Govt eyes using waterways

Waterways could be the most popular and viable ways of transporting goods throughout the country, especially from ports, but despite the low cost and other facilities, the country is yet to use the full potential of the river networks.

People involved in import-export trade say they now prefer road networks though, they believe, the transportation cost of 30 per cent of the products could be saved if river routes were properly utilised as most of the urban centres and industrial belts are located close to the river network.

Even Bangladesh could be a key factor in economic development by utilising the Inland Water Transport (IWT) services in South Asia, thanks to its geographical location. But lower navigability and inadequate infrastructure at river ports remain the biggest challenges.

Transportation via waterways still cheaper

About 76 million tonnes of cargo are transported through Bangladesh’s inland water network a year. Of this, about 61 per cent is imported.

Most of the items are clinker, steel scrap, ceramic, sand, gypsum, stones, fertilizer, coal, wheat, sugar, salt, edible oil and other bulk commodities, according to the World Bank’s latest data.

The Economic and Social Commission for Asia and the Pacific (ESCP) of the UN in their report in 2021 said the IWT is the cheapest way of goods transport as it costs only Tk 1 to travel one kilometre with a kilogram of goods while train service charges Tk 2 and it takes Tk 4.5 by road.

The ESCAP says IWT carries about 35 per cent of the annual freight volume (0.58 million tonnes per year).

Even after considering cargo handling charges at the ports as well as transportation costs from the points of origin to the ports and from the ports to the destinations of goods, IWT remains the cheapest mode.

For example, transporting one TEU container between Dhaka and Chattogram costs around Tk 600 per tonne by IWT whereas it is Tk 1,200 by railway and Tk 6,000 by road, the report also says.

If IWT is used for passenger and goods movement instead of road, 58.5 million litres of diesel can be saved and 1,55,000 tonnes of less carbon dioxide (CO2) will be produced in a year.

Talking to The Business Post, Managing Director of Sakhi Group Md Anwar Shawkat Afser said the river route is safer and cheaper than road and rail.

“We take Tk 600-650 to carry per tonne product from Chattogram to Dhaka, which has now increased by Tk 100 compared to last year owing to the increase in fuel prices. This will cost Tk 1,500 to carry per tonne product by truck,” he added.

Former additional director general (planning, design, and research) of Bangladesh Water Development Board Dr Md Mizanur Rahman said the water flow in the Ganges is 275-78,000 m3/sec, the Brahmaputra is 2,702-103,129 m3/sec, and the Meghna is 200-19,000 m3/sec.

“Besides, the annual sediment transport in the Ganges is 886MT, which is 600MT in the Brahmaputra and 1MT in the Meghna. A total of 1.7 million square kilometres of riverways, which is about 7 per cent, flow through Bangladesh.”

He also said Bangladesh will be the 24th largest country by 2036.

“So, we must put emphasis on transportation through waterways to carry products in order to reduce costs. It will help the country compete in the global market due to low-cost products,” he added.

Navigation and other challenges

Sakhi Group, the ship transportation company, has six ships that carry 1,000-3,000 tonnes of products from the Chittagong Port to Dhaka. It takes a ship a maximum of 70-72 hours to reach the capital while trucks take 10-14 hours.

“But clients have to face more hassles if they carry products by trucks instead of ships because when trucks carry products, they change more hands and there are chances for the products to get stolen,” said Managing Director Md Anwar Shawkat Afser.

“But still importers choose the road network because of time. Ships often get stuck in shoals,” he said.

“Our rivers should be dredged properly for navigation so that we can carry products through short-cut routes from Chattogram to Dhaka or other districts to reduce further costs and fuel usage as well as time.”

Anwar explained that the Chattogram Confluence, the Sandwip Channel, and some areas of Chandpur are problematic zones for them. “Besides, a direct connectivity between Khulna’s Mongla Port, Dhaka, Narayanganj’s Pagla and Pangaon, Ashuganj, Bhairab, and Ghorashal is very significant now.”

A new jetty should be built at Khanpur of Narayanganj, he said.

“Shipwrecks are commonplace on Sandwip, Bhasanchar and Patenga routes. Every day, 20-25 ships operate on the route and about eight to 10 sink each year. The government should work properly here.”

He claimed Bangladesh Inland Water Transport Authority (BIWTA) takes Tk 4,000-5,000 in captain fees for every trip but it does not provide the captain. “So, we have to run the ships by unskilled captains, resulting in shipwrecks very often.”

He urged the government to set up an institution to produce more skilled captains and dredge all rivers for smooth transportation of products through waterways. Talking to The Business Post, Chairman of Bangladesh Freight Forwarders Association (BFFA) Kabir Ahmed said the transportation cost of products in riverways is 30 per cent less compared to that by roads.

“There are a lot of areas in the country where there is no road connection to transport goods. The government must set up more jetties in specific areas to load and unload products by cranes effortlessly to take full advantage of waterways,” he said.

Managing Director of Shahriar Steel Rerolling Mills (SSRM) Sheikh Masadul Alam Masud said the government should monitor freight costs and services at ports.

“The costs increase at ports due to less use and irregularities. Using riverways is better for product transportation. But, we are forced to transport our products by road,” he said.

Masadul said if the government modernised the ports, people could use them more and more and the authorities could earn huge revenues as well.

“Our railway infrastructure has remained the same as that in the British period. Direct railway services between Chattogram and Dhaka should be built with modern technology. Infrastructure should be improved as well,” he observed.

Bangladesh’s total length of the waterway is around 13,000km. Of this, 8,433km is navigable by larger vessels in the rainy season – 5,968km of which is classified for navigation – while it is about 4,800km in the dry season, including 3,865km classified.

The contribution of the transport sector to GDP is more than 11 per cent whereas the growth rate of waterways is poor compared to land transport.

Experts pointed out that navigation is a major challenge here with illegal occupation, pollution of water and environment, and the construction of illegal infrastructure encroaching upon the rivers. Dhaka Chamber of Commerce and Industry (DCCI) President Rizwan Rahman urged the government to expedite capital dredging and other activities to improve the navigability of 51 routes of inland waterways.

“The cost of transportation of products will sharply come down if we can carry our products through waterways,” he mentioned.

What should be done?

Dr Md Mizanur Rahman said if Bangladesh does not keep an eye on rivers, the country will face Delta challenges, such as sedimentation, waterlogging, the loss of navigability, trans-boundary challenges, water pollution, and freshwater scarcity, which would create uncertainties in the way of sustainable economic growth.

“So, the private sector’s involvement is needed in the maintenance of waterways, strengthening the capacities of the ministries and departments concerned, and using modern technologies to reap maximum benefits for sustainable development,” he said. He believes that there is a big opportunity for the private sector’s investment in the Delta Plan 2100 projects, such as dredging, land reclamation, shipbuilding, and others, in inland waterways.

“The private sector has a strong interest in getting dredging contracts,” he said, stressing the need for combining land reclamation with dredging in a PPP concession framework.

The PPP initiative is also possible in establishing river port infrastructure for IWT, he added.