The Role of Chittagong Port in the

Economy of Bangladesh
MD. ABDUL KADER MBA (Finance)ID: 0925101
Since 1888 Chittagong port, the important and main port of
Bangladesh with theshore base facilities, has been playing an
essential part in the economic developmentof the country. It is
considered the heart of the economy. This port creates
theopportunity of flexible and cost-effective foreign trade to be
carried out through this port with all the South Asian countries as
well as other Asian countries for itsgeographical location.
Moreover sufficient and low-cost labour readily exists here.For this
reasons, Chittagong Port holds much potential as a highly
promising regionalsea-port.The ports of the world have changed
significantly with the advent of containerizationin trade in the
seventies of the last century. The port of Chittagong, despite
manyconstraints, continues to co cope with the changing patterns
of the trade. However it issuffering from the problems of poor
operational efficiency. Though, now theoperational efficiency is
slightly improve for taking some efficient activities e.g.improve
berthing problem, curtailing the influence of trade unions,
automation of Chittagong Customs House etc.
Introduction
A port is a facility for receivingshipsand transferring cargo. They
are usually foundat the edge of anocean,sea,river , or lake. Ports
often have cargo-handling equipment for use in loading/unloading
of ships, which may be provided by private interests or public
bodies. Often,canneriesor other processing facilities will be
located near by.Ports which handle international traffic

havecustomsfacilities.Bangladesh with a population of 150 million

has a substantial volume of internationaltrade of which 80% is
seaborne. Although two seaports, namely Chittagong andMongla,
are the gateways, Chittagong Port handles nearly 90% of all seaborne trade,highlighting its importance to the economy of
Bangladesh in spite of all itsdeficiencies. It is located by the
estuary of theKarnaphuli River in Patenga, near thecity of
Chittagong. Chittagong a vibrant port for cement and clinker,
fertilizer, rawmaterials and in containerised manufactured
products (especially ready madegarments) etc. Window berthing
system, complete hand over of CCT operation to private
copmany, Automation of Chittagong Cutoms House was
introduced enablingthe sea port efficiency.1

Contents:
1.Historical Background of Chittagong Port 2.Contribution of CP in
the Economy of Bangladesh
3.
Existing Structure and Modus Operandi of CP 4.Automation of
Customs in CP 5.Problems of CP
6.
Recommendation7.Conclusion
8.
Reference
s
1. Historical Background of Chittagong Port
Bangladesh, sitting on the worlds largest delta, finds itself in a
unique position as bridgehead between the two largest and most

potential economic grouping of around3 bln burgeoning consumer

base SAARC and ASEAN-CHINA. Having the longest panoramic
beach- Coxsbazar and the biggest mangrove forest-Sunderban,
home of Royal Bangal tiger, its history dates back to 2500 years
with rich cultural heritagehaving some of the marvelously
unparallel geological sites. Its overseas trading tracksseveral
thousand years back particularly with its lone natural harbour
Chittagong, oneof the most ancient ports of the globe renowned
as Porte Grande since early centuries.The early history of
Chittagong port dates back to the fourth century B.C. The
Yemeniand the Arab traders of Babylon of ancient time used to
trade with Arab country.Chittagong was one of the finest port in
the near and far east at that time according bythe famous
historian Ptolemi.The Arabs came to Chittagong for trading and
with the mission to spread Islam. Withthe gradual settlement of
the Arabs in Chittagong Islam and Arabic spread inChittagong.
The well known Arab traveler Edrisi, Visited Chittagong Port in
1153A.D. and named Chittagong in his works as Carnful. In
1294 A.D., C.E. Markopolocame to Chittagong from Arakin and
found it as a most flourishing port. Sir JohnHerbert writing in 1313
A.D. the Chinese Ambassador, Chengho, stayed in Chittagongand
his Arab interpreter Mahuan noted in his book that with
fabourable wind onecould travel from Sumatra to Chittagong
within twenty days.Thirty five years after the discovery of route to
India by Vasco De Gama, thePortuguese came to Chittagong
under Martin Alfonso de Mello Jusaiti with five shipsand two
hundred soldiers. This was followed by C.E. Perix de Sampayo in
1538 A.D.who came to Chittagong with nine ships and settled in
Chittagong. The army of Emperor Akbar of India inflicted a
crushing defeat on the Pathan ruler of Gaur inBengal. A large
number of Pathans along with many saints took refuge in
Chittagong.In 1340 A.D. Sultan Fakruddin declared independence
of Bengal and ConqueredChittagong and built a road from
Chittagong to Chandpur. During the role of sultan2

Fakruddin, Ibna Batuta the famous traveler visited Chittagong and

mentioned it asSaterkoan and found it to be a prosperous port
and city.The Venetian traveler Misira in 1565 A.D. Finnish traveler
Ceasar Fredrick traveled toChittagong. From these travel records
it appears that about this tome Chittagong was adeveloped port.
The traveler Misira has written in his travel records that every
year two hundred Ship loads of salt used to be exported to ship
building materials such astimber and other materials and that the
Sultan of Turkey used to get their Ships built atChittagong at
cheaper cost. Traveler, Ceaser Frederick gave an account that
largequantities of silver used to be imported from Pegu to
Chittagong and Chittagong Portwas the main port for
Silver Trade
.The Portuguese took great interest in Chittagong in the Sixteenth
Century and namedit as Porto Grande. In the Seventeenth
Century it was a scene of British expeditionsand in 1760 it was
ceded to the East Indian Company of England. Under the act of
1887 British-India ultimately led to the performing of port which
was introduced on25
th
April, 1888 and Chittagong Port commissioners started the
function.The
administrative history
of the Port began in 1875 with the enactment of IndianPorts Act
1875 (Act XII) when the port officer who was also the Collector of
Customsused administers the Port under Act XII of
1875.Chittagong Port was suddenly subjected of heavy pressure
of more commercialactivities thats why some rapid development
necessitated the reorganization of thePort Management and as a
result Chittagong Port Trust was formed in July, 1960 to doaway

with the dual administration of the Port by the Port

Commissioners and the PortRailway.Due to the challenge of
modernization and the abnormal situation prevailing duringthe
period of war of war of liberation, it was felt that more autonomy
be given to themanagement for better administration and quick
expansion of Port, hence inSeptember 1976 by an ordinance of
the Govt. of Bangladesh the Chittagong PortAuthority (CPA) came
into being. (Year Book92, CPA)
Historical Backgrounds Summary of Chittagong Port
4th CenturyBC:Used to be called SHETGANG. Ships from Middle
East and Chinaused this Port.9th century:Omani & Yemeni traders
landed in this Port.16th century:Used to be known as "PORTE
GRANDE". Portuguese took greatinterest to use this
port.1887:Formal Port operation started from 25th April.18951910:Four Jetties were constructed to handle 0.5 million tons of
cargo. Portused to be administered jointly by Port Commissioners
and Assam-Bengal Railway.1960:Chittagong Port Trust was
formed.1976:Chittagong Port Authority was formed.
(Source:www.cpa.gov.bd)
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