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Khulna-Mongla rail project under Indian LoC limping

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Khulna-Mongla rail project under Indian LoC limping

 Mir Mostafizur Rahaman

 

The slow implementation of the Khulna-Mongla rail connectivity project, one of the top priority schemes under the Indian Line of Credit (LoC), raises concern among the stakeholders.

The latest review of the Tk 38 billion (3800 cr) project by both Indian and Bangladesh side shows that only 19 per cent work of the project, which was scheduled to end by June this year, has been completed so far.

India is providing Tk 23 billion, or two-thirds of the cost, of the project.

The project was initiated in 2013 by Bangladesh Railway (BR) with funding from India under LoC. Bangladesh is also financing part of the cost.

Apparently, being worried about the slow pace of the project, which is believed to benefit both India and Bangladesh in transporting goods to and from Mongla port, the authorities asked the contractor to finish the work with utmost priority.

This project, when completed, is expected to be a major contributor to connectivity in the BBIN region. It, hopefully, would also boost business in the region that covers Bangladesh, India, Nepal and Bhutan through Mongla, the country’s second-largest seaport.

A relevant official committee has recently instructed the contractor, IRCON to complete Fultala to Aranghata (0 to 9 km of this project) section by December/2018 without any pre-condition.

The IRCON was also instructed to mobilise equipment and project personnel as per the existing contract, according to the minutes of the meeting of the committee, held recently in the ERD to review the LoC-funded projects.

The meeting also observed that the work progress of the Rupsha Bridge is relatively satisfactory.

However, a proposal to allocate more funds for a component of the project is lying with Bangladesh Railway.

“The cost of this project may increase by around US$ 70 million. The Project Director informed that US$ 10 million was re-allocated to the 2nd Bhairab and 2nd Titas project. Altogether, US$ 80 million additional fund may be required to complete this component of the project,” the review said.

The meeting decided that the proposal for cost hike for Rupsha bridge due to additional base grouting requirement will be processed by Project Director through proper channels.

It said there may be two cost hike proposals, of which the first proposal will be processed by Bangladesh Railway by October 2018 and the second proposal may be processed three months after processing of the first project.

The meeting also decided that Fultala to Aranghata (0 to 9 km) should be completed by December 2018 without any pre-condition.

The Indian representative in the meeting said the speedy implementation of the LoC projects was their highest priority.

Larsen and Toubro Limited got Tk 10.76 billion Rupsha railway bridge construction work and IRCON International Ltd. received Tk 11.49 billion work to construct embankment, track, all civil works, major and minor bridges and culverts.

There will be nine stations to connect Khulna and Mongla port.

Meanwhile, the cabinet committee on government purchase approved the appointment of another consultant for this project on Wednesday.

Japan’s Sojitz in $500m tie-up with Energypac

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Japan’s Sojitz in $500m tie-up with Energypac

It eyes investment in energy, infrastructure
Jagaran Chakma

Sojitz Corporation, one of the leading business groups in Japan, is keen to make massive investment in Bangladesh’s energy and infrastructure sectors and industrial park.

It has already teamed up with Energypac Power Generation Ltd, a local conglomerate, and is seeking to establish a port at the Mirsarai economic zone over 1,000 acres of land.

The joint venture would initially invest $500 million and it would go up to $2 billion phase by phase, Humayun Rashid, managing director of Energypac, told The Daily Star.

The corporation is set to sign a memorandum of understanding (MoU) with the Bangladesh Economic Zones Authority (Beza) on October 21 to start feasibility studies.

Md Harunur Rashid, executive member for investment and promotion of the Beza, said Sojitz Corporation has a long-term investment plan for Bangladesh.

Sojitz has placed a proposal seeking 1,000 acres of land to establish a service-oriented industrial park, including a port at the Mirsarai economic zone, he said.

He said development of energy, infrastructure and industrial park was the key targets of the company in Bangladesh at the moment.

Sojitz is also keen to develop businesses in various industries such as machinery, chemical, medical, renewable energy, coal, food and textiles, said the executive member.

“Sojitz’s investment will be a quality one and attract foreign direct investment.”

Humayun Rashid said basically, Sojitz’s plan is to establish an infrastructure project to provide services for handling bulk materials through constructing a port, where mother vessels will anchor.

The Chittagong Port can’t provide the service for bulk materials handling due to a lack of technology and required space. Sojitz will provide the service, easing the cost of doing business, he said.

The entrepreneur hopes to start the project implementation work within one and a half years after carrying out different feasibility studies.

Energypac and Sojitz Corporation have already signed an MoU to implement the project.

Sojitz has been working in Bangladesh since 1951 and was the contractor of a number of projects, including the Sonargaon hotel and an integrated steel plant in Chattogram.

In the same year, the corporation opened liaison offices in Dhaka and Chittagong but they were closed in 2004. On August 8, Sojitz, however, opened an office in Dhaka.

The new Dhaka office will focus on promoting projects in the energy and social infrastructure sectors, said Sojitz in a statement.

ECNEC approves record number of projects worth Tk 325.25b

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ECNEC approves record number of projects worth Tk 325.25b

Mega fertiliser factory to be set up at Ghorashal

FE Report 

The government approved on Tuesday a record number of 20 development projects at a total cost of Tk 325.25 billion ahead of the national election.

Presided over by Prime Minister Sheikh Hasina, the Executive Committee of the National Economic Council (ECNEC) endorsed the projects at its meeting at the Planning Commission (PC) in Dhaka.

After the meeting, Planning Minister AHM Mustafa Kamal at a press briefing said 14 projects out of 20 are fresh ones while the remaining six are revised ones.

“The present government holds ECNEC meeting almost every week where it approved maximum 16 projects in the past. But today it has endorsed a record number of 20 projects. As the election is nearing, a large number of projects have been approved,” said a senior PC official.

The planning minister said out of the total project cost, Tk 154.94 billion will come from government’s internal sources while Tk 116.56 billion from implementing agencies’ own fund and the rest Tk 53.74 billion as project assistance.

The ECNEC approved a project for carrying fuel oil through pipeline from Chattogram to Dhaka at a cost of Tk 28.61 billion.

Bangladesh Petroleum Corporation (BPC) under the Ministry of Power, Energy and Mineral Resources will implement the project by December 2020.

The planning minister said once the project is implemented, it will be possible to transport fuel oil in lesser time and in a cost-efficient way. The system loss in fuel oil transportation will also reduce, he added.

The ECNEC also endorsed a mega project to set up a granular urea fertiliser factory at Ghorashal in Polash upazila of Narsingdi district at a cost of Tk 104.61 billion aiming to meet the country’s growing demand for fertiliser.

The annual production capacity of the proposed factory will be 0.924 million tonnes.

The other projects approved by the ECNEC are Bangladesh: Emergency Assistance Project (LGED portion) at a cost of Tk 2.97 billion, Construction, renovation and development of Bangabandhu Sheikh Mujib Killa at Tk 19.57 billion, Emergency Assistance Project-BREB portion (Electrification for the forcibly displaced Myanmar nationals taking shelter in Cox’s Bazar) at Tk 1.04 billion, Rural connectivity improvement at Tk 36.67 billion, Upgrading Gobindaganj-Ghoraghat-Birampur-Fulbari-Dinajpur (R-585) regional highway at Tk 8.83 billion, and Development and rehabilitation of important and affected roads under Khulna City Corporation at Tk 6.07 billion.

Ground level heightening, wave protection and embankment protection works of Mithamain army establishment in Mithamain upazila under Kishoreganj district at Tk 3.05 billion, Protecting the right embankment of Gangachara River under Rangpur district and Teesta River under Rangpur Sadar upazila (1st revised) at Tk 1.69 billion, and Protecting both embankments of Karnaphuli and Ichamati Rivers, Shilok canal and other canals under Rangunia, Boalkhali and Kaptai upazilas at Tk 3.99 billion were also approved.

The rest of the projects are: Developing Cox’s Bazar-Teknaf Road (N-1) at Tk 4.58 billion, Cross-border road network improvement project (1st revised) at Tk 36.84 billion, Establishment of new campus of Jagannath University: land acquisition and development at Tk 19.21 billion, Establishment of Fire Service and Civil Defence Station in important (revised) upazila headquarters (2nd revised) at Tk 4.19 billion, Establishment of Shaheed M Mansur Ali Medical College and 500-bed Medical College Hospital, Sirajganj (1st revised) at Tk 8.83 billion, Extending infrastructural facilities of existing 12 existing cadet colleges in the country at Tk 4.28 billion, Rural infrastructures development (Cumilla, Brahmanbaria and Chandpur districts) (2nd revised) at Tk 7.69 billion, Construction of Kodamrasul Bridge over River Shitalakhya near ghat number 5 under Narayanganj City Corporation at Tk 5.90 billion and Flood control, and Road-cum-embankment protection and drainage works for Bangladesh Economic Zone at Mirsarai under Chattogram (1st revised) at Tk 16.57 billion.

Ministers, PC members and government high officials were present at the meeting.

28pc banks not ready to thwart large-scale cyber attacks

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28pc banks not ready to thwart large-scale cyber attacks

More than two-thirds of banks faced at least one attack last yr

FE Report 

 

Some 28 per cent of the banks operating in the country are not prepared to thwart possible large-scale cyber attacks.

On the other hand, 34 per cent of the banks are partially prepared and remaining 38 per cent are fully prepared to handle such possible digital security threats, a research paper revealed.

The research was conducted by the Bangladesh Institute of Bank Management (BIBM).

The researchers presented the findings at a seminar on ‘IT security of banks in Bangladesh: Threats and preparedness’, organised by the BIBM at its office in the city on Sunday.

Former Deputy Governor of Bangladesh Bank Abu Hena Mohd Razee Hassan attended the seminar as the chief guest with BIBM Director General (DG) Dr Toufic Ahmad Choudhury in the chair.

Managing Director (MD) and Chief Executive Officer (CEO) of Islami Bank Bangladesh Limited Md Mahbub-ul-Alam, country manager of Commercial Bank of Ceylon PLC Varuna Priyashanta Kolamunna, and systems manager of Bangladesh Bank’s information systems development department Debdulal Roy spoke in the seminar, among others.

An associate professor of the BIBM Md Mahbubur Rahman Alam presented the research findings at the seminar.

The research paper said the IT security threat in Bangladesh is gradually increasing in tandem with the global trend.

“Delays in adopting a sound cyber security hygiene could result in a US$ 3.0 trillion loss in economic value by 2020. Reputational impact can reach to $180 million,” the paper said quoting the World Economic Forum (WEF).

Referring to findings of a global consultancy company the paper said financial service sector is the second highest sector (24 per cent) to have witnessed cyber attack following technology, media and telecommunication sector across the globe.

Around 93 per cent of cyber attacks aim to financial gain across the globe, the research report said quoting Ernst & Young.

The banks in Bangladesh are now facing increased number of security threats and cyber attacks than earlier.

“In the last year, 68% of the banks have experienced at least one attack, most commonly in the form of malware, subsequently followed by Spam and Phising attacks,” the report said, adding that: “Of these, 24 % have had their network intruded in some way of at a significant cost to the business”.

Besides financial losses, the hacking instances leave a negative impact on the morale of workforce and organisations’ reputation in every case.

The research identified human error as the key reason (69 per cent) behind security breach and data losses in the country’s banking sector.

“Human error occurs when an employee does not know how to do the work due to inappropriate training or lack of experience,” the report said. Globally human error invites 95 per cent of cyber threat.

Besides, banks’ internal and external sabotage is liable for 13 per cent and 3.0 per cent security breaches in the systems respectively.

Analyzing 50 fraud cases as a sample, the report said rate of frauds related to mobile financial services (MFS), automated teller machine (ATM) and plastic card transactions are higher than all others categories.

The research report has been prepared on the basis of data collected from 45 banks covering all categories operating in the country, survey of 750 customers and 450 employees.

The report also presented a set of recommendations to strengthen banks’ capacity to handle cyber risks and attacks.

The banks should address the security issues with adequate hardware, software and manpower.

“Every bank should strengthen IT security department in ICT division,” the paper said, adding that recruitment of ethical hacker and deployment of a skilled IT security control and monitoring are the crying need for the banks.

The report also underscored the need for creating awareness among the clients through counselling, advertising and distributing leaflets about cyber risks.

The central bank may take initiatives to develop Information Sharing and Analysis Centres (ISACs), where stakeholders can exchange their experiences about digital security threats.

“An institution like IDRBT (Institute for Development and Research in Banking Technology), which is set up by the Reserve Bank of India can be formed immediately in Bangladesh. Moreover, a computer Emergency Readiness Team may be formed for disaster recovery of the banking sector.

Speaking on the occasion, Mohd Razee Hassan lauded the collective efforts of the country’s central bank and commercial banks, scheduled banks for conducting inter-bank online transactions.

But some banks are yet to upgrade their IT infrastructure, he said.

“Although huge investment and ICT development have been observed, cyber security has not been properly addressed by the banking sector of Bangladesh making banking information and infrastructures vulnerable to sophisticated cyber-attacks,” he added.

Cambodia raises minimum wage for garment workers by $12

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Cambodia raises minimum wage for garment workers by $12

Afp, Phnom Penh

Cambodia hiked the monthly minimum wage for garment workers by $12 Friday from the current $170 following an election promise by premier Hun Sen.

The country’s $7 billion apparel industry is fuelled by more than 740,000 garment workers, who strongman Hun Sen attempted to woo before July’s widely-criticised elections.

The poll was derided internationally after the only credible opposition party was disbanded before the vote, handing the premier’s ruling party all 125 seats.

Union representatives stopped short of welcoming the wage increase, which they say is not enough to address rising inflation and living expenses.

“It does not satisfy us yet. We were demanding an increase of at least $15 a month,” Ath Thorn of the Coalition of Cambodia Apparel Workers Democratic Union told AFP.

But Kaing Monika from GMAC — an association representing the owners of exporting factories — said the increase would test Cambodia’s competitiveness against neighbouring Vietnam.

“Our electricity and water bill is still higher than Vietnam,” Kaing Monika said. “So next year will be a test for Cambodia on whether we are able to compete.”

Hun Sen, who has been in power for more than 33 years, came under fire last month in the European Parliament for his authoritarian chokehold on opponents and dissent.

The bloc warned Friday said a “procedure of withdrawal” would begin for Cambodia to leave the “Everything But Arms” trade scheme, which allows tariff-free exports to the EU bloc.

Post offices to make e-commerce delivery

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Post offices to make e-commerce delivery

Star Business Report

Bangladesh Post Office will deliver parcels for online marketplaces to all parts of the country from now onwards, in a development that can be viewed as a shot in the arm for the e-commerce players.

“The post office has the largest delivery platform and e-commerce entrepreneurs could use this infrastructure to reach the remotest parts of the country easily,” said Posts, Telecommunication and ICT Minister Mustafa Jabbar at the inauguration of e-post, Bangladesh Post Office’s dedicated department for e-commerce deliveries.

Until now, the delivery channels available to the e-commerce platforms were restricted to the urban areas, meaning a large chunk of the market was cut off to them. “I hope the e-commerce sector flourishes with the help of post offices,” Jabbar said.

Bangladesh’s e-commerce market is now worth more than Tk 2,000 crore a year, with annual growth of 8 to 10 percent, according to industry insiders.

The new delivery arrangement comes after the e-Commerce Association of Bangladesh (e-CAB) struck a deal with the postal division two years ago.

Since then, the e-CAB has trained a good number of delivery persons in about 100 post offices, including those in all the district headquarters, and conducted test runs in the capital last year with major e-commerce players like bagdoom, priyoshop, ajkerdeal and daraz.

Yesterday, the e-CAB handed over 100 smartphones to the post office through which it can keep track of the packages booked for delivery by the e-commerce ventures.

Bangladesh Post Office has a vast network of 8,500 post offices, according to its Director General Sushanta Kumar Mandal.

“We have modernised the services in a big way over the past few years and hope to better serve people with the launch of e-post,” he added.

The e-commerce players will use the Bangladesh Post Office for deliveries outside of the major cities. The e-commerce platforms will have to drop off the packages at the post office for delivery to the customer.

Currently, about 30,000 products bought from the online marketplaces are delivered every day.

“It will increase by at least threefold when the postal division starts full-fledged functions,” said Abdul Wahed Tomal, general secretary of the e-CAB.

Telecom Secretary Shyam Sunder Sikder and e-CAB President Shomi Kaiser were also present at the event.

Ecnec to sit again today

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Ecnec to sit again today

Two dozen projects may get nod
Rejaul Karim Byron

The planning ministry has convened another Ecnec meeting today where nearly two dozen projects would be placed, setting a rare example of holding two such meetings in a week.

With general elections knocking on the door, most of the projects are planned for rural and district roads, improvement of electricity distribution system and development in city corporations.

The ministry has already issued a letter for today’s meeting of the Executive Committee of the National Economic Council (Ecnec) to the officials concerned.

Some 19 projects worth around Tk 20,000 crore are likely to be placed in the meeting, officials said.

An Ecnec meeting held on Tuesday approved 20 projects involving Tk 32,525 crore.

Usually the Ecnec meeting is held on Tuesday. If the prime minister is abroad or otherwise busy, the meeting does not take place. In case of emergency projects, an extra meeting is held. If necessary, a meeting would be held every day for the sake of the upcoming national polls, Planning Minister AHM Mustafa Kamal said while replying to queries from reporters after the Ecnec meeting on Tuesday.

He said they expect the GDP growth rate to hit 8.20 percent to 8.25 percent this fiscal year.

During the election, the private sector may reduce investment and prefer observing the situation for two to three months, the minister said. “The number of projects has been increased to compensate the slow pace of growth during the time.”

“If the private sector lags behind, the government will have to take the driving seat and deliver. Now we don’t need to wait for Tuesday.” He also said the Ecnec meeting would be held before and after the announcement of the election schedule as a routine work.

Earlier in August, Kamal in a meeting directed all secretaries to get their projects approved by September, as the election-time government—if it is formed— will do only routine work and it cannot take any policy decision.

In today’s Ecnec meeting, a project will be placed for land acquisition to elevate the Faridpur-Bhanga-Barishal-Patuakhali-Kuakata highway into a four-lane one. Another project is on the development of Bairagir Pool (Barishal)-Tumchar-Baufal (Patuakhali) district highway.

One is on the development of Nandigram (Omarpur)-Akkelpur (Gopinathpur) district highway and Nandigram to Raninagar district highway.

Two more will be placed for the development of rural infrastructure in Jashore, Khulna, Bagerhat and Satkhira districts.

A project is going to be placed for the improvement of the electricity distribution system in Chattogram. Another project is for the improvement of a road network and construction of bus terminals in different wards of Chattogram City Corporation.

Another project involved developing the lake around the well-off Gulshan neighbourhood.

FTA with Sri Lanka soon: Tofail

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FTA with Sri Lanka soon: Tofail

Star Business Report

Bangladesh expects to sign a free trade agreement with Sri Lanka during the tenure of the incumbent government as both countries have already completed looking into the feasibility, Commerce Minister Tofail Ahmed said yesterday.

He disclosed this without elaborating in response to a query from reporters after a meeting with Malik Samarawickrama, Sri Lankan minister for development strategies and international development, at his secretariat office in Dhaka.

“We agreed to finalise the joint feasibility study that was conducted by both countries with a view to signing the FTA between the two countries,” Ahmed said.

“After finalising the joint study, we will sign the FTA within the tenure of the current government,” he said.

The national election in Bangladesh may take place in late December or early January.

The nature of the agreement will be a little bit different as it will cover not only the duties but also the services sector and investment, Ahmed said.

He invited Sri Lankans to invest in the special economic zones Bangladesh is developing across the country.

“Joint feasibility study has been done by our two governments and I am told that it would be completed by the end of this October,” said Samarawickrama.

He was talking to reporters after a meeting with the leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at its office in Dhaka.

Siddiqur Rahman, the BGMEA president, said a joint working committee would be formed engaging garment exporters of both countries to produce value-added apparel items for exports to European markets.

He said the formation of the committee was still at the very initial stage. When it comes to producing some garment items, Bangladesh is still very weak but Sri Lanka is strong, he said.

In those cases, Bangladesh’s manufacturers will produce the basic garments and send them to Sri Lankan garment factories for more value addition under the “Made in Bangladesh” tag, said Rahman.

Moreover, Sri Lanka is in an advantageous position because of its sea ports, which are closer to European markets than Bangladesh’s Chittagong port, he said, adding that Bangladesh would also use the Sri Lankan ports to its benefit.

The BGMEA leader said Sri Lanka is at least two weeks ahead in lead time compared to Bangladesh thanks to its geographical location.

A shorter lead time is very important in fast fashion as buyers always want quick shipment of goods, he added.

Rahman said a delegation from the BGMEA would hold a meeting with Sri Lankan government officials and garment traders in the island nation next month.

Ahmed also said four direct flights between Dhaka and Colombo could be introduced by coming April to improve communication between the two countries.

Regent Airways, a local airline, has already been allowed to operate direct flights between Dhaka and Colombo, according to a statement from the commerce ministry.

Last fiscal year, Bangladesh exported goods worth $30.02 million to Sri Lanka while importing goods worth $47.80 million, commerce ministry data showed.

Ecnec’s flurry of project approval continues

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Ecnec’s flurry of project approval continues

Star Business Report

The Ecnec yesterday approved 17 projects including one for land acquisition to elevate the Faridpur-Kuakata highway into a four lane one to establish smooth communication with the tourist spot.

These take the total number of projects approved this week by the Executive Committee of the National Economic Council to 37.

After the meeting, Planning Minister AHM Mustafa Kamal told reporters that typically in the lead-up to a national election the private sector feels hesitant about taking any big investment decisions.

The slump in private investment is being compensated with public investment and hence the flurry of project approvals.

Some 32 more projects are ready at the Ecnec secretariat for approval.

“We may have to hold two more Ecnec meetings,” he said, adding that the meetings have no connection with the polls-time government.

At the meeting yesterday, which was chaired by Prime Minister Sheikh Hasina, the 17 projects that got the green light would cost Tk 14,200 crore.

Of the total, only Tk 195 crore would be foreign funding; the rest would come from the government’s own source.

One of the projects that got approval pertains to acquisition of 302 acres of land to elevate the Faridpur-Bhanga-Barishal-Patuakhali-Kuakata highway into a four-lane.

The project will cost Tk 1,886 crore and will include setting up of various utilities.

There is already a two-lane road from Faridpur to Kuakata; it will be elevated to four lane and service lanes will be provided on the both sides.

According to the project proposal, once the Padma Bridge is completed the four lane road will play a significant role in building a safe and quick communication with Dhaka.

After the land is acquired, another project will be taken to upgrade the Faridpur-Kuakata road into a four lane.

Ecnec also gave its nod to another project involving Tk 4,065 crore for building surface water treatment plant for Rajshahi Wasa. Of the project cost, Chinese Exim Bank will finance Tk 2,313 crore.

Under the project, water from the Padma river will be treated for Rajshahi Wasa. The plant will be able to treat 20 crore litres of water a day, which will meet the full demand of Rajshahi city, according to the project document.

Ecnec also approved a project for improvement of the electricity distribution system in Chattogram at a cost of Tk 2,551 crore.

Another project involving Tk 1,230 crore was approved for improvement of a road network and construction of bus terminals in different wards of Chattogram City Corporation.

Two more projects worth Tk 1,889 crore were approved for the development of rural infrastructure in Jashore, Khulna, Bagerhat and Satkhira districts.

In yesterday’s Ecnec meeting two more projects were also placed, including a project for developing the lake around the Gulshan neighbourhood. But the two projects were withdrawn. The cost of Gulshan Lake Development project was about Tk 5,000 crore.

For implementing the Gulshan Lake Development project, about 12,000 slum dwellers will have to be shifted, Kamal said.

“The prime minister gave a directive that the project cannot be implemented without rehabilitating the slum dwellers,” he added.

Meanwhile, an Ecnec meeting held on Tuesday approved 20 projects involving Tk 32,525 crore.

Deal this month to let India use Ctg, Mongla ports

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Deal this month to let India use Ctg, Mongla ports

Star Business Report

Dhaka and New Delhi are going to sign an agreement this month allowing India to use the Chittagong and Mongla ports to transport cargoes to its north-eastern states.

Replying to journalists’ queries at a press conference in the shipping ministry yesterday, Secretary Md Abdus Samad said a Standard Operational Procedure (SOP) would be prepared after the signing and India could then use the ports.

The press meet was organised marking a two-day international conference beginning in Dhaka tomorrow. Shipping Minister Shajahan Khan was present.

Samad said India would not pay customs duties as per the principles of the General Agreement on Tariffs and Trade.

However, other fees and charges will be applicable on Indian goods to be transported through the ports to the north-eastern states, he said.

He said the amount of fees and other charges would be mentioned in the SOP.

In transporting goods through Bangladeshi territory India will have to use local transports.

The shipping secretary said there would be no problem in the Chittagong and Mongla ports in handling Indian goods.

He said the capacities of the ports have been increased greatly.

The Chittagong Port earlier had four gantry cranes. The government has already approved the purchase of 10 gantry cranes, three of which have already been set up.  Three more are in the process of being installed.

Besides, a bay terminal is being set up in Chittagong. On the other hand, the Mongla port has been modernised.

The cabinet on September 17 approved a draft agreement on the use of the two ports.

After the cabinet meeting at the secretariat, Cabinet Secretary Mohammad Shafiul Alam said Nepal and Bhutan could be included if they wish to use the two ports.

Bangladesh and India signed a memorandum of understanding on the use of the two ports during Indian Prime Minister Narendra Modi’s visit to Dhaka in June 2015.

The deal will have the duration of five years but it could be extended automatically for another five years. Any side can cancel the agreement on six months’ notice alongside suspending it if the necessity arises.

Should a problem arise in implementing the agreement, several committees of both countries would resolve it.

As per the deal, Indian goods can be transported through four entry points: Akhaura in Bangladesh and Agartala in India; Tamabil in Sylhet and Dauki in Meghalaya; Sheola in Sylhet and Sutarkandi in Assam; and Bibirbazar in Cumilla and Srimantapur in Tripura.