The
feasible risk elements for the off-dock industry will depend on its area of
operation in the industry and industry dynamics. The key common risk factors
include the degree of competition, international trade volume, port situation,
market changes, political risk, and global trade policies. Off-Dock operation
is highly established on the effectivity of handling exports and imports by
Chattogram Port that generates from the International exchange of the Country.
Therefore, any disruption in Chattogram Port operation will have an adverse
influence on the trade volume of the Country and have a consequential impact on
the business of the Company. Besides the dependency on Chattogram Port, the
project is close to the Bay of Bengal and thereby risking the opportunity of
being affected by sea driven natural calamities. Some of these companies (Container
Yard) was the largest individual ICD in Bangladesh, but after the amalgamation
of Summit Alliance Port Ltd. (SAPL), and Ocean Container Ltd. in 2012, SAPL
becomes the biggest ICD. Other major ICDs are KDS, BM container Depot, and Port
link, etc.
However,
recently developed safety embankment by the Bangladesh Water Development Board
has reduced this risk greatly. Furthermore, the equal embankment has been
earmarked to be a phase of the Asian Super Highway, which should lead to further
strengthening of the structure and thereby minimizing any potential risk from
sea driven calamities. Finally, all Off-Dock Companies are dependent on
renewing permission/clearance from Chattogram Custom House (NBR), Chattogram Port
Authority, and different relevant Government Agencies. Delay at any stage can
have a consequential effect on the smooth continuation of the operation.
The industry is observing improvement from the regulators part i.e., National Board
of Revenue (NBR) and Chattogram Port Authority (CPA) became stricter on giving
licenses and has not issued new licenses. It may provide operators with an
established record of accomplishment to grab possibilities in the increasing
volumes of trade as the government permitting imports to be handled more at
Off- Dock Facilities combined with the opening up of transit trade between
Bangladesh and India, Nepal & Bhutan. An increase in export through Shah
Amanat International Airport in Chattogram is also likely to fetch more demand
for the industry.
For stabilizing the competition, Bangladesh Inland Container
Depot Association (BICDA) attempts to rationalize sustainable rates because of
the increasing fuel and labor-related costs. There is also an increasing trend
towards “just in time shipment” where Buyers will look at avoiding high storage
costs at destination countries and instead have the goods prepared at the
Off-Dock which can be sent at short notice. Some of these companies are better
off in their position as customers choose those off-docks which have area and
competitive advantages. two No fixed tariff rate is a major problem in this
industry regarding price. If it is fixed by BICDA (Bangladesh Inland Container
Depot Association), then some of these companies would be able to generate more
revenue due to its capacity. However, the rate is improved during the last
surveillance year, as it is not fixed.
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