Garment Sector Facing Crisis due to Chittagong Port Blockage

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The two-and-a-half-month shipment blockage in the port of Chittagong is causing the RMG sector to wait for prolonged periods for its raw materials to be discharged. The owners are having to pay extra charges for container and ship rent, as a result. On the other hand, exports are also not being sent in time. Ships are also being forced to leave without the containers, something, which has never happened before.

BGMEA leaders have expressed concern at the press conference organized by the Garment Manufacturers’ Association BGMEA on Monday, to discuss the complexity in shipping of imported goods and the overall situation of the garment sector. BGMEA president Siddiqur Rahman read out a written statement at the press conference. The meeting was held at the BGMEA Bhaban in the city’s Karwan Bazar and was attended among others by the organization’s vice-president Faruk Hasan, Mohammad Nasheer and others.

BGMEA leaders expressed fears that if the present situation continues, the foreign buyers will be unable to buy the clothes in a timely manner. And if this is the case, buyers can shift orders to places such India, Vietnam, Ethiopia, and Myanmar.

BGMEA president said that the association is trying hard to keep the garment industry alive and the Chittagong Port crisis is making things extremely difficult for the sector. He insisted that BGMEA has been making claims to bring in the equipment needed to increase the capacity of Chittagong Port since 2004 and to purchase and build adequate jetties and yards. Apart from this, the shipping minister, parliamentary committee and the chairman of the port authority have been requested to take appropriate actions at different times. But no improvement has been witnessed so far.

The need for equipment to move the containers at Chittagong port is 299, but there are only 87 active machines at the port. There is a need for 895 devices for cargo handling, but currently, there are 285. BGMEA president offered a number of proposals to keep the port operational. Among them the most significant were repair of broken gantry cranes, purchasing or hiring of additional equipment by the government to solve the crisis, completion of taxing process of FCL containers and distribution with one working day, starting the construction of Patenga terminal, giving priority to the container carriers, giving priority to the container, building new LCL shades etc.

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