Chittagong, The Pearl of Karnaphuli

Source: CPA Website and various sources, 2007.

Located in the southern part of Bangladesh on Karnaphuli River, Chittagong serves as country's gateway for world exports and imports. Chittagong port throughput has seen a steady growth of 12.5% per annum during 2000-2006. It's predicted to continue at 9% in 2007/2009.

Bangladesh main export partners are USA and Europe with Garment as the main commodity. While import wise are Southeast and Far East Asian countries with Fabrics and Machinery being the major commodity.

Bangladesh export contributes 11% of total GDP in 2006.


Chittagong Port

Chittagong port consists of three different terminal.

- General Cargo Berth : No Gantry Crane, Draft 8.5m, 13 Berths.

- Chittagong Contr Term : 4x Post Panamax Gantry, Draft 9.2m, 3 Berths.

- New Mooring CT : Under Construction, Projected 5 Berths, Draft 9.5-10m.

Currently only CCT provides fix day window berthing with prerequisite: a consortium of 4 vessels. First Come First Serve basis are still applicable to other vessels operator.

GCB uses First Come First Serve basis.

Chittagong were famous of its congestion, that could leave vessels with 12 days port stay. This is due to inefficient cargo operations at terminal as well as unorganized container yard management.

This problem is no longer occur in 2007, with privatization of CCT operation as well as deregulations on GCB terminal operations.

Ratio Between T/S Hubs

Bangladesh is a feeder port by nature, given their shallow river-draft condition. Thus it serves through Hub ports within region. A significant chunk of Chittagong export volume are transhipped via Singapore, followed by Colombo and Tanjung Pelepas.

Same order are found in Import cargoes to Chittagong.

CGP Import T/S Hub
Sin - 59% ---> growth: 19,000 teu p.a
Cmb - 18% ---> growth: 19,800 teu p.a
Ptp - 13% ---> growth: 1,400 teu p.a
Others - 10%

CGP Export T/S Hub
Sin - 54% ---> growth: 7,000 teu p.a
Cmb - 19% ---> growth: 27,000 teu p.a
Ptp - 15% ---> growth: 9,700 teu p.a
Others - 11%

Colombo growth is mainly driven by Maersk Line volumes.

Comparison on Common Feeder and Dedicated Feeder players in Chittagong, in the year 2006 shows: 95% (430,000 TEU) are carried by Common Feeder; while 5% (70,000 teu) carried by Dedicated Feeder.

Chittagong is either a balance and also imbalance trade in terms of Laden/Empty movement as well as in terms of Equipment type.

Depend on which hub port, the Laden/Empty movement can then be determined.

Hubbing through Singapore, mostly Laden into Chittagong (96%) and almost balance(Empty 45% Laden 55%) out from Chittagong. This is due to container type coming into CTG ex Southeast/Fareast Asia is mostly 20', while export via Singapore are mainly 40's.

Hubbing through Colombo, the movement is more balance.

2006 data shows, into Chittagong 85% Laden while out fm Chittagong 90% Laden.

Colombo traditionally serves as t/s hub for cargo bound from/to Europe/South America. Container type imbalance have less impact.

Trade Laden Empty Total
Cmb-Cgp 68,000 12,000 80,000
Cgp-Cmb 74,000 8,000 82,000

Sin-Cgp 270,000 13,000 283,000
Cgp-Sin 150,000 130,000 280,000


Current Players/Share

- Singapore Hub
ACL 24% CMA 5%
XCL 16% APL 5%
OEL 14% GSL 5%
HRC 12% QCL 3%
SSL 7% BSC 3%
PML 6%

- Colombo Hub
XCL 37%
OEL 33%
HRC 23%
QCL 6%

Seasonality

Chittagong trade is generally steady in the whole year, except on three occasion:

- February (usually waiting for buyers order/new order)

- Monsoon period (end June until early August)

- Islamic Festive Seasons (Ied al Fitri and Ied al Adha)

During past years, Nov/Dec usually marked with labour/political unrest. But eversince Military take over in 2007, this doesnt seem to occur.

Throughput YoY
2001 490,000
2002 530,000
2003 630,000
2004 690,000
2005 785,000
2006 880,000

Current Situation

- In tender for New Mooring Terminal concession

- Application of fix day window berthing system

- Application of common tariff on all berth

- Improved port stay --> 1-2 days in compared with 2006 average 8 days.

Opportunities:

- Terminal operator bidding in New Mooring Terminal

- Four ships consortium to offer fix day window service in Chittagong

- Colombo/Chittagong Feeder operations.

Currently only served by 4 operators, Supply/Demand analysis shows with steady growth of Chittagong there will be Under Supply situation in the end of 2007.

- Factual supports: two players (Seacon and OEL) on Cmb/Cgp sector has either upsize or add more tonnage on the trade to cater the growth.