core sector communique

Development of New Export Infrastructure

 

 

Inland Container Depot (ICD) helps to enhance the competitiveness of the tradable sectors of the economy. The World Bank has started preparation of a proposed project to built Inland Container Depot at Dhirasram near Dhaka to support the Government to develop required infrastructure to achieve regionally competitive transport costs and more reliable movement of import and export cargo in the Dhaka – Chittagong (D-C) transport corridor.

If the ICD is build in Dhaka-Chittagong corridor, then the number of containers movements by rail in that corridor would increase significantly. Further it would contribute to modal shift for import/export cargo from break bulk movement by truck to container movement by rail. The proposed project also aims to achieve development of modern and seamless intermodal transport along with (higher quality freight train services. The project would also focus on private sector development through commercialization of the planned ICD operations.

Recently a World Bank team discussed with BR the preparation of the proposed Export Infrastructure Development Project (EIDP). The World Bank team also met with the Government and discussed the Public-Private Partnership aspects of the proposed Inland Container Depot (ICD). It is noteworthy that ICDs in many parts of the world, including in Chittagong, are developed by the private sector. The development of the Inland Container Depot (ICD) at Dhirasram needs to better integrate the PPP aspects and address the main critical risks for the private operator.

The Government of Bangladesh (GOB) decided in July 2007 that the Bangladesh Railway (BR) would be the executing agency for this project with necessary assistance from the Chittagong Port Authority. Further BR would build the ICD under a conventional design and construction method. The operation and maintenance of ICD will be entrusted to a private sector partner following the construction.

The World Bank team and the Bangladesh Railway, decided to consider broadening the scope of the preparation studies to more critically assess risks and identify appropriate options for mitigating them.