Mongla sends off first RMG cargo as Padma Bridge opens new export route

A large consignment of apparel products was shipped abroad from Mongla port for the first time on Thursday, paving a new corridor for garment exports, as the opening of the Padma Bridge has enhanced the use of the country's second-largest port.

The Maersk Nesna, a ship bearing the flag of Panama, left the port for Poland at 11:30am yesterday, carrying 17 containers of readymade garments made by 27 factories in Dhaka and its surrounding areas.

The ship had arrived at the port jetty on 25 July.

Swedish fashion giant H&M has taken the initiative to ship goods from Mongla port through the Padma Bridge, which will significantly reduce the lead time according to the buyers and industry people who are excited to take advantage of the time and cost savings.

"It is a memorable day for Mongla port," said Rear Admiral Mohammad Musa, chairman of the Mongla Port Authority, adding, "A month after the inauguration of the Padma Bridge, garment shipments have used the bridge to reach Mongla. Garment exports through the port will only grow in the future."

Musa maintained that Mongla port is one of the many institutions in the Southern region of the country whose activities are increasing following the inauguration of the Padma Bridge by Prime Minister Sheikh Hasina on 25 June this year.

Mustafa Kamal, director (Traffic) at Mongla port, told The Business Standard that exporters based in Dhaka and its surrounding areas did not use Mongla port for a number of reasons, especially prolonged wait for ferry to cross the River Padma.

But they have become interested in exporting garment products through Mongla port, buoyed by the potential benefits of the Padma Bridge, he said, adding that the distance between Dhaka and Mongla is only 170 kilometres, while it is 260 kilometres from Dhaka to Chattogram.

"Apparel traders are now keen to import and export goods through this port in order to save time and money, as ship handling at the port has become faster and safer," he added.

Businesses urge capacity building

Mongla Port Authority Chairman Musa told TBS that BGMEA leaders had already held a meeting with him as large apparel manufacturing companies have expressed interest in using this port.

While speaking to TBS on this issue, apparel exporters and buyers said they were excited to use Mongla port as it would significantly reduce their lead time and thus save both time and money.

Increased export-import activities through Mongla port will also reduce pressure on the Dhaka-Chattogram highway and Chattogram port, they added.

Thursday's apparel shipment from Mongla port includes 5 lakh pieces of garments manufactured by Team Group.

Abdullah-Hil-Rakib, managing director of the company, told TBS that Chattogram port currently handles over 90% of Bangladesh's exports and imports and about 98% of container trade. The opening of Padma Bridge and the subsequent rise in export-import trade through Mongla port will reduce dependency on a single port and thus will reduce lead time.

Businesses, however, observed that the port needs to increase capacity, especially by boosting container handling, building container freight stations, and dredging the port channel to facilitate the berthing of larger vessels.

Besides, retailers need more frequent direct vessel operations from the port to ship their goods to Europe and other destinations.

H&M is the largest buyer of Bangladeshi apparel as about 13% of the sector's annual exports go to this company. In fiscal 2021-22, H&M purchased about $5.5 billion worth of apparel products from Bangladesh.

Ziaur Rahman, H&M's regional country manager for Bangladesh, Pakistan, and Africa region, also endorsed the fact that Mongla Port has become the closest and most comfortable port for businesspeople in Dhaka.

At the same time, he mentioned that some major infrastructure works need to be done at Mongla port and building container freight stations (CFS) is an immediate requirement.

The port authority should also increase its cargo handling capacity, he added.

"We have a biweekly vessel to Europe connection. More frequent vessel operations are needed to ship through the port," said the H&M regional country manager.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), praised H&M's move to use Mongla port and said other brands may use this port gradually.

He also asked for increasing the port's capacity.

M Masrur Reaz, chairman of Policy Exchange of Bangladesh, told TBS Mongla port has the potential to do more business, but there remain some challenges – lack of container handling capacity and poor navigability of the port among them.

Development so far

Mongla Port Chairman Mohammad Musa said they have increased the port capacity over the last few years.

The port is now capable of handling 42 ships at a time.

It also has the capacity to handle one crore tonnes of cargo, one lakh TEUs of containers, and 20,000 cars annually.

"We completed the capital dredging of our outer bar in 2020. Besides, the dredging of the 23-km of inner bar will be completed by June next. It will allow ships with a drought of 7-9 metres to anchor at the port."

He further said they have also collected enough equipment for the fast unloading of goods from ships, which will encourage businesses to use the port, adding to the port's revenue.

"We are hopeful that we will be able to earn a record amount of revenue in the current financial year," he concluded.