Maritime Cooperation: Joint Development of Chittagong Maritime Facilities

1. Maritime Cooperation: Joint Development of Chittagong Maritime Facilities Major Sarwar Jahan Chowdhury (Retd) Associate Research Fellow Bangladesh Institute of Peace and Security Studies (BIPSS)

2. Prelude • For many years now China and Bangladesh have been consistent international friends. • The idea of BCIM Growth Corridor and ongoing progress towards the implementation part of it provides excellent platform for key neighboring inter-regional Asian nations like China from East Asia, India and Bangladesh from South Asia and Myanmar from South East Asia to cooperate and integrate in a trans-regional model. • With increasing requirement for sea port service in the BCIM corridor construction of a deep sea port in Sonadia in coastal Chittagong division of Bangladesh can serve the needs of both Bangladesh and the BCIM members. • The Chinese proposal to Bangladesh in recent years to jointly develop a deep sea port in Sonadia Island of Cox’s Bazar district in southern part of Chittagong division make good economic sense.

3. Geographical Location of Chittagong Area and It’s Advantages

4. ARIAL DISTANCE CHART Chittagong- Kunming (China): 1150km Chittagong-Lasha (China): 815 km Chittagong- Mandalay (Myanmar): 443km Chittagong-Guwahati (Indis): 610 km Chittagong-Aizawl (India): 181 km Chittagong-Agartala (India): 141 km

5. Map: Sea Lines of Communications (Contd.) Advantages of Chittagong Area(Contd.)

6. EXISTING CAPACITY AND PERFORMENCES Chittagong Port

7. Cargo HandlingTable: Cargo Handled (in Metric Tons) Source: Chittagong Port Authority, Overview 2012

8. CONTAINER HANDLING- CHITTAGONG PORT

9. LIMITATIONS OF CHITTAGONG PORT Chittagong is now, and probably will remain in future, a medium size port for the immediate topography of the port area. Turnaround time for vessel has gone up to 6.90 days in 2010-11 although the target was 5.10 days. Depth at Jetty Berth ranges from 8.0 meters to 9.10 meters and depth at Mooring ranges from 8.8 meters to 10.5 meters and above. Singapore which is a deep sea port has 16 meters draft / depth and 67 berths and handles 1.15 billion gross ton per annum. Whereas Chittagong has 22 berths and handles 44 million ton.

10. PROSPECTS, RATIONALE AND BENEFITS OF A DEEP SEA PORT IN SONADIA IN CHITTAGONG AREA

11. For Bangladesh there are at least six significant reasons for establishing a deep sea port in Sonadia To support the country’s growing seaborne trade needs of the future. To Facilitate Economic Growth and Employment. To go along with the global shipping trend of moving towards larger tonnage. To utilize our geographical advantage to become a regional access door to the sea. Unique Suitability of Sonadia to Become an Ideal Deep Sea port. To facilitate uninterrupted coal supply for the power plants to be established in Moheshkhali.

12. Supporting Country’s Growing Seaborne Trade Needs of the Future

13. Facilitating Bangladesh’s Economic Growth and Employment- example of UK, portugal and japan and singapore.

14. Going Along with the Global Shipping Trend of Moving towards Larger Tonnage

15. The principle of economies of scale is fundamental to the economics of maritime transportation as the larger the ship, the lower the cost per unit transported. This trend has particularly been apparent in bulk and containerised shipping. For instance, the evolution of containerisation, as indicated by the size of the largest available containership, has been a stepwise process. Changes are rather sudden and often correspond to the introduction of a new class of containership.

16. Since the 1990s, two substantial steps took place. The first step involved a jump from 4,000 to 8,000 TEUs, the second step took place in the 2000s to reach the 13,000-14,000 TEU level. From a maritime shipper’s perspective, using larger containerships is a straightforward process as it conveys economies of scale and thus lowers costs per TEU carried.

17. CONTAINER RATE CHARGE

18. TRENDS TOWARDS THE LARGER SHIPS

19. Utilizing Bangladesh’s Geographical Advantage to Become a Trans-regional Access Door to the Sea

20. At present, every parcel of cargo from Kunming in China has to travel about 1,800 km on land to the east to reach the nearest sea port in the China Sea from where it is transported by ships bound for the markets in Europe, traversing a sea distance of 18,300 km.

21. In future, the same parcel may reach Sonadia, when established, travelling only 1,000 km to the west and then may be transported to Europe traversing a sea distance of 15,100 km with a total net savings of 4,000 km. Same applies to every parcel to and from the seven north-eastern states of India.

22. The volume of traffic and revenue earnings of the deep sea port once established, with all connectivity and political understanding with the neighbors, will have a direct link with development activities of the Indian seven-sisters and South Western China.

23. UNIQUE SUITABILITY OF SONADIA TO BECOME AN IDEAL DEEP SEA PORT. The bathymetric (sea bottom topography) condition of the area has been stable for more than 100 years and is hydraulically balanced. The draft is more tha 14 meters , which is ideal for deep seaport. The area may be considered a gift of nature for Bangladesh. Utilizing this rare opportunity, Bangladesh should develop a port in the area for deep draft larger vessel. Sonadia provides for more that 14 m draft suitable for large vessels.

24. Facilitating Uninterrupted Coal supply for the Power Plants to be Established in Moheshkhali Island of Bangladesh through this new port

25. PROGRESS SO FAR In past few years China and few other countries have proposed to build the Sonadia deep seaport. The Chinese proposal appears to be more concrete than others. Bangladesh govt hasn’t yet taken any final decision for various reasons.

26. THE GEO-STRATEGIC FACTORS Although a probable deep sea port at Sonadia or expansion of existing port facilities in Chittagong etc through China-Bangladesh cooperation are of pure economic cooperation nature and within the vision of BCIM, Bangladesh being a peace loving nation had to be careful so that no misunderstanding is created between Bangladesh and its big south Asian neighbor or the bigger power outside Asia.

27. Bangladesh expects that with allowence for sufficient time before implementation, all stakeholders in BCIM and beyond would be able to comprehend the economic benefit part of the development of these maritime facilities through China-Bangladesh cooperation, not only for Bangladesh and China but also potentially for few other neighbors.

28. FINAL WORDS Apart from convenient access to sea Sonadia connects two thriving economies Bangladesh and Yunnaa. Chinese good relation with Myanmar can be used to convince Myanmar for road connectivity to this new port . With China the tested friend of Bangladesh, extending its hand of cooperation in such a mega project in crucial Chittagong, a decision to build the port should be taken in the right time without too much delay. There is no doubt about the potentiality and the opportunity that exist. But there is information that other neighbouring countries are also thinking about various alternatives. Bangladesh, with Chinese help may take the initiative quickly and grab the opportunity at the earliest basing on the solid geo-economic logic of the case.

29. All stakeholders in Bangladesh have a consensus on this particular issue of a deep sea port. The Sonadia site, with suitable parameters to establish a deep sea port, is a rare opportunity to ensure a better living for the people of this land from its own resource and also at the same time become a communication hub by connecting large part of BCIM growth corridor to it including Yunnan and possibly few other places of China.

30. Thank you Bangladesh Institute of Peace and Security Studies (BIPSS)