Economy
3 months ago

After political turmoil come flood disruptions

Dhaka-Ctg highway, railway trade haulage hit hard

Situation 'critical' amid cargo-delivery squeeze for route flooding

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After political turmoil and preventive curfew halting production and trade now comes flood havoc disrupting cargo haulage on Dhaka-Chittagong highway and railway, businesses lament.

Floodwaters have crippled the movement of covered vans carrying export goods from Dhaka and imports from the other direction on the Dhaka-Chittagong highway since Thursday.

And the suspension of railway service between Chattogram Port and Kamalapur ICD amid flood onslaughts further disrupted import and delivery operations, people familiar with the developments said.

Floodwaters coupled with heavy monsoon rains have inundated many sections of the highway, mainly in the worst-hit Feni district, causing traffic snarls-up and leaving hundreds of covered vans stranded, mostly loaded with goods destined for the seaport for export.

Bangladesh Railway authority also suspended the Dhaka-Chattogram rail service, further aggravating the situation, officials confirmed.

The Dhaka-Chittagong highway and railway are vital lifelines for Bangladesh's trade, as the Chittagong port handles more than 90 per cent of the country's imports and exports.

The current disruptions are likely to delay shipment, affecting supply chains and potentially leading to financial losses for the exporters and the importers.

"The situation is critical. There has been no movement of vehicles from Thursday," Md Khairul, superintendent of Highway Police of Cumilla region, told the FE over the phone on Friday afternoon.

Mr Khairul notes this is a natural event and this will go naturally.

The police super, however, mentions that there are many points where the water is receding. "In Lalpul area under Feni the situation is very critical."

The snapping of transport links between Dhaka and Chittagong is disrupting particularly the export of readymade garments, one of Bangladesh's key industries, and could lead to delays in import deliveries, affecting local markets.

Around 70 per cent of Bangladesh's total exports come from outside Chattogram-mainly from Gazipur, Dhaka, and Narayanganj hubs. And import volume destined is also estimated around the same portion for Dhaka and other regions excluding Chattogram.

"Around 1,000 covered vans were reported lower than usual a day on Friday," said Md Ruhul Amin Sikder, secretary-general at BICDA or Bangladesh Inland Container Depots Association, a group of 19 privately owned inland-container depots that handles around cent per cent of the country's exports.

After stuffing export cargoes into containers from covered vans at the ICDs they are bound for Chattogram seaport for shipment. The customs officials usually remain also present during the cargo stuffing.

Usually, around 3,000 covered vans carrying export goods come go Chattogram each day from outside Chattogram, but Friday they were just 2100.

On the other hand, Chittagong Port Authority (CPA) secretary Omar Faruk told the FE that movement of railway wagons remained suspended following floodwaters swelling onto the Dhaka-Chattogram rail route.

More than 100 TEUs of containers ply between Chattogram and Dhaka ICDs a day.

Mr. Faruk said delivery from port yards may be impacted as consignees may not take delivery due to disruption on the highways.

"Around 70-percent delivery is meant for Dhaka. So it may be impacted."

The CPA delivers around 3500 TEUs (20-foot equivalent unit) a day.

In the meantime, the National Board of Revenue Thursday issued an order stating that those whose cargoes are destine for Kamalapur in Dhaka can take delivery from Chattogram port.

The CPA can handle at a time 53,000 TEUs of containers, and currently, the number tumbled to 36,000 TEUs.

Bangladesh exported merchandise worth US$37.3 billion while imported $57.6 billion during the July-May period.

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