Bangladesh Economic & Infrastructure Development - Updates & Discussions

[Bilal9]

Agora to invest $10m to double outlets

Jagaran Chakma

Agora, the first retail chain in Bangladesh, is going to invest $10 million in the next two years to double the number of its outlets to cater to the growing demand of city dwellers, said its top executive.

Farhad Ahmad, chief executive officer of Rahimafrooz Superstores Ltd (RSL), said the new outlets would be set up in Dhaka, Chattogram and Sylhet as well as other potential cities.

Within the next six months, Agora will establish six outlets in Dhaka, Chattogram and Sylhet.

The RSL started its journey by setting up Agora in 2001. Later in 2009, it formed a partnership with Swedish firm Brummer & Partners to grow its footprint and improve services.

Today, Agora is a joint venture of Rahimafrooz and Brummer & Partners, with the local group holding 30 percent stake and the Swedish firm the remainder.

Currently, Agora has 16 outlets. Of them, 14 outlets are located in Dhaka and one each in Chattogram and Sylhet.

It achieved double-digit growth in the last couple of years, said Ahmad, without giving any specifics on annual turnover.

“Agora is committed to fulfilling everyday shopping needs of customers by providing quality of product and best services,” he told The Daily Star in an interview recently.

Agora mainly focuses on food items ranging from a wide variety of fish, meat, vegetables, fruits, bakery, dairy, grocery alongside a vast array of household and personal care products.

Ahmad, who joined RSL as the CEO in October 2016, said Agora is the pioneer of superstore business in Bangladesh and other companies entered the market following suit.

“This is our biggest contribution to the society.”

About the grocery market, he said unofficial records show superstores cater to only 2 percent of the urban market demand. “So, there is a huge scope to grow.” The former Group CEO and adviser of Desh Group of Companies said the fast economic development of Bangladesh, customer's satisfaction, quality products and convenient atmosphere were driving the growth of supermarkets in the country.

“Superstores have offered a western-style shopping experience to customers becoming increasingly busy, allowing them to buy everything under a single roof and without hassle.”

On the sourcing of products, Ahmad said Agora has a group of select suppliers and its quality control team monitors the products and examines them regularly to ensure higher standard.

Speaking about competition, the CEO said Agora does not consider other players as its competitors. Instead, it sees them as partners. “Some companies have entered the market and some have exited, but Agora has been able to sustain and grow in the last 18 years.”

“It has been possible because of our continuous efforts to ensure the best quality of products and the best service,” said Ahmad, who completed BBA from the University of Houston and MBA from the University of Liverpool. The company employs about 750 people.

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Bangladeshi Cellphone brands gearing to push sales activity overseas (sorry Bengali only)

 

[The Ronin]

UNESCAP on Bangladesh: Average annual FDI grew by 13.3% since 2012

Bangladesh’s average annual foreign direct investment (FDI) inflows has grown by 13.3% in the last five years, larger than the Asia-Pacific’s 2.9% average annual FDI growth, according to a report of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).

The report was unveiled on Wednesday at the UNESCAP headquarters in Bangkok.

The country’s FDI rose by only 5.11% in the fiscal year 2017-18 compared to the previous fiscal year. Net FDI stood at $2.58 billion in FY18, which was $2.45 billion in the last fiscal year, according to Bangladesh Bank data.

FDI inflows to the Asia-Pacific region are also expected to continue in their downward trend next year, as evident from a 4% drop in 2018, the UNESCAP report said.

“On the other hand, Bangladesh’s average annual foreign direct investment (FDI) outflow has grown by 58.3% in the last five years, larger than the Asia-Pacific’s 3.5% average annual FDI outflow growth,” the report said.

In 2017 Bangladesh experienced an increase in FDI outflows by 319%, the commission explained in its annual report titled “Asia-Pacific Trade and Investment Report”.

Effect of US-China trade war on FDI

According to the report, the ongoing trade war between China and the US will bring more work orders and FDI for the garment sector of Bangladesh.

“Major players in the garment industry in the Asia-Pacific region, such as Bangladesh and Vietnam, are expected to benefit by acquiring a larger share in exports to the US, and thus attracting more investment,” said the report.

An upward trend was recorded by the UNESCAP, despite lingering concerns about the sustainability of the Bangladesh garment sector.

However, UNESCAP also warned that the Asia-Pacific economy will be hindered if the trade war prolongs, explaining that the trade tensions have begun to disrupt existing supply chains and dampen investor confidence.

“If the trade tensions remain, export growth may slow to 2.3% in 2019, compared to a nearly 4% growth in export volume in 2018,” said the report.

Tariff hikes are expected to cut regional GDP by a little over $40 billion, resulting in the loss of jobs in the region’s labour-intensive countries.

The region will see a net loss of 2.7 million jobs due to the trade war, with unskilled workers, often women, shouldering a severe impact.

If the trade war further escalates in 2019—leading to a drop in investor and consumer confidence—the global GDP could be cut by nearly $400 billion, also driving regional GDP down further $117 billion.

Almost 9 million people could be put out of work in the region, with many more workers also moving to new jobs in different sectors.

At the same time, Bangladesh’s FDI inflows declined by 7.8% in 2017, the report added. l

https://www.dhakatribune.com/busine...Uw6uYyLVGx_ynNlNKkz6qLmiNHdwMQvXbpO9kgQ6z9fxY

 

[Mage]

UNESCAP on Bangladesh: Average annual FDI grew by 13.3% since 2012

It basically grew 25% from 2012-13 and then 40% from 2014 tob15..rest of the time it remain stagnant.. giving a pathetic average of 13%.

I have to admit it, the govt is not doing enough to attract FDI. Our ease of doing business is a clear indicator to it.

 

[Bilal9]

So per the Business BD video above - we now have eight brands (half of them foreign brands, Chinese and Korean) assembling cellphones locally (mostly in the environs of Dhaka) and the total number of actual cellphones (mostly smartphones nowadays) produced LOCALLY exceeds 30 million per year. That is a staggering number already but I see a day (within five years at most) where cellphone imports will basically stop and exports will be a majority portion - not the portion meeting local demand. Like the video mentioned, China's cell phone assembly costs aren't sustainable anymore.

Interesting fact, as of 2015, there were 156,469,000 cellphones in use in Bangladesh by 157,497,000 Bangladeshis, which makes rate of cellphone ownership 99.36%. Incidentally, at that time India's cellphone ownership rate was 89.41%, Pakistan's being 74.21%. So we have a lot of ground to cover to meet cellphone ownership demands from both Bangladesh and India, if not Pakistan as well.

https://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use

 

[Bilal9]

Post office's mobile banking service Daak Taka launched

Here is a TRT (Turkish Radio Television) programme on the pharma industry in Bangladesh, where generic drug manufacturing is booming. This promises to make drugs available at minimal cost worldwide.

 

[Nilgiri]

Interesting fact, as of 2015, there were 156,469,000 cellphones in use in Bangladesh by 157,497,000 Bangladeshis, which makes rate of cellphone ownership 99.36%. Incidentally, at that time India's cellphone ownership rate was 89.41%, Pakistan's being 74.21%.

All different standards being employed in "ownership"....BTRAC's being the sloppiest by far.

 

[The Ronin]

Saudi firm to set up modern cement factory in Sunamganj
BCIC signs agreement with Engineering Dimensions
BSS, Dhaka

Saudi firm to set up modern cement factory in Sunamganj
Bangladesh Chemical Industries Corporation (BCIC) Chairman Shah M Aminul Haque and Engineering Dimensions President Mohammed N Hijji sign an agreement on behalf of their respective sides at the industries ministry in the capital yesterday. BSS Photo
Saudi business firm ‘Engineering Dimensions’ is going to set up a modern cement factory titled ‘Bangladesh Friendship Cement Company Limited (SBFCCL)’ at Chhatak upazila under Sunamganj district. Bangladesh Chemical Industries Corporation (BCIC) yesterday signed a partnership agreement with the Engineering Dimensions at a function at the Industries Ministry in the capital, said a press release.

BCIC Chairman Shah M Aminul Haque and Engineering Dimensions President Mohammed N Hijji signed the agreement on behalf of their respective sides while Secretary-in-Charge of the Industries Ministry M Abdul Halim, Bangladesh Ambassador to the Kingdom of Saudi Arabia (KSA) Golam Moshi, Additional Secretary of the Industries Ministry Begum Parag, among others, were present at the function.

In his speech, Abdul Halim said Saudi Arabia is one of the best partners of the country’s development since the expatriate Bangladeshis in Saudi Arabia are playing a vital role in the socio-economic development of Bangladesh.

He said Bangladesh wants to expedite the trade and investment relations with Saudi Arabia. He urged the Saudi investors to come forward for investing in the country’s potential sectors.

Mohammed N Hijji said the Saudi investors are keen to invest more in different sectors in Bangladesh as there is an investment-friendly environment in the country.

http://www.theindependentbd.com/pos...I9RfA96OolVvVDY6w97cjvxAUTG1jTHVNupEwvtZchLFI

 

[Nike]

Is Bd got raw material for cement by import? As far as i know bd is not blessed with limestone vein and other material

 

[The Ronin]

Is Bd got raw material for cement by import? As far as i know bd is not blessed with limestone vein and other material

In Bangladesh there are surface and sub-surface deposits of limestone. The surface to near surface deposits are at st martin's island of Cox's Bazar district and Bhangerghat-Lalghat-Takerghat of Sunamganj district. The subsurface deposit is present at Joypurhat of Joypurhat district. The limestone at the St Martin's Island is Late Pleistocene and the other limestone is of Eocene age.

In Bangladesh the limestone deposit was first discovered at St Martin’s Island in 1957. Later, Geological Survey of Pakistan (GSP) surveyed the area in 1958 and found 1.8 million ton of shelly and coralline limestone in an area of 0.60 sq km. However, these limestones are not of good quality. In the years between 1951 and 1957 small pieces of limestone were found at Takerghat area of Sunamganj district. Later, GSP drilled 66 holes in the area in 1961 to know the extent of the limestone. It was found that the limestone is extended in the Bagalibazar-Takergaht-Bhangerghat area of the district. At Bagalibazar it is 30m to 100m below the surface. The average thickness is 152.2m and reserve is 17 million tons covering an area of 0.77 sq km. In Lalghat the limestone is 6m to 10m below the surface.

The thickness varies from 22m to 76m and the reserve is 9.8 million tons in an area of 0.25 sq km. In Takerghat the limestone is 7m to 57m below the surface. The thickness varies from 2.8m to 44m and reserve is 2.2 million tons in an area of 0.42 sq km and in Bhangerghat the limestone is 29m below the surface. The thickness varies from 6m to 37m and reserve is 1.0 million ton in an area of 0.0013 sq km. In 1982 geological survey of bangladesh(GSB) drilled 5 more holes in the area and expected more deposits of limestone at shallower depth.

Exploitation of limestone from Takerghat area started in 1965 by East Pakistan Industrial Development Corporation when the supply of limestone for Chhatak Cement Factory from Meghalaya stopped due to the Indo-Pak war. About 0.612 million tons of limestone was extracted from the area from 1972 to 1993. At present the reserve is almost replenished. Besides small deposit of limestone (up-thrown block) at the Dauki river of Sylhet district is also present. This deposit is also almost replenished due to extraction by local people.

The deposit of sub-surface limestone was first discovered at a depth of 1967m below the surface at Kuchma of Bogra district when Standard Vacuum Oil Company was drilling for oil. Later, in 1964 GSP (under UNPAK mineral survey project) investigated detail geological and geophysical surveys in the area and found Eocene limestone in the region. Drilling in this area confirmed the limestone at 330m below the surface at Patnitala of Naogaon district, 495m at Paharpur of Joypurhat district and 517m to 548m at Joypurhat-Jamalganj area. In 1966 Fried Krupp Roshtoff of Germany completed the feasibility study of the mining of limestone and found the mine economically feasible. In 1969 Paul Dofrin Technical Service of UK re-evaluated the project and the government took the project for mining. In 1974 Government of Bangladesh approved the exploration of limestone from the depth by shaft sinking employing freezing method.

In 1978 GSB drilled two more holes in the proposed mine area and by analysis of all the data they calculated the reserve of 270 million tons of limestone of which 100 million ton is mineable from an area of 6.7 sq km. Cementation Mining Ltd of UK calculated the underground temperature of the mine area and found that the temperature is little higher than the general depth gradient temperature of the area. They opined that the freezing cost of the mineshaft will be higher and as a result the mine will not be economically feasible. According to their opinion the project for extraction of limestone from Joypurhat area was abandoned. GSB in the years 1996 and 1997 drilled two more holes to get the limestone at shallower depth but these were not successful. [QM Arifur Rahman]

http://en.banglapedia.org/index.php?title=Limestone

Major limestone mine discovered in northern Bangladesh

Bangladesh has discovered the biggest ever limestone mine in Naogaon whose commercial production could completely cut the country's reliance on import of the key ingredient for cement.

The mine is spread over a 50-square kilometre area in Tajpur of Badalgachhi upazila.

It might take two years for the mine to go into commercial production, Nasrul Hamid, state minister for power, energy and mineral resources, told reporters at the secretariat yesterday.

The mine would meet the local demand for limestone, which is imported mainly by local manufacturers for producing cement.

Bangladesh would no longer need to import limestone, and it would save Tk 1,000 crore a year, Hamid said.

State-run Geological Survey of Bangladesh (GSB) discovered the mine after drilling 2,270 feet into the surface.

Limestone was found at a depth of 2,214 feet, and its presence was so far traced down to 2,285 feet with a thickness of 71 feet.

Given that this thickness remains the same over the 50-square km area, the deposits would hit 50-100 billion tonnes, said GSB Director General Md Nehal Uddin.

“It is a major discovery,” he told The Daily Star.

“We have to conduct further study, and see the local demand and the mining cost.”

The quarry could be explored through underground mining and the technology needed for that is available. It would be commercially viable as there is local demand for limestone, he said.

Bangladesh now imports 18 lakh tonnes of limestone a year.

GSB engineers started drilling the mine on February 20 and found limestone a few days ago.

“Once we extracted limestone from there, we informed the government about the discovery,” said Nehal Uddin.

GSB officials said they would drill another 1,500 feet into the ground.

The deposits at the new field might easily surpass that of Joypurhat field, which holds a reserve of around 100 million tonnes of limestone, according to the GSB.

But the government didn't go for extraction from the Joypurhat mine discovered in 2012 though preparations were made to that end, said a GSB official.

Bangladesh now depends on import for limestone, which is used for producing cement.

“Once we successfully start commercial production, we will not only be able to meet the domestic demand, but also have a surplus,” said Nehal Uddin.

The GSB relied on its own workforce and technology for the discovery and the project cost was about Tk 70-80 lakh, he said.

Limestone is used as a building material, aggregate for the base of road, white pigment or filler in products such as toothpaste or paint and chemical feedstock for the production of lime.

Clinker, an essential component of cement, is made from limestone. It plays the most vital role in ensuring the strength and quality of cement.

Bangladesh imports about 24 million tonnes of raw materials a year for the cement sector. And of those, 70 percent is clinker, said Alamgir Kabir, vice president of Bangladesh Cement Manufacturers Association.

The materials come mainly from Vietnam, Thailand, China, Japan, Indonesia and Iran.

“The discovery of limestone mines alone would not bring any benefits. We have to extract it,” said Kabir.

At present, only two cement manufacturers -- Lafarge Surma Cement Ltd and state-run Chhatak Cement Factory Ltd -- produce clinker at their plants by importing limestone from India.

https://www.thedailystar.net/frontpage/major-limestone-quarry-found-1212706

http://en.banglapedia.org/index.php?title=Mineral_Resources

 

[Bilal9]

All videos in Bengali, should be understandable to desi folks.

Bangladeshi Garments exporters diversifying markets before diversifying products and export items.

Bangladesh exported 366 crore to US Apparel market in first eight months of 2018.

Shoe exports promising

Lotto expansion plans in Bangladesh from 150 outlets at present to 300 in two more years. Apparel sold here sourced 100% locally but shoe sourcing to start from Bangladesh within the span of about a year.

 

[Bilal9]

Local fridge and deep fridge market expanding at more than 10% yearly and majority brands are local brands. Walton sold 5 lakh and Minister sold more than 2 lakh fridges (conservative estimates). Major market resides in 126-295 litre capacities.

 

[Bilal9]

The 3rd Terminal of Hazrat Shahjalal International Airport is expected to be completed in 2022. The project has commenced activity in 4th Qtr. 2018. Civil Aviation Authority of Bangladesh is in the charge of this project.

 

[The Ronin]

Bangladesh witnesses high investment flow in 10 years

Bangladesh witnessed high volume of investment from both local and foreign sources over the last 10 years as the government offered a number of incentives by adopting a time-befitting industrial policy, export growth strategy and public-private partnership programme.

The foreign direct investment (FDI) hit at US Dollar 2,580 million in June of this year which was only $748 million in 2008.

Investment under the Bangladesh Export Processing Zones Authority (BEPZA) soared around three times to $4,724.92 million in August 2018 from $1509.14 million in December 2008.

In the last 10 years, Bangladesh Investment Development Authority (BIDA) gave registrations to 15,886 industrial units under local, joint venture and 100 percent foreign investment scheme that promised investment of $1,22,824 million including $39,764 million FDI with creating job opportunities for more than 30 lakh people.

“Thanks to different measures taken by the BEPZA, the flow of investment in the country’s eight Export Processing Zones (EPZs) showed an upward trend in the last couple of years,” BEPZA General Manager Nazma Binte Alamgir said recently.

She said a total of 476 industries under the eight EPZs also showed better performance in the fields of export and employment generation as the two components increased 2.5 times and two times respectively in the last 10 years.

Nazma said BEPZA is moving forward to materialise Vision-2021 and Vision-2041 under the dynamic leadership of Prime Minister Sheikh Hasina.

BEPZA sources said the total amount of export in the EPZs climbed to $50,221.30 million in August 2018, which was $17,598.24 million in December 2008.

Official data shows that the cumulative investment stood at $1,643.02 million in Chittagong EPZ till June 2018 while $1,360.81 million in Dhaka EPZ, $315.51 million in Cumilla EPZ, $59.01 million in Mongla EPZ, $159 million in Uttara EPZ, $136.77 million in Ishwardi EPZ, $471.70 million in Adamjee EPZ and $535.03 million in Karnaphuli EPZ.

BIDA sources said the government is providing a number of investment incentives including declaring tax holidays for 10 to 15 years and exemption of VAT on electricity for 10 years, local purchase except for petroleum, customs and stamp duties.

They said Bangladesh’s tax incentives and benefits are standards that apply generally to all companies according to their operation and negotiation for a case basis is not required.

Bangladesh is likely to improve its rank in the World Bank’s Global Doing Business Report for the next year as the BIDA is going to introduce the full-fledged ‘One-Stop Service (OSS) Centre’ in January.

“Entrepreneurs will get all necessary permissions for investment from a single window after launching the OSS in January. It will make easier starting a business in Bangladesh. So, the position in doing business index will improve,” BIDA Executive Chairman Kazi M Aminul Islam said.

Through the OSS, Aminul said, the potential investors would get all necessary permissions for making an investment and starting a business and get all paperwork done for receiving various utility services like power, gas, water and telephone from the centre after becoming fully functional.

“The flow of the Foreign Direct Investment (FDI) to Bangladesh will reach a new height after the launching of the service centre as the new web-based system allows a company to start its activities within a short time,” he added.

The BIDA executive chairman said the government has set a plan to bring down the country’s position in doing business ranking to below 100 from the existing 176 by 2021 through reforming the rules and regulations of doing business.

Although there is little discrimination against foreign investors, the government favours some potential local industries as importation of drugs that compete with locally manufactured pharmaceuticals is tightly controlled, BIDA sources said.

In order to mitigate the risks of being too dependent on industrial production in the textile sector (80 pc of Bangladesh’s industrial production in 2017), the sources said, the government is seeking to develop certain sectors by granting companies involved in these areas with incentives and favourable conditions.

These include agricultural and agro-industrial products, light engineering, leather footwear and leather goods, pharmaceuticals, software and ICT products, as well as shipbuilding. BSS

http://www.theindependentbd.com/pos...YSUL8gtKhpOyCmL8MXTnQyteHjNRbcRNWsxvkJoTQD4Zk

 

[Mage]

More industrial output needed to become mid income status
Posted By: daily industryon: January 03, 2019In: Bangladesh, CorporateNo Comments
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Market exploration, product diversification, diplomatic efficiency, skilled manpower, value added product making could help to achieve 8pc GDP: GEF

Abu Sazzad: Economists have underscored the need for increasing industrial production, product diversification and explore new potential markets, creating skilled manpower to attain 8 percent Gross Domestic Product (GDP) growth which would help attaining the real graduation to mid income status within the year 2030.
According to Global Economist Forum (GEF), Bangladesh needs over than 8 percent growth until 2030 to become a mid-level status country with political stability and bumper food grain production.
The present major economic indicators are not in a positive trend despite its growth to consider the latest data. Country’s forex reserve is mainly depend on remittance but the growth did not come to the expected level due to declining trend in recent years inward remittance. Thousands of workers are forcing to back in the country from Middle-Eastern countries, Saudi-Arabia and Malaysia due to lack of professional efficiency, proper initiative by the government and effective role of diplomatic missions.
According to latest data released by the Bangladesh Bank, the expatriates remitted $15.54 billion in 2018, a jump of 14.79 percent over 2017. Bangladesh Bank’s foreign currency reserve was $30.99 billion as of Sunday. Country’s reserve is able to meet the import payments for 7 to 10 months which is not adequate to attain the real graduation of a mid income status. The reserve of China is $350 trillion which is $400 billion in the neighbouring India.
Meanwhile, around 1.0 million foreign workers in Bangladesh especially in the field of RMG and NGO are repatriating around $10 billion every year as salary.
Which means 12 million Bangladeshi expats are sending remittance worth $15 billion but the foreign workers in Bangladesh are sending outbound remittance of $ 10 billion? The net remittance income of the country thus remains at $ 5 billion.
Number of economists claimed, “Some 40 percent of remittance are entering into country through illegal channels, especially through in hundi but the government is still failing to stop such unethical money transaction due to lack of proper monitoring and implementation of prevailing laws.
On the other hand, huge trade gap is one of the major concerns for the economists. The current trade gap is over $15 billion. Country’s export earning was 17.07 billion from July to November but the import payment was $20.24 billion from July-October. The import payment would be more in the coming months as the capital machineries and raw materials import were slower for election, economists predicted. The major import payment before JS pools were LNG, food grains, oil, edible oil but time has come to import capital machineries and industrial raw materials, and for this, the trade gap could be increased in the remaining moths of the current fiscal.
Bangladesh is a consumer country and depends on import for its industrialisation. Due to lack of strong backward linkage industries, stakeholders are forcing to import for their production.
Country’s almost 85 percent export earnings are coming from the RMG sector but the stakeholders are failing to export in the non-traditional items and new markets. The RMG stakeholders are mainly export in the EU countries but East European and Latin American countries are the most alternative potential destinations for earning more from this sector. Almost, Bangladesh missions abroad have failed to achieve their respective export target in every fiscal.
Diplomatic failure is the main reason behind earning the export target as well as exploring new potential markets. The most interesting thing is that the Scandinavian countries are exporting lucrative products from Turkey but the stakeholders of the country have failed to compete with the rival countries to grab such alternative markets.
According to the sources, the Scandinavian countries are offering almost $1000 for per dress items but the RMG makers of Bangladesh are getting $10 to $12 for per dozen of products. Now, the stakeholders are availing only cutting and making charge (CM) on their exports. As a result, they have failed to add value addition in price and economy despite holding lion share of export earnings. Experts suggested for diversifying export oriented RMG products to enter the non-traditional destinations including East European, Scandinavian and Latin American countries.
Talking to Daily Industry, former Bangladesh Bank Governor Dr Salehuddin Ahmed said Bangladesh needs huge FDI for becoming a middle-income country as well as attaining the target of Sustainable Development Goals (SDGs).
The achievement of the targeted 7.80 percent GDP growth for the fiscal 2018-19 seems impossible without adequate investment in the private sector from both local and foreign sources, Ahmed said.
Keeping inflation within expected level, more local and foreign investment could help achieving the GDP target, Ahmed pointed out.
Diversification of export basket, improvement in investment climate by developing power supply, port operations and regulations and access to long-term finance for achieving the growth are the major challenges, said Adviser to the former Caretaker Government Dr AB Mirza Azizul Islam to the correspondent.
As per the information of the United Nations Conference on Trade and Development (UNCTAD), Bangladesh received $1.6 billion FDI in the last year, but country needs about $5.4 billion to fulfill the dream of getting middle-income status by 2021, Mirza Azizul Islam added.
More radical economic policies, good governance, skilled manpower and infrastructure with the financial and other special incentives are required for attracting more inflow of investment in the country, said the economists.
FDI inflows remain below one per cent of GDP, which is not adequate for achieving the expected target of mid-level income status.

http://www.dailyindustry.news/industrial-output-needed-become-mid-income-status/

Ctg port sets new record of container handling
SHAMSUDDIN ILLIUS, Ctg

The Chittagong port set a new record of handling container in 2018 with the increase of 11.6 per cent compare to 2017.

The country’s premier port handled 25,66,597 TUES (twenty-foot equivalent units) of import, export and empty containers in 2017 while the port handled 25,66,597 TUES in 2018 which is 3,37,399 more.

At the same time the cargo handling has increased compare to the last year. In 2017 the port has handled 7, 82, 08,540 metric tonnes export and import while in 2018 it has increased to 9, 63, 11,224 metric tonnes. The overall growth in cargo handling is 12.98 per cent.

Though the container handling has increased, the growth in container handling has decreased 1.2per cent in 2018 compare to the previous year. In 2017 the growth in container was 10 per cent while it deceased to 8.8 per cent in 2018.

The exports and the port users said the port authorities have taken more steps to keep up its ongoing growth in container and cargo handling.

The country’s 90 per cent of export and import were held through Chittagong port. All types of commercial and non-commercial items including raw materials are imported and exported using containers in the Chittagong port.

The port was suffering container congestion, however, last year the port authorities added many equipments in its fleet to expedite the container handling. For the first time Chattogram Port Authority (CPA) introduced Rail Mounted Granty Crane at Jetty No.5 of Nwemooring Container Terminal (NCT) for loading and unloading container by carrying railway. They also added six rubber tyred gantry cranes, one log handler, and two mobile cranes spending Tk96.54 crore.

Contacted, Zafor Alam, member (Admin) of Chittagong Port Authority (CPA), told The Independent, “We have found the positive trend following the installation new equipments in the fleet of the port.”

Terming the growth as a positive indicator for the country’s economy, Gias Uddin, former president of Junior Chamber, suggested upgrading the port's capacity in order to meet the challenges of future.

“If we can introduce the new technology and equipments in Chittagong port it would be a modern port in the world,” said Khairul Alam Sujan, president of Freight Forwarders Association Bangladesh.

As per the Lloyd's List, Chittagong Port is the 70th busiest container port in the world.

All sorts of industrial raw materials—except those used in the cement and ceramics sectors—along with commercial items, machinery, commodity and chemical products are imported through containers while export goods are solely carried through containers.

http://www.theindependentbd.com/post/181601

 

[The Ronin]

Japanese co to set up liquid ink factory in Meghna EZ
BSS, Dhaka
A globally reputed Japanese liquid ink manufacturing company, Sakata Inx, is going to set up an ink factory in the private economic zone, Meghna Industrial Economic Zone (MIEZ) in Narayanganj.

To this end, Sakata Inx (Bangladesh) Private Limited yesterday signed a land lease agreement with MIEZ. Sakata Inx will invest US$10 million initially and will create around 1,000 job opportunities in the factory.

Bangladesh Economic Zones Authority (BEZA) Executive Chairman Paban Chowdhury, High Commissioner of India to Bangladesh Harsh Vardhan Shringla, Chairman of the Meghna Group of Industries Mostafa Kamal, Managing Director of Sakata India V K Seth and other senior officials of BEZA, Meghna Group and Sakata attended the agreement signing ceremony.

Speaking on the occasion, Paban Chowdhury said the government is providing all sorts of facilities to the economic zones to ensure investment friendly environment. So, many companies are showing interest to invest in the economic zones, he added.

He expected that the Mongla IEZ will start its operation by 2020.

http://www.theindependentbd.com/pri...nZnT2z7FSSgERwozCAQmxb2SHOIqHzv1NF_00QYRwSsAc

Mirsarai EZ to witness factory operation in December
Arman Haque Denim Limited likely to be the first industry
BSS, Dhaka

Arman Haque Denim Limited is likely to be the first industry to start its operation in the Mirsarai Economic Zone (MEZ) as the company has already laid foundation stone for the construction of its factory in the zone to go into operation in December.

“We have set a plan to start our operation from December 2019. The land allotment for the Arman Haque Denim was one of the first allotments in the economic zone. So, we want to start our operation as the first industry of the zone,” Managing Director of the Arman Haque Denim SNR Tawfiq told the news agency.

He said if everything happens as per the plan, the construction works will start in March. “The industry will ensure internationally compliant green Global Composite Denim production facility. It will produce almost 10.8 million meters of assorted denim fabric per year,” he added.

He said the industry will be set up on 10 acres of land with an investment of around Tk 300 crore to meet the increasing demand of denim products in European countries and the USA.

Tawfiq said the main objective of the industry is to uplift the status of denim production in terms of production capacity, distinctive and innovative endeavor to strength the overall position of textiles and RMG sector of the country.

“To flourish its position in the global market, the project aims on to reduce the import dependency and improve the local backward and forward linkage,” he added.

He informed that the global demand for denim clothing has been increasing at an annual rate of 9 percent while in the USA, almost 70 percent of the population wear denim products regularly.

“Currently, Bangladesh alone has 30 denim mills involving a financial outlay of about US$1 billion. The country has overtaken China to become the number one denim goods supplier to the countries of the European Union,” he added.

In the US market, he said, Bangladesh now stands at the third position after China and Mexico.

Hoping that the Mirsarai Economic Zone will be an investment hub in the country, Tawfiq said “We have selected the zone for the industry as the zone is one of the most suitable sites in the country along the strategic Dhaka-Chittagong industrial corridor.”

Because of its strategic location, he said, the zone has the potential to become the most successful industrial hub of the country.

Bangladesh Economic Zone Authority (BEZA) is developing an industrial city adjoining Mirsarai, Feni and Sitakunda Economic Zones, titled ‘Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN)’to assist, encourage and facilitate investment from both home and abroad.

The city will ensure utilities and stability. With a large number of RMG factories being set up in the zone, it will provide a ready market at close proximity of Arman Haque Denims.

The Shilpa Nagar is providing tax incentives and allowances that increase the viability of the project in line with the current government policies to promote the country’s exports.

BSMSN, the first planned city of the country, will pave the way for establishing a truly world-class business and industrial center. For BSMSN, BEZA would like to build strong partnership with the private sector and local entrepreneurs.

http://www.theindependentbd.com/pri...ntIggGl7dcwlxuUAQO7gENf3GB1jrTaddou8wanfIamhI

Bangladesh signs PPP contract for Dhaka bypass project
UNB, Dhaka

A consortium of companies from China - Sichuan Road and Bridge Group, Shamim Enterprise Ltd, and UDC Construction Limited-have signed a concession contract with the government of Bangladesh to upgrade the Dhaka Bypass under a public-private partnership (PPP) arrangement. The Asian Development Bank (ADB) acted as financial advisor on the transaction to the Public-Private Partnership Authority (PPPA) of Bangladesh.

Under the contract signed with the Ministry of Roads and Bridges, a four-lane tollway and a two-lane service road will be added to the Joydevpur-Debogram-Bhulta-Madanpur Road (N-105) section of the expressway, ADB said yesterday. The 48-kilometer (km) project will provide a major arterial connection between the industrial zone northeast of Dhaka and national highway N1 connecting to the port city of Chattogram, as well as to N2, N3, and N4 highways leading to other major cities.

The consortium will design, build, finance, operate, and maintain the tolled expressway over a 25-year concession period, and will be able to charge tolls based on vehicle type.

The Government of Bangladesh will offer viability gap funding of 3.1 billion taka and a minimum revenue guarantee to the consortium to optimize the cost of financing. The contract also provides the government with a share of revenues generated by the consortium over a certain threshold.

"This project brings a new dimension to public service delivery in Bangladesh. It is the first access-controlled expressway in the country," said Chief Executive Officer of PPPA Syed Afsor H. Uddin. He said this landmark transaction will pave the way for a pipeline of national expressways across Bangladesh.

"ADB aims to accelerate road development in Bangladesh while minimizing the financing and operational burden and bringing in a diverse set of internationally renowned infrastructure developers, operators, and financial institutions," said the Head of ADB's Office of Public-Private Partnership (OPPP) Yoji Morishita.

"The Government of Bangladesh establishes the objectives of the infrastructure as well as some credit supports to tackle the traffic challenge, while the private sector takes responsibility for meeting the objectives. The Dhaka Bypass is the first step in our strategy to bring Bangladesh roads to the global market based on the PPP model."

ADB's OPPP also provided legal support for this transaction and helped to develop a concession contract template for road PPPs through the Asia Pacific Project Preparation Facility (AP3F), a multi-donor trust fund managed by ADB. This project marks the first successful collaboration between ADB’s transaction advisory services and AP3F.

ADB has been working with the Government of Bangladesh for over 5 years to transform the country’s roads by making them a bankable asset class attractive to international investors, as has happened in other sectors such as the independent power producer sector. ADB’s OPPP is also the transaction advisor to PPPA on the 13.5-km Rampura-Amulia-Demra Expressway in Dhaka and in December 2018 was appointed transaction advisor for the approximately 210-km Dhaka Chattogram Expressway, the busiest road artery for passenger and freight in the country.

ADB has long supported PPPs and in 2014 established the OPPP to provide independent transactional advice and develop broader PPP knowledge and expertise in the region. ADB has also pioneered the AP3F, a $73 million trust fund supported by the governments of Japan, Canada, and Australia, to provide project preparation, project definition, and capacity-building support to governments for PPP projects. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members-48 from the region.

http://www.theindependentbd.com/pri...apHLHWsTM0X4JlomLPTe9cYQuoB4AFJZUqWX9aB_Ng6tM