Govt. Focuses on Deep Sea Port

[eastwatch]

Govt focuses on deep-sea port

Wednesday, February 20, 2013
Front PageGovt focuses on deep-sea port
Committee reviewing proposal from UAE, China, others
Hasan Jahid Tusher

The government has formed a high-profile committee to review the proposals of the United Arab Emirates, China and a few other interested countries and development partners to build the country's first deep-sea port.

The deep-sea port, one of the mega infrastructure projects of the incumbent government, will be built in Sonadia in Cox's Bazar as per an electoral pledge of the ruling Awami League.

The government has so far failed to move forward with this project except carrying out feasibility studies. Experts say there is no alternative to building a deep-sea port as the capacity of the Chittagong Port would be exhausted by 2015.

The high-profile committee has been formed on February 13 after the UAE placed formal proposals to the government on January 30 to construct the deep-sea port and container terminal in Chittagong and Gazipur.

UAE Minister for Foreign Trade Sheikha Lubna Bint Khaled Al Qasimi visited Bangladesh and talked to Prime Minister Sheikh Hasina about financing the port. Dubai-based DP World, the world's third largest port operator, wants to invest between $ 3 billion and $ 4 billion for the deep-sea port.

China had earlier formally proposed financing and constructing the port several times and it remained open to partnership with other countries including India, Germany and the USA.

But the government had remained silent about the matter and was apparently in a dilemma as to which country should be chosen.

The 10-member high-profile committee headed by Principal Secretary to the Prime Minister Shaikh Md Wahid-uz-Zaman will start working soon on the proposals of the UAE, China and other countries.

The committee has been asked to place specific recommendations to the prime minister within the shortest possible time as the government wants to start the first phase of construction within its tenure.

The committee also comprises the secretaries of shipping, commerce, finance division, foreign affairs ministries and Economic Relations Department (ERD), the director general-3 of the Prime Minister's Office (PMO), the chief executive officer (CEO) of the PPP Office at the PMO, and the CEO of the Deep-Sea Port Cell.

The joint secretary-2 of the shipping ministry will work as the member secretary of the committee.

Talking to The Daily Star, committee chief Wahid-uz-Zaman said they would hold a meeting within a week to formally start working on the issue. "As soon as possible, may be in two months, we will be able to submit our report to the government," he added.

Asked about China's proposal to construct the deep-sea port, the secretary said the government is considering building the port on the basis of government to government (G2G) involvement to maintain maximum fairness, transparency and accountability.

"The G2G initiative will quicken implementation of the project," he said, adding that they would also consider China or the USA's proposal in this regard.

"We will accept that proposal [of any country] which will uphold our country's interests most," the principal secretary added.

As per a Japanese study in 2009, Bangladesh could build this Tk 40,000 crore port in Sonadia in three phases. The first phase was supposed to start at the end of 2011 and be completed by 2015 at a cost of Tk 13,000 crore. The second and third phases would be implemented for another Tk 27,000 crore over the next four decades.

The study estimated that the port would boost the country's GDP growth by 2 percent, as it would generate huge employment, increase export and import and raise the country's capacity to handle cargo.

 

[idune]

Chronology of How Awami League stalling Deep Sea Port Project

In 2011 Chinese govt sent MOU to fund and build the port. Awami League minister made statement that regime is ready to sign the MOU.

Ministry decides to sign MoU with Chinese company
Source: http://www.defence.pk/forums/bangla...cts-deep-seaport-project-2.html#ixzz2LPZk4am4

Then came Manmohan Singh and things got changed. Awami regime suddenly decided to find bureaucratic excuse to stall the project. So they came up with flimsy excuse they want PPP term instead of BOT at the last moment.

Here is how Chinese ambassador explained Awami League regime flip flop:

"Two Chinese companies have expressed their desire to develop the port but the ball is now not in the court of the Chinese side," he said at a roundtable on Bangladesh-China bilateral relations organised by Bangladesh Institute of International and Strategic Studies (BIISS) in the city.

"We recently knew that Bangladesh wanted to develop the port under PPP model, and we are interested to build it under BOT or BOOT system," he said.

China keen to build deep seaport in Bangladesh : envoy | Priyo News

Even then Awami League regime rejected deep sea port project under PPP term using flimsy and laughable excuses.

Cabinet body rejects PPP funding for deep seaport
But the committee led by Finance Minister AMA Muhith turned down the proposals, pointing that the government hasn't set up a full PPP cell yet and no chief executive has been appointed to run its office, sources said.

Source: http://www.defence.pk/forums/bangla...jects-deep-seaport-project.html#ixzz2LPSf3Wd3

Almost 2 years gone by since 2011, no action had been taken by Awami League regime. In these two years Awami League regime looted money from much waited Padma bridge project and left the hope of entire south east region in ruin.

After Padma bridge corruption and failure Awami League regime hyping up Deep Sea port again under different model, government to government (G2G).

Since, Awami League regime came to power, it only changed choice of financing model for deep sea project; from BOT to PPP and now to G2G; nothing else happened. No one should have doubt what Awami League regime will deliver now – either more corruption or more stalling tactics.

 

[asad71]

China has been trying for this deep sea port for long. When she eventually succeeds, the regional bully would be in a nut cracker with levers held by the Chinese. Smaller SA nations then may have less tension free days.

 

[PlanetSoldier]

China has been trying for this deep sea port for long. When she eventually succeeds, the regional bully would be in a nut cracker with levers held by the Chinese. Smaller SA nations then may have less tension free days.

That's the thing BAL doesn't want. China has opened an office in Gulshan for deep sea port long ago, our wise govt. has been playing with them. At the end after 5 years of their term this govt. will fill their bags with bunch of foundation stones credit.

 

[eastwatch]

I must say a more extensive feasibility study will be needed to ascertain if such a gigantic port construction project should be financed and undertaken at this juncture when Burma has already built that Sittwe port. China is already using it. So, no reason to believe that China will ever use our Sonadia port because Burmese permissiomn is required to use ots territory.

Burma may not provide any transit to China/BD to/from Sonadia. So, exclude China. About Burma, there is no reason to believe it will ever use this port. It has enough of its own deep ports. So, this leaves Bangladesh, Indian NE, Bhutan and Nepal who will be benefitted by the use of this port.

Now, I ask a question to all the posters of BD to tell me how this port will pay us back the $7 billion investment money that this small country will use to build it, a) if China and Burma do not use it, b) if ## do not allow India to use it, and c) if India does not permit transit to/from Nepal and Bhutan. This leaves only one country to use this port, it is Bangladesh. So, will it be worth to spend $7 billion project when it will remain underused for the next one century?

We read many news about proposals for construction of this port by China, India, UAE and others. But, they will just construct it and take away their profits when the construction is completed. It is not a commitment by China or any other country to use or guard this port when it does not serve their interest. For example, UAE. Do you guys think UAE wants to use this port when it is 3000 km away? It has no other interest in this port other than building and operating the port. Same is with China.

 

[Skies]

^ Nice post, except the name calling at point b).

Also Neither country will use that deep port as a transit port as like Singapore.

 

[idune]

First of all Deep sea port and project of its size built in stage not at once. So investment and development occurs in stages. So there is no question of investment of $7 billion at once and recovery of $7 billion.

Second, regardless of need of other country, Bangladesh has its own need for Deep sea port.

1) Chittagong port is a river port no ship over 617ft drift cannot dock Chittagong port. Therefore, almost all of $60 billion worth of export import business run with feeder vessel has to transit through Singapore to catch mother vessel. This method imposes huge cost and time burden on Bangladeshi export and cannot be sustained. In order to increase time and cost competitiveness it is imperative that export-import loaded in mother vessel at Bangladeshi deep sea port than via Singapore. This is cause alone justifies deep sea port regardless Chinese or other use.

2) Bangladesh export import trade was increasing very fast until Awami League regime broke the backbone of Bangladesh economy. In few years export and import trade would pass over $100 billion. That much of volume will more than justify Deep Sea port as Chittagong port is exhausting its handling capacity of 1.6 m TEU.

The Chittagong port has now a capacity to handle an aggregate volume of 1.6 million TEUs (twenty feet equivalent units). Against the capacity, it handles now 1.3 million tonnes, leaving a surplus capacity of 0.3 million tonnes a year.
But the increasing trend about the country’s expanding volume of sea-borne cargo will hardly leave any surplus capacity for using the existing port facilities by others as a transit point within the next three years’ time, the sources said.
http://www.bdinn.com/news/all-clear-for-india-to-use-chittagong-port/

Since Chittagong is a river port, huge container ships more than 617ft (188m0 long cannot pass through the narrow Karnapuli river. Normally, transhipment of containers takes place either in Singapore or in other big regional ports.
BBC News - Bangladesh pins hope on Chittagong port

Third, Awami league regime stalled deep sea port project according to indian wish and used financing format as an excuse for more than 4 years. But indian dalals are coming up with baseless excuses to kill deep sea port altogather.

Fourth, Sittwe port is $200+ million dollar project to handle up to half a million ton of cargo. How such small port and project can compete or accommodate huge Chinese needs? Besides, indian NE needs are very small for scope of deep sea project anyway.And going by indian set examples, india will ask to use the port for free. So its better to keep india running its business through Myanmar only.

Indian conglomerate Essar Group is building the port on 70,000 square metres of landfill in Sittwe’s centre where the port will accommodate ships from Kolkata, a 539-km journey across Bay of Bengal and handle up to 500,000 tonnes a year.
India hopeful Kaladan project will boost NE economy | The Shillong Times

Fifth, there are other business and use cases for Bangladesh deep sea port that has NOT been understood by people who are crying and looking after indian cause only.

 

[eastwatch]

I just do not understand one trait of BD posters, why do they have to love or hate Jamaat, AL or BNP? we are here to discuss things on the merits and demerits of a proposed project. But, in most of the threads some posters (Jamaati?9 find out ways to bash India when India itself is not a factor. These people, tn reality idolize/idolate India nd RAW.

I believe, a more elaborate economic feasibility study is needed before finalizing a new port in so far away from the main city centers. we have to understand BD lacks a proper physical infrastructure. It will be unwise to build a port that will be losing concern. So, let the govt first check out its economic feasibility. I have not read any such thing so far. Can anyone post a link on that? Rechnical feasibility is different from economic feasibility. I would like to read an economic feasibility report prepared by the GoB or any Port Authority.

 

[idune]

I just do not understand one trait of BD posters, why do they have to love or hate Jamaat, AL or BNP? we are here to discuss things on the merits and demerits of a proposed project. But, in most of the threads some posters (Jamaati?9 find out ways to bash India when India itself is not a factor. These people, tn reality idolize/idolate India nd RAW.

I believe, a more elaborate economic feasibility study is needed before finalizing a new port in so far away from the main city centers. we have to understand BD lacks a proper physical infrastructure. It will be unwise to build a port that will be losing concern. So, let the govt first check out its economic feasibility. I have not read any such thing so far. Can anyone post a link on that? Rechnical feasibility is different from economic feasibility. I would like to read an economic feasibility report prepared by the GoB or any Port Authority.

It is expected indian dalal like yourself use deception to worship RAW and indian subservient acts. No excuse needed.

 

[animelive]

It is expected indian dalal like yourself use deception to worship RAW and indian subservient acts. No excuse needed.

Keep your anti Indian/BAL campaign out of a defense forum. Go crawl back to your facebook, falseflagger clown.

 

[kalu_miah]

It is expected indian dalal like yourself use deception to worship RAW and indian subservient acts. No excuse needed.

Lets counter these people with facts instead of name calling like Indian dalals.

Keep your anti Indian/BAL campaign out of a defense forum. Go crawl back to your facebook, falseflagger clown.

idune Bhai, has every right to express his views here, as long as he refrains from name calling and abusive language. We need to work on the decorum, but free expression should not be suppressed. Forum mods decide ultimately what is acceptable or not, you are not in that level, so saying such things is out of line.

 

[INDIC]

I must say a more extensive feasibility study will be needed to ascertain if such a gigantic port construction project should be financed and undertaken at this juncture when Burma has already built that Sittwe port. China is already using it. So, no reason to believe that China will ever use our Sonadia port because Burmese permissiomn is required to use ots territory.

Burma may not provide any transit to China/BD to/from Sonadia. So, exclude China. About Burma, there is no reason to believe it will ever use this port. It has enough of its own deep ports. So, this leaves Bangladesh, Indian NE, Bhutan and Nepal who will be benefitted by the use of this port.

Now, I ask a question to all the posters of BD to tell me how this port will pay us back the $7 billion investment money that this small country will use to build it, a) if China and Burma do not use it, b) if ## do not allow India to use it, and c) if India does not permit transit to/from Nepal and Bhutan. This leaves only one country to use this port, it is Bangladesh. So, will it be worth to spend $7 billion project when it will remain underused for the next one century?

We read many news about proposals for construction of this port by China, India, UAE and others. But, they will just construct it and take away their profits when the construction is completed. It is not a commitment by China or any other country to use or guard this port when it does not serve their interest. For example, UAE. Do you guys think UAE wants to use this port when it is 3000 km away? It has no other interest in this port other than building and operating the port. Same is with China.

A little correction, China has developed Kyaukphyu Port in Myanmar. with oil and gas pipelines, Sittwe is used by India.

 

[kalu_miah]

I have personally used this port, while I ran an export business, almost everyday of the week, I had containers going in or out. The feeder vessel going through Singapore costs Bangladeshi producers extra 2-3 weeks during importation of raw materials and additional 2-3 weeks during export. So it adds to lead time, which is a huge issue for any export business and its a competitive edge issue that cannot be measured with money. Because of high lead time, Bangladesh factories sometimes do not get the business, while countries with deep sea port win that business. For all exporters, who do contract manufacturing adding values to manufactured products, deep sea port is a dream come true. I know this from personal experience. Anyone talking about feasibility, have little idea about ground situation of Bangladesh export business. Cost $1-7 billion is nothing compared to the benefit it will bring. As an exporter I can say this without looking at any feasibility report.

Now, for such an important matter, which is Bangladesh economic life-line, what has past govt.'s done, why have no feasibility studies made? I am sure feasibility studies have been done, lets see if we can find some report on this. If anyone has any info from google search or personal source, please present it here.

As for AL govt. stalling this project, idune Bhai, please present sources for such info.

 

[animelive]

idune Bhai, has every right to express his views here, as long as he refrains from name calling and abusive language. We need to work on the decorum, but free expression should not be suppressed. Forum mods decide ultimately what is acceptable or not, you are not in that level, so saying such things is out of line.

Yes, he should do that in the respective threads, bringing India and name calling for nor reason is considered spamming. In every other thread, this clown is making a fool out of himself and derailing threads by bringing India and Raw, infact he is more Indian than Indians themselves. Forum mods are probably sick of this fanatic. And again, you should follow what you preach, if free expression s allowed then i believe i am not saying things out of line.

 

[idune]

Lets counter these people with facts instead of name calling like Indian dalals.

idune Bhai, has every right to express his views here, as long as he refrains from name calling and abusive language. We need to work on the decorum, but free expression should not be suppressed. Forum mods decide ultimately what is acceptable or not, you are not in that level, so saying such things is out of line.

I have made post with lots of information to counter daception eastwatch made. Look closely on eastwatch post how he resorted in name calling. I had reported these posts multiple times to MOD and because there was and is no action I responded in kind. I don't think my posts need any further explanaton. If Webmaster or MOD needs to get in touch they know how to reach me.