China’s Eye On Mongla Port For Operation Management

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China is actively considering Bangladesh’s request for funding modernisation of the Mongla Seaport but wants operations management of the port having potential to become an international shipping hub, says an article published in Financial Express.

Integrated approach

Officials say Beijing awaits response on proposed ‘integrated approach to implementation, operation, maintenance and management of the project’.

Bangladesh sent a proposal to China in April 2019 through a preliminary loan application for funding the project titled ‘Expansion and modernisation of Mongla Port facilities’.

The estimated cost of the project is 350 million US dollars.

“China had recently carried out evaluation of the project and is very much eager and positive about the project,” says one official concerned.

Chinese authorities articulated interest in the integrated approach to construction, implementation, maintenance and management of the project, competent sources said, referring to communication between the Bangladesh Embassy in Beijing and the foreign ministry high-ups.

Awaiting decision

“This implies that they are still awaiting a decision from the government of Bangladesh as to the management, maintenance, and operation of the project are concerned,” a letter to the foreign ministry says.

Shipping ministry officials said that they were yet to get any feedback on the port-uplift venture.

According to the officials, the loan application is under active consideration by China International Development Cooperation Agency (CIDCA), the ODA arm and soft-loan window of the Chinese government.

Bangladesh highlighted importance of the port- modernisation project in a recent meeting with CIDCA officials, saying that the project will contribute to backing up the Bangladesh China India and Myanmar Economic Corridor (BCIM) on the sub-regional plane.

Unique opportunity

The CIDCA officials were told that being the second-largest port of the country, the Mongla Port stands in an important position and can support international and regional trade.

Entire western part of Bangladesh and its adjoining areas are considered hinterland and it has a unique opportunity to play a vital role in the arena of international and regional trade and economy, Bangladeshi officials told their Chinese counterparts narrating the importance of the project.

The Mongla Port Authority (MPA) signed an MoU with China National Complete Engineering Corporation (CNCEC) on August 12, 2015. Later, an agreement was inked with the company on October 6, 2016.

But the company stopped communication with the MPA in 2019, prompting the MPA to scrap the deal.

Later, the MPA signed an agreement with another Chinese company – China Civil Engineering Construction Company (CCECC).

Meanwhile, the MPA recently registered a record in terms of ship arrival, cargo handling, and revenue earning.

Opening up connectivity

In 2020, the port saw a turnout of 970 ships, the highest in its 70-year history. It earned a profit of Tk 1.30 billion from the limited-scale port operations.

Following construction of many mega-infrastructures particularly in Bangladesh’s southern part, especially the Padma Bridge, the port’s importance has increased manifold with vistas of opportunities in trade and connectivity opening up.

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Source: The Financial Express

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