Across international borders

The clean power objective necessitated the transport of heavy equipment from many international locations. The engineering firm entrusted Allcargo Logistics with the responsibility to transport plant equipment weighing 60,000 freight tonnes (FRTs) from India, Japan, South Korea and other third countries to the site in Bheramara, Bangladesh.

Monumental challenges

As many as 700 rivers and tributaries flow through Bangladesh, making it a ‘riverine’ country. Most of the country’s land is made of the silt brought in by these rivers! Surface infrastructure is still underdeveloped, which makes water transport the best option for heavy cargo movements in the country. Language is a barrier, as 98 percent of the population speaks the local language, Bangla.

Such country-specific peculiarities posed challenges for Allcargo, as it dealt with moving 60,000 freight tonnes of cargo.

Unavailability of equipment to handle oversized cargo loads

For the first time ever, a single consignment weighing over 60,000 tonnes was making its way into the country. Local freight forwarders and cargo movers did not have specialised equipment to unload the cargo at the Mongla anchorage and transport it further up to the power plant site. This challenge could only be overcome by importing advanced cargo-handling equipment and deploying an expert crew to manage operations.

Stringent customs clearance protocols

Customs laws in Bangladesh are stringent, which required detailed understanding of documentation and policies. Bridging the language barrier and establishing local partnerships also emerged as critical requirements.

Difficulties in river dredging:

The biggest challenge lay in the construction of the jetty at the river bank near the plant site. Cargo movement began during the non-monsoon season when river water levels in Bangladesh experience extreme fluctuations. By the time Allcargo started building the jetty on the river, the water had receded to very low levels, making transportation across the river, impossible. Dredging the river basin was the only solution, but this proved to be a bigger challenge.

As the dredging continued, the water level kept going down. Even after dredging the channel for 90 kilometres, the desired level of water was not achieved. This compelled Allcargo to move the channel deeper into the river basin, making it imperative to address local interests and concerns.

Stringent customs clearance protocols:

Strict customs clearance protocols in Bangladesh resulted in numerous roadblocks in the documentation and approval processes, which needed to be managed efficiently to overcome delays.

Safety concerns:

Safety of the cargo and crew were important, as this was the first time the team was managing the transport of a cargo of such large proportions in foreign soil. These concerns needed to be addressed with reliable security measures.

A multi-tier solution

Dealing with these challenges required a comprehensive solution. Land and water surveys, an out-of-the-box ‘step’ jetty, a synergetic local partnership and high-end equipment and a crew of experts made up Allcargo’s solution for L&T.

1. Allcargo carried out a detailed bathymetric (hydrography) survey in association with the Bangladesh Inland Water Transport Authority (BIWTA). A local partner was also identified to carry out the surface transport study.
2. The peculiarity of the fluctuating river water levels required Allcargo to think out of the box. A regular, fixed jetty was not the answer. The jetty would need to be adjusted according to the water level, for each barge trip. Allcargo introduced a ‘step’ jetty that could be shifted inside the river basin, where the water would be high enough for the barge to berth and aid the movement of the heavy-lifts and over-dimensional cargo to the Bheramara site.
3. From stringent customs clearance laws to the mandate of using local barges, most challenges could only be countered with strong local support. Allcargo established a cordial working relationship with a local partner that helped to resolve such issues smoothly and quickly.
4. Taking on this unusual project meant deploying advanced equipment (made in Italy) with a greater carrying capacity, higher stability, and improved safety. Also, an expert crew comprising marine and civil engineering experts was taken to Bangladesh to ensure efficient management of operations.

Market-changing impact

The impact of this project goes well beyond meeting SLAs (service level agreements). The uniqueness of the challenges and the manner in which they were addressed has established L&T firmly in a new and emerging market.

• On-time delivery of all heavy-lifts and equipment: Having started in March 2015, the task of plant machinery transportation is nearing completion. So far, 25 barge trips have been made. Five major ships from India and four heavy-lift ships from Korea and Japan have delivered the primary over-dimensional cargo needed to build the plant. Despite all the major hurdles, transportation timelines have not been delayed.
• The Bangladesh market opens up for new players: The success of transporting the equipment to build a power plant in the country amid unprecedented challenges has established the engineering firm as a major EPC player in Bangladesh. Allcargo too has firmed its presence in the country as a logistics supplier of choice.

Until now, the Bangladesh market was dominated by logistics players from China, Thailand and Singapore. Allcargo has effectively overcome the entry barriers and developed the logistics and transportation sector in the country by importing sophisticated equipment, setting up an expert crew and working around the geopolitical, social and cultural challenges. This project reconfirms the fact that with the right logistics support, partner and strategy, establishing a strong foothold in new markets is not a distant reality.