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The qualitative method of Primary research had used for this research to find out the thoughts of port users, stakeholders and others about port development in Bangladesh. Questionnaires were sent to 60 persons in the Bangladesh, UK, Singapore, USA, Japan and Australia where targeted the GOB employee, associations leaders, consultants and others who are engaged with the Bangladesh or foreign maritime sector. Getting the advantages of internet e-mailing system, questionnaires were sent through University of Greenwich student mail account. Finally, 50 persons are selected for this research because of their deep connection with the Bangladesh port development and expertise in shipping. Physical Interview, telephonic interview also conducted for getting the quick respond from the participants. Of 23 replies received, 13 through e-mail, 8 by conducting telephonic interview and 2 interview conducted at London in UK physically.
Development of transhipment areas in a appropriate geographical area.
Development of infrastructure and ensure competitive prices and easy access and well developed embarkation facility.
Create business friendly environment with enough flexibility and accessibility.
Strong port management authority who will exercises own faults with a good management system.
Co -ordination and sufficient functional equipment with space with proper management and maintenance team.
Capacity of handling both inbound and outbound cargo to cope with current and projected increase in volume in handling cargo and containers.
Adequate number of workers, no industrial unrest and disciplined dockworkers' management with good & harmonised relation among the management, workers and Unions to be maintained. Wages structures of the dockworkers are to be adjusted to increase of cost of living.
Organised and planned handling of all incoming ships moored at Chittagong port outer anchorage. Planned scheduling, control and implementation of Vessel Arrival and Departure
Minimisation of bureaucratic tangles for port operation and customs systems
Reduction of corruption in system
Use of appropriate IT based documents and orientation of exporters and importers on use of IT.
Modern Inspection, monitoring and control of the cargo in respect of quality and quantity & Pre-shipment Inspection system
Disposal of unclaimed and un-cleared cargo after minimum waiting period.
Technology & skill enabled quality service in terms of speed & time, safety & security overall good Security System.
Right time, right thing at right place that is all the users' aspect from the Port operation people/management.
Quick service and clearance.
Port administration should out of corruption fro smooth transaction of the port activity especially in shipment. If the port authority take more time for shipment it decrease the uses of this port for this reason it should be tried to reduce time for shipment.
Turnaround time ,Dwell time
7.2. BARRIERS TO PORT DEVELOPMENT.
Any default strategic plan.
An anti-conducive management.
An inefficient focal point in the maritime industry.
Not to identify effective future growth location.
Insufficient draft and narrow channels are using for incoming and outgoing activities at Port.
Shortage of infrastructural facility and cargo handling equipment. Absence of modern automated container handling facility and for break bulk ships.
Labour unrest and cognizance of labour unrest and elimination of root cause by payment of wages in commensuration with skills of handling modern equipments.
Continued depressed economy.
Lack of farsightedness of our political leaders is the main barriers for an international seaport. But we are optimistic about our current Government and hope that they will move in the right path.
Government policy, restrictions & limitations of Port Authority in terms autonomy, Political unrest & different political view, politically biased unethical trade unionism
Red tape activities within various Government offices/autonomous bodies and related stake holders, non attachments of professionals and skilled workforce in port operation, automation of port operational activities, negative approach and undue advantage seeking mentality of port users.
Sea pirates activities.
Multi stage service delivery process
Trade union problem in Bangladesh.CBA activities of multiple service provider & user forum.
Unstable political situation in Bangladesh. Political contradiction with two main parties.
Poor management and corruption in management also in all departments.
Service delay and response delay
Lack of proper risk management
Port security issues
Embarkation cost and lack of facilities
Limited embarkation points
Long waiting for loading and unloading.
Bad attitude of political leader.
Shortage of fund
Lack of openness of the steps taken by any government to the people
Lack of knowledgeable person to show the bargaining power in favour of Bangladesh
7.3. DERIVED DEMAND OF PORT TRANSPOR.
Awareness of the benefit of port privatization.
Decision of appropriate plan for strategic location
Initiative for world class services and completive price
Establishment of world class infrastructure in port areas
Development of a free-business zone
Planning of establishing neighbourhood development
Some how meet growing demand, need professional way
Introduction of Automated Container handling system to increase cargo handling speed
Feasibility study of extension, modernisation with resources in Human Resources, Equipments
Legislative control of workers involving in anti -establishment activities declaring the ports as KPI ( Key Point Installation )
Improved operation control
Increase of inland river ports and land ports
Introduce bay Crossing container vessels of smaller drafts with lesser number of containers after lighterage.
To meet the growing global demand our Port facility and Off -dock( Private inland Container Depots) have taken plan to increase the security level up to the international standard .
By establishing deep sea port facility which will start to serve this region to meet the growing demand.
A long term policy and strategy on port operation & facility.
Establishing inland container handling riverine port, developing present facilities of riverine ports of various districts, new set up of inland container depot in various region.
Multimodal facilities improvement.
Skilled & professional manpower engagement in the port operation activities regardless of any political enforcement.
Extension of Chittagong port.
Need to solve the political problem and trade union problem in port.
Set long term port management strategy plan
Ensure acceptable service delivery
Facilitate port to meet port user requirements
Acceptable costing plan
Ensure high level of security in port and outer channel
Maintain the channel depth in schedule
Enforce and utilize the maritime law
BOT model for private sector involvement
Equal, non-discriminatory and competitive attitude to all users
7.4 PORT PRIVATIZATION
Very interesting question for the participants and expressed their opinion as follows:-
There is a little chances of risk to the national interests from a port privatization rather would increase productivity and competiveness attitude. The privatization will create many scopes to utilize much more resources as of competitive market with competitive labour costs. However, there will be risk involved if the privatization system will not be freed from any complicity like government bureaucrats.
Privatization is better , some time it becomes bureaucratic also especially this less development country
No, but privatisation process has to be rigidly controlled and industry Must not be handled by any politically involved vested interest. Till then it should be a government sector industry as KPI.
As far as i know the private companies are participating in the Berth Operation, so i don't think there are any risks to the national interest for doing so. But before that Govt. Must insure and keep in consideration regarding the national security and other threats .
Yes, but I am not interested to write the answer
I think there are no risks in privatization.
All over the world, many countries operating their port activities privately under certain & strict Government guidelines, statutory rules and procedure which are securing the national interest in terms of National security, smuggling, terrorism etc. In that way, Bangladesh can privatise their port operation activities like pilotage, container & cargo handling, warehousing, berthing & jetty operations, infrastructure development through BOT system etc but ownership and security should be keep in hand under Port authority. Bangladesh owned their main Naval base within Chittagong port area, so this is also a great concern to accept foreign investment in port privatisation.
I guess privatisation will be a good option in perspective of Bangladesh as politicians play an important role in port management committee. As a result, normal port activities hampered and interrupted on the political decision and complexity. On the other hand, privatization can move the sector into monopoly business however it can ensure better services. It could go against the national interest if the government propose to privatize the main sea port in Bangladesh. Alternatively, government can approach for new sea port in interest of private public partnership (PPP).
No, because we have the experience that all of the private institution doing well in our country.
From the above comments, it is clear that port privatization is a great problem in Bangladesh. Mention that Chittagong port is the most profitable public organisation in Bangladesh where privatization of some port services is going on.
Regarding port development in Bangladesh, some participants added the followings:-
Effective and efficient trade union
Proper monitoring by anticorruption team
One participant expected that infrastructure development is going on in full swing and very soon the automation of Chittagong Port will be completed which we believe will help all the users to export and import goods and materials in a safe, fast and easy manner. Moreover, the private off docks are handling almost 99% export of our country and they are also ready to take the challenge to serve the international community to get the full advantage of our current sea Port of Chittagong.
However they argued for "Now we are using our one port (Chittagong) extensively. For meeting the growing demand we may use another port located in Mongla and also we might use Chalna port. This two is used hardly though it possible to use and have the potential.
Relevancy with the subject is very important in qualitative research. Moreover, this research is highly seeking the minimum maritime knowledge for replying the structured questions. Easterby-Smith et al (2009) reflected on qualitative research and argued that it is a creative process which aims to understand the sense that respondents make of their world. This chapter was aimed to find out the real time thoughts of the participants regarding Bangladesh port transport and its connection for the development of shipping industry. In addition, participants reflection will help to compare or contrast with the literature review so that research can find out some recommendations for improving the seaport facilities in Bangladesh and indicate the economic benefits from port transport.
CHAPTER 8 ANALYSIS
Thirty two years ago Rinman & Linden (1978) identified two lines of development communication and transportation. To supply industry with raw materials and to distribute manufactured goods all over the world.
Efficient (Rinman & Linden, 1978:p.130) port operation is a national concern. During (Branch,1991: p.91) the past century Customs cargo clearance has become a very complicated procedure. To provide a record of export and imports, and so enable the government to assess and thereby control the balance of trade. A port's (Alderton ,1984: p 168) hinterland is as large and available as the road, rail, barge and air interchanges facilities allow.
Indeed, global (Selkou and Roe,2004:p-25)economic changes are heavily interrelated and shipping is one of the main driving forces which lie behind this complex arrangement and interaction that inevitably Occurs.
The development ( Notteboom and Rodrigue ,2005) of global supply chains increased the pressure on three major places : Maritime Haul, Port Operations and Inland Freight Distribution. Inland accessibility is playing a significant role in port competiveness because cargo handling efficiency is depends on the availability of inland transport in both export and import. Resources( Boyce,2002: p.1) and Infrastructures represent two elements that interact in complex ways to support and shape economic activity..
Alderton (1984: p 188) resumed that "The ship operator wants a quick and efficient turn around for his ship and a good turnout for the cargo" Port labour is the most likely cause for his possible frustration
Cost( Haralambides & Veenstra,2002: p.799) recovery and the pricing of port services are complex and controversial issues, both technically and conceptually because they deal with the development and provision of infrastructure; economic development; public investment; fiscal policy and the role of the state in economic activity
BARRIERS TO DEVELOPMENT
Barriers (Vickerman, R., .2007 )to transport and trade are of three main types; physical or infrastructure, regulatory and market induces or competitive barriers.
Port authorities can play an important role through an active engagement in the development of inland freight distribution, information systems and inter-modality. Direct and indirect forms of networking with nodes and market players constitute probably the most important role for port authorities in the regionalization phase, as gaining competitive advantage will more and more become a matter of going beyond the port boundaries both in terms of physical investments and managerial capabilities.
Figure 25 (Diagram). The evolution of a port ( Notteboom and Rodrigue,2005)
Notteboom and Rodrigue ( 2005) identified three major steps in port development process as per above figure : setting, expansion and specialization. They argued for regionalization of port for serving other countries in a region for better productivity of port services. Context Bangladesh: having huge potentiality for developing its port as per the model of Bird (1980) as well as regionalization added by Notteboom and Rodrigue ( 2005)..
Changes in trade patterns
Water depth (Ship size-dredging)
Cargo Handling Technology
(Region, Country, City and others)
Labour /Trade Unions
Figure 26(Diagram). Factors constraining port development ( Alderton,2005)
A public ( Hershman & Bittner,1988: p 52)port is charged with operating in the public interest. It must be attentive to new ideas and opportunities, and to change in the community's values. furthermore, a public port 's organisational structure and operating procedures should encourage flexibility, for the organisation must have the power, financial resources and administrative mechanism to act on new opportunities.
Seaport (Olson,1988: p.307) accountability may appear straightforward enough at first glance: if seaports are public agencies created by government, they should be required to render an accounting for their actions and their performance according to well-established standards regularly applied to government departments..
Port ( Comtois and Rimmer,2004)system development depends on the three major cities : Port ranges. The hinterland and the intermodal split
Environmental (Wooldridge & Stojanovic,2004: p.191 )management of ports and port areas concerns the functional organisation of activities and operations specifically to attain high standards of environmental protection and the goal of sustainable development.
For developing a hub port, Samanta and Mohanty (2005) identified three kinds of facilitators in nature as follows:
Physical Facilitators like suitable geographic location, deeper draft channel and berths, adequate aggregation of cargo, well developed cargo feeder network, sophisticated cargo handling equipments and sound labour practice.
Financial Facilitators for maintaining the port tariff rationale and economically
Procedural Facilitators for framing the appropriate but simplified customs procedures and other laws.
Containerisation (Reveley & Tull,2002:142) in particular required coordination between port and city planning over transport links and a shift of focus from ports alone to the total transport chain linking producers and consumers. The Container ( Notteboom,2005: p.173) and inter-modality concept in a metamorphosis, characterised by technological innovations and changes in the organisation and structure of the distribution system.
The economics (Rinman & Linden, 1978:p.130) of port investment ought to be based on a short enough lifetime of the installations to allow ongoing adaptation of facilities to meet the constant changes to which the modern transport industry is subject.
Alderton (1984: p 180) Ports may be serving a regional trade and traffic may be dislocated by decisions of neighbouring countries.
Song and Lee ( 2005:p145) defined that a hub port is an area serving such functions as a transhipment centre and a gateway for the larger hinterland by connecting mainline services with various feeder networks.
Song and Lee ( 2005;p148) recognized six dimensions for determining port selection factors which are as follows:-
Port Infrastructure and Port Equipment
Port Service Quality and Scope
The Carriers service in port and
The development(Reveley & Tull,2002:142) and operation of ports requires cooperation and coordination between a myriad of public and private agencies, including port authorities, road and rail authorities, local councils, shipping companies, stevedoring companies and shipping agents.
In the privatization(Reveley & Tull,2002:145) and deregulation wave that ensued, two main arguments were used to justify moves away from the central planning of ports. First, competition encourages ports to provide better and cheaper services. Second. Port users have the maximum freedom to pick a port that matches their needs, which in theory leads to the efficient movements of ships, cargoes and passengers.
Regarding port privatization, Dowd ( 1988) positioned that privatization is not such a good idea. He argued that " A public body can make decisions that are much more long term than a private organisation. A private organisation is worried about next quarter's results but a public agency would more willing (and able) to accept lean years to accomplish something in the long run.p-225"
The impact ( Everett, 2005:p-99) of deregulation has been so significant that stevedoring companies and rail and truck operators as traditional modal operators have significantly restructured their operations in order to become market focused third party service providers of a range of integrated functions.
A review ( Baird,2005) of survey is undertaken by IAPH during 1998-99 focusing on the world's top 100 container ports and Baird highlighted the advantages and disadvantages of port privatization on the light of that survey. IAPH ( 1999) survey found (50% argued) that the basic aim of port privatization is to reduce the cost and improve the efficiency.
Figure 27 (Chart) Advantages of Port Privatization (Baird,2005: p137)
Other- Keeping carriers in a port, better facilitation of development
Figure 28 ( Chart) Disadvantages of Port Privatization (Baird,2005: p137)
Other. unfair competition, inadequate income , difficulties coordinating public and private investment,
Port (Branch ,1998:p.172) Privatization offers an injection of private capital into the business, a greater focus on automation and productivity and, above all, a market-led strategy.
Branch (1998:p.172) argued that port privatization encourages all employees to develop a marketing focus to raise the profile of the port and attract more business through being more competitive and providing quality of service .
ownership improves productivity and efficiency, thereby enhancing overall economic performance.
Justifying the privatization of port Tull and Reveley (2008) argued that a mixture of economic, budgetary and ideological reasons has driven the privatization .
EXAMPLE OF PORT
Landside(Haarmeyer &Yorke, 1993) port property and fixtures of the country's major ports are generally owned by state and local governments with government port authorities acting as the governing entity
Bringing the key success factors of Singapore Port, Tongzon (2005) found the followings:-
High level of operational efficiency
High port connectivity
Adequate info-Structure ( Port Song and Lee ( 2005;p157) community system. Information interchange with custom and between the intermodal organisations.)and a wide range of port services
Tongzon (2005:p 175) refereed that the success of the port of Singapore developed not only its unique geographical location but also the result of proactive government intervention and the effective implementation of appropriate seaport policies also strategies which created an environment that nurtures openness, efficiency and accountability in its port operations and services.
Government-owned (Haarmeyer &Yorke, 1993) and operated ports face many problems. Lacking exposure to full commercial competitive pressures, publicly owned and operated ports may have reduced incentive to operate efficiently and are often subject to political interference. These public ports can absorb scarce funds from local governments and drag down local economies. On the other hand, efficiently operated public ports, such as the ports of Los Angeles and Long Beach, are often targeted by cities that want to siphon off surplus funds.
The natural ( Farthing and Brownrigg,1997:p82`)tendency of all nations, including the traditional maritime countries, is to look at shipping from their own national perspective and to see where they can gain an advantage.
Shipping ( Boyce,2008: p.165) has always been a "networked" industry, and its history therefore has much to offer in terms of insights into the structure, processes and dynamics of the organisational form.
Branch (1988)argued that ship operations is highly depends on the maximum efficiency of port especially in ship turnaround time. He also stated that good road, rail and canal communication should be available for increasing the port productivity.