CPA hands over Pangaon ICD to BIWTA

Aiming to shift cargo from overburdened highways to cost-effective river routes, the Chittagong Port Authority (CPA) has signed two agreements to revive Dhaka's Pangaon Inland Container Depot (ICD) and enhance the country's inland waterway cargo handling capacity.

On Wednesday, CPA inked a memorandum of understanding (MoU) with the Bangladesh Inland Water Transport Authority (BIWTA), under which the long-term management of Pangaon ICD will be leased out for 10 years.

A separate MoU was also signed with the Bangladesh Navy to construct a heavy-lift cargo jetty at Chattogram port's Laldia-2 area. The agreements were signed at the BIWTA headquarters in Dhaka in the presence of Shipping Adviser Brig Gen (retd) M Sakhawat Hussain.

Under the lease deal, CPA will operate Pangaon ICD and its adjoining 48.24 acres of land from December 1, 2025 to November 30, 2035, with annual renewal, while the overall contract will remain valid for 30 years.

DECLINING CARGO MOVEMENT

The Pangaon ICD, located on the Buriganga River in Keraniganj, was jointly established by CPA and BIWTA in 2013 at a cost of Tk 1.54 billion, with the aim of reducing pressure on road and rail transport while ensuring faster and cheaper cargo handling for Dhaka-based industries.

Despite this vision, cargo movement at the terminal has seen a sharp decline over the years. Importers have shown limited interest in using river routes, pointing to higher freight rates, customs complexities, and safety concerns following a major accident.

Currently, about 95 per cent of cargo from Chattogram port is transported by road, resulting in heavy congestion on highways and rising logistics costs.

Authorities hope that long-term CPA management of Pangaon ICD will restore confidence among traders and boost cargo traffic through waterways, which are considered safer and more cost-effective.

CPA Chairman Rear Admiral SM Monriuzzaman said the Pangaon ICD was established to make Dhaka's trade more time- and cost-efficient by facilitating import and export through waterways.

He added that CPA also plans to establish a free cotton zone at the terminal to attract businesses and diversify cargo types.

The terminal has the capacity to store 3,500 TEUs (Twenty-foot Equivalent Units) of containers and handle up to 116,000 TEUs annually. However, freight charges for a 20-foot container range from U$200 to $250, which importers say is uncompetitive compared to road and rail transport.

To improve efficiency, CPA has engaged the Navy for the construction of a 240-metre-long heavy-lift cargo jetty with back-up facilities at Laldia-2.

CPA Secretary Omar Faruk said the project will be implemented by the Navy under delegated works, in line with the Public Procurement Rules.

EXPECTED IMPACT

Officials believe that revitalising the Pangaon ICD and adding new infrastructure at Chattogram port will help ease the cargo burden on the Dhaka-Chattogram highway and railway corridors.

More importantly, it will expand the country's inland water transport network, offering businesses an alternative and sustainable logistics solution, they said.

nazimuddinshyamol@gmail.com