New vessels now albatross around BIWTC's neck

FT ONLINE

Despite classy look and modern facilities, two state-owned passenger vessels have become a burden for the water transport corporation owing to gross mismatch between their earnings and expenditures.

After nearly eight decades, the Bangladesh Inland Water Transport Corporation (BIWTC) introduced MV Bangali and MV Madhumati steamers in 2014 and 2015 respectively. The agency was hopeful about making a turnaround, in terms of revenue income.

But things went wrong as the operational cost of the vessels ballooned while the financial health of the corporation kept deteriorating.

When the BIWTC started building the vessels, the authorities had expected ring up Tk 70 million in profit a year from the vessels but the reality, later, turned out to be different

Official statistics show the daily loss of each vessel rose to Tk 0.1 million (Tk 100,000) and the combined annual loss hit Tk 70 million (Tk 7.0 crore).

In the financial year 2016-2017, MV Bangali earned a little over Tk 35 million against the fuel cost of Tk 72 million while MV Madhumati earned Tk 35 million against the expenses of Tk 70 million.

Initially, the steamers operated on Dhaka-Barishal-Morolganj-Khulna river route but now the route was cut by excluding Khulna, considering the financial viability.

To further cut its operational cost, the corporation brought major change in its vessels' operating schedule. Each of the steamers is operated alternatively on weekly basis. The steamer sails from Dhaka on Thursday and Monday and from Morolganj on Saturday and Wednesday.

Senior corporation officials argued passengers' apathy to avail the services coupled with high fuel cost was the reason behind the poor financial performance of the steamers, built by the country's leading shipbuilder Western Marine.

But passengers and a section of corporation officials blamed the faulty design, lack of proper market study, complicated ticketing system, mismanagement, the lack of publicity and the inappropriate location of jetties at the terminal for the sorry state of the vessels.

During a recent visit to MV Madhumati and a short journey from Badamtoli to Sadarghat launch terminal, found that a few passengers were travelling to the main station (Sadarghat) from where the steamer will sail for Morolganj.

Air conditioning facility on the top floor was found to be non-functional and the sign of being hit by other vessel was also evident on its front where anchoring chain was stored.

Talking to the reporter, Belayet Hossain Khan, a businessman who booked a double-bed cabin for travelling to Pirojpore, said the design of the steamer was not appropriate because it lacked enough ventilation channel through which the air passes.

"It seems to me that I'm trapped in an air-conditioned cage. If I want to see the beauty of the river and riversides, I have to climb to the top floor, he said.

"But in other vessels operated by the private sector, we will get enough open space," he added.

Terming the ticketing system complicated, he said it was largely controlled by the head office, which is far away from the station, prompting the passengers to communicate with the head office to secure tickets.

He said a portion is available online but the service of the privately-operated digital service provider is not up to the mark.

"Passenger will not get instant ticket from the station. I managed to get one somehow. This is a serious problem," he added.

When the vessel reached the Sadarghat terminal, it faced difficulties in securing berthing opportunity at the jetty, which was captured earlier by the privately-operated ones. Later, it managed to get little space in the corner.

About the ticketing system, he said the head office dealt with the matter and gave them the updated ticket status each afternoon.

"If any ticket is left, then we can sell tickets. But passengers will not wait because they have options enough," he said.

He suggested giving authority of selling a portion of the tickets from the terminal point to serve more people.

The staffer serving at the vessel alleged the vessels were built for sweet water but the corporation having convinced by an interest group last winter sent MV Bangali to carry passengers from Teknaf to the St Martin's Island.

The vessel was badly affected by the saline water and was in a dockyard for repair. The authorities tried to send the other vessel to earn more but the consequences of MV Bangali forced them to backtrack.

When contacted, BIWTC Director (Finance) Shahinur Bhuiyan said the poor performance of the passenger service left extra burden on the financial health of the corporation.

He said the operating cost of the newly-acquired passenger steamers was high because it consumed too much fuel.

Seeking anonymity, an official of the BIWTC's passenger wing said the vessels had experienced mechanical fault as the generator could not supply power to the air coolers on the top floor. "Now, we need to install another generator."

The shipping ministry took up a Tk 5.36 billion project in 2012 for building the two vessels.

Western Marine Shipyard Ltd built the vessels -- each 76-metre long, capable of transporting 760 passengers in four categories of cabins, including one for VIPs. Each of the vessels has conference and dining rooms.

BIWTC chairman Mohammed Mafizul Haque said that the corporation is service- providing, not a profit making body. "We want to focus more on ensuring smooth services. That's what I can say now," he added.