BergerWorld: 3rd Quarter 2007

Chittagong (population 4,000,000) is Bangladesh's second largest city as well as one of the country's principal commercial and manufacturing centers. A large number of Bangladesh's industries are located in Chittagong, including automobile factories, pharmaceutical and chemical plants and oil refineries. However, in recent years, textile and apparel industry leaders in the country have been concerned that the long-planned abolition of global trade quotas would encourage the migration of work to more competitive operations in China. These concerns were further heightened when the International Monetary Fund projected that a quarter of Bangladesh's exports and more than two million jobs could disappear in the near future. Exacerbating these anxieties is the current state of infrastructure in Bangladesh.

The Port of Chittagong, the country's principal port, is situated along the right bank of the Karnaphuli River, nine nautical miles from the Bay of Bengal, handling 80 percent of all Bangladeshi trade. However, the port is currently ranked among the world's least efficient, and ships that dock at the port must anchor in deep waters offshore, leading to long turnaround times, especially for large container ships.

The Berger Group, in association with Booz Allen Hamilton, was retained by the United States Agency for International Development (USAID) to evaluate Chittagong Port operations in order to improve textile and apparel industry exports. The Team reviewed the existing financial and economic costs of operating the port and evaluated current infrastructure conditions. The Team then prepared a report detailing the key constraints affecting the goods transiting Chittagong Port. The report covered policy issues and strategies for infrastructure improvements that would lower costs for textile and apparel industry exports, including the addition of four Ship-to-Shore Gantry Cranes; a 1,000-meter-berth New Mooring Container Terminal; and improved rail and road connections. The improvements at the facility will result in faster, safer and more efficient cargo handling procedures; the elimination of prolonged wait times for vessel berthing; and the alleviation of congestion in the port's container yard, as well as the local transportation network.