Photo : Collected
Imports at Bhomra land port in Satkhira have halved recently. Previously, the port witnessed an average of 400 to 450 Indian cargo trucks entering daily, but this figure has plummeted to below 200. Businessmen attribute this decline to the ongoing dollar crisis, compounded by issues such as underdeveloped port infrastructure, business harassment, and a perceived lack of competent leadership.
According to port sources, Bhomra Land Port in Satkhira was established in 1996 and stands as the third-largest land port in the country. Its strategic location, with proximity to India's Kolkata and Haldia ports, makes it a preferred choice for import-export trade due to reduced distances compared to other ports in Bangladesh. Presently, over 500 businessmen actively engage in import and export activities through this port.
Previously, the port generated daily revenue ranging from 3 to 3.5 crore taka, resulting in an annual revenue collection of approximately Tk 1100 crores. However, in the fiscal year 2022-23, the target for revenue collection at the port was set at 1,026 crore taka. Unfortunately, due to a decrease in imports, the actual revenue collected amounted to only 631 crore 70 crore taka.
As a result, the target for revenue collection in the fiscal year 2023-24 has been revised downwards to Tk 853 crore 99 lakh, reflecting the challenges posed by the decline in imports.
Concerns have arisen regarding revenue fulfillment for the current fiscal year (FY 22-23) due to a continued decrease in imports attributed to various factors. This trend has persisted for several months, leading to apprehensions about meeting revenue targets.
For instance, from January 17 to January 24, the number of Indian cargo trucks entering Bangladesh through the Bhomra land port was as follows: January 17 (143 trucks), January 18 (149 trucks), January 19 (149 trucks), January 20 (149 trucks), January 21 (168 trucks), January 22 (109 trucks), January 23 (159 trucks), and January 24 (159 trucks).
Concerned individuals have raised complaints regarding traders shying away from utilising the Bhomra land port due to instances of business harassment. Additionally, the ongoing dollar crisis has compounded challenges, with banks struggling to issue loans promptly. Previously, loans could be acquired with a 10 percent margin, but now, due to stringent measures, loans must be secured at 150 percent.
Furthermore, the devaluation of the taka has exacerbated the situation, as loans are sanctioned at a dollar rate of 115 taka, while the exchange rate for bill clearance is set at 125 taka per dollar. This discrepancy has resulted in financial losses for importers, prompting a significant decline in imports through the Bhomra land port. These combined factors have contributed to a notable reduction in trade activity at the port.
Several businessmen, speaking anonymously, have disclosed that while 72 types of products are permitted for import through the Bhomra land port, only 22 products are imported regularly. Most of these imports consist of raw materials and fruits. However, it has been observed that no fruits have been imported through this port in recent months.
Furthermore, there have been delays in the release of goods imported from India upon arrival at the Bhomra port. The port authority's hesitation to promptly unload these goods has resulted in raw materials beginning to rot inside the trucks, adversely affecting businessmen. These delays and inefficiencies in cargo handling have further compounded the challenges faced by traders utilising the Bhomra land port for import activities.
The traders have asserted that they prioritise importing goods where they receive the most favorable benefits, and unfortunately, no concessions are granted for imports through the Bhomra port. Consequently, traders have shifted their focus away from Bhomra port.
They have identified several factors contributing to the decline in imports at the Bhomra land port. These include a perceived dual policy, slow pace of infrastructure development, neglect from local political leaders, and poor coordination among the three departments of the port. Traders at Bhomra port feel they are not provided with the same level of facilities compared to traders at other ports, such as Benapole.
In the past, raw materials and fruits were primarily imported through Bhomra port. However, the situation has shifted, with these goods now being imported through Benapole port. This shift has led many traders to opt for Benapole port due to its convenience and facilities, resulting in a significant decrease in imports through Bhomra port.
Sheikh Ejaz Ahmed Swapan, the former convener of the Bhomra land port C&F agent association, has highlighted that the decrease in imports at the Bhomra land port cannot be solely attributed to the dollar crisis. He pointed out that import and export operations at other ports across the country are proceeding normally, raising questions about the unusual situation at Bhomra land port.
Swapan emphasised that the root cause lies in the actions of syndicates that have wielded significant control over business activities at the port, resulting in losses for many businessmen. As a consequence, numerous traders have opted to avoid the port altogether, thereby impacting import activities.
Additionally, Swapan underscored the importance of efficient leadership in port development. He lamented the lack of effective leadership, asserting that it has contributed to various challenges faced by businessmen operating at the port. Swapan asserted that the decline in imports is a direct result of these underlying issues plaguing the Bhomra land port.
Maksud Khan, the General Secretary of the Bhomra Land Port C&F Agents Association, has highlighted the significant impact of the dollar crisis on the import of Indian goods through the Bhomra Land Port. Khan stated that since the beginning of the current financial year, business at the port has been adversely affected. Traders are facing restrictions on importing certain goods through Bhomra port, further exacerbating the situation.
Currently, there is a lack of demand for imported goods through Bhomra port in the country's market. As a result, traders have shifted their business operations to other ports. Complicating matters further are issues with LC (Letter of Credit) procedures, compounded by the dollar crisis, which has contributed to the decrease in imports of Indian goods through the port.
Khan emphasised the need to address these challenges and increase import activities at Bhomra port. He suggested that enhancing the port's capacity and eliminating discrimination in import procedures are crucial steps towards achieving this goal. By addressing these issues, the import volume at Bhomra port can be revitalized and contribute to economic growth.
Messenger/Fameema
