Public reaps rewards from Chittagong Port

Rear Admiral S M Moniruzzaman, OSP, NDC, NCC, PSC, is the Chairman of the Chittagong Port Authority. Over his extensive and diverse career, he has served in various important positions in the Bangladesh Navy, aboard ships, institutions, and naval headquarters. Since taking on the role of Chairman of Chittagong Port Authority, he has discussed various issues related to the port, including its challenges, potential, and plans. On behalf of Views Bangladesh, Anwar Hossain conducted an interview with him.

Views Bangladesh: You took over as the Chairman of Chittagong Port during the current interim government period. What challenges have you faced while performing your duties in such a turbulent situation? How have you managed to overcome them?

S M Moniruzzaman: I joined as the Chairman of Chittagong Port on August 11, 2024. One of the primary challenges I faced upon joining was the operation and security of the port. As you know, at that time, there was no police, and there was a shortage of workers. The port had around 1,300 Ansars, and they revolted. We had to manage their weapons. Various gates of the port were closed, and we had to secure them. Additionally, there were several threats against the port's interests, which we had to manage to prevent sabotage or theft inside the port. If we hadn't addressed these, the port could have been looted. We handled everything systematically. With the help of the Navy, Army, Coast Guard, intelligence agencies, and Border Guard Bangladesh (BGB), we were able to manage the security efficiently. The geographical area of Chittagong Port is quite vast, stretching from Sitakunda to Matarbari. We have been able to manage the security of this entire area, even in the changing circumstances, quite smoothly.

Our second challenge was to keep the port operations running. Due to the mass uprising in July, internet-related issues, and the subsequent flood situation, port operations were disrupted for over a month. During that time, no goods were transported. Furthermore, the waiting time for ships increased, and unloading goods was delayed. About fifty thousand containers were piled up in Chittagong and Dhaka. Restarting the port’s regular operations while handling the additional containers was a very difficult task. When I took over, it was said that even within a year, this would not be possible. Alhamdulillah, with coordinated efforts and some creative solutions, we were able to restore the port’s operations to normal in just two to three months. This was a major achievement, and the National Board of Revenue (NBR), district administration, and railways played crucial roles in it. We worked together as a team, and that was our greatest strength.

Views Bangladesh: Although there was a risk of explosions at the port, has that concern been alleviated now? Could you also elaborate on the destruction of the nine dangerous containers in Colombo?

S M Moniruzzaman: We did not send those containers to Colombo. We had attempted to send them, but there were environmental and legal complications in that regard, which made the process difficult. As a result, we took the initiative ourselves. Four tankers contained highly dangerous chemical and flammable substances that could have exploded at any time. We swiftly removed these from the port. Essentially, we auctioned them off, and they are now being used. These items had been stuck for a long time due to legal complexities. We arranged the auction in a short time, and the government received revenue from it. The items are now being used in industries. There were several other dangerous cargos that we cleared out as well. As for the less hazardous ones, we have been in contact with various local institutions, and they are testing them.

For example, our fertilizer factory has been testing these items. If they cannot be used, we will destroy them within a short time. The port is now free of hazardous cargo risks. We had 120 refrigerated containers (shipping containers) that had been plugged in for almost nine months. These containers contained imported meat and fruits. After being stored for such a long time, the containers became unfit for use. Later, it became difficult to dispose of them, and we couldn’t find space. Additionally, there was the issue of obtaining environmental clearance. With the assistance of the district administration, we were able to dispose of them. The mainline operators overseas have expressed their gratitude for this. Such work has not been done in the last 10-15 years. We were able to accomplish this in just 3-4 months, which is a great achievement, and it has been appreciated on an international scale.

S M Moniruzzaman: As you know, previously, ships had to wait for almost eight days before arriving at the port. Now, ships come directly without delays. This has become possible because we have improved ship management. Some ships have their own cranes, called gear vessels, while others do not. In our NCT (New Container Terminal), we typically bring in the ships without cranes, while in the GCB (General Cargo Berth), we use cranes from either the port or from the ships themselves. On the other hand, gearless vessels are brought into NCT or CCT (Chittagong Container Terminal). We now coordinate between gearless and geared vessels to maximize the use of the jetty berth, ensuring that any ship can dock easily when it arrives. By doing this, we encourage importers to bring ships this way, and they are very eager to do so.

Secondly, earlier, smaller ships used to arrive, carrying around 800 to 1,200 containers. We now encourage the use of ships with maximum capacity, which is referred to as CC agreements. This coordination between one liner and another strengthens the process. As a result, larger ships now bring much more cargo, sometimes up to 2,500 containers at a time. So, while the number of ships has decreased, their capacity has increased. This reduces costs, speeds up management, and has been a groundbreaking contribution for us.

Next point is the utilization of space within the port. Previously, there were many unused spaces, and there was a lack of discipline in various areas, such as traffic management and container handling. Additionally, there were several items occupying space that have now been cleared. As a result, more space has been created. Previously, due to limited space, managing operations was very difficult, and efficiency was low. Operations were slower. However, through better coordination now, discipline has been restored, and handling processes have become faster.

The next focus is technology. We are putting a significant emphasis on technology. We are moving towards full automation, which we are referring to as the Maritime Port Single Window system. By implementing this, container handling at customs, which previously took six to seven days, now takes only three to four days. This has been possible because Customs has also increased its speed in coordination with us. As a result, the speed of handling different types of containers has significantly improved. This has been made possible due to our collective efforts.

Views Bangladesh: How much progress has been made in the construction and management of the new terminal?

S M Moniruzzaman: The work started in 2017. However, the process actually began in 2013, when a German company, ADP, financed the master plan and suggested that we need to build the terminal. The acquisition of 166 acres of land began in 2017. I emphasized the importance of this land because without land, where would the investment come from? I considered this a national priority, as our future investment and export-import activities depend on it. After explaining this to the deputy commissioner, we managed to acquire 500 acres of land within two months. We have now become a landlord port, and representatives from many countries—such as Singapore, Korea, EU, the UAE, Saudi Arabia, and the World Bank—are eager to invest.

Now, we need to submit the Detailed Project Proposal (DPP) to the ministry, which is almost ready. We plan to send it in the first week of February, and we hope the government will approve it within the next month. This work, which has been completed in five months, has not been possible in the last 7-8 years. This is a direct result of the movement by students and the benefits the general public is now experiencing.

Views Bangladesh: Have you taken any new initiatives for the digitalization and modernization of the Chittagong Port?

S M Moniruzzaman: I believe digitalization is now the top priority. For instance, we have the National Single Window at the national level. Similarly, the Port Single Window is extremely important for us. The port has its own application, called the Terminal Operating System, which we imported from the US. There’s also a system for Customs called ASYCUDA. Both customs and our system need to be interoperable. This is already in place for imports, but for exports, the work is still in progress. Hopefully, we’ll complete it in a very short time.

The next point is Oracle, Navis, Datasoft, and our technical team. We’ve had several meetings with them, and we've also involved EBL Bank. Together, we aim to bring the entire customs and port operations into a single window system, InshaAllah. This will be the Port Single Window, and it will include several new features that are not commonly found in other countries. These features are currently being incorporated, and we expect to start seeing benefits within the next two to three months.

Another good news is that we have sought support from the European Union. They want to provide the Single Window system, not only for my port but for all ports in the country, completely free of cost. They will soon send a proposal to the ministry and to us. With their support, this system will help us control issues like white and black shipping, search and rescue, drug trafficking, and more. This will bring port security into the system, making it a port with international-standard technology.

Views Bangladesh: During the previous government, the port was held hostage by various syndicates, and some companies had their registrations canceled. Is there any pressure from this, or have you been able to overcome it?

S M Moniruzzaman: I am in a position of state responsibility, and I consider myself a part of the state. Therefore, any pressure on me is essentially pressure on the state itself. That’s why I never take these things into consideration. For the state, the people, and future generations, I am ready to dedicate my life to what I believe is right. I will continue working in that direction. I will not bow down to any pressure. In the last five to six months, you have seen the path I am taking. The benefits of this work are reaching the common people.

When I came in, my goal was to break the syndicate. A report was made stating that, due to breaking the syndicate, port expenses had reduced by 25 per cent. This is not my report, but it was reported by independent journalists. While breaking the syndicate, interference has come in various ways, but I don’t worry about those. I’m saying that I will create a clear policy. Once the policy is created, a circular will be issued, and those who qualify will be most welcome. I believe the port belongs to everyone. It doesn’t belong to me or to any individual. Therefore, I am making it open and accessible, so that people can use the port properly and in a user-friendly way. I will not allow any syndicates.

The challenges we are facing now are that some individuals from the previous groups are still around; not everyone has left. Some of their influence continues to work. But I am saying that work must be done transparently, fairly, and reasonably. If we do that, you will all benefit, and so will the people.

Views Bangladesh: Under the interim government, the port has set a record for the highest number of container handlings in its history. What additional initiatives do you think are necessary to maintain this momentum?

S M Moniruzzaman: Actually, it’s not just containers. We have also broken the record for general cargo handling. We handled nearly 129 million metric tons of general cargo, which broke all previous records. Then came the containers. To continue making progress in the future, we need to implement certain reforms.

There are legal reforms that need to be made. Additionally, there are some areas involving customs and the port itself where legal changes are necessary and new additions should be introduced. We are working on these issues. Once these reforms are implemented, it will be a groundbreaking step.

Secondly, the maximum handling capacity within the port itself. We have 19 private off-docks and 2 port-managed off-docks, making a total of 21 off-docks. We need to make these off-docks more effective. Right now, instead of sending goods to the off-docks, we are sending them inside the port, which is reducing the port’s capacity. If we handle everything inside the port, the working time and handling time increase, and so do costs.

To make this sustainable, we need to figure out how to make the off-docks more effective. By doing so, we can not only enhance the port’s capacity but also reduce traffic congestion. The introduction of e-ticketing has already reduced a lot of congestion. Previously, a truck had to wait 15-20 minutes, but now there are no vehicle lines at the gates. The port operations have significantly improved. We need to bring about such changes and reforms.

Additionally, we need to address some issues like cargo misdeclaration, under-invoicing, and over-invoicing, which often leads to cargo detention. This creates a backlog, and it becomes difficult to declare timely auctions. These are some of the changes we need to make.

I want to bring some legal changes and adopt technologies for this. Consistency is extremely important for the future. You mentioned sustainability. The precondition for sustainability is consistency and leadership. In other words, the right leadership is required here. If we have the right leadership with the necessary qualities, I believe the port can do even better in the future. Another thing is the Maritime Port Strategy, which didn’t exist in Bangladesh. It was conceived by our advisory team. We’ve had multiple meetings with the ministry regarding this. JICA is supporting us, and we are hopeful that it will be completed within this year. Once it’s done, what will happen is that, for example, previously there was no mission guide for any port. Without a vision/mission, everything moves aimlessly. It will not be sustainable. For this, we need a National Maritime Port Strategy. This is present in every country but not in ours. We are working on it. Once it’s completed, it will be a milestone. This will play a key role in maintaining our future sustainability.

Views Bangladesh: The Saudi Arabia-based private company, Global Terminal Operator RSGTI, has been involved in the operation and management of the Patenga Container Terminal. How much do you think this will accelerate the operational speed?

S M Moniruzzaman: Regarding RSGTI, a contract has been signed between the two countries. However, we studied it in detail due to the changing circumstances. After our study, we found that they have made a good contract. They have followed the international contract terms, which is a positive aspect. One thing to note is that the cost of establishing this terminal has been around 1,200 crore Taka. From that, we have received a signing money of 20 million dollars, which is fully credited to our account. Additionally, we need to install terminal equipment worth 22 crore Taka, including jetty cranes. Out of this 22 crore, 26 per cent is government tax, meaning the government will receive another 550 crore Taka. The terminal has a capacity of 0.5 million TEUs. Since all types of equipment are not yet available, RSGTI has not yet gone to 100 per cent operation. However, we are receiving regular payments for the 0.5 million TEUs capacity charge.

Next, except for their CEO, all the employees here are Bangladeshis. They are offering salaries comparable to those of Saudi companies. Another important aspect is the establishment of an international standard here, which we didn’t have before. They are maintaining an international-level operation. You may know that neighboring India has DP World operating five ports, and operates four ports in Singapore. Therefore, as we continue with this, more foreign operators will be involved. This will increase our efficiency and enhance our reputation worldwide. The most important thing is that it will generate a significant amount of revenue for the country.

For this, we have planned a Bay Terminal, where Singapore will be involved, and the US will come as well. If it is a general terminal, another country will join. The more countries that participate, the more competition there will be. This will lead to more investment, which will establish stronger connections with foreigners. The more connections we make, the stronger the bridge will be, and our foreign relations will improve. In other words, we will benefit in all aspects.

Another point is that if the port’s capacity is not expanded in the future, foreign investment will not come. We are entering into free trade agreements with the European Union, Japan, and South Korea. Once the agreements are finalized, our trade volume will increase significantly. Based on our evaluations, we expect to reach 5 million TEUs by 2030. If we reach 5 million TEUs by 2030, we will need the capacity to handle that volume. If foreign investment doesn’t come or if we don’t build that capacity, the port’s efficiency will be compromised. Therefore, we need to make the best use of the port.

We are planning further investments, and based on the port, both exports and imports will grow. This will create employment in the country, and it will also generate more opportunities for future generations. Through the Bay Terminal, we expect to create employment for around 20 to 30 lakh people, which is very significant.

Views Bangladesh: What plans do you have for the development of the Chittagong Port, and what future steps do you have in mind?

S M Moniruzzaman: I have discussed the port strategy, the use of technologies, and some legal reforms, particularly in customs and port operations, to make them more efficient, streamlined, and accountable. Furthermore, to increase our capacity, we are developing an APM terminal at Laldia in collaboration with a Danish company, which will significantly enhance our capacity by half a million TEUs. We are also expanding our yard services in various locations. Additionally, we are planning to build a terminal with a capacity to accommodate 2,000 trucks at the Bay Terminal. Currently, trucks line up along the road, but this issue will be resolved. We are arranging facilities for drivers and helpers, including food and accommodation. Our goal is to make the terminal user-friendly and reduce traffic congestion, speeding up operations. We are working on expanding terminals in some areas, such as the inland river terminal at Pangaon.

We are exploring how to connect the inland river terminal with international terminals by collaborating with mainline operators. We have also planned to expand additional terminals in the future. We are working with several countries on establishing a special rail link for cargo transportation between Dhaka and Chittagong. Many have shown interest in investing here in response to our requests.

Energy is a very crucial aspect for us. We are considering setting up an energy terminal at Matarbari and exploring other potential locations for energy terminals. In this way, we aim to take a revolutionary step for our country in the future. We aspire for Bangladesh to become a significant hub for containerized shipping in the region. The Chittagong-Maheshkhali-Cox's Bazar area should become a future center for commercial activities and trade, making the ports of Bangladesh a vital and strategic part of the global trade network and the growth engine.

Views Bangladesh: If you could share the significant achievements of your work over the past six months, including the Chittagong Port and Matarbari projects?

S M Moniruzzaman: As I mentioned earlier, goods from ships are now moving from the outer anchorage to the jetty in just one day. This was something no one ever thought possible in the history of Chittagong Port. Secondly, container handling, which used to take three to four days, is now happening much faster. Our growth rate has increased by 36 per cent, which is a major achievement in terms of revenue. Overall, it has had a positive impact on our total income. The hardship for people has significantly reduced. Despite challenges like the student movement, internet shutdowns for seven days, and then the floods, we managed to keep things running. During the five-day flood, our Dhaka-Chittagong road communication was cut off, but through improvements in port-centric management, we were able to keep the supply chain flowing. If we hadn’t done that, it could have had a serious negative impact on consumers in the market. The fact that we were able to maintain the supply chain has been a major success for us. In addition, we continue with our routine tasks. We work around the clock in real time and never leave any work unfinished. This success has been made possible by team spirit and motivation to get things done. The collective effort and work intensity that has emerged from everyone's collaboration is our biggest achievement.

Views Bangladesh: Thank you so much for your time.

S M Moniruzzaman: Thank you too.