Bangladesh’s steel manufacturers have long been experiencing serious problems as the Chattogram Port Authority (CPA) is reportedly taking more time than usual in allowing them to unload their imported raw materials.

President of Bangladesh Steel Manufacturers Association (BSMA) Monwar Hossain in a letter to the CPA chairman on March 3 raised the issue expressing their grave concerns over it and demanded separate jetties for unloading their imported scraps, according to official sources.

He mentioned that the unusual delay in berthing the raw material-carrying ships made the situation horrible for their business.

“The mills are not getting adequate supply of raw materials to continue their production while the importers have to pay huge demurrage to shipping authorities for the excessive berthing delay,” he said in the letter.

“As a result, the price of raw materials for the steel-manufacturing industries is rising,” he added.

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According to the BSMA, 58 vessels arrived at Chattogram port with about 1.328 million metric tons of scraps from September 2020 to February 2021 but each vessel had to face excessive delay in unloading the goods -- even up to 26 days.

Providing the statistics, the BSMA said the number of scrap-carrying ships is substantially rising, but the importers have to count huge costs due to the lack of adequate GI-berthing facilities at the port.

It said the berthing delay not only causes financial losses, but also enhances the drainage of hard-earned foreign currencies. It brings spillover effects as it pushes up the production cost of steel products, cost of development of infrastructure as well, said the trade body representing the vital business sector.

Currently, the country’s steel manufacturers are engaged in supplying their products to a number of major infrastructure projects like Padma Bridge, Metro Rail, Karnaphuli Tunnel, and Rooppur Nuclear Power Plant, the BSMA said.

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It appealed to the CPA to allocate for them at least two separate jetties at the port to facilitate berthing of imported scraps for at least three months on adhoc basis.    

Talking about the issue, a top executive at a leading steel-manufacturing industry said that Chittagong Port is the lifeline for the national economy. “Unfortunately, it’s lagging behind and failing to catch up the pace of the country’s economic growth.”

Although the national budget has gone up to Tk.5,68,000 crore in 2020-21 from Tk 99,962 crore in 2008-2009 showing a 468 percent rise, the Chittagong Port Authority could not add any new jetty to expand the berth facilities for a long time.

As a result, he said, vessels’ turn-around time (TNT) has gone up abnormally causing huge financial losses to the business community. “It’s a national loss as a huge amount of hard-earned foreign currency is going out of the country due to increased freight and demurrage charges.”

He suggested that the CPA should introduce a quota system for now as its berth facilities are limited.