This document outlines the challenges and prospects of the Bay Container Terminal (BCT) project in Bangladesh. It discusses several challenges for BCT, including construction challenges like building breakwaters and dredging, operational challenges related to vessel operations and yard management, strategic challenges around competition and connectivity, and environmental challenges. Potential strategies to address the challenges include phased development, choosing an appropriate port governance model, and implementing environmental management measures. The document also explores prospects for BCT such as economic growth, increased cargo traffic, and potential to serve as a transshipment hub. Recommendations include implementing BCT as a priority project and improving connectivity through rail upgrades.

1. Challenges & Prospects Of Bay
Container Terminal
A Thesis Defense
A Partial Fulfillment of the
Requirements for the
Degree of Master in Port
& Shipping Management.
Mohimenul Islam
Supervisor: Ahamedul Karim Chowdhury
Chief Executive Officer of ICD, Kamalapur, Dhaka

2. OUTLINE
1. Introduction
2. Statement of the research problems and questions.
3.Research methodology.
4. Review of literature .
5. Over view of BCT
6. Challenges.
7. Strategy to mitigate the challenges.
8. Prospects.
9. Recommendations
10. Conclusion.

3. Statement of the Research Problem & Questions
The research intends to find the answer of the following questions:
 What is the relationship between challenge and prospects?
 What are the issues involved in port sector in Bangladesh?
 What are the challenges for BCT to reduce pressure on existing Chattogram
Port?
 What are the prospects of BCT in Bangladesh?
 What are the strategies to mitigate the challenges of BCT?

4. Objective of the Study
a) Find out the relation between challenge and prospect.
b) Analyze the current mission and vision of Chattogram port.
c) Point out the prospect of BCT.
d) Find out the issues related port industry in Bangladesh.
e) Discuses the potential challenges of overall port development .
f) To proffer the strategies to mitigate the challenges .

5. Conceptual Framework
The concept of this study is to formulate a clear view and a clear statement
that the under construction bay container terminal on coast of BOB has a
good future for the country and economy of the country. So it has different
challenges at the same time it has prospects also.
Challenges are defined as “impediments, obstacles or those things that
make the realization of a desired end state difficult or impossible to achieve”.
Prospect is the possibility that something good might happen in the future.
The possibility or likelihood of some future event occurring or possibility of
being successful that entails the predisposing conditions, events, factors and
signs that the desired event or action may likely occur or the set objectives
attained.

6. Overview of BCT
Bay container Terminal is a new proposed terminal which is seen to be
the new development project of Chittagong port.
The Chittagong Port Authority intends to construct the "Bay Terminal” to
improve the quality of services and develop adequate facilities and
decrease the pressure on the existing Chittagong Port.
The terminal can accommodate vessels with up to 12 m draft and 300 m
length with an area of 1200 acers of land.
Handling capacity 522000 TEUs to 3083000 TEUs during final phase.

7. Necessity of BCT
Bangladesh is expected to increase from 1.44 million TEU in 2012 to 2.94
million TEU in 2020, to 6.09 million TEU in 2030, and to 10.20 million TEU in
2043 (Base Case), which means an average growth of 6.5% per year,
compared to 10.1% 2002-2012.

8. Pros and Cons of BCT
Pros:
Excellent connectivity to road and railway network
Enough free area for development and further expansions
Acquisition of land by CPA on-going
No length restriction for ships
Location outside congested areas (City and Karnaphuli River
Channel)
Natural sand banks could provide protection against waves.
Cons:
Important maintenance dredging might be required due to
sedimentation.
Construction of a breakwater might be required.

9. Features of BCT
Location: 8-10 miles north of the river mouth in the Bay of Bengal .
Draught of the Channel: A ship with a draft of 10.5 m must be able to enter the
terminal under no tidal restrictions and under tidal restrictions; a ship of 12 m draft
must be able to enter the terminal area at high tide.
Water level: For tidal range is between 2.5 and 4.0 m. design water level is 10.55 m
ISLW.
Access channel: Access channel consists of 3 straight sections of around 48 km.
Aids to Navigation: Recommendations and guidelines for the arrangement of Aids
to Navigation are published by the International Association of Marine Aids
to Navigation and Lighthouse Authorities (IALA) will be used.
Connectivity: BCT has a significant competitive advantage compare to others
port in Bangladesh to create a momentous connectivity over the country
especially with capital city by road, rail and inland waterway.
Design Vessel: Panamax vessel with capacity 42000 DWT ( 4,700 TEUs).

10. Location of BCT

11. Layout of BCT

12. Challenges of BCT
1. Constructional Challenges.
2. Operational Challenges.
3. Strategical Challenges.
4. Environmental Challenges.

13. Constructional Challenges
Construction of Break water : Breakwater is one of the most major port
infrastructures for a sea port which required developing in a sustainable
manner.
Tow types of breakwater has been suggested:
1) Circular cofferdam
2) Rubble mound with armor units.
• The rubble mound construction is a cheaper alternative based on the
per meter price of breakwater
• Less maintenance is required for the rubble mound construction.
• Service life of the rubble mound structure is greater than that of the circular
cofferdam.
Construction of Break water : Breakwater is one of the most major port
infrastructures for a sea port which required developing in a sustainable
manner.
Tow types of breakwater has been suggested:
1) Circular cofferdam
2) Rubble mound with armor units.
• The rubble mound construction is a cheaper alternative based on the
per meter price of breakwater
• Less maintenance is required for the rubble mound construction.
• Service life of the rubble mound structure is greater than that of the circular
cofferdam.

14. Constructional Challenges
However, a breakwater construction risk & challenges involved:
(1) Rock supply,
(2) Transportation of rock to the site,
(3) Placement of rock on the breakwater by split barges, trucks, and cranes,
(4) Manufacture and placement of concrete armor Units on the breakwater,
(5) Environment (wind, waves, tides, sea level), and
(6) Health, safety, and environment

15. Rubble mound Breakwater
Source: BCT FS Part-1

16. Constructional Challenges
Quay wall construction: The quay
wall construction is one of the major
investments for the Bay Container
Terminal.
In order to level the necessary
investments smooth over the project
period the following project phasing for
the Bay Container Terminal is:
• Phase 1 with sufficient capacity until
2030
• Phase 2 with sufficient capacity until
2043 (envisaged end of the project)
Parameters need to be considered
during construction such as Site
datum, wave and currents, Harbour
depth, water pressure, variable load
of Container handling equipment

17. Constructional Challenges
Capital dredging:
Dredging possess a huge threat to the marine environment and is required to be
carried out quite carefully aided only with the help of the right dredgers
it is very important to maintain a sustainable way of dredging while
maintaining approach channel is a challenge.
According to feasibility study it is shown that the volume calculation is split up in
two main areas
Inner channel dredging cost Outer channel dredging cost.

18. Constructional Challenges
Other required Infrastructures construction are:
Berth, Jetties and Moorings.
Storage Provision, container yard(e.g. storage shed transit storage shed)
Mechanical handling equipment (e.g. cranes, fork lift, trucks & trailers)
Tugs and other vessels(e.g. pilotage, dredger, and lighterage vessel)
Transport network (linking the port with hinterland).
However challenges in Container yard and building construction involved:
Procurement and logistics.
paving-block manufacture and installation,
Commissioning and operational readiness, and
Land-based and health, safety, and environment.

19. Operational Challenges
Vessel Operation: Vessel with the capacity of 42000 DWT ( 4,700TEUs) ,
length 285m, Beam 32.3, draught 12m. Will be able to berth at BCT.
As BCT is going to be deeper draught port than Chattagram, size of calling
vessel will also be bigger. Here the fact is: Bigger vessel means bigger
equipment.
A vessel operation have various function i.e. berth monitoring, Load and
discharge control ,pilotage service and navigational service, QC operation
control, Transport control where following challenges in decision making
could be faced:
Problem detection, alerting & solving
Load & discharge control.
QC operation control.
Transport control.

20. Operational Challenges
Equipm
ent
Phase 1 Phase 2 Total
STS
Quay
Crane
8 8 16
Mobile
harbor
Crane
3 0 3
RTG 40 40 80
Railway
Crane
2 2 4
Required Operational equipment
for BCT
Different size of container ship

21. Operational Challenges
 Yard Operation: Basic functions need to keep in head during operation which
are: Yard Monitoring, yard positioning, Housekeeping, reefer operation control,
YC control.
Capacity= 522000 TEU/p.a Total box = 348000, Hence, TEU factor = 1.50
Dwell time: import= 9 days , Export= 4 days , MT= 10 days
Average dwell time = 8 days
Yard Occupancy Factor= 0.85 Peak factor= 1.3
Average stock per day (ASPD) = 522000*365 =1430*8 = 11440 TEU
Gross storage area= 11440*12= 137280 m2 137280:0.85= 161,505m2
161,505* 1.3= 209,956 m2 (stacking area).
Total area required= 209,956: 0.85 = 247,007 m2 = 24.7 hector
Stacking area = 24.7* 0.65= 16 hec.
Quay area= 24.7* 0.15 = 3.7 hec
Others = 24.7 * 0.20 =4.94 hec
 Introduction of IT system in Operation.

22. Container Terminal Operational Phase

23. Operational Challenges
Various control activities in operation system:
Source: Container Terminal Operation: Current Trends and Future Challenges

24. Strategical Challenges
Strategic challenge refers to those pressures that exert a decisive influence
on an organizations likelihood of future success.
Tow types of strategical challenges: Internal & External.
Port competition & competitiveness:
Inter-port competition.
Intra-port competition.
There are some decisive factors of competitiveness those may
increase a port credibility and acceptability.
Geographical location.
Hinterland transport connection.
Port service- availability and efficiency.
Price of port service.

25. Strategical Challenges
 Geopolitical Challenges: Compared to Kolkata Port and others port in
BOB region, Chittagong is in an advantageous geographic position.
The changing geopolitics of Asia, marked by China’s sharp rise and India’s
emergence.
 Value added services: The term "added value" signifies value newly added
or created in the productive process of an enterprise.
Value added services can be classified into two parts :
Value added logistics .
Value added facilities .

26. Strategical Challenges
Common value added services at marine terminals and ports (Port ReformToolkit,2004)

27. Strategical Challenges
Port governance:
Service port
Tool Port,
Landlord Port,
Fully privatized port or
private service port.
Port marketing:
information, research
and promotion

28. Strategical Challenges
Human resource/manpower: As a new terminal with the final
approximate handling capacity of 3 million TEUs of container it is a great challenge
for BCT to recruit a huge manpower at its initial phase. It has been estimated that a
total number of 693 manpower will required at its initial phase while this number
would increase up to 1211 manpower till 2043
Administration department.
Operation department.
Technical department.
Connectivity Challenges:
Road transport has 96% share of in total container transportation.
Dhaka-Chattogram has capacity to transport 2.4 million.

29. Strategical Challenges
Connectivity challenge:
capacity of Dhaka – Chittagong
Highway will come to an end before
2025.
The capacity of inland water based ICD
and ICT will also remain at 0.24 million
TEUs and come to an end in 2025.
Need to increase the rail share.
Capacity to transport 0.12 million TEUs
via Dhaka-chattogram track.
Railway have the most potentiality to
handle this this situation and reduce
huge pressure on road transport.

30. Environmental challenges
High emission of Co2 in port area has a great impact on the environment
around the port and its region.
Environmental issues:
(1) Sediment of port entrance and coast erosion;
(2) Marine biology protection;
(3) Waste dumps in the water;
(4) Cargo spilling from chemical carriers and tanker;
(5) Air pollution from bulkers’ cargo handling;
(6) Oil spillage during disconnection of cargo pipeline;
(7) Noise and vibration from cargo handling;
(8) Separation effect during the dredging of the navigation channel;
(9) Collision and stranding of vessels.

31. Environmental challenges
Impact of the project:
Pre-Construction Impacts: Location impacts associated with site
selection.
impacts on environment and resettlement or livelihood related impacts on
communities.
Construction impacts: Impacts resulting from construction activities
including site clearance, earthworks, dredging operations along the channel,
civil works, etc.
Post-construction: Impact during operational activities Impacts
associated with the operation and maintenance of the proposed Bay
Terminal activities such as those related to incoming, loading, off-loading
and outgoing of vessels, regular dredging of the channel, discharge of
waste liquids form the vessels, etc.

32. Environmental challenges
Greenhouse Gas (GHG) emission:
Co2- Carbon di oxide.
CH4 – Methane N2O – Nitrous oxide
HFCs – Hydrofluorocarbons PFCs – Perfluorocarbons
SF6 – Sulphur Hexafluoride
Generated by :
 Vessels (maneuvering and handling at berth)
 Cargo loading and unloading devices
 Trucks and other land-based transportation units
5 to 11 tons daily fuel consumption.
3,960 tons of CO2 emitted in the year 2021. 21,243 tons of CO2 emission in 2043.
15485 tons of CO2 from port operation up to 5781611 liters per year.
Climatological risk & Natural disaster: Global Warming, Sea-level
Rise, Cyclone.

33. Environmental challenges
Port-Related emission resources:

34. Strategy to mitigate the challenges
Strategy in port development:
Priority needs, right development area.
Maximizing economic benefits.
Minimizing the wastage of resources.
Phase in port development:
Planning phase.
Decision phase.
Designing phase.
Implementation phase.

35. Strategy to mitigate the challenges
Achieving Port characteristics: strategy to achieve a standard
port characteristics that are key factors to be success. ort should
consider those characteristics on the priority basis.
Strategy in choosing port administration model: The
degree of risk-sharing between the public and private sector varies across
port models. The landlord port model is now viewed as best practice for
port ownership and management structure.
Strategy in port competition: The more ship the more cargo
at the same times the more handling and consequently the more income.

36. Strategy to mitigate the challenges
Port characteristics
Risk sharing by public
and private sectors, by
type of port model

37. Strategy to mitigate the challenges

38. Prospects of BCT
 Port development prospect:
• Improved operating condition.
• Ship transport cost decline
• Cargo ship spends less time
• Cost saving
• Ancillary industry grows up
• The volume of export import rises
 Economic and employment prospect.

39. Prospects of BCT
 Transshipment hub for land lock country and Indian state.
• Transshipment hub for north east India, Nepal, and Bhutan.
• Annual cargo traffic 3,717.000 Ton in Oct 2018 NER in India.
• Overnight shipping .
 Cargo Traffic prospect: ports in Bangladesh may handle 2.6 million TEU,
7.4 million TEU and 14.9 million TEU of containers in 2020, 2035 and 2055
respectively
 Revenue from Port.
 Collaboration with BSMRMU.

40. Distance from BCT to transshipment region

41. Recommendation
 Should be implemented as a first track project.
 Construction of flood protection wall .
 Introduce modern quayside handling equipment.
 Installation of New and updated TOS system for effective port
operation.
 Carrying out continual study on improvement of port service .
 BCT should be transformed into a Landlord Port.
 Assign different terminal operator for container terminal 1 and 2
 Install double stack train and transition of MG to BG is
necessary.
 Environmental management measures during construction.
 Maintaining NBC and consulting with DMB.
 Recruiting Well-trained, skilled and educated human resources.

42. Conclusion
It is said that a port can change the fate of a nation For this reasons,
BCT holds much potential as a highly promising regional sea port
and BCT could be such a port for Bangladesh.
Finally, it could be said and expected that by confronting and
overcoming those potential impediments and challenges BCT would
be establish as a potential and prosperous regional sea port in the
BOB region.

43. Thank you