wards and two outdoors, as per the design.
The design suggested no vehicle movement on the hospital premise except for ambulances. All the vehicles will be in the basement where a three-storey underground parking space will be made with a capacity for parking 5,000 cars. There will also be an automated car parking facility. The hospital will have several entry points that will be used based on traffic analysis.
The current frontal look of the Dhaka Medical College has been kept intact in the new design and excluding the historic buildings, all the other infrastructures will be demolished to make way for new constructions.
Dhaka Medical College now has more than 60 departments and sub-specialist departments. However, each department will be shifted to new buildings in a way that the medical and educational activities are not hampered.
DMCH sources said a project proposal has already been prepared for the implementation of the mega project as per the feasibility study. It will be sent to the Planning Commission within this year for final approval.
Brigadier General Nazmul Haque, director of Dhaka Medical College, told the Business Standard, "As a 100-year-old building, Dhaka Medical College is an archaeological heritage site. The construction work will continue by preserving the tradition and keeping the daily activities of the hospital running."
He said, "The new buildings would be constructed keeping all the modern and digital facilities. The medical record system would also be modernised. Also, since 80% of our clients are low-income people from remote areas, their comfort would be prioritised."
At present, more than 3,500 patients are admitted daily to the 2,600-bed hospital. However, the additional patients receive treatment by staying on the hospital floor, veranda or side of the stairs.
Nazmul Hoque said, "Dhaka Medical College never sends any patient back without treatment. If we can arrange 5,000 beds then we will be able to provide adequate bed services to the patients who are now admitted in the wards, verandas and stairs. There will be 1,000 floating beds outside for patients who would come for minor surgery or chemotherapy and stay there only for a day."
According to the people concerned, the new design of the entire complex has been made as per the directive of the Prime Minister. Although the DPP proposed to complete the construction work within six years, it has been changed to four years as per the Prime Minister's instructions.
With the expansion of medical services and educational activities in the hospital, the option for practical training for nurses, third-class staff and doctors will be expanded. Besides, international seminars on health will also be organised regularly, the medical college authorities said.
Nazmul Haque said, "The MBBS, FCPS programmes will continue here and options for PhD research will be added. New departments will also be introduced that will increase the scope of our knowledge. The number of skilled doctors and health workers will increase," said Nazmul Haque.
"The tendency of our people to go abroad for better treatment will decrease after the implementation of the new design. Then people will get an improved service at a lower cost," he added.
The new design of the hospital has been done by Professional Associates Ltd.
Manju Ara Begum, chairman of Professional Associates, told The Business Standard, "DMCH is a historic infrastructure, so, the design has been done keeping the historical part intact. The IT system of the hospital will be fully digitalised. Now, our challenge is to complete the project of upgrading Dhaka Medical College Hospital to a gold standard hospital within the stipulated time."
Megaplan for a modern and digital DMCH
The project proposal will be sent to the Planning Commission within this year for final approval
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The Bangladesh Bank has given permission to four private business entities to invest $10 million in foreign countries, in a major leap forward for reining in capital flight alongside easing global marketing of local products.
One of the permitted companies, Square Pharmaceuticals Limited, a subsidiary of Square Group, will invest $1 million in The Philippines, opening up an opportunity for the company to gain a foothold in the import-dependent $6 billion pharmaceutical market – the third largest in the Asean region.
Without getting registered with the Food and Drug Administration of the Philippines, no companies with their own brands can directly market medicines in the destination. So, Square needs to resort to a third party for that.
Mohammad Habibuzzaman, company secretary at Square Group, said the investment plan in the Philippines is in its infancy. They will establish a new company under the name of Square Pharmaceuticals Limited Philippines. The whole thing is now at an early stage.
Earlier, Square Pharmaceuticals Ltd, the domestic pharma giant, constructed its manufacturing plant in the Kenyan capital Nairobi at a cost of $17 million in 2017. All necessary infrastructure is also ready and the manufacturing will start soon.
Square looks to get hold of the $30 million drug market in Kenya and five other East African countries – Tanzania, Rwanda, Burundi, Uganda and South Sudan – and fulfil the unmet demands of medicines in those countries.
Renata Pharmaceuticals, is going to invest $2 million in Ireland as part of increasing the paid-up capital in its already established subsidiary. The approval for this equity investment will allow the drug-maker to sell its medicines directly instead of hiring a third party.
Besides, Renata will also make an investment amounting to $5 million in the United Kingdom for the same target.
Seeking anonymity, a company official said, "We have already set up subsidiaries in the two countries to directly sell our manufactured drugs in the markets. But not having enough equities for business expansion, we have to have our sales done by a third party by paying 10%-30% commission."
Apart from the two drug makers, ACI Pharmaceuticals, with the central bank's permission on a case-to-case basis, invested $100 million in 2015 to grab a huge drug market in the United States.
Earlier, in 2014, Incepta Pharmaceuticals was allowed to invest outside the country. The company was supposed to form a joint-venture company in Estonia initially. But the approval is the only thing they got out of the effort because of tough conditions imposed by the government.
Another company that secured the seal of approval is Bangladesh Steel Re-Rolling Mills Ltd (BSRM) will invest $0.5 million to enhance its paid-up capital in its existing subsidiary in Hong Kong.
Shekhar Ranjan Kar, chief financial officer at BSRM Group, said, "We have set up the subsidiary mainly to procure raw materials from China. But we could not do that because of low capital."
The barrier has now been removed as a result of equity investment approval. There is also an opportunity to export goods to those regions through this subsidy, he added.
In 2016, the Bangladesh Bank gave approval to BSRM for investing in the steel sector in Kenya. Subject to fulfilling some conditions, the company was permitted to invest $4.6 million from its balance in the export retention quota to build a factory in the country.
Besides, Colombia Garments Limited, a subsidiary of M&J Group - a leading global manufacturer specialised in jeans production, was given permission to invest $1,5 million in Hong Kong for procurement and business promotion.
The companies that failed to secure approval are Sonargaon Seeds Crushing Mills Ltd, a subsidiary of Meghna Group of Industries and Bangladesh Venture Capital Limited.
The Sonargaon Seeds Crushing Mills wanted to invest $25,000 to set up a subsidiary in Singapore to expand its business, reduce risks in the supply chain, procure raw materials at affordable prices and deliver goods to customers at even lower prices.
In its application to the central bank for investment abroad, the company said the seed crushing company does not have its own Export Retention Quota Account. So, they want to take this investment in the name of Tasnim Chemical Company belonging to the same group.
The mill started commercial operation in 2020, which has only one year of export experience.
On the other hand, Venture Capital Limited sought permission to invest $10,000 to acquire 0.85% stake in BrioAgro, a Spanish agro-tech based startup.
On 27 January, the central bank in a gazette notification permitted Bangladeshi businesses to make overseas equity investments, subject to an adequate balance in their export retention quota (ERQ) – a portion of export earnings they have saved as foreign currency.
The number of Bangladeshi companies that have investments abroad now stands at 18, with a fresh permission to a new company - Colombia Garments Limited.
Performance of businesses abroad
Sparrow Group, a Bangladeshi apparel exporter, invested in Jordan in 2007 by forming a joint venture company with one of the leading Indian garment manufacturers.
Some 1600 Bangladeshi and 500 local people are now working in the factory with an annual turnover of $70 million.
Akij Group, one of the leading private sector conglomerates in the country, took over a Malaysian company named Robin Resources for $20 million. The company fetched a good return from the investment.
Sk Bashiruddin, managing director of Akij Group, said they did not face new challenges in running the business as they acquired an old company. The return on the equity investment is satisfactory. At present, more than 500 people are working in it.
In a bad example, the DBL Group set up a garment factory in Ethiopia's Tigray region to cash in on the country's duty-free access to the US market, low prices of land and cheap labour in 2018.
But conflict in the region in 2020 forced them to bring back its workers from Ethiopia after closing the factory. A reopening is still uncertain as the country's civil war rages on.
In 2013, MJL Bangladesh Limited, as the first Bangladeshi company, formed a joint venture with a Myanmar-based petroleum company and invested $5.1 lakh in the neighbouring country. The company made good profit Initially.
But a few years later, MJL started facing losses owing to the increasing political unrest in Myanmar, frequent policy changes and lack of accountability. Eventually, the company came back home by closing down its business in 2020 after suffering a massive loss.
Four firms get nod to invest abroad
The Bangladesh Bank has given permission to four private business entities to invest $10 million in foreign countries, in a major leap forward for reining in capital flight alongside easing global marketing of local products. One of the permitted companies, Square Pharmaceuticals Limited, a...
Danish shipping company Maersk Bangladesh has partnered with Ispahani Summit Alliance Terminals Limited (ISATL) to build a 200,000 sq. ft custom bonded warehouse.
Maersk has been serving Bangladeshi exporters to connect to the global market for almost three decades, reports The Loadstar.
ISATL are pioneers in constructing and operating warehouses and CFS and operate four CFS within Chattogram and the River Terminal at Dhaka. Under the scope of the partnership, ISATL will construct a brand new custom bonded warehouse within the existing premises of the facility located at Pathortoli in Chattogram.
The new warehouse will double the existing capacity at ISATL and add around 8% additional space to the existing ecosystem at Chattogram.
The construction of the new CFS has already commenced and is expected to be completed in a phased manner by the end of 2022.
"Maersk's commitment to connect and simplify our customers' supply chains means that we look at long term solutions for problems such as the longstanding congestion within the ecosystem. We tackled the situation In 2021 by deploying an additional vessel for evacuating export loaded containers" said Angshuman Mustafi, Managing Director, Maersk Bangladesh.
"The solutions provided immediate relief to the ecosystem, but there was a need for a comprehensive solution to optimise ocean shipping, port handling and inland logistics that would benefit trade in the long term. By partnering with ISALT, we are establishing a facility that has the potential to partially decongest the system from the landside and streamline the flow of cargo in and out of Bangladesh," he added.
Apart from adding capacity, the facility will offer several other benefits to Bangladesh's exports. Amongst others, the new facility is being built by benchmarking international best practices when it comes to safety and other compliance guidelines. It will be modern multi-storeyed facility in Chattogram which will have storage at G+2 levels.
Maersk will also offer customers Garment on Hanger facility, sorting, product audit, labelling, bar code and RFID scanning amongst others.
Danish shipping company Maersk to build warehouse in Chattogram
The new warehouse will double the existing capacity at ISATL and add around 8% additional space to the existing ecosystem at Chattogram
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This is very welcome news, I suggested much earlier in another forum that this is what BD will have to get doing ASAP to expand its economic base and knowhow to consequent tiers.
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Prime Minister Sheikh Hasina has approved the proposal to form an economic zone in Satkhira.
Earlier, the proposal was presented before the Cabinet Division and the premier gave the authorisation, Humayun Kabir made the disclosure in a press conference on Sunday (6 February).
"The economic zone is aimed at boosting the district's economic activities including agriculture, fisheries, vegetables, and the dairy industry," he said.
"Once the economic zone is formed, it will bring more momentum to the industries based in the district," he added.
"Satkhira Bypass Road, the under-construction Padma Bridge will be opened to the public and the proposed Jashore-Satkhira railway line will add a new dimension to Satkhira's connectivity," he remarked.
www.tbsnews.net
The first-ever economic zone in the country's hoar areas is set for a launch in Kishoreganj, 90km from the capital Dhaka, with the Indian Tata Group going into production of pickups in March.
It is expected to create 2,000 jobs initially, and then in five years, the figure will gradually increase to 20,000, says Nitol Niloy Group, which is developing the Kishoreganj Economic Zone.
The factory, being set up for Tk500 crore, will manufacture 2,000 pickups a year, according to Nitol Niloy Group, the auto giant's local partner in Bangladesh.
Abdul Matlub Ahmad, chairman of Nitol Niloy Group, said, "Tata has invested around Tk500 crore. It has completed all preparations including installation of machinery."
"The company will go into production next month. Apart from selling in the Bangladesh market, Tata Group also plans to export pickups to other countries such as Sri Lanka," added the founder of Nitol Niloy Group – the main thrust of which comes from marketing Tata brand of buses, trucks and pickups in Bangladesh.
He further said that all the land will be developed by June. Setting up of infrastructure and the factory are going on simultaneously. 60% of land development and 90% of wall construction has already been completed.
"Aside from Tata, Nitol Niloy Group is investing Tk600-900 crore in the tyre industry with an annual production capacity of 3.5 lakh units," Abdul Matlub said.
"Investments are expected in other sectors such as light engineering. In all, an investment of Tk2,000crore will come in this economic zone. Hopefully, in 2023, all the companies will go into production," he added.
Nitol Niloy Group is developing the zone adjacent to Bhairab-Kishoreganj Highway in Pakundiaupazila with the approval of the Bangladesh Economic Zone Authority (Beza).
Abdul Matlub said the private economic zone, close to Bhairab, the gateway to the agro-based haor region, would easily attract investment and play a major role in the economic development of the area.
He said that in addition to the pickup and tyre industries, the Nitol Niloy Group wants to build a hub for light engineering in the zone where companies from India, China and Turkey are interested in building small factories.
They will manufacture car bumpers, lights, electronic car components in particular. These will be sold in Bangladesh and will be exported abroad, he added.
The Nitol Niloy Group has announced that its bus-truck tyre factory will be launched on a trial basis in December 2022. Necessary equipment will arrive in early January.
Matlub, also a business leader, said, "From 2023, we will be able to meet the entire local demand for tyres for buses and trucks. We will sell tyres under our brand – Nitoltyres and Niloytyres."
International hotels and restaurants in the offing
The economic zone is in a favourable location for cargo transportation and other communications. It is connected to the Bhairab-Kishoreganj 100-foot Highway.
The railway line, built by the zone authorities, is connected to the Bhairab-Kishoreganj line at the Gachihata Railway Station point and the distance of the zone from Ashuganj and Bhairab river ports is only 40km.
The zone will have waste management and water treatment plants. This will be the complete logistics zone. Its main entrance will have state-of-the-art security such as active weight measurement. There will be reservoirs, recreation centres, state-of-the-art medical facilities and educational institutions.
The zone will have green forestry with a daycare facility. Separate buildings will be constructed for administrative work such as banks, insurance and government offices. Investors will enjoy the incentive package announced by Beza.
Also, there will be a one-stop service (OSS) facility, high-speed internet and other information technology, uninterrupted electricity and gas supplies. There will be international standard hotels and restaurants.
Beza is working towards establishing 100 economic zones across the country by 2030. The goal is to create employment for 10 million people directly as well as indirectly. It also expects to produce and export products worth $40 billion annually in and from these economic zones.
www.tbsnews.net
For the first time in 71 years, Mongla port has successfully handled the loading and unloading of goods from a gearless cargo, a bulker without cranes or conveyors.
The port authority used their two newly purchased multipurpose and four mobile harbour cranes to load and discharge goods from Panama flag bearer container ship MV Filotimo.
Earlier on Thursday (3 February), the 172-meter-long and 6.9-meter-deep MV Filotimo ship arrived at Mongla port with 486 containers.
After a total of 263 cargo containers were unloaded and 344 containers of exportable goods were loaded, the bulker left the port for Malaysia on Sunday evening.
"This is the first time that a gearless ship [without its own crane] arrived at Mongla Port, after 71 years of its establishment in 1950," Mongla Port Authority Board and Public Relations Deputy Secretary Md Makruzzaman told The Business Standard.
The port authority upgraded its facilities by importing five ultramodern mobile harbour cranes last year, prior to which, only cargo vessels with their own cranes were welcomed at Mongla port.
According to Rear Admiral Mohammad Musa, chairman of the Mongla Port Authority, a Tk700 crore (approximately) project has been undertaken for modernising and building the capacity of the port.
Md Makruzzaman said, "With the installation of the new cranes, the container handling productivity of the port has increased to 15 containers per hour from an average of eight containers per hour."
"Moreover, the turnaround time at the port has reduced to two days in the fiscal year 2021-22 while in the previous year it was almost three days," he said adding that both the cost and time of the traders are being saved as a result.
www.tbsnews.net
Railway Minister Md Nurul Islam Sujan inaugurated the construction work of the country's first eco-friendly green container terminal in Chattogram.
He inaugurated the work bywith cutting the soil in front of Chattogram Port Stadium on Saturday afternoon.
A multimodal green container terminal will be built on around 30 acres of Bangladesh Railway land with investment from the Saif Power Group.
Following the inauguration, various financial and commercial aspects of the terminal were presented to the minister.
Speaking as chief guest at the event, Sujan said, "Railways are a profitable venture in the developed world but our country's railways have to be subsidised by the government. After independence, the father of the nation took several steps to make the railways a profitable institution, but after 1975, that stopped."
"After taking charge of the government, Prime Minister Sheikh Hasina has directed the implementation of those steps. Railway has formed the Container Company of Bangladesh Limited (CCBL) to increase its source of income. It was decided to build a multimodal container terminal on railway's abandoned land in a joint venture with Saif Logistics Alliance Limited," he added.
The minister said the railways can generate new jobs utilising their own resources. Then the government will not have to subsidise it anymore and Bangladesh Railway can be a profitable company.
The railway minister said, at present Chattogram Port handles 32 lakh TEU containers annually and only 5% of the containers are transported inland by rail which should be 10%-15%. This will reduce pressure on the highways and the railways will also be able to increase revenues.
Secretary to railways ministry, Md Humayun Kabir, Director General of railways, Dhirendra Nath Majumder, General Manager of railways (eastern), Md Jahangir Hossain, CCBL Managing Director Belal Hossain, and Managing Director of Saif Logistics Alliance Limited, Tarafdar Ruhul Saif, among others, were also present at the time.
Ruhul Saif said the country's first green container terminal will be directly connected by road, rail and sea. This multimodal terminal will be a full green terminal. No machinery of the terminal will run on fuel oil but rather, entirely on electricity and solar power. Operational work will be conducted like modern terminals in developed countries, with modern equipment, state-of-the-art scanners, and abiding by all ISPS rules. This will be a milestone achievement for the country.
He said the terminal will handle 350,000 TEU containers a year and will have 125,000 TEU consolation centres, thus reducing the cost of imports and exports significantly and playing an important role in the country's export sector.
www.tbsnews.net
Earlier, the proposal was presented before the Cabinet Division and the premier gave the authorisation, Humayun Kabir made the disclosure in a press conference on Sunday (6 February).
"The economic zone is aimed at boosting the district's economic activities including agriculture, fisheries, vegetables, and the dairy industry," he said.
"Once the economic zone is formed, it will bring more momentum to the industries based in the district," he added.
"Satkhira Bypass Road, the under-construction Padma Bridge will be opened to the public and the proposed Jashore-Satkhira railway line will add a new dimension to Satkhira's connectivity," he remarked.
PM approves proposal for Satkhira economic zone
Prime Minister Sheikh Hasina has approved the proposal to form an economic zone in Satkhira. Earlier, the proposal was presented before the Cabinet Division and the premier gave the authorisation, Humayun Kabir made the disclosure in a press conference on Sunday (6 February). "The economic zone...
The first-ever economic zone in the country's hoar areas is set for a launch in Kishoreganj, 90km from the capital Dhaka, with the Indian Tata Group going into production of pickups in March.
It is expected to create 2,000 jobs initially, and then in five years, the figure will gradually increase to 20,000, says Nitol Niloy Group, which is developing the Kishoreganj Economic Zone.
The factory, being set up for Tk500 crore, will manufacture 2,000 pickups a year, according to Nitol Niloy Group, the auto giant's local partner in Bangladesh.
Abdul Matlub Ahmad, chairman of Nitol Niloy Group, said, "Tata has invested around Tk500 crore. It has completed all preparations including installation of machinery."
"The company will go into production next month. Apart from selling in the Bangladesh market, Tata Group also plans to export pickups to other countries such as Sri Lanka," added the founder of Nitol Niloy Group – the main thrust of which comes from marketing Tata brand of buses, trucks and pickups in Bangladesh.
He further said that all the land will be developed by June. Setting up of infrastructure and the factory are going on simultaneously. 60% of land development and 90% of wall construction has already been completed.
"Aside from Tata, Nitol Niloy Group is investing Tk600-900 crore in the tyre industry with an annual production capacity of 3.5 lakh units," Abdul Matlub said.
"Investments are expected in other sectors such as light engineering. In all, an investment of Tk2,000crore will come in this economic zone. Hopefully, in 2023, all the companies will go into production," he added.
Nitol Niloy Group is developing the zone adjacent to Bhairab-Kishoreganj Highway in Pakundiaupazila with the approval of the Bangladesh Economic Zone Authority (Beza).
Abdul Matlub said the private economic zone, close to Bhairab, the gateway to the agro-based haor region, would easily attract investment and play a major role in the economic development of the area.
He said that in addition to the pickup and tyre industries, the Nitol Niloy Group wants to build a hub for light engineering in the zone where companies from India, China and Turkey are interested in building small factories.
They will manufacture car bumpers, lights, electronic car components in particular. These will be sold in Bangladesh and will be exported abroad, he added.
The Nitol Niloy Group has announced that its bus-truck tyre factory will be launched on a trial basis in December 2022. Necessary equipment will arrive in early January.
Matlub, also a business leader, said, "From 2023, we will be able to meet the entire local demand for tyres for buses and trucks. We will sell tyres under our brand – Nitoltyres and Niloytyres."
International hotels and restaurants in the offing
The economic zone is in a favourable location for cargo transportation and other communications. It is connected to the Bhairab-Kishoreganj 100-foot Highway.
The railway line, built by the zone authorities, is connected to the Bhairab-Kishoreganj line at the Gachihata Railway Station point and the distance of the zone from Ashuganj and Bhairab river ports is only 40km.
The zone will have waste management and water treatment plants. This will be the complete logistics zone. Its main entrance will have state-of-the-art security such as active weight measurement. There will be reservoirs, recreation centres, state-of-the-art medical facilities and educational institutions.
The zone will have green forestry with a daycare facility. Separate buildings will be constructed for administrative work such as banks, insurance and government offices. Investors will enjoy the incentive package announced by Beza.
Also, there will be a one-stop service (OSS) facility, high-speed internet and other information technology, uninterrupted electricity and gas supplies. There will be international standard hotels and restaurants.
Beza is working towards establishing 100 economic zones across the country by 2030. The goal is to create employment for 10 million people directly as well as indirectly. It also expects to produce and export products worth $40 billion annually in and from these economic zones.
Turning haor areas into economic hub: Kishoreganj EZ kicks off next month
The first-ever economic zone in the country's hoar areas is set for a launch in Kishoreganj, 90km from the capital Dhaka, with the Indian Tata Group going into production of pickups in March. It is expected to create 2,000 jobs initially, and then in five years, the figure will gradually...
For the first time in 71 years, Mongla port has successfully handled the loading and unloading of goods from a gearless cargo, a bulker without cranes or conveyors.
The port authority used their two newly purchased multipurpose and four mobile harbour cranes to load and discharge goods from Panama flag bearer container ship MV Filotimo.
Earlier on Thursday (3 February), the 172-meter-long and 6.9-meter-deep MV Filotimo ship arrived at Mongla port with 486 containers.
After a total of 263 cargo containers were unloaded and 344 containers of exportable goods were loaded, the bulker left the port for Malaysia on Sunday evening.
"This is the first time that a gearless ship [without its own crane] arrived at Mongla Port, after 71 years of its establishment in 1950," Mongla Port Authority Board and Public Relations Deputy Secretary Md Makruzzaman told The Business Standard.
The port authority upgraded its facilities by importing five ultramodern mobile harbour cranes last year, prior to which, only cargo vessels with their own cranes were welcomed at Mongla port.
According to Rear Admiral Mohammad Musa, chairman of the Mongla Port Authority, a Tk700 crore (approximately) project has been undertaken for modernising and building the capacity of the port.
Md Makruzzaman said, "With the installation of the new cranes, the container handling productivity of the port has increased to 15 containers per hour from an average of eight containers per hour."
"Moreover, the turnaround time at the port has reduced to two days in the fiscal year 2021-22 while in the previous year it was almost three days," he said adding that both the cost and time of the traders are being saved as a result.
Gearless cargo handling begins at Mongla port
For the first time in 71 years, Mongla port has successfully handled the loading and unloading of goods from a gearless cargo, a bulker without cranes or conveyors. The port authorities used their two newly purchased multipurpose and four mobile harbour cranes to load and discharge goods from...
Railway Minister Md Nurul Islam Sujan inaugurated the construction work of the country's first eco-friendly green container terminal in Chattogram.
He inaugurated the work bywith cutting the soil in front of Chattogram Port Stadium on Saturday afternoon.
A multimodal green container terminal will be built on around 30 acres of Bangladesh Railway land with investment from the Saif Power Group.
Following the inauguration, various financial and commercial aspects of the terminal were presented to the minister.
Speaking as chief guest at the event, Sujan said, "Railways are a profitable venture in the developed world but our country's railways have to be subsidised by the government. After independence, the father of the nation took several steps to make the railways a profitable institution, but after 1975, that stopped."
"After taking charge of the government, Prime Minister Sheikh Hasina has directed the implementation of those steps. Railway has formed the Container Company of Bangladesh Limited (CCBL) to increase its source of income. It was decided to build a multimodal container terminal on railway's abandoned land in a joint venture with Saif Logistics Alliance Limited," he added.
The minister said the railways can generate new jobs utilising their own resources. Then the government will not have to subsidise it anymore and Bangladesh Railway can be a profitable company.
The railway minister said, at present Chattogram Port handles 32 lakh TEU containers annually and only 5% of the containers are transported inland by rail which should be 10%-15%. This will reduce pressure on the highways and the railways will also be able to increase revenues.
Secretary to railways ministry, Md Humayun Kabir, Director General of railways, Dhirendra Nath Majumder, General Manager of railways (eastern), Md Jahangir Hossain, CCBL Managing Director Belal Hossain, and Managing Director of Saif Logistics Alliance Limited, Tarafdar Ruhul Saif, among others, were also present at the time.
Ruhul Saif said the country's first green container terminal will be directly connected by road, rail and sea. This multimodal terminal will be a full green terminal. No machinery of the terminal will run on fuel oil but rather, entirely on electricity and solar power. Operational work will be conducted like modern terminals in developed countries, with modern equipment, state-of-the-art scanners, and abiding by all ISPS rules. This will be a milestone achievement for the country.
He said the terminal will handle 350,000 TEU containers a year and will have 125,000 TEU consolation centres, thus reducing the cost of imports and exports significantly and playing an important role in the country's export sector.
Country begins building first green container terminal
The terminal will handle 350,000 TEU containers a year
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Bangladesh has turned into a major sourcing hub for uniforms for the military, navy, air force, fire brigade and police for countries around the world as local garment manufacturers have enhanced their capacity and diversified products.
The country has also been a good source to supply dresses to the army of the North American Treaty Organisation (Nato), an intergovernmental military alliance, for many years.
However, manufacturers mainly supply the uniforms indirectly: international retailers and brands place work orders with Bangladeshi factories and they supply the products to the forces.
For instance, Team Group, a garment exporter, supplies uniforms to the Belgian army and Kosovo police through a buyer.
"Currently, I am making uniforms for the army of Belgium and the police of Kosovo. The quantity is small but I have the capacity to produce a lot," said Abdullah Hil Rakib, managing director of the company.
Last year, Team Group exported garment items, mainly outerwear, worth $36 million. Uniforms account for nearly 2 per cent of the shipment to the countries, mainly in Europe.
Uniforms of forces, personal protective equipment, technical clothes, medical bed sheets and medical clothes have a huge market worldwide, according to Rakib.
"Bangladesh needs to improve the capacity to grab the globally value-added garment markets."
The global market size of technical clothing items is more than $370 billion.
Of over $31 billion garment exports from Bangladesh, defence dresses fetch between $400 million and $500 million annually, according to industry insiders.
The growing production of uniforms indicates that Bangladesh is gearing up to capture more market shares in the high-end value-added garment segment. And like Rakib, many garment factories are producing uniforms for the forces in many countries.
Although Snowtex, an outerwear exporter, does not produce uniforms for defence forces, it makes and ships similar dresses for customers. It also produces work apparel and outerwear for farmers, engineers, firefighters and other professionals.
Snowtex's Managing Director SM Khaled says the market of outerwear is growing at a faster rate because of higher demand.
The company is set to export $300 million worth of garment items in 2022, which will include $50 million worth of outerwear.
Urmi Group, another garment supplier, used to manufacture uniforms for the Belgium army a few years ago, albeit in a small quantity.
"We have the potential to grab the market as we are diversifying products," said Asif Ashraf, managing director of the group, adding that buyers either supply fabrics or nominate suppliers to make the uniforms for forces.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), thinks Bangladesh's next growth potential lies in the high-end value-added garment items.
"Accordingly, the industry is switching to technical and high-end value-added garment items. A good number of garment factories are already supplying uniforms to fire departments in many countries."
The BGMEA is carrying out a study in collaboration with an Indian firm to find out the markets of uniforms so that local manufacturers can raise their share in the segment. The outcomes of the study might be known within the next two to three months.
Local garment producers have targeted two kinds of uniforms: professional and school uniforms.
Currently, many factories are exporting school uniforms to European nations.
However, making professional uniforms is complicated and expensive as it needs a lot of coarse yarn. As Bangladesh does not produce cotton, Pakistan is performing strongly in the segment since the country is a major producer of the key textile raw material, Hassan said.
Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association, says currently, some mills are producing military and tent fabrics and supplying them to other countries.
"Many mills are capable of producing uniform fabrics as they have upgraded technologies."
Manufacturing fabrics for professional uniforms requires strong printing technologies in which Bangladesh is already a good performer, the entrepreneur added.
"Bangladesh is investing to produce man-made fibre. So, local weavers can supply the required fabrics to garment makers for the production of more uniform fabrics."
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Mongla port, the country's second biggest seaport, has made a strong comeback as it sees an increased arrival of ships, making it a major gateway for Bangladesh's overseas trade once again.
Officials and port users say the opening of the Padma bridge will give a further boost to the port.
The monthly arrival of ships, which fell below 10 in 2008, grew several times in recent years.
In 2021, 75 vessels arrived at the port every month on average, up from 46 five years ago, showing signs of steady growth in activities thanks to the completion of dredging at the outer bar of a nearly 140-kilometre channel to improve navigability and enable the movement of vessels that require a higher draft.
The dredging involving Tk 712 crore was completed in December 2020. And the Mongla Port Authority (MPA) is in process of buying 75 pieces of equipment and machinery to handle cargoes under a Tk 433 crore project.
Besides, the port authority is buying six vessels to handle ocean-going ships under another project involving Tk 767 crore.
Users say these steps have given impetus to businesses to use the port at an increasing rate at a time when the country's biggest seaport in Chattogram faces repeated congestion as it is running at full capacity.
"Arrivals of ships have increased as the economic growth has fueled domestic demand. Besides, the Chattogram port, in one sense, is saturated in its current capacity. Many are looking for an alternative," said Commodore Md Abdul Wadud Tarafder, member for harbour and marine at the MPA.
Activities of the port in the southwest region began to pick up after the government took several projects to revive its old glory.
The port has registered 17 per cent annual average growth in ship handling since 2012, while the volume of cargo handling grew 19 per cent over the past decade.
It can handle one crore tonnes of cargo, 100,000 twenty-foot equivalent units of containers, and 20,000 cars annually. In 2020-21, cargo handling stood at 1.19 crore tonnes, just double the volume five years ago.
"We don't have any waiting time for ships," said Tarafder.
The port has 25 berthing facilities, including five jetties. Yet, it suffers from an inadequate draft at the jetty that restricts the entry of vessels of more than seven metres draft.
Dredging at the inner bar of the Pashur channel is underway to enable ships with more than nine metres draft to use the jetty. The Tk 793 crore dredging project is expected to complete by June next year.
"Once dredging is complete, the arrival of ships will increase a lot," Tarafder said.
The opening of the Padma bridge, scheduled for June this year, along with the establishment of the railway link will make the port more attractive to businesses, at home and abroad.
The opening of the bridge will shorten the distance between the Mongla port and Dhaka, the main economic and industrial hub in Bangladesh, and it will be the closest from the capital compared to Chattogram and Payra ports.
The distance between Dhaka and Chattogram is 260 kms and the completion of the Padma bridge will narrow the distance between Dhaka and Mongla to 170 kms from 274 kms now.
Tarafder said the port is going to be connected by railways along with the existing road and waterways, and the use of the port by businesses will increase once the bridge opens to the public.
"We are working to be a regional port."
Its closest ports are located in landlocked Nepal and Bhutan. It is located on the artery of regional waterways under the India-Bangladesh protocol route on inland water transit and trade.
"These unique location and features have provided the port a greater opportunity to be a vibrant and dominant port in the region," said Tarafder.
The overall turnaround time of ships at the port is expected to halve to 24 hours from the present 48 hours after the purchase of equipment and gantry crane.
"The prospect of the Mongla port is very bright. Activities have increased and the demand for using the port will jump just after the completion of the Padma bridge," said Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association.
He said the cost of shipping goods through the port will reduce because of the much-talked bridge.
"So, exporters will be interested in using the port," he said, adding that congestion at the Chattogram port will decline as more ships will come to the Mongla port.
He suggested the MPA take preparations to increase handling and other facilities so that the port can respond to the spike in demand.
NS Guha Roy Nilaz, regional general manager of shipping and logistics service provider Karnaphuli Group in Khulna, said vessels with drafts up to 8.5 metres can come up to the Akram point and Harbaria.
Currently, fully loaded container vessels can't navigate in the channel because of the lower draft. That is why the cost of shipping containers from the port is higher.
Ships with up to 9.5 metres draft will be able to come to the jetty following the dredging of the inner bar of the channel, he said.
"Then, we will see a higher volume of container cargoes, especially garments, coming for shipment through Mongla," Nilaz said.
According to him, what is needed now is to develop backup facilities. The establishment of off-dock is also necessary to facilitate export containers.
The port has space to establish inland container depots and it can be set up within 5 kms of the port, he said, suggesting that the customs authority revise the Inland Container Depot Policy depending on the situation and surrounding of the port instead of making a common rule.
Md Sultan Hossain Khan, president of the Clearing & Forwarding Agents Association, says services of the port and customs have improved.
"Users are also bringing more goods through the port now than in the past."
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Issues relating to land acquisition, which put work on the Matarbari port in limbo, are finally over as the Chattogram Port Authority (CPA) has handed over an additional Tk87.47 crore in compensation to the Cox's Bazar district administration for land acquired as salt fields.
The CPA can now initiate the development of the port, a fast-track project funded by Japan International Cooperation Agency (Jica), soon.
On 6 February, the district administration sent a notice to landowners regarding receiving their compensations. As per rules, the district administration will start paying the money following a hearing 15 days into the notice.
Once a single landowner receives the money, the CPA can take hold of the land at any time under the rules, according to Md Al Amin Parvej, additional deputy commissioner (revenue) of Cox's Bazar.
Initially, the district administration marked out 283.27 acres as non-arable land. Later, the port authority paid over Tk75 crore to the district administration to be handed over to the landowners as compensation. But the land acquisition cost increased to Tk162.58 crore after the land turned out to be salt fields, following a ministerial review initiated over objections from local residents.
On 13 January, the CPA paid the additional land acquisition cost after receiving a letter from the district administration.
Around 200 families will get Tk55 lakh in compensation per acre of land acquired as salt fields.
On 16 November 2020, the Chattogram Port Authority inaugurated the project at a press briefing at its office.
Ships with an 18.5 metre draft will be able to dock at the port once its construction is completed in mid-2025. The port will be hosting cargo carriers with a capacity of 8,000-10,000 containers. The initial design of the deep seaport supports 8 lakh containers per year, while the capacity could be enhanced further with additional jetties.
Currently, 92% of the country's trade is conducted through Chattogram port, which has been struggling to cope with the growing volume of trade by sea.
Bay Terminal now faces uncertainty over land acquisition
The Bay terminal has now hit a stumbling block with new difficulties stemming from the exorbitant costs of acquiring 803 acres of khas land as proposed by the district administration.
In June last year, the land ministry directed the Chattogram deputy commissioner to hand over 803 acres of government khas land to the shipping ministry at a nominal price. But on 30 January, the district administration in a letter demanded the full price, amounting to Tk3,600crore, within 120 days for the land.
In this context, the following day the CPA wrote a letter to the shipping ministry, stating that it is not possible for it to come up with so much money.
Rear Admiral M Shahjahan, chairman of the CPA, told TBS, "We have informed the shipping ministry, asking it to give us the land at a nominal price. The ministry is working on it. Transferring khas land from one ministry to another is not supposed to cost money."
Ehsan Murad, assistant commissioner of Chattogram district administration, could not be contacted for comments despite several attempts to speak to him by phone.
The Port Bay Terminal project will be constructed on the sea coast of PatengaHalishahar area, 6 kilometres from Chattogram port.
Once the terminal is built, it will be possible to berth ships with a carrying capacity of 5,000 containers. The new terminal will be able to accommodate ships up to 12 metres deep and 280 metres long. There will be no need to rely on tides for ships to be anchored.
Apart from 871 acres of private and government land, the terminal is expected to be built on 2,500 acres, including another 1,600 acres reclaimed from the sea. The terminal is expected to become operational in 2024.
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The country has also been a good source to supply dresses to the army of the North American Treaty Organisation (Nato), an intergovernmental military alliance, for many years.
However, manufacturers mainly supply the uniforms indirectly: international retailers and brands place work orders with Bangladeshi factories and they supply the products to the forces.
For instance, Team Group, a garment exporter, supplies uniforms to the Belgian army and Kosovo police through a buyer.
"Currently, I am making uniforms for the army of Belgium and the police of Kosovo. The quantity is small but I have the capacity to produce a lot," said Abdullah Hil Rakib, managing director of the company.
Last year, Team Group exported garment items, mainly outerwear, worth $36 million. Uniforms account for nearly 2 per cent of the shipment to the countries, mainly in Europe.
Uniforms of forces, personal protective equipment, technical clothes, medical bed sheets and medical clothes have a huge market worldwide, according to Rakib.
"Bangladesh needs to improve the capacity to grab the globally value-added garment markets."
The global market size of technical clothing items is more than $370 billion.
Of over $31 billion garment exports from Bangladesh, defence dresses fetch between $400 million and $500 million annually, according to industry insiders.
The growing production of uniforms indicates that Bangladesh is gearing up to capture more market shares in the high-end value-added garment segment. And like Rakib, many garment factories are producing uniforms for the forces in many countries.
Although Snowtex, an outerwear exporter, does not produce uniforms for defence forces, it makes and ships similar dresses for customers. It also produces work apparel and outerwear for farmers, engineers, firefighters and other professionals.
Snowtex's Managing Director SM Khaled says the market of outerwear is growing at a faster rate because of higher demand.
The company is set to export $300 million worth of garment items in 2022, which will include $50 million worth of outerwear.
Urmi Group, another garment supplier, used to manufacture uniforms for the Belgium army a few years ago, albeit in a small quantity.
"We have the potential to grab the market as we are diversifying products," said Asif Ashraf, managing director of the group, adding that buyers either supply fabrics or nominate suppliers to make the uniforms for forces.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), thinks Bangladesh's next growth potential lies in the high-end value-added garment items.
"Accordingly, the industry is switching to technical and high-end value-added garment items. A good number of garment factories are already supplying uniforms to fire departments in many countries."
The BGMEA is carrying out a study in collaboration with an Indian firm to find out the markets of uniforms so that local manufacturers can raise their share in the segment. The outcomes of the study might be known within the next two to three months.
Local garment producers have targeted two kinds of uniforms: professional and school uniforms.
Currently, many factories are exporting school uniforms to European nations.
However, making professional uniforms is complicated and expensive as it needs a lot of coarse yarn. As Bangladesh does not produce cotton, Pakistan is performing strongly in the segment since the country is a major producer of the key textile raw material, Hassan said.
Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association, says currently, some mills are producing military and tent fabrics and supplying them to other countries.
"Many mills are capable of producing uniform fabrics as they have upgraded technologies."
Manufacturing fabrics for professional uniforms requires strong printing technologies in which Bangladesh is already a good performer, the entrepreneur added.
"Bangladesh is investing to produce man-made fibre. So, local weavers can supply the required fabrics to garment makers for the production of more uniform fabrics."
Uniform export fetches half a billion dollars
Bangladesh has turned into a major sourcing hub for uniforms for the military, navy, air force, fire brigade and police for countries around the world as local garment manufacturers have enhanced their capacity and diversified products.
Mongla port, the country's second biggest seaport, has made a strong comeback as it sees an increased arrival of ships, making it a major gateway for Bangladesh's overseas trade once again.
Officials and port users say the opening of the Padma bridge will give a further boost to the port.
The monthly arrival of ships, which fell below 10 in 2008, grew several times in recent years.
In 2021, 75 vessels arrived at the port every month on average, up from 46 five years ago, showing signs of steady growth in activities thanks to the completion of dredging at the outer bar of a nearly 140-kilometre channel to improve navigability and enable the movement of vessels that require a higher draft.
The dredging involving Tk 712 crore was completed in December 2020. And the Mongla Port Authority (MPA) is in process of buying 75 pieces of equipment and machinery to handle cargoes under a Tk 433 crore project.
Besides, the port authority is buying six vessels to handle ocean-going ships under another project involving Tk 767 crore.
Users say these steps have given impetus to businesses to use the port at an increasing rate at a time when the country's biggest seaport in Chattogram faces repeated congestion as it is running at full capacity.
"Arrivals of ships have increased as the economic growth has fueled domestic demand. Besides, the Chattogram port, in one sense, is saturated in its current capacity. Many are looking for an alternative," said Commodore Md Abdul Wadud Tarafder, member for harbour and marine at the MPA.
Activities of the port in the southwest region began to pick up after the government took several projects to revive its old glory.
The port has registered 17 per cent annual average growth in ship handling since 2012, while the volume of cargo handling grew 19 per cent over the past decade.
It can handle one crore tonnes of cargo, 100,000 twenty-foot equivalent units of containers, and 20,000 cars annually. In 2020-21, cargo handling stood at 1.19 crore tonnes, just double the volume five years ago.
"We don't have any waiting time for ships," said Tarafder.
The port has 25 berthing facilities, including five jetties. Yet, it suffers from an inadequate draft at the jetty that restricts the entry of vessels of more than seven metres draft.
Dredging at the inner bar of the Pashur channel is underway to enable ships with more than nine metres draft to use the jetty. The Tk 793 crore dredging project is expected to complete by June next year.
"Once dredging is complete, the arrival of ships will increase a lot," Tarafder said.
The opening of the Padma bridge, scheduled for June this year, along with the establishment of the railway link will make the port more attractive to businesses, at home and abroad.
The opening of the bridge will shorten the distance between the Mongla port and Dhaka, the main economic and industrial hub in Bangladesh, and it will be the closest from the capital compared to Chattogram and Payra ports.
The distance between Dhaka and Chattogram is 260 kms and the completion of the Padma bridge will narrow the distance between Dhaka and Mongla to 170 kms from 274 kms now.
Tarafder said the port is going to be connected by railways along with the existing road and waterways, and the use of the port by businesses will increase once the bridge opens to the public.
"We are working to be a regional port."
Its closest ports are located in landlocked Nepal and Bhutan. It is located on the artery of regional waterways under the India-Bangladesh protocol route on inland water transit and trade.
"These unique location and features have provided the port a greater opportunity to be a vibrant and dominant port in the region," said Tarafder.
The overall turnaround time of ships at the port is expected to halve to 24 hours from the present 48 hours after the purchase of equipment and gantry crane.
"The prospect of the Mongla port is very bright. Activities have increased and the demand for using the port will jump just after the completion of the Padma bridge," said Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association.
He said the cost of shipping goods through the port will reduce because of the much-talked bridge.
"So, exporters will be interested in using the port," he said, adding that congestion at the Chattogram port will decline as more ships will come to the Mongla port.
He suggested the MPA take preparations to increase handling and other facilities so that the port can respond to the spike in demand.
NS Guha Roy Nilaz, regional general manager of shipping and logistics service provider Karnaphuli Group in Khulna, said vessels with drafts up to 8.5 metres can come up to the Akram point and Harbaria.
Currently, fully loaded container vessels can't navigate in the channel because of the lower draft. That is why the cost of shipping containers from the port is higher.
Ships with up to 9.5 metres draft will be able to come to the jetty following the dredging of the inner bar of the channel, he said.
"Then, we will see a higher volume of container cargoes, especially garments, coming for shipment through Mongla," Nilaz said.
According to him, what is needed now is to develop backup facilities. The establishment of off-dock is also necessary to facilitate export containers.
The port has space to establish inland container depots and it can be set up within 5 kms of the port, he said, suggesting that the customs authority revise the Inland Container Depot Policy depending on the situation and surrounding of the port instead of making a common rule.
Md Sultan Hossain Khan, president of the Clearing & Forwarding Agents Association, says services of the port and customs have improved.
"Users are also bringing more goods through the port now than in the past."
Mongla port turns around
Mongla port, the country’s second biggest seaport, has made a strong comeback as it sees an increased arrival of ships, making it a major gateway for Bangladesh’s overseas trade once again.
Issues relating to land acquisition, which put work on the Matarbari port in limbo, are finally over as the Chattogram Port Authority (CPA) has handed over an additional Tk87.47 crore in compensation to the Cox's Bazar district administration for land acquired as salt fields.
The CPA can now initiate the development of the port, a fast-track project funded by Japan International Cooperation Agency (Jica), soon.
On 6 February, the district administration sent a notice to landowners regarding receiving their compensations. As per rules, the district administration will start paying the money following a hearing 15 days into the notice.
Once a single landowner receives the money, the CPA can take hold of the land at any time under the rules, according to Md Al Amin Parvej, additional deputy commissioner (revenue) of Cox's Bazar.
Initially, the district administration marked out 283.27 acres as non-arable land. Later, the port authority paid over Tk75 crore to the district administration to be handed over to the landowners as compensation. But the land acquisition cost increased to Tk162.58 crore after the land turned out to be salt fields, following a ministerial review initiated over objections from local residents.
On 13 January, the CPA paid the additional land acquisition cost after receiving a letter from the district administration.
Around 200 families will get Tk55 lakh in compensation per acre of land acquired as salt fields.
On 16 November 2020, the Chattogram Port Authority inaugurated the project at a press briefing at its office.
Ships with an 18.5 metre draft will be able to dock at the port once its construction is completed in mid-2025. The port will be hosting cargo carriers with a capacity of 8,000-10,000 containers. The initial design of the deep seaport supports 8 lakh containers per year, while the capacity could be enhanced further with additional jetties.
Currently, 92% of the country's trade is conducted through Chattogram port, which has been struggling to cope with the growing volume of trade by sea.
Bay Terminal now faces uncertainty over land acquisition
The Bay terminal has now hit a stumbling block with new difficulties stemming from the exorbitant costs of acquiring 803 acres of khas land as proposed by the district administration.
In June last year, the land ministry directed the Chattogram deputy commissioner to hand over 803 acres of government khas land to the shipping ministry at a nominal price. But on 30 January, the district administration in a letter demanded the full price, amounting to Tk3,600crore, within 120 days for the land.
In this context, the following day the CPA wrote a letter to the shipping ministry, stating that it is not possible for it to come up with so much money.
Rear Admiral M Shahjahan, chairman of the CPA, told TBS, "We have informed the shipping ministry, asking it to give us the land at a nominal price. The ministry is working on it. Transferring khas land from one ministry to another is not supposed to cost money."
Ehsan Murad, assistant commissioner of Chattogram district administration, could not be contacted for comments despite several attempts to speak to him by phone.
The Port Bay Terminal project will be constructed on the sea coast of PatengaHalishahar area, 6 kilometres from Chattogram port.
Once the terminal is built, it will be possible to berth ships with a carrying capacity of 5,000 containers. The new terminal will be able to accommodate ships up to 12 metres deep and 280 metres long. There will be no need to rely on tides for ships to be anchored.
Apart from 871 acres of private and government land, the terminal is expected to be built on 2,500 acres, including another 1,600 acres reclaimed from the sea. The terminal is expected to become operational in 2024.
Land acquisition hitches over Matarbari port finally resolved
The Bay terminal has now hit a stumbling block with new difficulties stemming from the exorbitant costs of acquiring 803 acres of khas land
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With a wide range of lucrative features, such as suitable location, river connectivity, eco-friendly environment, and all required amenities, private sector industrial hub Abdul Monem Economic Zone has turned out to be a centre of attraction for giant investors, particularly foreign ones.
In a recent breakthrough, the under-construction economic zone on the banks of the Meghna in Munshiganj's Gazaria allotted 5 acres of land for a facility of the US-based multinational chemical producer Huntsman Corporation.
It has already accommodated a big factory of the Japanese motorcycle manufacturer Honda Motor Corporation.
Besides, investments of several other manufacturers, including the Turkish home appliance producer Arçelik, are in the pipeline, according to the economic zones authorities.
"Huntsman Corporation will set up a bonded warehouse soon. After having the necessary approvals, it will start construction of the manufacturing plants. A design has already been finalised," said ASM Mainuddin Monem, managing director and chief executive officer at the economic zone.
Huntsman will produce chemicals used in the apparel industry, with an initial investment of $20 million, he said, adding that local RMG manufacturers will be greatly benefitted once the facility goes into operation.
Currently, the country imports these chemicals from China, India and a few other countries.
"The availability of local apparel industry chemicals will reduce the lead time as well," added Mainuddin.
Besides, Turkey's Arçelik, Prime Textile and Basundhara have shown keen interest in setting up factories in the economic zone, he told The Business Standard, adding that Walton alone has sought 100 acres of land to produce electronics goods.
"We are scrutinising the proposals. We hope we will have over $1 billion investment and can create at least 50,000 jobs in the zone."
On Arçelik's proposal, Mainuddin said the company has already bought 57% shares of the publicly-listed company Singer Bangladesh. "It wants to produce home appliances in the zone."
Visiting the economic zone recently, this correspondent found that an area of 200 acres of the total 350 acres has been developed for setting up factories.
The authorities are prepared to make a power plant for their own electricity, install jetties for utilising river connectivity and develop a system for rainwater preservation. Besides, a solar power grid will be built there.
Officials said the industrial hub, 37km from the capital city and adjacent to the Dhaka-Chattagram Highway, is being developed as a green economic zone at a budget of Tk5,000 crore.
The Bangladesh Economic Zone Authority approved the zone in 2017 for assembling motor parts, producing food and beverage, and manufacturing light engineering, packaging and chemical products.
"We hope we can complete the development work of the zone within the next two years," Mainuddin Monem told TBS.
Japanese Honda's joint venture with the Bangladesh Steel and Engineering Corporation under the Ministry of Industries, Bangladesh Honda Private Limited (BHL), began assembling motorcycles in its factory in 2018.
The venture initially invested Tk230 crore on buildings, equipment, facilities, and a land area of 25 acres. It later acquired another 10 acres of land.
Currently, the factory has an annual production capacity of 100,000 lakh units of motorcycles, where some 800 people are working. In line with market trends, BHL plans to continue to invest in expanding its production capacity to 2 lakh units in the next five years.
"I think Honda will seek a total of 50 acres of land in future for its factory expansion," said Mainuddin Monem.
Abdul Monem Economic Zone is one of the country's existing 11 privately run economic zones. The Beza is working toward establishing 100 economic zones across the country by 2030.
The goal is to create employment for 10 million people. The Beza also expects to produce and export products worth $40 billion annually in and from these economic zones.
Investors can avail of tax holiday, duty-free imports of raw materials and machinery, exemption from dividend tax, VAT-free electricity, gas and water and other fiscal facilities in the zones.
Besides, they will have the privilege of enjoying some other non-fiscal advantages, such as bond facility, repatriation of disinvestment, unlimited telephonic transfers and separate customs procedures.
Apart from the common facilities, Abdul Monem Economic Zones has several others. It is near the capital and adjacent to the crucial river Meghna.
Besides, Japanese investment in the very beginning of the zone instilled confidence in others.
Abdul Monem EZ gravitates giant investors
US-based Huntsman Corporation set to invest $20m in the economic zone
The Patuakhali district administration has initiated the process of acquiring about 410 acres of land to establish an export processing zone (EPZ) in Pocha Koralia mouza in Auliapur union under the sadar upazila.
An investors club for entrepreneurs who will set up manufacturing units at the EPZ is also being built on 2.25 acres of land in Kuakata.
The EPZ is being set up along the Patuakhali-Kuakata highway, just 10 kilometres south of the district town.
However, local landowners submitted a memorandum to Patuakhali Deputy Commissioner Mohammad Kamal Hossain on Tuesday, demanding an increase in the price of land.
Accepting the memorandum, Hossain assured that they would consider the matter, saying a decision in this regard would be taken in consultation with higher authorities.
Four landowners -- Shafiqul Islam Mridha, Ali Akbar Mridha, Abul Khair and Sattar Hawladar -- handed over the memorandum to Hossain on behalf of the locals.
In it, they mentioned that the market price of land in Pocha Koralia mouza was fixed in 2017 and has not changed since.
The government's registry department used to adjust the value of land in Patuakhali in January each year but unlike other districts, land prices in the region have remained the same for five years now.
As such, the price of agricultural land in the area is fixed at Tk 15,279 per decimal while residential land costs Tk 26,422 per decimal.
So, landowners whose plots are to be purchased for the EPZ will be financially disadvantaged as prices are still fixed at what they were back in 2017.
One of the petitioners, Shafiqul Islam Mridha, said a notice has already been issued by the deputy commissioner's office to acquire land for the project, whether it is residential or agricultural.
"But it is not possible for us to buy new land elsewhere to re-establish our homes or businesses, and the current market price is much higher than the value being offered for our plots," he said.
"So, we would be financially benefitted if the government kindly considers our demand," Mridha added.
The Prime Minister's Office gave administrative approval for the land acquisition in favour of the Bangladesh Export Processing Zones Authority (Bepza) to establish the Patuakhali EPZ in August last year.
Against this backdrop, the acquisition of 410.78 acres of land for an EPZ in Pocha Koralia mouza and 2.25 acres of land for an investors club in Kuakata was initiated, according to a letter signed by Abdullah Al Mamun, director general (administration) of the PMO.
Obaidur Rahman, the additional deputy commissioner of Patuakhali, said notices in this regard have already been issued to relevant landowners and that any objections on the issue would be disposed of within the next 15 days before the finalised details are sent to the land ministry for approval.
He went on to say that the landowners would be paid their dues within two months after completing formal procedures.
Land acquisition for Patuakhali EPZ underway
The Patuakhali district administration has initiated the process of acquiring about 410 acres of land to establish an export processing zone (EPZ) in Pocha Koralia mouza in Auliapur union under the sadar upazila.
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With a $37 million investment plan, a leading Sri Lankan apparel maker is among the first batch of export-oriented companies that have leased plots in the Mirsarai economic zone in Chattogram.
Four firms – three foreign and one local – signed deals on Saturday with the Bangladesh Export Processing Zones Authority (Bepza) to set up factories to manufacture apparel, garment accessories, camping equipment and shoe accessories at the Bepza economic zone in the Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram.
The companies altogether will plough in around $50 million and employ 23,453 people, according to the deals signed at Bepza headquarters in Dhaka.
The firms are Sri Lanka-based Univogue Garments Company Ltd, US-based Campex (BD) Limited, Chinese Fengqun Composite Material Company (BD) Ltd, and Bangladeshi TexTrim Labels (BD) Limited.
Md Hafizur Rahman, Bepza Economic Zone project director, said Sri Lankan Univogue Garments will invest around $37 million to produce woven bottoms and woven jackets.
With a more than $2 million investment plan, Chinese Fengqun Composite will set up a shoe accessory-making and packaging industry at the economic zone.
US-based Campex (BD) Limited will set up a tent, tent accessories and outdoor garment manufacturing industry with an investment of $10 million, while Bangladeshi TexTrim will set up a garment accessories and paper converting industry with an investment of $1.27 million.
Abul Kalam Sikder, managing director of TexTrim, told The Business Standard that they will begin the factory construction next month.
Ahmad Kaikaus, principal secretary to the prime minister, told the contract signing event that Bepza has a unique magnetic power to attract investment which ultimately contributes to the economic development of the country.
"Bepza is not only helping to integrate with the global economy but also upgrading the life standards of the people," he added.
Congratulating the new investors, Bepza Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman said Bepza is now one of the most successful organisations in the country considering its experience, capabilities, expertise and professional excellence achieved during the journey of 40 years in serving the country's export-oriented industries.
He said investors' confidence has made Bepza a brand in the global arena. He referred to the land lease agreement signing as a milestone in their growing success.
Shaikh Yusuf Harun, executive chairman of the Bangladesh Economic Zones Authority (Beza) said, "This is undoubtedly a praiseworthy achievement for Bepza that will accelerate the flow of investment in future. Bepza is operating its EPZs [export processing zones] successfully with efficiency, which is an inspiration for Beza."
SM Khan, President of the Bangladesh EPZs Investors' Association (Bepzia) said the investment-friendly atmosphere created by Bepza for the investors over the last 40 years is excellent. He thanked Bepza on behalf of the investors.
Under Bepza, there are now eight EPZs across the country. Those are – Chattogram EPZ, Dhaka EPZ, Mongla EPZ, Ishwardi EPZ, Comilla EPZ, Uttara EPZ, Adamjee EPZ, Karnaphuli EPZ and Adamjee EPZ.
Ali Reza Mazid, member (Investment Promotion) at Bepza, said some 453 industries have been set up at the EPZs with a total investment of $6 billion. The industries employ around 5 lakh people, while 66% of them are women. Bepza now contributes about 20% to the country's total annual exports.
The Bangabandhu Sheikh Mujib Shilpa Nagar is located on about 30,000 acres of land in Mirsharai and Sitakunda upazilas of Chattogram and Sonagazi upazila of Feni.
On around 1138 acres of land, Bepza Economic Zone was launched in the industrial city in 2018.
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In July last year, Billal Sardar of Madaripur had severe respiratory problems after being infected with Covid-19. At one point, his health condition got so critical that he needed to be shifted to an Intensive Care Unit (ICU) urgently. Since there was no ICU in the district, his family decided to take him to Dhaka Medical College. Unfortunately, he died on the way. His family believes his life could have been saved if there had been ICU services at the district hospital.
To ensure that no one else suffers the same fate due to a lack of ICUs in district hospitals like Billal Sardar, the government is setting up 540 ICU beds in 10 medical college hospitals and 43 district hospitals under the World Bank's Covid-19 Emergency Response and Pandemic Preparedness (ERPP) project.
Ten ICU beds will be set up in each of 43 hospitals.
The project will also provide training to 3,500 health workers on acquiring modern skills and knowledge. The ICU service is scheduled to be launched in phases by May and August this year.
The ten medical college hospitals are in Barishal, Khulna, Tangail, Faridpur, Sylhet, Bogura, Manikganj, Cumilla, Dinajpurand Dhaka.
After many Covid-19 patients died due to a lack of ICUs in the first wave of the pandemic in the country, Prime Minister Sheikh Hasina issued a directive on setting up ICUs in every district town at the Ecnec (Executive Committee of the National Economic Council) meeting on 2 June 2020.
ERPP Project Director Dr Shah Golam Nabi Tuhin told The Business Standard (TBS) that no new building will be constructed under the project. Only existing buildings will be renovated. As there is no scope for renovation in 19 districts, the Public Works Department has surveyed and identified 43 districts where renovation can be done. Initially, ICUs were supposed to be set up in 64 district hospitals.
However, outside the project, ICU beds have been set up and expanded in various hospitals with the government's revenue budget, according to the health department.
The health authorities said renovation of buildings in the district hospitals at Tangail, Cumilla, Noakhali, Jashore, Gopalganj, Munshiganj, Bagerhat, Chuadanga, Sunamganj, Sherpur, Narayanganj, Feni and Madaripur will be completed by 30 April. ICUs will be launched in 13 district hospitals in mid-May.
In the 13 district hospitals of Kushtia, Dinajpur, Sirajganj, Barguna, Nilphamari, Magura, Thankurgaon, Bhola, Natore, Panchagarh, Gaibandha, Lalmonirhat, Chapainawabganj and Jhenaidah, ICUs will be available by June-July.
However, places for setting up ICUs have not been decided yet in 16 district hospitals, including in Rangamati, Bandarban, Khagrachhari, Rajbari, Narail, Khulna, Mekharpur, Jhalokati, Pirojpur, Lakshmipur, Sylhet, Shariatpur, Joypurhat, Narsingdi, Netrokona and Moulvibazar. As such, ICUs in these districts will be launched by August.
In the meantime, the construction of five ICU beds at Infectious Diseases Hospital in Dhaka and BITID in Chattogram has been completed.
Dr Golam Nabi Tuhin said the process of purchasing ICU equipment has begun. ICU beds and accessories have already been sent to eight medical colleges.
Besides providing services to Covid-19 patients, these ICUs will reduce difficulties and costs in the treatment of any other disease," he added.
Professor Dr Ahmedul Kabir, additional director general (administration) of the Directorate General of Health Services (DGHS), told TBS that doctors, nurses and other manpower will be recruited to manage the ICUs. If ICUs are constructed at the district level, patients will not have to come to Dhaka for emergency treatment.
According to DGHS data, there are 1,262 ICU beds across the country. Of them, 773 are in Dhaka metropolitan and 64 in Chattogram metro areas. Besides the divisional cities and medical colleges, only six district hospitals now have only 30 ICU beds.
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Four firms – three foreign and one local – signed deals on Saturday with the Bangladesh Export Processing Zones Authority (Bepza) to set up factories to manufacture apparel, garment accessories, camping equipment and shoe accessories at the Bepza economic zone in the Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram.
The companies altogether will plough in around $50 million and employ 23,453 people, according to the deals signed at Bepza headquarters in Dhaka.
The firms are Sri Lanka-based Univogue Garments Company Ltd, US-based Campex (BD) Limited, Chinese Fengqun Composite Material Company (BD) Ltd, and Bangladeshi TexTrim Labels (BD) Limited.
Md Hafizur Rahman, Bepza Economic Zone project director, said Sri Lankan Univogue Garments will invest around $37 million to produce woven bottoms and woven jackets.
With a more than $2 million investment plan, Chinese Fengqun Composite will set up a shoe accessory-making and packaging industry at the economic zone.
US-based Campex (BD) Limited will set up a tent, tent accessories and outdoor garment manufacturing industry with an investment of $10 million, while Bangladeshi TexTrim will set up a garment accessories and paper converting industry with an investment of $1.27 million.
Abul Kalam Sikder, managing director of TexTrim, told The Business Standard that they will begin the factory construction next month.
Ahmad Kaikaus, principal secretary to the prime minister, told the contract signing event that Bepza has a unique magnetic power to attract investment which ultimately contributes to the economic development of the country.
"Bepza is not only helping to integrate with the global economy but also upgrading the life standards of the people," he added.
Congratulating the new investors, Bepza Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman said Bepza is now one of the most successful organisations in the country considering its experience, capabilities, expertise and professional excellence achieved during the journey of 40 years in serving the country's export-oriented industries.
He said investors' confidence has made Bepza a brand in the global arena. He referred to the land lease agreement signing as a milestone in their growing success.
Shaikh Yusuf Harun, executive chairman of the Bangladesh Economic Zones Authority (Beza) said, "This is undoubtedly a praiseworthy achievement for Bepza that will accelerate the flow of investment in future. Bepza is operating its EPZs [export processing zones] successfully with efficiency, which is an inspiration for Beza."
SM Khan, President of the Bangladesh EPZs Investors' Association (Bepzia) said the investment-friendly atmosphere created by Bepza for the investors over the last 40 years is excellent. He thanked Bepza on behalf of the investors.
Under Bepza, there are now eight EPZs across the country. Those are – Chattogram EPZ, Dhaka EPZ, Mongla EPZ, Ishwardi EPZ, Comilla EPZ, Uttara EPZ, Adamjee EPZ, Karnaphuli EPZ and Adamjee EPZ.
Ali Reza Mazid, member (Investment Promotion) at Bepza, said some 453 industries have been set up at the EPZs with a total investment of $6 billion. The industries employ around 5 lakh people, while 66% of them are women. Bepza now contributes about 20% to the country's total annual exports.
The Bangabandhu Sheikh Mujib Shilpa Nagar is located on about 30,000 acres of land in Mirsharai and Sitakunda upazilas of Chattogram and Sonagazi upazila of Feni.
On around 1138 acres of land, Bepza Economic Zone was launched in the industrial city in 2018.
3 foreign firms ink deals to invest $49m at Bepza Mirsarai economic zone
A Bangladeshi firm will also invest $1.27 million there
In July last year, Billal Sardar of Madaripur had severe respiratory problems after being infected with Covid-19. At one point, his health condition got so critical that he needed to be shifted to an Intensive Care Unit (ICU) urgently. Since there was no ICU in the district, his family decided to take him to Dhaka Medical College. Unfortunately, he died on the way. His family believes his life could have been saved if there had been ICU services at the district hospital.
To ensure that no one else suffers the same fate due to a lack of ICUs in district hospitals like Billal Sardar, the government is setting up 540 ICU beds in 10 medical college hospitals and 43 district hospitals under the World Bank's Covid-19 Emergency Response and Pandemic Preparedness (ERPP) project.
Ten ICU beds will be set up in each of 43 hospitals.
The project will also provide training to 3,500 health workers on acquiring modern skills and knowledge. The ICU service is scheduled to be launched in phases by May and August this year.
The ten medical college hospitals are in Barishal, Khulna, Tangail, Faridpur, Sylhet, Bogura, Manikganj, Cumilla, Dinajpurand Dhaka.
After many Covid-19 patients died due to a lack of ICUs in the first wave of the pandemic in the country, Prime Minister Sheikh Hasina issued a directive on setting up ICUs in every district town at the Ecnec (Executive Committee of the National Economic Council) meeting on 2 June 2020.
ERPP Project Director Dr Shah Golam Nabi Tuhin told The Business Standard (TBS) that no new building will be constructed under the project. Only existing buildings will be renovated. As there is no scope for renovation in 19 districts, the Public Works Department has surveyed and identified 43 districts where renovation can be done. Initially, ICUs were supposed to be set up in 64 district hospitals.
However, outside the project, ICU beds have been set up and expanded in various hospitals with the government's revenue budget, according to the health department.
The health authorities said renovation of buildings in the district hospitals at Tangail, Cumilla, Noakhali, Jashore, Gopalganj, Munshiganj, Bagerhat, Chuadanga, Sunamganj, Sherpur, Narayanganj, Feni and Madaripur will be completed by 30 April. ICUs will be launched in 13 district hospitals in mid-May.
In the 13 district hospitals of Kushtia, Dinajpur, Sirajganj, Barguna, Nilphamari, Magura, Thankurgaon, Bhola, Natore, Panchagarh, Gaibandha, Lalmonirhat, Chapainawabganj and Jhenaidah, ICUs will be available by June-July.
However, places for setting up ICUs have not been decided yet in 16 district hospitals, including in Rangamati, Bandarban, Khagrachhari, Rajbari, Narail, Khulna, Mekharpur, Jhalokati, Pirojpur, Lakshmipur, Sylhet, Shariatpur, Joypurhat, Narsingdi, Netrokona and Moulvibazar. As such, ICUs in these districts will be launched by August.
In the meantime, the construction of five ICU beds at Infectious Diseases Hospital in Dhaka and BITID in Chattogram has been completed.
Dr Golam Nabi Tuhin said the process of purchasing ICU equipment has begun. ICU beds and accessories have already been sent to eight medical colleges.
Besides providing services to Covid-19 patients, these ICUs will reduce difficulties and costs in the treatment of any other disease," he added.
Professor Dr Ahmedul Kabir, additional director general (administration) of the Directorate General of Health Services (DGHS), told TBS that doctors, nurses and other manpower will be recruited to manage the ICUs. If ICUs are constructed at the district level, patients will not have to come to Dhaka for emergency treatment.
According to DGHS data, there are 1,262 ICU beds across the country. Of them, 773 are in Dhaka metropolitan and 64 in Chattogram metro areas. Besides the divisional cities and medical colleges, only six district hospitals now have only 30 ICU beds.
53 hospitals to get 540 ICU beds
Ten ICU beds will be set up in each of 43 hospitals
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Global ports and terminal operator APM Terminals recently explored deepening cooperation on maritime infrastructure in the country by mulling the possibility of developing a new terminal in Patenga.
In this regard, Danish Ambassador to Bangladesh Winnie Estrup Petersen and APM Terminal representatives met Minister of Shipping Khalid Mahmud Chowdhury, Secretary of Shipping Mohammed Mezbah Uddin Chowdhury, Chairman of Chittagong Port Authority Rear Admiral M Shahjahan, CEO of Public Private Partnerships Authority Ms Sultana Afroz and the Principal Secretary Ahmad Kaikaus of the Prime Minister's Office.
''Trade between Denmark and Bangladesh is centred around the transfer of climate-friendly know-how and cutting-edge technologies. It's an effective way to accelerate Bangladesh's green economic transition and build sustainable economic competitiveness, especially for access to the European markets, by leveraging public-private-partnership," the Danish ambassador said.
Commenting on the future infrastructure project in Patenga, Vice President, Global Head of Corporate Development at APM Terminals, Martijn van Dongen said, "'The Chattogram seaport is currently utilised at over 100% of its capacity. While truly commendable, it is not a sustainable solution matching the country's growth ambitions. We believe that by developing a new terminal in Patenga together with our Bangladeshi partners, we can provide a viable and much needed infrastructure solution with a positive economic impact."
APM Terminals is known for providing port logistics and container terminal operations globally to shipping lines.
The company is part of AP Moller - Maersk, which has a long and established presence in Bangladesh providing logistics solutions to some of the biggest investors in the country.
Aiming to improve supply chain efficiency, the company considers the Patenga Container Terminal a crucial enabler for local and global growth and a key element of meeting the country's export ambitions, a press release said.
APM Terminals believes that developing and upgrading infrastructure in Bangladesh could "trigger further investments along the supply chain and open new markets to Bangladeshi importers and exporters, while serving as catalyst for future relations between the EU and Bangladesh."
The company considers the Patenga Container Terminal as having the potential to alleviate many of the constraints that adversely impact the Chattogram seaport, hindering the future economic growth of Bangladesh, the release added.
APM Terminals, together with Maersk's Ocean business and Sealand Asia (the group's intra-Asian carrier) expects the new terminal in Patenga to quickly grow in volume, benefitting a large pool of Bangladeshi businesses.
In line with the company's increased focus on decarbonisation, the new facility should also allow for building sustainable sourcing solutions, including net zero emission operations in the future with APM Terminals committed to making the new terminal operational in the shortest time possible.
European investment in port infrastructure in Bangladesh is expected to invite greater foreign direct investment.
It is also an opportunity for Denmark and Bangladesh to strengthen relations by realising a novel public private partnership project based on their shared maritime roots.
www.tbsnews.net
State-owned telecom company Bangladesh Telecommunications Company Limited (BTCL) plans to expand broadband outreach and uninterrupted telecommunication services all over the country by expanding its fiber-optic network.
With a Tk1,059 crore cost and four-year deadline, the company has proposed a project to that end to the Planning Commission. The project will be placed to the Executive Committee of the National Economic Council (Ecnec) meeting Tuesday, said officials.
They said the expansion project will enable the BTCL network, which now transmits 27% of Bangladesh's information, to provide 5G services.
According to the project proposal, BTCL does not have a high-speed optical network in several backwater districts that still have to rely on radio links for telecommunication.
Under the project, 146 underground fiber-optic cables, stretching 3,144 km, will be installed across the country. Besides, eight submarine fiber-optic links with a length of 39 km will be installed.
"In some places, BTCL depends on redundant optical fiber cable of the Power Grid Company of Bangladesh (PGCB). Since PGCB does not have a redundant fiber-optic network in some districts, BTCL could not establish a strong telecommunication grid," the project proposal argued for the fiber optic ring network.
As a public limited company in Bangladesh, BTCL says it carries about 27% of the total information of the country. BTCL's current network has a significant impact on the overall economic growth of the country.
"A fragile network could have a negative impact on the overall economic growth," noted the proposal.
Broadband internet is a major catalyst for ICT-based socio-economic growth, according to a World Bank study.
To promote the transition from a labor-intensive economy to a knowledge-based one, Bangladesh already has undertaken a number of promising initiatives such as innovation of new technologies, entrepreneurial academy for innovation, hi-tech parks, software technology parks and business incubators. Has taken the initiative.
The global lender noted that emphasis has to be placed on the connectivity, reliability and bandwidth availability to ensure the full implementation of the Fourth Industrial Revolution.
Md Mamun-Al-Rashid, a member of the Physical Infrastructure Division of the Planning Commission, said there is no alternative to a knowledge-based economy to transform the country into a developed one by 2041 by using digital technology.
"It is high time we set up the 5G network," he told The Business Standard, noting the proposed project will also play a major role in achieving better economic growth.
www.tbsnews.net
In this regard, Danish Ambassador to Bangladesh Winnie Estrup Petersen and APM Terminal representatives met Minister of Shipping Khalid Mahmud Chowdhury, Secretary of Shipping Mohammed Mezbah Uddin Chowdhury, Chairman of Chittagong Port Authority Rear Admiral M Shahjahan, CEO of Public Private Partnerships Authority Ms Sultana Afroz and the Principal Secretary Ahmad Kaikaus of the Prime Minister's Office.
''Trade between Denmark and Bangladesh is centred around the transfer of climate-friendly know-how and cutting-edge technologies. It's an effective way to accelerate Bangladesh's green economic transition and build sustainable economic competitiveness, especially for access to the European markets, by leveraging public-private-partnership," the Danish ambassador said.
Commenting on the future infrastructure project in Patenga, Vice President, Global Head of Corporate Development at APM Terminals, Martijn van Dongen said, "'The Chattogram seaport is currently utilised at over 100% of its capacity. While truly commendable, it is not a sustainable solution matching the country's growth ambitions. We believe that by developing a new terminal in Patenga together with our Bangladeshi partners, we can provide a viable and much needed infrastructure solution with a positive economic impact."
APM Terminals is known for providing port logistics and container terminal operations globally to shipping lines.
The company is part of AP Moller - Maersk, which has a long and established presence in Bangladesh providing logistics solutions to some of the biggest investors in the country.
Aiming to improve supply chain efficiency, the company considers the Patenga Container Terminal a crucial enabler for local and global growth and a key element of meeting the country's export ambitions, a press release said.
APM Terminals believes that developing and upgrading infrastructure in Bangladesh could "trigger further investments along the supply chain and open new markets to Bangladeshi importers and exporters, while serving as catalyst for future relations between the EU and Bangladesh."
The company considers the Patenga Container Terminal as having the potential to alleviate many of the constraints that adversely impact the Chattogram seaport, hindering the future economic growth of Bangladesh, the release added.
APM Terminals, together with Maersk's Ocean business and Sealand Asia (the group's intra-Asian carrier) expects the new terminal in Patenga to quickly grow in volume, benefitting a large pool of Bangladeshi businesses.
In line with the company's increased focus on decarbonisation, the new facility should also allow for building sustainable sourcing solutions, including net zero emission operations in the future with APM Terminals committed to making the new terminal operational in the shortest time possible.
European investment in port infrastructure in Bangladesh is expected to invite greater foreign direct investment.
It is also an opportunity for Denmark and Bangladesh to strengthen relations by realising a novel public private partnership project based on their shared maritime roots.
State-of-the-art, sustainable terminal mulled for Patenga
Global ports and terminal operator APM Terminals recently explored deepening cooperation on maritime infrastructure in the country by mulling the possibility of developing a new terminal in Patenga. In this regard, Danish Ambassador to Bangladesh Winnie Estrup Petersen and APM Terminal...
State-owned telecom company Bangladesh Telecommunications Company Limited (BTCL) plans to expand broadband outreach and uninterrupted telecommunication services all over the country by expanding its fiber-optic network.
With a Tk1,059 crore cost and four-year deadline, the company has proposed a project to that end to the Planning Commission. The project will be placed to the Executive Committee of the National Economic Council (Ecnec) meeting Tuesday, said officials.
They said the expansion project will enable the BTCL network, which now transmits 27% of Bangladesh's information, to provide 5G services.
According to the project proposal, BTCL does not have a high-speed optical network in several backwater districts that still have to rely on radio links for telecommunication.
Under the project, 146 underground fiber-optic cables, stretching 3,144 km, will be installed across the country. Besides, eight submarine fiber-optic links with a length of 39 km will be installed.
"In some places, BTCL depends on redundant optical fiber cable of the Power Grid Company of Bangladesh (PGCB). Since PGCB does not have a redundant fiber-optic network in some districts, BTCL could not establish a strong telecommunication grid," the project proposal argued for the fiber optic ring network.
As a public limited company in Bangladesh, BTCL says it carries about 27% of the total information of the country. BTCL's current network has a significant impact on the overall economic growth of the country.
"A fragile network could have a negative impact on the overall economic growth," noted the proposal.
Broadband internet is a major catalyst for ICT-based socio-economic growth, according to a World Bank study.
To promote the transition from a labor-intensive economy to a knowledge-based one, Bangladesh already has undertaken a number of promising initiatives such as innovation of new technologies, entrepreneurial academy for innovation, hi-tech parks, software technology parks and business incubators. Has taken the initiative.
The global lender noted that emphasis has to be placed on the connectivity, reliability and bandwidth availability to ensure the full implementation of the Fourth Industrial Revolution.
Md Mamun-Al-Rashid, a member of the Physical Infrastructure Division of the Planning Commission, said there is no alternative to a knowledge-based economy to transform the country into a developed one by 2041 by using digital technology.
"It is high time we set up the 5G network," he told The Business Standard, noting the proposed project will also play a major role in achieving better economic growth.
BTCL moves to expand broadband outreach across Bangladesh
With a Tk1,059 crore cost and four-year deadline, the company has proposed a project to that end to the Planning Commission
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Work on the Bangabandhu Tunnel under the Karnaphuli River progressed at pace during the Covid-19 pandemic, and 77.5% of the construction has already been completed.
The bridge is expected to open for traffic by the end of this year. It aims to significantly ease the pressure of traffic on the Karnaphuli Bridge by providing an alternate route across the river for those travelling from Chittagong to Cox’s Bazar.
However, the tunnel will fail to fulfil its potential if problems with the approach to its entrance, operation, and maintenance are not resolved, according to police and government sources.
Chittagong Metropolitan Police sources said multiple roads converge at the entrance to the tunnel, which may cause a severe bottleneck once it opens for traffic. They urged the authorities to fix the issue before opening the tunnel.
Project officials said they have already sent a proposal on management, operation, and maintenance (MOM) of the tunnel to the Bangladesh Bridge Authority (BBA).
“Complexities related to operation and traffic management will be solved as soon as possible,” said Quazi Muhammad Ferdous, chief engineer of BBA.
Officials said the Anowara side of the Karnaphuli would be significantly developed alongside the construction of the tunnel, turning Chittagong into a “two-town city” like Shanghai.
Flaws in the approach
The BBA has set a new traffic plan to overcome traffic management challenges and reap optimum benefits from the tunnel as the current design is flawed, according to CMP.In the current design, five roads – Outer Ring Road, Kathgarh Road, Elevated Expressway, Airport Road, and Patenga Beach Road – come together at the entrance to the Patenga end of the tunnel.
A CMP report said the narrow entrance point will create a traffic bottleneck.
“We have already formed a committee to redesign the traffic management system at both ends of the tunnel and it is expected to be completed by 2023,” said Quazi Muhammad Ferdous, chief engineer of BBA.
How will the tunnel be maintained?
According to the plan, the BBA will float an international tender to sign a MOM contract after finalizing a variety of documents, including the standard operation procedure (SOP) for the tunnel.“Such a tunnel is very new in Bangladesh, so it is taking a little time to finalize MOM and SOP,” said Project Director Harun-or-Rashid.
BBA Chief Engineer Quazi Muhammad Ferdous said they were working on finalizing the SOP as they wish to float the MOM contract tender as soon as possible.
He added that the authorities were in the process of estimating the management and maintenance cost, but he declined to provide a probable figure.
According to the feasibility study on the tunnel, which was done in 2013, the operational cost of the tunnel will be about $3.9 million per year, with a replacement cost of $1.9 million every five years. Considering an inflation rate of 6.4% per year, the BBA is likely to spend over Tk40 crore each year on operating the tunnel.
When asked why the maintenance was much higher than for a bridge, BBA officials said the tunnel requires specialized security and oxygen supply systems, among other needs.
The government is likely to pay additional subsidies for abnormal maintenance work due to accidents or natural disasters, they added.
Toll collection and vehicle movement
According to the plan, the MOM contractor will receive fixed payments as well as tolls from the tunnel. The payments are not dependent on the tolls collected.According to the feasibility study, the estimated toll revenues should be sufficient to finance the management, operation and maintenance of the tunnel.
A total of 17,260 vehicles are expected to use the tunnel each day.
The feasibility study includes traffic from nearby economic zones, rapid urbanization and regional connectivity through the tunnel.
China Communication and Construction Company has been constructing the 9.3km tunnel, about 3.4km of which would be under the river. China Harbor, another Chinese venture, is involved in building a nearby economic zone.
In the economic zone on 760 acres of land, 60 Chinese companies have offered to invest around one $1billion. More than 100,000 people are expected to have employment opportunities.
Bangabandhu Tunnel nearly 80% complete
Police fear heavy traffic congestion on the approach to the tunnel
One of Asia's leading telecos, Axiata Group Berhad, has allocated over $1.6 billion capital expenditure (capex) for FY22 as it plans to accelerate expansion in Bangladesh and Indonesia.
Datuk Izzaddin Idris, president and CEO of the telecommunication company, said the bulk of the allocation was to improve Axiata's mobile network quality of services and there was growth opportunity in markets like Bangladesh and Indonesia due to low penetration rate of mobile users.
"Our capex is substantially financed from our operations and free-cash-flow. Looking at the current cash-flow level, there is no need to raise debt to finance our capex," he said at a virtual media conference after announcing Axiata's group FY21 performance on Tuesday, reports Malaysian media.
Axiata outpaced its headline key performance indicator guidance of low single-digit earnings growth for the year ended 31 December 2021.
The group saw its net profit surging 124.3% year-on-year (YoY) to $195 million from more than $87 million in FY20, while revenue rose 7.02% to some $6.1 billion from $5.7 billion.
It previously targeted earnings before depreciation and amortisation (Ebitda) and revenue growths of 8.5% and 8.3% respectively.
Izzaddin expects Axiata to achieve a middle single-digit revenue growth and high single-digit Ebitda growth in 2022 in view of prevailing tough external conditions.
For the fourth quarter, Axiata returned to the black with a net profit of around $27 million, reversing its net loss of $61 million a year ago.
Its revenue increased 10.2% to $1.6 billion from $1.49 billion, added recent reports published by Malaysian media.
Axiata to inject over $1.6b capex to drive growth in Bangladesh, Indonesia
One of Asia's leading telcos, Axiata Group Berhad, has allocated over $1.6 billion capital expenditure (capex) for FY22 as it plans to accelerate expansion in Bangladesh and Indonesia. Datuk Izzaddin Idris, president and CEO of the telecommunication company, said the bulk of the allocation was...
Chattogram Port, the main seaport of the country, is getting a new Container Freight Station (CFS) which is expected to speed up the unloading of less-than-container-load (LCL) cargo that usually has raw materials for the garment sector.
The new shed, already built, will be launched this week, port officials said on Wednesday.
"We have taken the initiative of converting a shed for imported cars into a shed for LCL containers. This will speed up the delivery of goods to the port. The initiative will also have an impact on the readymade garments sector," said Omar Faruk, secretary, Chattogram Port Authority (CPA).
The new shed, built on 8,692 sqm of space, can accommodate 1000 LCL container units, officials said, adding that goods from at least 50 single containers can be unloaded there every day.
According to sources, two types of containers are loaded at Chattogram Port: full-container-loads (FCLs) and LCLs. An FCL container carries goods of only one importer, while an LCL has products of several importers in one container.
FCL containers can be directly delivered to the importer from the port. But since an LCL container has goods of multiple importers, the container needs to go through physical inspection by customs officials. The process is time-consuming and requires a large open yard. Currently, there are 10 LCL container sheds in Chattogram Port.
BGMEA Vice-president Syed Nazrul Islam said, "Most LCL containers have products for the garments industry. Any delay in unloading goods affects production. The initiative to launch new sheds will benefit the country's garments export sector."
CPA officials said the port's capacity to handle containers has grown 13.19% in 2021 compared to 2020.
New CFS at Ctg Port to expedite unloading of RMG goods
The new shed, built on 8,692 sqm of space, can accommodate 1000 LCL container units
- Laboratory to lessen dependency on foreign testing facilities
- Would help save Tk100cr initially
- Power cell has shortlisted four firms for feasibility study
- The World Bank to finance the feasibility study cost
The Power Division of the Ministry of Power, Energy and Mineral Resources is planning to set up the country's first high-voltage electrical testing laboratory to ensure the quality of electrical equipment.
The lab would be used for testing, certification and calibration of 11 kilo volt (KV) and above electric equipment including transformers, current transformers, potential transformers, isolators, air circuit enclosures, breakers, and switchgears.
The Power Division has already floated a tender to conduct a feasibility study to determine the cost, testing standards and formation of the facility.
Once established, the laboratory would largely cut the transmission and distributional testing costs of electrical equipment testing, along with decreasing dependency on foreign labs.
Currently, it takes Tk25 lakh to test each 11KV transformer in India. For those above 11KV, it takes Tk50-60 lakh.
Doing so in Bangladesh, the cost would be reduced to more than half the current amount.
Humayun Rashid, director at Energypac, manufacturer of transformers, said, "To export Bangladeshi-made transformers, you need to do a third-party test. Those are done in India's Bangalore. A huge amount of money is spent on it.
"If Bangladesh can establish an internationally-accredited lab, Tk100 crore could be saved annually," he said.
In the long run, he estimates that the savings could amount to $10 million in the long run.
Sources at the Power Division said that the tremendous growth in the power sector requires hundreds and thousands of power and distribution transformers with associated switchgears, electrical apparatus/equipment and line items.
But Bangladesh does not have any accredited electrical testing laboratory (Low, Medium or High Voltage) for third-party testing and certification.
In absence of this, entities concerned have to rely on certificates of foreign electrical testing labs, which takes a strain on foreign currency reserves.
"To lessen the dependency on foreign testing laboratories, Bangladesh needs to establish an accredited high voltage electrical testing laboratory to provide world-class testing, inspection and certification services to the power sector," said Md Habibur Rahman, secretary at the Power Division.
Therefore, the government has decided to set up such a facility similar to the Netherlands' KEMA and India's Central Power Research Institute.
As part of the initiative, the Power Cell, the policy research wing of the power ministry, was asked to conduct a feasibility study, funded by the World Bank, on establishing the laboratory
Last November, the Power Cell floated an international tender from international bidders in this regard.
Eight local and foreign firms participated in the bidding round, from which four have been shortlisted, said Mohammad Hossain, director general at the Power Cell.
"Now we will ask them to submit a detailed proposal for the feasibility study. The study will be conducted within six months of the firm selection," he said.
Mohammad Hossain said that the project will be implemented under the "TA for Strengthening and Development of Sustainable Power Sector in Bangladesh", which will also be financed by the World Bank.
High-voltage electrical testing lab on cards
The lab would be used for testing, certification and calibration of 11 kilo volt (KV) and above electric equipment including transformers, current transformers, potential transformers, isolators, air circuit enclosures, breakers, and switchgears
The world's biggest football tournament is on its way and preparations for the grand competition are at full throttle. Part of that preparation, comprising over half a million T-shirts worth $1.5 million, is happening in Chattogram's Gosaildanga, at Sonnet Textile Industries Ltd.
Around 400 employees of the factory, half of its total manpower, are cutting, sewing, packaging T-shirts non-stop for Sportsmaster, a Russian sporting goods supplier officially licensed by Fifa. In all, Sonnet Textile is manufacturing T-shirts of six colours with six different designs which will be sold across Sportsmaster's more than 660 stores in several European countries, including Russia, Belarus, Denmark, Poland, etc.
Sonnet received an order for six lakh T-shirts in July last year, of which three lakh has already been delivered and the rest is expected to be heading Russia's way by the end of next month, company officials said.
Gazi Md Shahidullah, owner and director of Sonnet Textile, said, "We went into production in February after receiving the order last year and have already shipped 50% of the products. Our Russian buyer will sell these at its outlets. These T-shirts cannot be sold anywhere else as they are made under Fifa licence."
"I am proud to be able to make the official T-shirt for the biggest football tournament in the world. Everyone is happy to be working on this," said Shahidullah, who is also the director of Bangladesh Knitwear Manufacturers and Exporters Association.
The Fifa World Cup 2022 is to begin in Qatar on 21 November this year and will run till 18 December.
Visiting Sonnet Textile's factory at Gosaildanga on Thursday morning, this correspondent saw T-shirts of different designs, sizes, and colours, being made for both males and females. The T-shirts have 'FIFA World Cup Qatar 2022', 'Football is Amazing', and 'Play', over photo sketches of a stadium.
Joynal Abedin, cutting manager of Sonnet Textile, said, "Made in Bangladesh is written on Fifa's official T-shirts and it is a matter of pride for our country. We are happy to be involved in this process and are working to maintain the highest standards from cutting to packaging."
Sonnet Textiles has two factories in Chattogram with nearly 2000 workers. The company has an annual export of $20 million and supplies knit garments to 10-12 buyers in several countries around the world.
Ctg’s Sonnet Textile making 6 lakh T-shirts for Fifa World Cup
Sonnet received an order for six lakh T-shirts in July last year, of which three lakh has already been delivered and the rest is expected to be heading Russia’s way by the end of next month, company officials said
After repeated revision of deadlines and costs, the long-awaited Joydevpur-Elenga Highway project is finally nearing completion and even at a slightly lower expenditure.
In order to complete some last stage tasks, the project, however, will be placed today at the meeting of the Executive Committee of the National Economic Council (Ecnec).
According to the planning ministry's revised project proposal, the project cost will be Tk 6,168 crore, a decrease of Tk 46 crore from the previous estimate.
The Roads and Highways Department (RHD), the implementation agency, will, however, seek an extension of the deadline for the fifth time, to December 2022 from June this year.
Talking to The Daily Star, Md Mamun-Al-Rashid, a member of the planning commission, said, "The project work is almost complete. The deadline has been extended to carry out some last-stage tasks."
He said that despite the delay, the construction has been fine.
The project was undertaken in 2013 to enable smooth communication between Dhaka and the northern part of Bangladesh via the Bangabandhu Bridge. But the delay in completing the project on time has caused immense suffering to the people who use the road.
However, the project is a typical example of how poor planning can drive up costs and cause implementation delays.
The upgradation of the 70-kilometre road to a four-lane highway was scheduled to be completed by March 2018 at a cost of Tk 2,788 crore. The fourth revision saw the expenditure go up to Tk 6,214 crore and the tenure extend to June 2022.
A government report cites a lack of advanced planning in the development project proposal (DPP) for the project. Had it been better planned, the cost of land acquisition, in particular, and other expenses would have been much lower.
It was specifically a failure not to carry out the feasibility study properly as well as prepare the DPP without following the study and identifying the elements of the project initially, said an assessment report of the Implementation Monitoring and Evaluation Division in 2018.
The report mentioned the delay in land acquisition and relocating existing utility lines, non-implementation of environmental impact assessment, lack of planning in procuring goods, slow pace of construction work, and absence of measures to control overweight as other weaknesses of the project.
In the proposed revision, the expenditure has been cut by Tk 46 crore.
"Some components have seen an increase in expenditure and others have seen a decrease. The shelving of foreign trips due to the coronavirus pandemic has seen the cost drop by Tk 4.5 crore," said Rashid.
Khan Ahmed Shuvo, president of the Tangail Chamber of Commerce & Industry, and a lawmaker, said thanks to the full operation of the important highway, the road communication system in this part of the country would be greatly improved and trade and commerce would be expanded.
"It will also be easier to transport goods from different districts to the capital."
The cost of the project titled "Acquiring land and relocating utility service lines for widening the Dhaka-Sylhet-Tamabil highway" has doubled. The project will be placed at the Ecnec meeting as well.
The Tk 3,885-crore project was taken up in 2018. And in October 2018, the Ecnec approved the project to acquire 986.47 acres of land and relocate utility service lines. However, the authorities need another 396 acres of land, according to the revised proposal.
So, the implementing agency will seek a revision of the cost to Tk 7,975 crore and an extension of the deadline by two years to December 2023.
The aim of the project is to complete the legwork in advance as these issues often cause delays so that the expansion work can start as soon as separate projects are approved.
Two separate projects have already been taken up by the RHD to turn the Dhaka-Sylhet and the Sylhet-Tamabil highways into dual carriageways with separate lanes for slow-moving vehicles involving Tk 20,500 crore, funded by the Asian Development Bank and the Asian Infrastructure Investment Bank.
The projects are likely to face delays as the revised project for clearing the land will end in June 2023 and cost 105 per cent more money.
"The project cost has gone up as more land has to be acquired to fix the alignment of the highways," Rashid said.
Long-awaited project to complete finally
After repeated revision of deadlines and costs, the long-awaited Joydevpur-Elenga Highway project is finally nearing completion and even at a slightly lower expenditure.
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Nizam Shipping Ltd, a shipbuilder in Jhalakathi, is striving to expand its business to the international market, but a time-consuming and costly process of bringing scrap steel sheets and other raw materials from Chattogram shipbreaking yards has been frustrating its aspirations.
"Shipyard owners have to pay high transportation costs and spend a lot of time bringing in scrap sheet metal from Chattogram. The shipyards in Barishal would benefit immensely if a shipbreaking yard in the vicinity of Payra port is established in the division," said Nizamuddin, owner of Nizam Shipping Ltd in Nalchity of Jhalakathi.
Like Nizam Shipping, many other thriving shipyards in Barishal have been facing problems getting scrap steel to make vessels.
Currently, there are around 40 small and large shipyards in Barishal division, according to information from the Bangladesh Inland Water Transport Authority (BIWTA) offices in Barishal, Jhalakathi, Bhola, Patuakhali, and Barguna.
These 40 or so ship-building yards need around 50,000 to 1 lakh tonnes of steel per year. Transporting 12 tons of this steel from Chattogram to Barishal costs Tk40,000, which will come down to Tk6,000-10,000 if there is a ship breaking yard in Barishal, said industry insiders.
The shipyards in Barishal make 20-30 different types of vessels a year which mainly ply the country's rivers. After fulfilling local market demand, these companies sometimes build vessels for the international market, said Nizam, who recently received work orders for building vessels from some foreign buyers.
"Most of the vessels made here are small cargo ships and lighter passenger launches. Many small and large vessel owners get engines and other machinery from scrap vessels in Chattogram. If the same could be sourced from Barishal, it would be easier for us," he added.
According to industry insiders, the annual transaction turnover in the Barishal shipbuilding industry is around Tk200 crore and this sector has provided work for at least 3,000-4,000 people.
"A shipbreaking yard can rapidly develop the ship-building industry of Barishal, and allocating around 100 acres of land for such a yard in Patuakhali is already underway," said engineer Arafat Hossain, ship surveyor and examiner for the Department of Shipping.
"Scrap vessels will be brought here to salvage steel and different types of machinery from them. The yard will create more employment," he added.
"A shipbreaking yard is going to be established close to the Payra Port to fulfill the increasing demand for steel at local shipyards," confirmed Kamal Ahmed Majumder, state minister for industries.
Barishal shipbuilding could flourish with a shipbreaking yard
A shipbreaking yard near Payra port will reduce both cost and time for shipbuilding in Barishal
The coal power plant in Matarbari and the deep seaport in Maheshkhali are nearing completion, but the roads around it still go nowhere.
Seven years into the construction of the link road to the 1,200 megawatt Matarbari coal power plant, the Department of Road Transport and Highways (RHD) has now sought an extension till 2024.
The 44-kilometre road was expected to facilitate construction work of the plant, located in the remote island of Matarbari in Maheshkhali, Cox's Bazar, by establishing a ground connection.
If the road could be made by the target of June 2020, after construction began in July 2015, then workers and engineers of the power plant would be able to travel easily and the needed equipment could also be sent by road.
Abul Kalam Azad, director of the Matarbari Power Station, said currently the only reliable means of transportation for the workers and engineers of the power project was the waterway.
When the RHD first failed to meet the target, the period was extended in one phase. Now the RHD is asking for another extension to the Planning Commission, pushing back the project completion date by four more years.
The Coal Power Generation Company Bangladesh Limited, the implementing agency, wants to complete unit testing by 2024, while the construction of the plant is set to be completed in 2026, with the assistance of the Japan International Cooperation Agency (JICA).
The Planning Commission has already taken a positive decision in this regard by convening a meeting of the Project Evaluation Committee (PEC) in this regard.
Pending the approval of the Executive Committee of the National Economic Council (ECNEC), the five-year project will be completed in nine years.
This situation, however, is not new. A similar problem prevails regarding the connecting roads of almost every project undertaken by the government for the mega plan around Maheshkhali and Matarbari.
About half of the money for the Tk17,777crore Matarbari deep sea port project will be spent on road construction.
Although the port is planned to be operational by 2025, the progress in road construction has been only 1.16%.
The construction of a new road from Chattogram to Cox's Bazar or widening of existing road for the use of the port has not even started yet.
Experts have said that the lack of roads has hampered the progress of the big projects.
BUET Professor of Civil Engineering and transportation specialist Shamsul Hoque said it would be very difficult to implement the big projects without establishing connections. Without it, even if the work of the project is completed, the desired benefits will not be obtained from it.
He said that once the deep seaport is opened, a huge number of ships will crowd at Matarbari as an alternative to Chattogram port.
If there is no road from the port to the land, this port will be of no use.
He said the pressure on the road from Cox's Bazar to Chattogram will increase several times as soon as the port is opened.
Transport experts and businessmen have also said that a deep-sea port without connecting roads would not be of any use to them.
Why the delay?
The cost of the project for construction, renovation and rehabilitation of the 43.66km road to Matarbari Power Station was estimated at Tk602cr.
After the first extension, this was revised to Tk660cr. With another extension, the costs are now expected to reach Tk1,027cr, almost double the initial estimate.
So far, overall work has progressed less than 72%. According to the revised proposal, the road work will have to be done on 27.26km of roads.
Despite the reduction in the scope of work, the additional cost will be Tk 425cr, which is 71% more than the original allocation.
According to the original project proposal, a 540-metre bridge was planned over the Kohelia River, but the revised proposal increased it to 895 metres. Due to this extra Tk40cr extra will have to be spent. Apart from that, the cost will increase by Tk32cr. A new 40-metre RCC girder bridge will be added to the project.
Costs, in some instances, have also tripled.
In the main project, the construction cost of the 10.31km road was estimated at Tk96cr. In the revised proposal, while the length has been reduced to 7.35km, the allocation has been fixed at Tk201cr.
Although the degree of road construction has decreased by 2.96km, the cost has increased by Tk104.54cr.
The Planning Commission has asked why the cost per km of roads has almost tripled from Tk9.31cr to Tk27.28cr.
When contacted, Project Director Md Fazle Rabbe told The Business Standard that although the project was delayed from July 2015, the Government Order was issued in January the next year following the ECNEC approval.
Apart from this, a proposal was made to acquire land under the 1982 law. But in 2016, as a new law was made, a new proposal had to be made. As a result, it took two-and-a-half years to acquire the land.
He further said that road construction in remote areas was very difficult, while lack of proper planning and coordination also hampered the work progress.
He said that although there was a plan to build a five-metre high bridge over the Kohelia River, the BIWTA later fixed its height to 12.2 metres.
As a result, the cost of building the bridge increased.
A deep seaport without a road
Of the total Tk17,777cr, the RHD received an allocation of Tk8,821cr for the Matarbari Deep Sea Port Development Project.
Of this, Tk2,892 crore was to be spent on the construction of a 21km road and Tk 2,146 crore on bridge construction.
Work for the road section, approved in March 2020, has not even begun yet. The financial progress of the project stands at only 1.16%.
No work on Chattogram-Cox's Bazar road development work
Although a loan agreement was signed with the Japan International Cooperation Agency (JICA) in August last year to upgrade the one-lane road from Chattogram to Cox's Bazar to four lanes, the RHD has not yet been able to sign the project memorandum. It has also failed to complete the Development Project Proposal (DPP).
Shyamal Kumar Bhattacharya, additional chief engineer, RHD, said the DPP will be finalised this year and a consultant will be appointed.
The consultant will prepare all the documents, after which it may take up to 2023 to start the construction work by evaluating and selecting the contractor.
If the work starts in 2024, construction will be completed before 2026.
The bureaucratic complexities mean the JICA-promised Tk146.8cr is currently stuck in red tape.
The Matarbari deep seaport, the country's first, was slated to be opened in 2025, with a capacity to handle 4,000 cargo vessels per day. But now this seems far from possible.
With regard to the project approval, the RHD has pointed the finger at plans to build separate expressways in Cox's Bazar and Chattogram on the basis of private-private partnership (PPP).
Against this backdrop, four bypasses and one overpass will be made on the Ctg-Cox's Bazar Highway, but that won't be done before 2025.
It is learned that the Japanese company 'Nippon Koei' has already completed the survey of the bypass-overpass.
It is feared that the year 2026 may go by without all the work, including the detailed design and tender preparation, being completed.
Another separate survey is being conducted on the construction of the four-lane roads with separate service lanes on this basis.
BUET has already submitted the draft of the survey conducted by the government to the PPP office.
Abul Bashar, director general of the PPP office, said BUET's survey report had been sent to the RHD.
He said Japan's Marubeni Corporation was interested in implementing the project. The project will be formulated after reviewing the initial feasibility study.
He also said it would take 24 to 30 months to complete the work after signing the agreement with the investment firm.
Contacted by The Business Standard, AK Mohammad Fazlul Karim, coordinator and additional chief engineer of the PPP cell of RHD, said that he had received the survey report from BUET. After a detailed review, a decision will be taken.
Mohammad Hatem, executive president of BKMEA, said that since there was no deep seaport in the country, exported goods had to be sent from Chattogram port in feeder vessels. From there they are taken to the mother vessel, which results in wasting more time and increasing transportation expenses.
He said the problem will end with the opening of a deep seaport. However, he feared that traders will be deprived of this opportunity if the width of the road is not increased.
No roads for deep-sea port, power plant
Seven years into the construction of the link road to the 1,200 megawatt Matarbari coal power plant, the Department of Road Transport and Highways (RHD) has now sought an extension till 2024
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The Meghna Industrial Economic Zone has so far received $100 million in foreign investment – the highest in the country's 11 private-sector economic zones.
A total of 12 foreign companies from seven different countries finalised agreements to put their money in the industrial hub near the Dhaka-Chattagram Highway in Narayanganj's Sonargaon, while four firms – Australian TIC Manufacturing and TIC Industries Pty, Japanese Sakata Inx and German Siegwerk Limited – have started their factory operations, according to officials of the economic zone.
"Apart from the common facilities of economic zones, our zone has some extra privileges, which is why it became the centre of attraction for foreign investors," said Suman Bhowmik, senior deputy general manager of Meghna Group of Industries, owner of the economic zone.
As it is situated in a prime location near the capital city, transportation to or from the zone was very easy, he told The Business Standard.
The zone has its own power plant to supply electricity to factories, a central effluent treatment plant to process industrial waste, and a fire hydrant system and other amenities.
"Besides, we are now increasing the capacity of solar panels, from which we expect 13-megawatt electricity, and developing a rainwater harvesting system to utilise natural water," added Suman.
Currently 14 factories, including 10 local ones, are manufacturing different types of products – from beverage to garment accessories – in the zone, while their investments have amounted to $400 million.
Of the amount, local companies, mostly Meghna Group subsidiaries, invested $300 million and the rest came from abroad.
Approved in 2017 by the Bangladesh Economic Zones Authority (Beza), the 90-acre industrial hub saw its first factory establishment by Meghna Beverage in late 2018. In the following year, the two Australian facilities went into operation.
According to the authorities, all the plots, except a two-acre one, have already been allotted. "Now, we are expanding the area of the zone by 33 more acres to 123 acres of land as many local and foreign firms are still approaching us about setting up their facilities here," said Suman Bhowmik. He added that there will be 14 more plots.
"We hope the investment in the zone will be increased to $700 million and jobs to 16,000 with the completion of the zone development in the next one and a half years," he added.
Currently, 8,000 people are working in different factories in the zone.
"We saw 9 foreign companies investing in the Meghna Industrial Economic Zone during the pandemic and some starting operations, which proves that the country has a good investment atmosphere," Shaikh Yusuf Harun, executive chairman of the Bangladesh Economic Zones Authority (Beza), told The Business Standard.
He hoped that the foreign investment would inspire other companies to invest in economic zones.
China ahead of others, Australia makes debut
Of the 12 foreign companies, two Chinese firms invested the highest amount of $23 million in the economic zone, followed by $17.5 million by two Australian companies.
Besides, three German firms invested $15.9 million, an Indian firm $16 million, two Japanese $14 million, a Swiss $6 million, and a Norwegian company made a $5 million investment in the industrial hub.
They will produce a range of products, such as garment accessories, inks, paints, chemicals, drugs, and mobile phones.
The Chinese investor Ismatu Technology alone has invested $18.00 million to produce mobile handsets and accessories. It is expected to complete setting up its facility by June this year. Approximately, 3,400 jobs will be generated in the factory.
Officials said the two Australian companies – TIC Manufacturing and TIC Industry Pty – producing plastic hangers for garments, with a workforce of 1,000 people.
"The two facilities are producing 2 million hangers every day; they are being exported to Sri Lanka, China, Hong Kong, Vietnam, India and other countries," said Rafiquzzaman, director and country manager of TIC Manufacturing (Bangladesh) Pty Limited.
He said Australia has invested in Bangladesh for the first time with the two companies.
Indian Sun Pharmaceuticals was making its facility. It said it would be able to go into operation by July this year. The company has invested $16.056 million.
Besides, other factories in the zone are expected to start production within this year.
"In the meantime, a Netherland firm expressed its keen interest to have a factory in our economic zone. It wants 4 acres of land," Suman Bhowmik told TBS.
Meghna Group subsidiaries majority in local 10
Out of the local 10 companies in the zone currently in operation, subsidiaries of the local conglomerate Meghna Group are the majority, 7 in number.
The firms are producing beverage items, cement bags, jumbo bags, and different consumer items such as biscuits, noodles, chanachur and others.
The other local companies in the economic zone are: Thai Foils and polymer Industries, S2S Chemicals Limited, and Meghna Star Cables and Electrical Appliances Limited (not a concern of Meghna Group).
Meghna Industrial Economic Zone is one of the country's existing 11 privately run economic zones. The Beza is working toward establishing 100 economic zones across the country by 2030.
The goal is to create employment for 10 million people. The Beza also expects to produce and export products worth $40 billion annually in and from these economic zones.
Investors can avail of tax holiday, duty-free imports of raw materials and machinery, exemption from dividend tax, VAT-free electricity, gas and water and other fiscal facilities in the zones.
Besides, they enjoy some other non-fiscal advantages, such as bond facility, repatriation of disinvestment, unlimited telephonic transfers and separate customs procedures.
Meghna Industrial EZ receives $100m in foreign investment – highest in private zones
The Meghna Industrial Economic Zone has so far received $100 million in foreign investment – the highest in the country's 11 private-sector economic zones. A total of 12 foreign companies from seven different countries finalised agreements to put their money in the industrial hub near the...
The government has scrapped the coal terminal construction project under the public-private-partnership (PPP) modality at the Patuakhali Payra port considering adverse effects that may stem from the terminal on the environment and climate.
The proposal to delist the project from PPP was approved in the meeting of the cabinet committee on economic affairs on Thursday.
"The government is discouraging the project because of concerns over negative effects on the environment," Finance Minister AHM Mustafa Kamal, who chaired the meeting, told reporters.
"Fresh assessments suggest the project will not be economically profitable in the long run," he added.
According to port authority sources, two units of the proposed 1320MW coal-based power plant are already operational and to supply coal to the plant two terminals have been constructed.
The scrapped terminal was approved back in 2014.
The finance minister also told the media that the cabinet committee on public purchase has approved 13 purchase proposals worth Tk2816 crore.
The approved purchase proposals include land development for the 'Sabrang Tourism Park' in the Teknaf upazila of Cox's Bazar at a cost of Tk181 crore.
In addition, Tk380 crore was approved for capacity building of the Sylhet Osmani International Airport's runway and taxiway, Tk137 crore for the construction of a 10-storey administrative building at the Jahangirnagar University, Tk 102 crore for 6-storey library building construction and Tk119 crore for 3-storey sports complex building.
Govt scraps coal terminal project
The government has scrapped the coal terminal construction project under the public-private-partnership (PPP) modality at the Patuakhali Payra port considering adverse effects that may stem from the terminal on the environment and climate. The proposal to delist the project from PPP was approved...
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Bangladesh is going ahead with a plan to manufacture at least 50% of the railway parts in the country to save a chunk of foreign currency and create jobs.
A draft policy prepared with this objective is likely to be finalized this month, sources at state-run Bangladesh Railway told UNB this week.
Apart from saving the railway Tk75 to 150 crore annually the implementation of the plan will greatly reduce its dependence on imported parts.
The sources, who spoke on condition of anonymity, said currently about 25,000 different types of parts are required for locomotives. Of specialized parts, only 5% are locally made now. The remaining 95% of the parts are purchased from foreign manufacturers.
An official of the Bangladesh railway told UNB that around 61% of its 283 locomotives have reached the prescribed 20-year lifespan.
Engine parts worth around Tk150-200 crore are imported every year to keep those expired engines running. In this context, the railway has taken initiative to manufacture various parts in the country.
Since most of the engine parts have to be imported, in most of the cases it is not possible to repair the engine properly due to the non-availability of spare parts within the stipulated time, explained the official.
If these are made in the country, it will save time besides saving foreign currency. This, in turn, will create employments, the official said requesting anonymity.
The draft policy includes entrepreneurs in the production process. Bangladesh Railway's own workshops will be used for manufacturing work.
Once the policy is implemented, the parts will be available easily and cheaply and it will also contribute to the development of the local industry, he said.
Other sources at the Bangladesh Railway said, the proposed policy aims at the production and rapid availability of locomotive parts in the country.
It says that a large number of spare parts are required regularly to repair and maintain the engine in the fleet. These parts are specialized materials. Diesel engine parts are identified on the basis of the part number and description as there are no drawings and specifications.
Railways have to spend a huge amount of foreign currency to procure these parts. Therefore, in order to reduce the dependency, local manufacturers were allowed and temporarily manufactured parts in the past under the BSIC policy and later as per the instructions issued by the mechanical branch of Bangladesh Railway.
But due to a lack of policies and guidelines for proper supervision and lack of long-term investment protection for entrepreneurs, sustainable entrepreneurs were not interested to invest.
As a result, it was not possible to maintain the expected quality of products.
According to the draft policy, manufacturers having BSIC or equivalent certificates which have their own factories, adequate machinery, skilled manpower and financial capability, will be eligible for parts production.
Railways will initially declare it as a single source for five years after completion of an agreement with a qualified entrepreneur or organization.
The Railway's Document Assessment Committee, Factory Inspection Committee, Quality Management Committee and Pricing Committee will look after these matters.
Additional Director General (Rolling Stock) of Bangladesh Railways Manjur-ul-Alam Chowdhury, said a seminar on the policy with an exhibition of spare parts is likely within this month at the central locomotive factory at Parbatipur in Dinajpur with stakeholders on.
“We are hopeful that Prime Minister Sheikh Hasina will formally inaugurate the event someday this month,” he said.
The seminar will be attended by experts from BUET and BITAC (Bangladesh Industrial Technical Assistance Center), as well as representatives of various government agencies and investors. The draft policy will be finalized after discussion in the seminar, he added.
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A draft policy prepared with this objective is likely to be finalized this month, sources at state-run Bangladesh Railway told UNB this week.
Apart from saving the railway Tk75 to 150 crore annually the implementation of the plan will greatly reduce its dependence on imported parts.
The sources, who spoke on condition of anonymity, said currently about 25,000 different types of parts are required for locomotives. Of specialized parts, only 5% are locally made now. The remaining 95% of the parts are purchased from foreign manufacturers.
An official of the Bangladesh railway told UNB that around 61% of its 283 locomotives have reached the prescribed 20-year lifespan.
Engine parts worth around Tk150-200 crore are imported every year to keep those expired engines running. In this context, the railway has taken initiative to manufacture various parts in the country.
Since most of the engine parts have to be imported, in most of the cases it is not possible to repair the engine properly due to the non-availability of spare parts within the stipulated time, explained the official.
If these are made in the country, it will save time besides saving foreign currency. This, in turn, will create employments, the official said requesting anonymity.
The draft policy includes entrepreneurs in the production process. Bangladesh Railway's own workshops will be used for manufacturing work.
Once the policy is implemented, the parts will be available easily and cheaply and it will also contribute to the development of the local industry, he said.
Other sources at the Bangladesh Railway said, the proposed policy aims at the production and rapid availability of locomotive parts in the country.
It says that a large number of spare parts are required regularly to repair and maintain the engine in the fleet. These parts are specialized materials. Diesel engine parts are identified on the basis of the part number and description as there are no drawings and specifications.
Railways have to spend a huge amount of foreign currency to procure these parts. Therefore, in order to reduce the dependency, local manufacturers were allowed and temporarily manufactured parts in the past under the BSIC policy and later as per the instructions issued by the mechanical branch of Bangladesh Railway.
But due to a lack of policies and guidelines for proper supervision and lack of long-term investment protection for entrepreneurs, sustainable entrepreneurs were not interested to invest.
As a result, it was not possible to maintain the expected quality of products.
According to the draft policy, manufacturers having BSIC or equivalent certificates which have their own factories, adequate machinery, skilled manpower and financial capability, will be eligible for parts production.
Railways will initially declare it as a single source for five years after completion of an agreement with a qualified entrepreneur or organization.
The Railway's Document Assessment Committee, Factory Inspection Committee, Quality Management Committee and Pricing Committee will look after these matters.
Additional Director General (Rolling Stock) of Bangladesh Railways Manjur-ul-Alam Chowdhury, said a seminar on the policy with an exhibition of spare parts is likely within this month at the central locomotive factory at Parbatipur in Dinajpur with stakeholders on.
“We are hopeful that Prime Minister Sheikh Hasina will formally inaugurate the event someday this month,” he said.
The seminar will be attended by experts from BUET and BITAC (Bangladesh Industrial Technical Assistance Center), as well as representatives of various government agencies and investors. The draft policy will be finalized after discussion in the seminar, he added.
Made-in-Bangladesh locomotive parts in the offing to save money, create jobs
A draft policy prepared with this objective is likely to be finalized this month
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The country's second-largest city – Chattogram – is all set to launch a new water treatment plant with a capacity of supplying 14.3 crore litres of water per day.
The Chattogram Water Supply and Sewerage Authority (Chattogram Wasa) expects an end to the water crisis plaguing the city with the addition of the Sheikh Hasina Water Treatment Plant-2 on Wednesday.
"The plant is a gift from Prime Minister Sheikh Hasina for the city dwellers on the occasion of the birth centenary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman," said AKM Fazlullah, managing director of Chattogram Wasa.
"We hope there will be no water crisis in the city, at least until 2030," he told The Business Standard.
Currently, the city, home to some 70 lakh people, needs 50 crore litres of water a day, while the Chattogram Wasa has been supplying 42 crore litres per day.
The new treatment plant would enable the authorities to supply 56.3 crore litres of water per day, meeting the demand while also having an excess in supply.
"We already started a trial run of the plant in February last year [2021] and have been supplying water to a few areas," said Maksud Alam, director of the plant construction project. "We substantially minimised the water crisis during the trial period."
Maksud Alam, also the chief engineer at the Chattogram Wasa, told The Business Standard that the inauguration programme of the plant is scheduled to be held at the Hotel Radisson Chattogram Blu Bay View in the city on Wednesday morning.
Local Government, Rural Development and Co-operatives Minister Md Tajul Islam and the ministry's secretary Md Helal Uddin Ahmed are expected to be present in person while PM Hasina is expected to join the event virtually.
The construction of the plant in the Safarvata area of Rangunia upazila commenced in 2016 with the aim of purifying water from Karnaphuli River and supplying it to Chattogram city. A reservoir at Nasirabad and an elevated tank in Halishahar were built under the project. Besides, new transmission and convenience lines were installed and the old ones replaced.
The initial plan was to launch the plant in June 2020. However, the departure of foreign experts and workers during the pandemic slowed down the construction work.
The total cost of the project was Tk4,491 crore. Of this, the Japan International Cooperation Agency (Jica) provided Tk3,623 crore, the government Tk844 crore and the Chattogram Wasa Tk23 crore.
Currently, the Chattogram Wasa supplies nine crore litres of water from the Sheikh Russel Water Treatment Plant, nine crore from the Mohra Water Treatment Plant, and 14.3 crore from the Sheikh Hasina Water Treatment Plant-1. Besides the Ground Water Treatment Plant and 44 deep tube-wells in the city under the agency have a capacity of supplying 10 crore litres of water.
Under-construction Vandaljuri plant for water supply to industries
The Chattogram Wasa is setting up another water treatment plant at Vandarjuri to ensure freshwater supply, particularly for industries in Boalkhali, Patiya, Karnaphuli and Anwara upazilas. The plant with a capacity of supplying six crore litres of water a day is expected to be launched at the end of this year.
"The project was taken to ensure water in other upazilas of Chattogram which accommodate a good number of industries. It would cut the use of groundwater there and ensure freshwater for local people," Maksud Alam said, adding that biodiversity would be protected, as well.
Meanwhile, the water supplying agency will also go for automation soon, according to its officials.
In a pilot project, some 3,000 pure ultrasonic digital metres would be installed at households in June this year, which may help reduce the around 25-30% system loss.
"If the project becomes a success, the system loss would be reduced and the revenue of Wasa would be increased," Maksud Alam said.
New water treatment plant to end Ctg water crisis
The full-swing operation of the new plant will enable Ctg Wasa to supply 56.3 crore litres of water a day
Bangladesh's apparel exports have kept on its green patch as it registered more than 52% year-on-year growth – amounting to $1.63 billion – in the first two weeks of March amid the Russia-Ukraine war, thanks to continued global demand and the country's leveraging of anti-China sentiments in the United States and the European countries.
The sector also enjoyed an over 200% growth year-on-year in a single day during the period even though the $606 million Russian market is now running dry as its banks are cut off from SWIFT, the main international payment system, and shipping lines declined to carry any goods to the country, said sources at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
The BGMEA came up with the calculation based on the National Board of Revenue data as the Export Promotion Bureau is yet to make the official announcement.
In July-February of FY22, readymade garment shipment saw about 30% growth to $27.49 billion over the corresponding period in the previous year, according to data published by the Export Promotion Bureau (EPB).
BGMEA President Faruque Hassan told The Business Standard that the apparel exports saw a good growth even during the war. "But we cannot predict how long this growth will continue as the war may lead to any uncertainty anytime," he noted.
Apparel makers witnessed a good growth in exports to the US market and continue to receive orders from the market, he also said.
BKMEA former president Fazlul Hoque said, "We are receiving more orders from the US market thanks to an increase in its internal demand."
The US buyers are also looking for alternative sources instead of China owing to their state policy, he also said.
Fazlul Hoque, also managing director of Plummy Fashions Ltd, greenest knitwear factory in the world, said the war has no relation with the overall exports of Bangladesh.
But exporters are having problems with exports to the Russian market and getting payments, while buyers are assuring them of receiving goods and making payments through alternative arrangements, he pointed out.
Mostafiz Uddin, managing director of Denim Expert Ltd and founder and chief executive officer of Bangladesh Apparel Exchange, said, "This is our organic growth, it was expected."
He further said, "We are now in the peak season. Every year we face four months of off-season, which are January-February and June-July."
Russia is not a big market, that is why it will not affect the country's export, but rising freight costs, further triggered by the ongoing Russia-Ukraine war, are affecting Bangladesh like all other countries, Mostafiz said.
BKMEA Vice president Fazlee Shamim Ehsan said Bangladesh's exports have been going up in March as it is a peak season.
The country is also experiencing good growth in the US market because of anti-China sentiments, and such perception is also growing in the EU, which will also help Bangladesh export more to the EU, he also said.
"Despite the significant rise in prices of raw materials, buyers keep trust in our entrepreneurs that have helped our exports grow in terms of volume and value,"' he added.
Exports to US market
Bangladesh apparel exports to the US saw a healthy growth of over 45% to $756 million in terms of value and volume in January 2022, according to the Office of Textiles and Apparel (OTEXA), an affiliate of the US Department of Commerce.
The export receipts amounted to only $519 million in the same month of 2021.
In terms of volume, the apparel exports also sustained a 42.17% growth to 282.38 million square metres in January 2022, up from 198.62 million square metres in January 21 in the US as the single-largest export destination without any duty preference.
In January this year, China exported $1.90 billion worth of clothing items and Vietnam $1.27 billion.
US apparel imports from other major sourcing destinations, such as India, Pakistan and Cambodia, grew by 53.40%, 44.41% and 42.12% respectively.
The US overall apparel imports also increased by 36.60% to $7.54 billion in January this year from across the world, while it was $5.52 billion in the same month of 2021, according to OTEXA data.
Apparel exports see 52% growth in two weeks amid Russia-Ukraine war
Bangladesh's apparel exports have kept on its green patch as it registered more than 52% year-on-year growth – amounting to $1.63 billion – in the first two weeks of March amid the Russia-Ukraine war, thanks to continued global demand and the country's leveraging of anti-China sentiments in the...
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Over the last couple of years, we have heard news of local companies setting up automobile manufacturing plants all across Bangladesh, and now we are one step closer towards seeing locally made cars plying on the streets more often than we are used to.
Fair Technology Limited, the sole distributor of the world-renowned Hyundai vehicles in Bangladesh has shared plans to launch locally made Hyundai cars by the end of 2022.
With a target to provide affordable sport utility vehicles, Fair Technology has teamed up with the Korean automobile giant to serve the growing Bangladesh market.
The demand for new cars is growing by 5% every year in Bangladesh, where around 5000 cars are being sold across the country.
Last year, Fair Group’s subsidiary Fair Technology Limited announced that they were setting up a manufacturing plant for Hyundai Motor Company, for which they signed an agreement with the Bangabandhu Hi-Tech Park Authority.
The car manufacturing plant is being set up on six acres of land at Kaliakair in Gazipur invested by Fair Technology and technical assistance from Hyundai Motor Company.
Mutasim Dayan, CEO of Fair Technology Limited told the press: “To keep pace with the current era of modern technologies, Fair Technology will start production of electric vehicles by 2023."
Some of the locally assembled vehicles that have gained huge popularity in the market are Pragati made Mitsubishi vehicles and PHP’s Proton cars.
www.dhakatribune.com
Prime Minister Sheikh Hasina today formally inaugurated the country's biggest Payra 1320 MW Thermal Power Plant, constructed at a cost of around Tk20,000 crore at Patuakhali's Kalapara upazila.
She also declared 100% electrification across the country as the first South Asian nation.
Sheikh Hasina, in person, is visiting the district for the first time to open the power plant since the outbreak of the Covid-19 pandemic.
Bangladesh has become the third power plant in Asia and the thirteenth in the world to use ultra-supercritical technology in producing power.
With the opening of the first coal-fired Ultra Supercritical Technology power plant, coastal neighbourhoods of Payra and the "daughter of the sea" famed Kuakata in Patuakhali are expected to take the driver's seat in the country's journey of economic growth.
The area is poised to become a nucleus for regional communication and trade with India, China, Bhutan, and Sri Lanka once the government's ambitious rail and road projects centring the southern region are implemented.
Payra has the potential to become an important port as a transit point on the Silk Route by sea and a global trade hub as the government plans on building the region as one of the major economic corridors of the country by establishing direct road and rail communications with the capital Dhaka and the rest of the country and thus establishing connectivity with India, Sri Lanka, and Bhutan.
Earlier, State Minister for Power Nasrul Hamid said the project has been completed ahead of schedule and saved $100 million.
The plant was developed by Bangladesh China Power Company (BCPCL), a 50:50 joint venture between the China National Machinery Import and Export Corporation (CMC) and Bangladesh's state-owned North-West Power Generation Company Ltd (NWPGCL).
Bangladesh-China Power Company (Pvt) Limited and Consortium of NEPC & CECC signed the EPC contract on 29 March 2016 to implement the Payra 1320 MW Thermal Power Plant Project in the fastest possible time.
The first 660 MW unit of the power plant went into commercial operation in May 2020, utilising the 400 kv Payra-Gopalganj Power Transmission while the second one started production in December last year.
The power generation capacity has rocketed to 25,514 MW in February 2022 from 4,942 MW in January 2009. Of them, 1160 MW of electricity is being imported and 19,626 MW is being locally produced
Besides, the country's biggest coal-fired power plant has been set up in Payra. The construction of a 163-kilometre transmission line from the power station to Gopalganj grid has already been completed while the construction of a 75km line from Gopalganj to Aminbazar of Dhaka is in progress and slated for completion by December this year.
The electricity generated at the plant is being supplied through submarine cables to 25,358 households in various chars of Rangabali upazila, Patuakhali, which is surrounded by the sea and rivers. Through this, the government is inching towards achieving the target of 100% electrification.
At present, 1,000MW of power is being generated experimentally from this 1,320MW plant.
Barishal Divisional Commissioner Md Amin Ul Ahsan said centering Payra 1320 MW Thermal Power Plant near the Payra Seaport, the economic activities of the people in this area have already been accelerated.
Noting the activities of setting up an economic zone in the area, he said the site has already been selected and the process of land acquisition is underway since the government has a huge plan cenetring the southern part of the country.
Apart from the 1320MW thermal power plant, the commissioner said, the construction work of another power plant is underway while the government has also a plan to build a 1320MW power plant and a solar system power plant here.
"This region would be turned into a power hub by the next five to ten years," he added.
This coal-fueled power plant, generally known as a baseload power plant that operates continuously round the clock, has been built as the coal is till now a cheapest fuel, he said, adding, "Before starting the construction work, the honourable Prime Minister herself chose this site".
Once the country's largest power plant goes into operation in full swing, the BCPCL official said, it will be possible to keep electricity prices at a tolerable level.
Earlier, a guard of honour was given to the premier on her arrival at the helipad adjoining the Payra Thermal Power Plant.
Later, 200 fishermen boats decorated with various colours welcomed Sheikh Hasina by waving flags and playing songs as soon as the prime minister arrived at the coal jetty.
A festive mood has been prevailing in the areas from the tourism spot Kuakata to the Payra power plant and their neighbourhoods which get a facelift with various eye-catching things.
Liberation War Affairs Minister A K M Mozammel Haque, PM's Power, Energy and Mineral Resources Adviser Dr Tawfiq-e-Elahi Chowdhury and State Minister for Power, Energy and Mineral Resources Nasrul Hamid, among others, were present at the inaugural function.
www.tbsnews.net
From Payra, Patuakhali: In an awe-inspiring development, the coastal neighbourhoods of Payra and the "daughter of the sea" famed Kuakata in Patuakhali – a southern district that has thus far remained on the periphery of mainstream Bangladesh's sub-conscious – are gradually taking their place in the driver's seat in the country's journey of economic growth.
The area is poised to become a nucleus for regional communication and trade with India, China, Bhutan, and Sri Lanka once the government's ambitious rail and road projects centring the southern region are implemented.
Payra has the potential to become an important port as a transit point on the Silk Route by sea and a global trade hub as the government plans on building the region as one of the major economic corridors of the country by establishing direct road and rail communications with the capital Dhaka and the rest of the country and thus establishing connectivity with India, Sri Lanka, and Bhutan.
Besides, the country's biggest coal-fired power plant has been set up in Payra. The construction of a 163-kilometre transmission line from the power station to Gopalganj grid has already been completed while the construction of a 75km line from Gopalganj to Aminbazar of Dhaka is in progress and slated for completion by December this year.
The electricity generated at the plant is being supplied through submarine cables to 25,358 households in various chars of Rangabali upazila, Patuakhali, which is surrounded by the sea and rivers. Through this, the government is inching towards achieving the target of 100% electrification.
At present, 1,000MW of power is being generated experimentally from this 1,320MW plant.
Prime Minister Sheikh Hasina is scheduled to officially inaugurate the power plant, constructed at a cost of around Tk20,000 crore, in the southern district on Monday. The electricity generated at the plant will be added to the Dhaka grid by next December.
While briefing the media at Payra Power Plant on Sunday afternoon, State Minister for Power Nasrul Hamid said, "It was a challenge for everyone. The most remarkable thing is that this project has been completed ahead of schedule and saved $100 million. This is why this project is unique in many ways."
Bangladesh has not implemented such a large and state-of-the-art project in the past 50 years, the minister said, adding that the one in Payra is the third power plant in Asia and the eleventh in the world to use ultra-supercritical technology.
Two coal/bulk terminals have been constructed at Payra port to supply coal to the plant. Another coal terminal was supposed to be built under the public-private partnership (PPP) arrangement but was annulled last month by the Cabinet Committee on Economic Affairs.
In addition, the government has plans to supply gas discovered in Bhola and to import fuel oil and gas to Payra by laying pipelines from refineries in the Indian state of Assam. If the government's plans to build a liquid bulk terminal, an LNG terminal, and a fuel oil refinery are implemented, Payra will become a power and fuel hub just like Matarbari in Cox's Bazar.
The government is also planning to establish a special economic zone and an airport to realise its dream of making the country a developed one, attracting investments to Payra, and establishing Kuakata as a world-class eco-tourism centre within the next two decades.
Moreover, the setting up of a garment industrial estate, shipbuilding and repair industries, a container building terminal, pharmaceutical industries, a fish processing zone, and a fertiliser factory is also planned around the Payra port – built on about 6,000 acres of land.
Payra port was partially opened in 2019 with the anchoring of a ship carrying imported goods. In the past two years, the port authorities handled the cargoes of 170 ocean-going foreign vessels.
Constructions of a modern 650-metre main jetty and a 325,000-square metres backup yard are expected to be completed by this December. Initiatives have been taken to construct a connecting road to the terminal. The port authorities estimate that a full-scale operation of the port will lead to a 2% increase in the country's gross domestic product (GDP).
The Payra port is being constructed at an estimated cost of about Tk15,000 crore and is expected to be complete next year. Once it starts functioning as a full-fledged port, it will be able to handle 50 ships a day. The government expects the port will help reduce the existing container handling costs by two-thirds.
A tourism-based 20-year comprehensive master plan is being formulated centring Payra and Kuakata under the leadership of Tofazzal Hossain Miah, senior secretary to the Prime Minister's Office. As per the master plan, modern tourism infrastructures will be built ensuring well-planned-out urbanisation to make Payra one of the key drivers in establishing a developed Bangladesh by 2041.
People concerned said that even though the government has moved away from the decision to set up a deep seaport, traders in the south and south-west of the country, including those in Dhaka, are getting increasingly hopeful about the Payra port as there is an opportunity to anchor mother vessels at the port since it is deeper than those in Chattogram and Mongla.
Khorashed Alam, managing director of Bangla-China Power Company that is in charge of setting up and operating the Payra power plant, said the prime minister herself selected the site for the plant as coal transport to this place surrounded by three rivers is easy.
Bangabandhu emphasised a balanced development of the country and his daughter, Prime Minister Sheikh Hasina, is confirming that by constructing this power plant, he said.
There is no risk of environmental pollution from the thermal power plant, he claimed, adding that the latest ultra-supercritical technology has been used in the project. "This has increased the project cost by 5-7% but we bore it for the sake of protecting the environment."
The main reason for building coal-fired power plants is to generate electricity at a low cost. Cheap electricity will be available from this plant for the next 25-30 years.
But, bringing ships carrying 40,000-50,000 tonnes of coal is a challenge, he noted, adding the Payra port authorities are working to address this issue. "Hopefully, this will be possible by 2023-24."
At present, 550-600MW of electricity generated at Payra power plant is going to Gopalganj substation while some is being supplied to the Patuakhali substation. Jashore and Khulna are expected to be connected to the transmission line next month. And once the construction of Gopalganj-Aminbazar transmission line is completed by December, the electricity generated in this plant will reach Dhaka.
No other country in the region has achieved 100% electrification, said Khorshed, adding that it will play a big role in the socio-economic development of the country.
The government is constructing another 1,320MW power plant at Payra, the implementation progress of which is 22%.
Khorshed said the construction of the new plant will be completed in 2024.
The transformation
Because of its backwardness in communication infrastructures, the entire Barishal division, including Patuakhali, lags behind even the northern divisions of Rajshahi and Rangpur in terms of economic activities. According to the 2013 economic census of the Bangladesh Bureau of Statistics, the total number of economic establishments in the country that year was more than 78 lakh and Sylhet, Barishal, and Khulna had the lowest numbers of such establishments. The number of economic establishments in Rangpur was more than 10 lakh, but it was about 3.5 lakh in Barishal.
The pitiable condition of Barishal division has started to change thanks to the constructions of the Padma Bridge and the Payra Port. Over the past several years, Payra Bridge, Sheikh Jamal Bridge, Sheikh Kamal Bridge, and Sheikh Russell Bridge have been constructed on the Barishal-Patuakhali-Kuakata Highway and the region will have direct road connectivity with the rest of the country, including Dhaka, once the Padma Bridge is launched this June.
Encouraged by the development of communication infrastructures and the government's development plans centring the Payra port, large industrial groups are buying land in the Jajira-Kuakata, and Barishal-Mongla-Khulna areas for investment.
According to the calculations of the business community, it takes 8-10 hours for goods to reach the Chattogram port from Dhaka. Once the Padma Bridge is opened, it will take about 6 hours for goods to reach Payra Port from Dhaka, they expect, while transportation costs will also go down sharply.
The government is working not only for the implementation of mega projects but also for the rehabilitation of poor families in the region. In the Mujib Year, 29 families from the gypsy Manta community have been rehabilitated in Char Mantaj under the Ashrayan project. Officials said construction work on 31 more houses for the community is underway and that 96 families will be rehabilitated at the char in phases. Earlier, the birth, life, and death of this landless community were all in small boats.
Nayan Tara, who got a house in Char Mantaj, told The Business Standard that she was born in a boat and spent 70 years of her life in the boat. "Now I have found a home and found peace," she said.
Another beneficiary, named Rokeya Begum, said, "Small children would die by drowning after falling into water from boats, which is why they had to be tied to the boats with ropes. Casualties often took place if the guardians forgot to tie their children to the boat. Now there is no such fear."
Barishal Divisional Commissioner Md Amin Al Ahsan told TBS, "A development extravaganza is going on in the entire Barishal division centring the Payra port and the Padma Bridge. Land has been selected for an economic zone in Patuakhali. Its acquisition process is in progress."
The economic zone is important to make the port vibrant, he said, adding, "Besides, the demand for economic zones is also high among domestic as well as foreign investors. Many companies are setting up industries by buying land on their own initiatives. Payra will have a solar plant. The area will become an energy hub in the next 5-10 years."
He continued to say land acquisition for a 4-lane road from Bhanga to Kuakata is underway. Work on rail communication will also start soon. All internal roads of the Barishal division are being developed. A planned tourism hub will be developed including Kuakata and surrounding areas.
The entire economic landscape of the region will change in the next five years, he hoped.
www.tbsnews.net
Fair Technology Limited, the sole distributor of the world-renowned Hyundai vehicles in Bangladesh has shared plans to launch locally made Hyundai cars by the end of 2022.
With a target to provide affordable sport utility vehicles, Fair Technology has teamed up with the Korean automobile giant to serve the growing Bangladesh market.
The demand for new cars is growing by 5% every year in Bangladesh, where around 5000 cars are being sold across the country.
Last year, Fair Group’s subsidiary Fair Technology Limited announced that they were setting up a manufacturing plant for Hyundai Motor Company, for which they signed an agreement with the Bangabandhu Hi-Tech Park Authority.
The car manufacturing plant is being set up on six acres of land at Kaliakair in Gazipur invested by Fair Technology and technical assistance from Hyundai Motor Company.
Mutasim Dayan, CEO of Fair Technology Limited told the press: “To keep pace with the current era of modern technologies, Fair Technology will start production of electric vehicles by 2023."
Some of the locally assembled vehicles that have gained huge popularity in the market are Pragati made Mitsubishi vehicles and PHP’s Proton cars.
Hyundai cars now made in Bangladesh
Fair Technology to roll out locally made Hyundai cars by the end of the year
Prime Minister Sheikh Hasina today formally inaugurated the country's biggest Payra 1320 MW Thermal Power Plant, constructed at a cost of around Tk20,000 crore at Patuakhali's Kalapara upazila.
She also declared 100% electrification across the country as the first South Asian nation.
Sheikh Hasina, in person, is visiting the district for the first time to open the power plant since the outbreak of the Covid-19 pandemic.
Bangladesh has become the third power plant in Asia and the thirteenth in the world to use ultra-supercritical technology in producing power.
With the opening of the first coal-fired Ultra Supercritical Technology power plant, coastal neighbourhoods of Payra and the "daughter of the sea" famed Kuakata in Patuakhali are expected to take the driver's seat in the country's journey of economic growth.
The area is poised to become a nucleus for regional communication and trade with India, China, Bhutan, and Sri Lanka once the government's ambitious rail and road projects centring the southern region are implemented.
Payra has the potential to become an important port as a transit point on the Silk Route by sea and a global trade hub as the government plans on building the region as one of the major economic corridors of the country by establishing direct road and rail communications with the capital Dhaka and the rest of the country and thus establishing connectivity with India, Sri Lanka, and Bhutan.
Earlier, State Minister for Power Nasrul Hamid said the project has been completed ahead of schedule and saved $100 million.
The plant was developed by Bangladesh China Power Company (BCPCL), a 50:50 joint venture between the China National Machinery Import and Export Corporation (CMC) and Bangladesh's state-owned North-West Power Generation Company Ltd (NWPGCL).
Bangladesh-China Power Company (Pvt) Limited and Consortium of NEPC & CECC signed the EPC contract on 29 March 2016 to implement the Payra 1320 MW Thermal Power Plant Project in the fastest possible time.
The first 660 MW unit of the power plant went into commercial operation in May 2020, utilising the 400 kv Payra-Gopalganj Power Transmission while the second one started production in December last year.
The power generation capacity has rocketed to 25,514 MW in February 2022 from 4,942 MW in January 2009. Of them, 1160 MW of electricity is being imported and 19,626 MW is being locally produced
Besides, the country's biggest coal-fired power plant has been set up in Payra. The construction of a 163-kilometre transmission line from the power station to Gopalganj grid has already been completed while the construction of a 75km line from Gopalganj to Aminbazar of Dhaka is in progress and slated for completion by December this year.
The electricity generated at the plant is being supplied through submarine cables to 25,358 households in various chars of Rangabali upazila, Patuakhali, which is surrounded by the sea and rivers. Through this, the government is inching towards achieving the target of 100% electrification.
At present, 1,000MW of power is being generated experimentally from this 1,320MW plant.
Barishal Divisional Commissioner Md Amin Ul Ahsan said centering Payra 1320 MW Thermal Power Plant near the Payra Seaport, the economic activities of the people in this area have already been accelerated.
Noting the activities of setting up an economic zone in the area, he said the site has already been selected and the process of land acquisition is underway since the government has a huge plan cenetring the southern part of the country.
Apart from the 1320MW thermal power plant, the commissioner said, the construction work of another power plant is underway while the government has also a plan to build a 1320MW power plant and a solar system power plant here.
"This region would be turned into a power hub by the next five to ten years," he added.
This coal-fueled power plant, generally known as a baseload power plant that operates continuously round the clock, has been built as the coal is till now a cheapest fuel, he said, adding, "Before starting the construction work, the honourable Prime Minister herself chose this site".
Once the country's largest power plant goes into operation in full swing, the BCPCL official said, it will be possible to keep electricity prices at a tolerable level.
Earlier, a guard of honour was given to the premier on her arrival at the helipad adjoining the Payra Thermal Power Plant.
Later, 200 fishermen boats decorated with various colours welcomed Sheikh Hasina by waving flags and playing songs as soon as the prime minister arrived at the coal jetty.
A festive mood has been prevailing in the areas from the tourism spot Kuakata to the Payra power plant and their neighbourhoods which get a facelift with various eye-catching things.
Liberation War Affairs Minister A K M Mozammel Haque, PM's Power, Energy and Mineral Resources Adviser Dr Tawfiq-e-Elahi Chowdhury and State Minister for Power, Energy and Mineral Resources Nasrul Hamid, among others, were present at the inaugural function.
PM opens 1320MW Payra Power Plant, declares 100pc power coverage
It is the country's biggest thermal power plant and the first to use ultra-supercritical technology
From Payra, Patuakhali: In an awe-inspiring development, the coastal neighbourhoods of Payra and the "daughter of the sea" famed Kuakata in Patuakhali – a southern district that has thus far remained on the periphery of mainstream Bangladesh's sub-conscious – are gradually taking their place in the driver's seat in the country's journey of economic growth.
The area is poised to become a nucleus for regional communication and trade with India, China, Bhutan, and Sri Lanka once the government's ambitious rail and road projects centring the southern region are implemented.
Payra has the potential to become an important port as a transit point on the Silk Route by sea and a global trade hub as the government plans on building the region as one of the major economic corridors of the country by establishing direct road and rail communications with the capital Dhaka and the rest of the country and thus establishing connectivity with India, Sri Lanka, and Bhutan.
Besides, the country's biggest coal-fired power plant has been set up in Payra. The construction of a 163-kilometre transmission line from the power station to Gopalganj grid has already been completed while the construction of a 75km line from Gopalganj to Aminbazar of Dhaka is in progress and slated for completion by December this year.
The electricity generated at the plant is being supplied through submarine cables to 25,358 households in various chars of Rangabali upazila, Patuakhali, which is surrounded by the sea and rivers. Through this, the government is inching towards achieving the target of 100% electrification.
At present, 1,000MW of power is being generated experimentally from this 1,320MW plant.
Prime Minister Sheikh Hasina is scheduled to officially inaugurate the power plant, constructed at a cost of around Tk20,000 crore, in the southern district on Monday. The electricity generated at the plant will be added to the Dhaka grid by next December.
While briefing the media at Payra Power Plant on Sunday afternoon, State Minister for Power Nasrul Hamid said, "It was a challenge for everyone. The most remarkable thing is that this project has been completed ahead of schedule and saved $100 million. This is why this project is unique in many ways."
Bangladesh has not implemented such a large and state-of-the-art project in the past 50 years, the minister said, adding that the one in Payra is the third power plant in Asia and the eleventh in the world to use ultra-supercritical technology.
Two coal/bulk terminals have been constructed at Payra port to supply coal to the plant. Another coal terminal was supposed to be built under the public-private partnership (PPP) arrangement but was annulled last month by the Cabinet Committee on Economic Affairs.
In addition, the government has plans to supply gas discovered in Bhola and to import fuel oil and gas to Payra by laying pipelines from refineries in the Indian state of Assam. If the government's plans to build a liquid bulk terminal, an LNG terminal, and a fuel oil refinery are implemented, Payra will become a power and fuel hub just like Matarbari in Cox's Bazar.
The government is also planning to establish a special economic zone and an airport to realise its dream of making the country a developed one, attracting investments to Payra, and establishing Kuakata as a world-class eco-tourism centre within the next two decades.
Moreover, the setting up of a garment industrial estate, shipbuilding and repair industries, a container building terminal, pharmaceutical industries, a fish processing zone, and a fertiliser factory is also planned around the Payra port – built on about 6,000 acres of land.
Payra port was partially opened in 2019 with the anchoring of a ship carrying imported goods. In the past two years, the port authorities handled the cargoes of 170 ocean-going foreign vessels.
Constructions of a modern 650-metre main jetty and a 325,000-square metres backup yard are expected to be completed by this December. Initiatives have been taken to construct a connecting road to the terminal. The port authorities estimate that a full-scale operation of the port will lead to a 2% increase in the country's gross domestic product (GDP).
The Payra port is being constructed at an estimated cost of about Tk15,000 crore and is expected to be complete next year. Once it starts functioning as a full-fledged port, it will be able to handle 50 ships a day. The government expects the port will help reduce the existing container handling costs by two-thirds.
A tourism-based 20-year comprehensive master plan is being formulated centring Payra and Kuakata under the leadership of Tofazzal Hossain Miah, senior secretary to the Prime Minister's Office. As per the master plan, modern tourism infrastructures will be built ensuring well-planned-out urbanisation to make Payra one of the key drivers in establishing a developed Bangladesh by 2041.
People concerned said that even though the government has moved away from the decision to set up a deep seaport, traders in the south and south-west of the country, including those in Dhaka, are getting increasingly hopeful about the Payra port as there is an opportunity to anchor mother vessels at the port since it is deeper than those in Chattogram and Mongla.
Khorashed Alam, managing director of Bangla-China Power Company that is in charge of setting up and operating the Payra power plant, said the prime minister herself selected the site for the plant as coal transport to this place surrounded by three rivers is easy.
Bangabandhu emphasised a balanced development of the country and his daughter, Prime Minister Sheikh Hasina, is confirming that by constructing this power plant, he said.
There is no risk of environmental pollution from the thermal power plant, he claimed, adding that the latest ultra-supercritical technology has been used in the project. "This has increased the project cost by 5-7% but we bore it for the sake of protecting the environment."
The main reason for building coal-fired power plants is to generate electricity at a low cost. Cheap electricity will be available from this plant for the next 25-30 years.
But, bringing ships carrying 40,000-50,000 tonnes of coal is a challenge, he noted, adding the Payra port authorities are working to address this issue. "Hopefully, this will be possible by 2023-24."
At present, 550-600MW of electricity generated at Payra power plant is going to Gopalganj substation while some is being supplied to the Patuakhali substation. Jashore and Khulna are expected to be connected to the transmission line next month. And once the construction of Gopalganj-Aminbazar transmission line is completed by December, the electricity generated in this plant will reach Dhaka.
No other country in the region has achieved 100% electrification, said Khorshed, adding that it will play a big role in the socio-economic development of the country.
The government is constructing another 1,320MW power plant at Payra, the implementation progress of which is 22%.
Khorshed said the construction of the new plant will be completed in 2024.
The transformation
Because of its backwardness in communication infrastructures, the entire Barishal division, including Patuakhali, lags behind even the northern divisions of Rajshahi and Rangpur in terms of economic activities. According to the 2013 economic census of the Bangladesh Bureau of Statistics, the total number of economic establishments in the country that year was more than 78 lakh and Sylhet, Barishal, and Khulna had the lowest numbers of such establishments. The number of economic establishments in Rangpur was more than 10 lakh, but it was about 3.5 lakh in Barishal.
The pitiable condition of Barishal division has started to change thanks to the constructions of the Padma Bridge and the Payra Port. Over the past several years, Payra Bridge, Sheikh Jamal Bridge, Sheikh Kamal Bridge, and Sheikh Russell Bridge have been constructed on the Barishal-Patuakhali-Kuakata Highway and the region will have direct road connectivity with the rest of the country, including Dhaka, once the Padma Bridge is launched this June.
Encouraged by the development of communication infrastructures and the government's development plans centring the Payra port, large industrial groups are buying land in the Jajira-Kuakata, and Barishal-Mongla-Khulna areas for investment.
According to the calculations of the business community, it takes 8-10 hours for goods to reach the Chattogram port from Dhaka. Once the Padma Bridge is opened, it will take about 6 hours for goods to reach Payra Port from Dhaka, they expect, while transportation costs will also go down sharply.
The government is working not only for the implementation of mega projects but also for the rehabilitation of poor families in the region. In the Mujib Year, 29 families from the gypsy Manta community have been rehabilitated in Char Mantaj under the Ashrayan project. Officials said construction work on 31 more houses for the community is underway and that 96 families will be rehabilitated at the char in phases. Earlier, the birth, life, and death of this landless community were all in small boats.
Nayan Tara, who got a house in Char Mantaj, told The Business Standard that she was born in a boat and spent 70 years of her life in the boat. "Now I have found a home and found peace," she said.
Another beneficiary, named Rokeya Begum, said, "Small children would die by drowning after falling into water from boats, which is why they had to be tied to the boats with ropes. Casualties often took place if the guardians forgot to tie their children to the boat. Now there is no such fear."
Barishal Divisional Commissioner Md Amin Al Ahsan told TBS, "A development extravaganza is going on in the entire Barishal division centring the Payra port and the Padma Bridge. Land has been selected for an economic zone in Patuakhali. Its acquisition process is in progress."
The economic zone is important to make the port vibrant, he said, adding, "Besides, the demand for economic zones is also high among domestic as well as foreign investors. Many companies are setting up industries by buying land on their own initiatives. Payra will have a solar plant. The area will become an energy hub in the next 5-10 years."
He continued to say land acquisition for a 4-lane road from Bhanga to Kuakata is underway. Work on rail communication will also start soon. All internal roads of the Barishal division are being developed. A planned tourism hub will be developed including Kuakata and surrounding areas.
The entire economic landscape of the region will change in the next five years, he hoped.
An economic hub in South in the making
Prime minister to launch Payra 1,320MW thermal power plant today
