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Container congestion takes toll on businesses


Published : 13 Aug 2024 10:33 PM

Container transportation to Inland Container Depot (ICD) at Kamalapur from the Chattogram Port has come to a standstill due to the suspension of freight services, leading to severe container congestion at ICD. 

As freight train operation resumed on Monday, the authorities concerned express the hope that container congestion will ease immediately.  

Container congestion has significantly impacted port operations, causing delay and financial losses to importers who now face additional port charges. With reduced cargo clearance and delivery in recent days, the number of ships awaiting unloading at the outer anchorage has also increased.

Businesspeople prefer carrying goods such as industrial machinery, raw materials, electronics, and vehicle parts by freight train due to lower cost compared to road transport. On average, around 100 to 120 containers are transported daily between Chattogram Port and Kamalapur ICD by three trains.

Due to student movement and security concern, the railway authorities suspended all train services on July 21. Although limited container transport resumed on August 2 and 3, it was halted again following the imposition of an indefinite curfew.

As a result, the ICD yard in Chattogram Port now holds three times its container capacity. In response, the port authorities met with railway officials on Wednesday to discuss the issue of resumption of train services. 

Chattogram Port Authority (CPA) Secretary Md. Omar Faruk told Bangladesh Post, “Moving containers became challenging due to the volatile situation amid the curfew and unrest across the country. We were in constant meetings with the railway authorities. As cargo transport resumes today after the situation normalises, we hope that normalcy will return to the port soon.”

The suspension of rail transport has caused significant losses for shipping agents and import-export businesses. Additionally, nearly 250 export-bound containers are currently stuck at Kamalapur ICD. The reduced cargo clearance in recent days has also worsened the ship congestion at the outer anchorage, with vessels now waiting four to five days to berth at the jetty.

Azmir Hossain Chowdhury, Head of Operation and Logistics at MSC Shipping said, “There are about 2,200 containers at the ICD yard since trains are not running. This situation has caused problems for both importers and us. As containers pile up in the yard, costs increase.”

In the last 24 hours, approximately 4,000 containers have been delivered from Chattogram Port, but there are still 41,000 TEUs (Twenty-Foot Equivalent Units) of containers at the port. 

The ICD yard, with a capacity of 1,500 TEUs, is holding around 2,300 TEUs. Currently, five freight trains, including those carrying fuel, are stranded at the Container Goods Port Yard due to suspension of train services.

However, businessmen urged the authorities concerned to operate extra freight trains to ease container congestion.