"Transshipment begins from March 1"
– Abdul Matlub Ahmad
Before Nano we are going to assemble Tata-ACE-HT over here. It is a small pickup and we will not just assemble it here. We will manufacture it too. The process is on and once that project is a success, we will go on to bring in the Nano. We have proposed to assemble Nano over here. Hopefully Tata will give us the thumbs-up within three months, but it will take another year or so before we can actually go into production. We have a plant in Jessore and our next project will be in Kishoreganj.
What is your production target?
We plan to manufacture 25 thousand pickups and 25 thousand Nanos a year.
Middle class consumers will rush for the Nano because of its affordability. Won't that congest Dhaka's streets further?
If cars are responsible for the traffic jams, so is our traffic system and the road networks. Nothing will come to a stop. Vehicles are increasing, the demand for vehicles is increasing too along with the population. The government's investment in the sector is also increasing. Roads and flyovers are being constructed. There are traffic jams in all countries over the world. In other countries the jams are mainly during the peak hours. Here the jams are almost round the clock.
The government's initiatives to resolve the traffic congestion in the city are all failing. Do you have any suggestions on how to tackle this problem?
The traffic system flows like a river and can change over the years. There can be no single solution to the traffic problem. Footpaths have to be increased and roads have to be increased. The rule of law must be enforced. Nowhere in the world do they park cars on the roadsides. Here cars are parked all over the place at random. Shops are erected on the roads, bazaars are made on the roads, So we need an adequate number of footpaths, highways, flyovers, over-bridges and, above all, enforcement of the law. Taxes have to be paid if one goes to the city centre. Large buses must be introduced to reduce the number of vehicles. Instead of a single solution, we have to go for a a multi-faceted solution.
What is your view on the initiatives taken by the present government?
We sometimes have discussions with the government. I feel the government's initiatives are all short-term, but the traffic solution cannot be short-term. There has to be a vision. One cannot expect to take iniative today and see the results tomorrow.
You are a leader of the India-Bangladesh Chamber. After the Prime Minister's visit to India and the agreements signed between the two countries, has there been any significant reduction in the trade gap? Have there been any positive results?
The political relationship between India and Bangladesh at present is very positive. In fact, this is the best time since 1974 so far, relations between the two countries are concerned. The agreements signed between the two countries, like for transit and transshipment, are very logical. There are no obstacles in the way now. India has lifted duty from many products. New products from Bangladesh are now entering the Indian market. In the meantime, over the past year India has invested 1000 crore taka in Bangladesh and more is in the pipeline. The investment environment between the two countries has improved vastly after the Prime Minister's visit. Relations between the businessmen of the two countries has improved too.
Won't transshipment mean that our exports to Indian's northeastern states will stop?
No, this won't stop. On the contrary, it will increase. Many companies of India's Ahmedabad and Punjab will set up industries in Bangladesh and they will supply goods to the Seven Sister states of India's northeastern region. They will basically be sending raw material to these states where industries will develop. These goods will be going over our territory to India and to other countries of the world. I do not feel that transshipment will mean a halt to our exports to India's northeast.
So when will transshipment take off? Our roadways are not ready as yet.
Work has begun on the route from Ashuganj to Agartala and it will be completed soon. Shipments will arrive here from March 1. Transshipment means their goods will be transported in our trucks. Our trucks are already plying that route so it won't be a problem. As far as I know, their goods for the power plant will start from Haldia for Ashuganj in the third week of March. The Indian NTPC company has been given the contract to transport the heavy equipment for the power plant to Agartala. Their Managing Director will visit Bangladesh prior to that.
In the past, political unrest was held responsible for inadequate foreign investment here. The political situation is more or less stable now so why hasn't there been adequate foreign investment over the past two years?
You are right that political stability is conducive for foreign investment. The first year of this government was spent in making up for the 1/11 and pre-1/11 government's performances. Over the past one year investments have increased considerably. Airtel alone has brought in 300 million dollars in investment. Countries other than India will come too. They are no longer worried about gas or electricity. Labour is still cheap in Bangladesh and there is a big local market. Investors are eyeing Bangladesh as a good destination.
Prices of essentials continue in an upward spiral and the government blames this on the international market. Do you agree or do you see any other factor responsible for this?
We don't have management problems. In the villages you will see the farmers have their own network to send their produce from the fields to the market or to Dhaka. The price of diesel, onions and sugar is steeper in India than here. Actually prices are affected by the rise of prices in the international market. We tend to think we are entitled to gas, water and power free, but that is so wrong. In India, electricity costs nine taka per unit for mills and factories, here it is just six taka. We have to accept that it will not be possible for electricity, water and roads to be cheap any more. We will have to pay toll on the roads, the government will no longer be able to subsidise. If you do a comparative study, you will find things are much cheaper here than elsewhere.
It is said that the government is unable to control the sector-wise business syndicates. What is your opinion?
A syndicate implies that the market is manipulated by three or four persons. There is market manipulation all over the world. Here such manipulation is much less because there is a lack of unity among the businessmen. If one person puts up is prices, the other reduces his. There are a lot of mass importers. The government should encourage small importers. It should also activate TCB and other such institutions.
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