An overview of Mongla port’s turnaround from the brink of closing down to setting records within a decade.
From the Brink of Closing Down
Mongla port was founded in 1950, and was originally called Chalna Port. During the late ‘90s and early ‘00s, the port served as one of the major gateways for raw materials and machineries needed to support the jute production in Khulna. However, when several state-owned jute mills were shut down, port activities started declining. Consequently, in 2007, Mongla port was almost declared a dead port, and was at risk of being closed down. But when the current government took over power in 2009, Mongla port was given national priority for its revival. Among the several primary directives, a key focus was on making the port more accessible to large foreign vessels as a means to facilitate the economic development of the south-western sector of Bangladesh. Since then, Mongla port has been undergoing significant infrastructural development.
Focusing on Expansion
Mongla port is on the continuous process of development and expansion. One of the most important projects carried out in recent years is the capital dredging project of the outer bar in Pasur River. The process of dredging involves removing materials from the bottom of a water body to increase its depth. The ongoing dredging operations of Mongla port will allow for ships with large drafts, as deep as 9 to 10 metres to access the port. The directive is to allow for utilising the maximum current capacity of ship arrivals, and also to expand the capacity in the future.
Transforming Seaborne Trade
Seaborne trade has flourished in the south-western sector of Bangladesh. Consequently, the regional economy of the south-western sector is growing which has brought about large infrastructural development. Road networks are being developed inside and outside the port connecting Mongla port to the rest of the region. There are now more than 30 LPG and cement factories near the port area. When the Padma Bridge will be inaugurated, the distance between Dhaka and Mongla will be around 170 kilometres. This will make Mongla the closest port to the capital. With the development of other major infrastructural projects such as the Khan Jahan Ali Airport, Mongla port’s placement will make it strategically optimum with regards to transportation logistics and cost-efficiency.
Creating New Benchmarks
Over the last decade, Mongla Port has gone through a massive infrastructural overhaul, greatly enhancing its capacity and effectiveness. Consequently, it experienced steady growth in the number of ships, containers and cargo arriving at its dock. However, the port grabbed the national limelight when it announced it would handle gearless vehicles through the procurement of necessary equipment. The upgrades are part of Bangladesh government’s vision to enhance Mongla’s container handling capacity four-fold by 2024. However, Mongla did not have to wait to reap the benefits of the upgrades as it saw an increase in the number of ships (7%), cargo (8%) and cars (18%) being handled over the past year.
Breaking Records
As over 80% of the volume of international trade is transported by sea, the Blue Economy can be the vehicle on which Bangladesh sails into the next phase of socio-economic development. The current government’s policy and strategic approach have enabled our ports to become gateways for economic growth, and Mongla port testifies its effectiveness. Over the last six years, the port saw a steady increase in revenue generation aided by the increase in port activity. The Mongla port had its busiest year in the 2020-21 fiscal year amid the pandemic, with 970 ships (The highest in its 70-year history) docked and 119.45 lakh metric tonnes of cargo handled at the port, generating record revenue of BDT 340.23 crore.
Inspiring Excellence
A skilled workforce is essential in ensuring the efficiency and competence of a port. The Mongla Port Authority has been impeccable in inspiring its workforce to go beyond the call of duty in establishing the port as an essential regional hub.
A World of Opportunities
After years of uncertainty, Mongla Port has turned around with the promise of being a Southasian transit hub. Its importance is set to go up several notches with the connectivity that the Padma Bridge will establish between the capital and the south-western parts of the country. Mongla port’s edge lies in its potential for regional connectivity. Its proximity to the Indian state of West Bengal provides an opportunity to earn revenues through cross border trade. Consequently, India signed a memorandum of understanding (MOU) under its third line of credit (LoC), amounting to BDT 60 billion with Bangladesh in 2017. After some delay, the country handed over the list of the components to be constructed under its LoC, including two jetties, yards, flyovers, and buildings. Subsequently, Nepal is also eager to use Mongla port to transport commercial goods and has shown interest to invest in its facility.
Interestingly, a Nepalese company transported a consignment of fertiliser last year on a trial basis. Local importer, Desh Trading Corporation of Khulna, imported 25,350 tonnes of fertiliser from China through Mongla port before the pandemic hit. Therefore, Bangladesh’s aspiration to become a logistics and transit hub and a bridge between South and Southeast Asia is closer to reality, with Mongla port playing a pivotal role.
Empowering a Vision
Being one of the fastest-growing economies in the world with a vision of becoming a global manufacturing hub over the next decade, Bangladesh needs several operational ports with state-of-the-art facilities. We have to diversify the use of seaports to improve the services of the Chattogram port. Therefore, the time is right to shift our focus towards Mongla port, and the Bangladesh government has done precisely that. It has transformed a struggling facility fighting for its existence into a thriving port that facilitates regional connectivity. However, there are bound to be some challenges on the way, including constructing more jetties, container yards and acquiring adequate handling equipment. Thankfully, the port is under a competent and visionary leader committed to ensuring Mongla is ranked among the busiest ports in the world. To that end, the Mongla Port Authority has already started dredging the inner bar while the outer bar was already completed in 2020. Concurrently, regular maintenance work is carried out to ensure the longevity of the dredging. Another large infrastructure project due to commence in three months includes two additional jetties, a container terminal, a yard, and a six-lane road. The outside perimeter will constitute a four-lane road, workshops, commercial buildings, port administrative headquarters and residential complex currently situated at Khulna.
