Payra port unfurling wings as marine traffic rises

The country's third seaport, Payra Port, has been witnessing a steady increase in marine traffic over the years as major local conglomerates are opting to bring in bulk cargo through this port located in the southern district of Patuakhali -- 272 kilometres from the capital.

With the construction of the port's first terminal scheduled to be completed this month, the port authority is making big promises for local businesses in external trade.

However, to fully realise these benefits, industries and shippers call for the prompt completion of port infrastructure, approach roads and bridges to connect Payra Port to the national road network.

Currently, goods are being shipped to and from the port using lighter vessels via inland river routes.

Construction of Payra Port began in 2013 while the port began commercial operations in August 2016. In fiscal year 2016-17, only 10 ships arrived at the port. By 2023-24, marine traffic increased to 1,040 ships, according to port authority data.

Moreover, as of the last week of October, the port handled 3,160 ships, including 484 foreign vessels, according to the Payra Port Authority, fetching Tk 1,576 crore in government revenue.

Currently, local industrial conglomerate Meghna Group is importing clinker and limestone from Vietnam through the port.

The conglomerate unloads the import cargo from the outer anchorage onto lighter vessels for transportation to Meghna Ghat in Sonargaon of Narayanganj, according to Jamal Hossain Jamil, manager of United Shipping Lines of Meghna Group.

The port authority says imports through Payra Port include limestone, cement clinker, stones, plant machinery, project cargo, dredging equipment and liquefied petroleum gas (LPG).

Jamil told The Daily Star that if basic port facilities, such as road connectivity, integrated customs clearance and banking services, are ensured, other importers will also prefer the port.

Officials said the construction of several port related infrastructures, including the first terminal, a bridge over the Andharmanik river and 6-lane connecting roads, is nearing completion.

For now, the port authority has arranged a ferry service over the Andharmanik river to transport goods-laden vehicles from December this year.

So far, the progress of Andharmanik bridge construction is 46 percent, said Payra Port Chairman Rear Admiral Abdullah Al Mamun Chowdhury. He said the first terminal project is nearing completion.

The construction of the jetty, yard and a 6-lane approach road are 97 percent, 96 percent and 70 percent complete respectively. "Efforts are underway to finish these works promptly," he added.

Apart from port infrastructure, port users also seek customs and banking services on the Payra Port premises. Currently, they have to avail these services from Patuakhali town, around 50 kilometres away from the port.

In August 2016, the National Board of Revenue (NBR) declared Payra Customs a customs warehouse. Although licences were issued for 19 clearing and forwarding (C&F) agents and 11 shipping agents for import-export operations, customs operations are still being conducted in a rented house in Patuakhali town.

"This is frustrating," said Kazi Belal Uddin, chief executive officer of Radiant Shipping. "We want the port authority to ensure that all port services are available under one roof."

Another major challenge for port operations appears to be navigability.

While the port authority claims that ships with a draft of around 10 metres can reach the jetty, only ships with a draft of 6-7 metres can currently do so, according to Abu Saeed, a top official of Radiant Shipping.

For shipping agents like Saeed, poor navigability requires unloading cargo onto lighter vessels offshore, which increases operational costs.

"Importers will benefit if adequate port navigability is ensured," he said.

Regarding the issue, Payra Port Chairman Rear Admiral Abdullah Al Mamun Chowdhury said capital dredging of the port was completed last year. Currently, maintenance dredging is underway.

"We are committed to facilitating external trade through Payra," he said. "Local businesses will receive all necessary support to use this port."