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textPaiIIIn recent years, potatoes from
Bangladesh have become one of the hottest pieces of the pie. And in 2014,
this pie has become bigger than ever. The demand for potatoes in the Russian
market has increased, partly due to a ban on imports from other potato-producing
countries on hygiene issues.
According to the Bangladesh
Department of Agricultural Extension, the total exports of this gold in the
sand increased from around 28,500 tonnes in the previous fiscal year to
around 60,000 tonnes in the nine months leading up to April 2014. Of these,
around 12,000 tons (representing 500 forty-foot equivalent (FFE) reefers)
were shipped by Maersk Line to Russia.
Following this unprecedented rise
in export, the price has risen in the local market, resulting in a favourable
gain for about seven hundred thousand farmers. It was a clear win-win
situation for Bangladesh.
Timely focus from Sales
Maersk Line had not been a big part
of this market in recent years. The Reefer Rate Restoration and complications
in shipments to Russia had made times difficult. During last quarter of 2013,
however, Sales were ready to target the market again in anticipation of
rising volumes.
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“This requires us to choose a
transport solution in which transit is short and consistent, and quality
of the equipment is of high standard resulting in good, fresh quality of
our produce upon arrival.”
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Shaikh Abdul Quader
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A keen focus was built towards
shipping potatoes in reefer containers to St. Petersburg, and a thorough
market analysis was done prepared. It was decided to target Agriconcern
Limited, the largest potato exporter in Bangladesh owning more than 50% of
total exports.
“It is always exciting to be part
of something new with significant potential for growth,” says Bangladesh
Cluster Top Shamim Ul Huq. “We have a responsibility to ensure that we do our
part efficiently by keeping it simple for the exporters and help Bangladesh
penetrate effectively into this lucrative market just as we did for apparels
back in the mid-1980s.”
Moving 500 boxes
One thing was securing the deal,
another making the operations work. Moving 500 FFEs of reefer in one quarter,
all towards freezing St. Petersburg and Novorossiysk, sounded like quite a
task at the beginning of 2014. But all hands were on the deck both in Bangladesh
and in Russia, determined to make it happen.
Maintaining proper documentation by
Customer Service, making the equipment inventory neat and ready by
Operations, ensuring adequate space on vessels and competitive rates by Trade
& Marketing, and checking and updating on consignees’ credibility and
other formalities at the destination by the Russian counterparts were the
main proponents of this deal.
Bangladesh Sales Manager Md Fazlur
Rahman Khan summarises: “We were not going to let this huge opportunity slip
away from Maersk Line’s portfolio.”
Volumes and partnership
The results speak for themselves.
Reefer volumes have grown by 400%, Maersk Line has secured a market share of
20% in potato exports – despite tapping a good share of the volumes moving
towards Intra Asia, a trade not under Maersk Line in Bangladesh. Last but not
the least, around USD 2 million of additional revenue is the highlight of
this deal. It has not only resulted in big
figures, but also cemented the relationship between Maersk Line and
Agriconcern.
Managing Director of Agriconcern
Shaikh Abdul Quader, who is also president of Bangladesh Potato Exporter’s
Association, says: “We have selected Maersk Line as the shipping line for our
potato shipments mainly due to the sensitive nature of the cargo. This
requires us to choose a transport solution in which transit is short and
consistent, and quality of the equipment is of high standard resulting in
good, fresh quality of our produce upon arrival.”
“Our experience in overall
co-operation with Maersk Line is fabulous; we look forward to further
intensify the relationship in next season. We believe we are working with the
right partner,” he adds.
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