Md. Tarique Aziz

 Promita Oil & Gas Limited A Concern of RUNNER Group Executive Summery The purpose of this study is to understand the demand & supply of bitumen in the market of Bangladesh and explore the vast possibilities of imported bitumen which is capturing the major portion of the market which is skyrocketing every year along with the development of country’s roads and highways. For locally produced bitumen, the market depends on the state owned bitumen producer Estern Refinery Limited (ERL). Bangladeshi bitumen importers normally work through a respectable broker whom they trust. This trustee handles the entire bitumen procurement process for the buyer. Therefore; it is important to respect their position and rights. Most of them are also responsible for doing the banking procedures for their clients as well.1 Backdrop of Bangladesh Economy Bangladesh economy has expanded by a remarkable 7.86% to USD 275.8 billion in 2018 compared to 20172, resulting from strong private consumption, public investments and remittance inflows. The country is set to become the second best-performing economy in 2019, with an estimated economic growth rate of 7.9%3 compared to 2018. Tangentially, consumption rate will keep rising in tandem with the robust economic growth, driven by income upgrade and industrialization, as more people will be joining the middle-income status and migrating to urban areas within 2025. Rising prosperity has brought forth a multitude of structural challenges for sustaining future growth. Bitumen & Applications Bitumen is primarily used as a binder in road construction along with other applications such as electronics, waterproofing for roofing, and in adhesives due to its resistance to water, insulation properties and high durability. Bitumen is available in a number of grades based upon the standard mentioned by certain tests such as penetration test. Bitumen 80/100, bitumen 60/70 and bitumen 40/50 are the most commonly used bitumen, where the numerical values represent hardness of bitumen. Softer bitumen represents greater penetration units. Infrastructure activities to improve road networks in developed and developing nations are expected to drive the growth of the bitumen market. Furthermore, increasing applications of polymer modified bitumen (PMB) as chemical additives and adhesives in household and road construction are anticipated to boost the demand for bitumen. Additionally, rising construction activities for industries, commercial buildings and housing are estimated to drive the demand for bitumen over the next six years. However, environmental issues associated with the extraction of bitumen from oil sands are projected to hamper market growth. Increasing substitution of bitumen by concrete is also likely to adversely affect the bitumen market. Polymer modified bitumen (PMB) is expected to be the fastest growing segment of the market due to its increasing demand in road construction and roofing applications. Polymer modified bitumen is increasingly used in construction of roadways and waterproofing applications as it offers various advantages such as heating at lower temperatures, ability to increase porosity of roads and enhancement of performance of the applications. With over 80% share in, road construction is the largest application segment for bitumen due to its high viscosity and stickiness. Other applications of bitumen include its usage in roofing industry, paints and enamels, adhesives, automotive and decorative applications, and as an insulator in electrical and electronics industry. In Bangladesh maintenance, redevelopment and repair of existent roads accounts for the primary consumption of bitumen in this region. This is in contrast to emerging economies where the consumption is driven by development of new infrastructure. Key Market Trends Increasing Demand Due to Increasing Road Construction Activities The majority of bitumen consumed is processed into asphalt for road construction. Asphalt is a mixture of rock aggregates and bitumen. Bitumen serves as a binding agent and thus, is responsible for the stability of asphalt. Depending on the type of bitumen or composition of the mixture used, asphalt roads can be made suitable for regions with different climatic conditions or various levels of operational demands. Asphalt is also used for airport runways, parking decks, and working areas in ports. Roadways is one of the key sectors that determines a country’s economic growth. Roads, airport runways, and parking decks are essential services that drive the economic activity by channelizing trade and mobility. Massive investments are required that help in modernization and maintenance of these systems. Globally, the infrastructure sector is experiencing stable growth, as a result of increasing government spending to promote local infrastructure. In keeping pace with the growing economic activity and shifting demographic trends, spending on infrastructure activities is largely driven by developing economies in comparison to developed economies In developing economies in Asia-Pacific, infrastructure activities are expected to increase significantly, especially in the transportation sector, owing to increasing urbanization and shifting focus toward the developing secondary sector in these countries. Furthermore, increasing economic prosperity is driving the infrastructure financing toward consumer sectors, including transportation and manufacturing, which provide and distribute raw materials for consumer goods. As these sectors have potential to fetch larger investments in near future, the governments of developing economies are taking initiatives by floating tenders reflecting opportunities in building infrastructure, essential for the growth of a specific sector. Furthermore, the emergence of megacities in both, emerging and developed markets, which reflects the shifting economic and demographic trends, may create enormous need for new infrastructure. All the aforementioned factors are expected to drive the global market during the forecast period. Demand Side More than 90% of the total demand for bitumen is generated from the development of roads, highways, bridges & culverts. RHD (Roads & Highways Department) is responsible for construction and maintenance of the major road network of Bangladesh which was formed in 1962, responsible for maintenance & construction of major road and bridge network of Bangladesh. Since the Department was established the size of the major road network in Bangladesh has grown from 2,500 kms to the present network of 22,096.303 Km. 4 However, not all bitumen qualities are suitable for road construction. Imagine a customer unknowingly purchasing bitumen suitable for insulation and/or roofing and not intended for road construction. Is the saving of 10.00 USD/MT to 20.00 USD/MT worth damaging their hard earned investment and reputation? Most of the RHD (Roads & Highways Department) project completion time remains uncertain because of shortage of quality bitumen supply which is increasing day by day as the ever-expanding road network across the country has kept the demand for bitumen on a constant rise. But in the absence of adequate supply of quality bitumen, substandard products have flooded the market, making roads and highways susceptible to early damage. Roads & Highways Enlisted Contractors List of Prequalified Contractors for (Carpeting) of RHD Name Address Phone Number A.R.D.B (JV) Foyez Apartment (6th floor),35/2 Purana Paltan, Dhaka - 1000 A.S.M. (JV) Borhat, Moulobibazar-,- Abdul Karim Ltd. Chandrashila, Subastu Tower (5th floor),69/1 Green Road, Dhaka Abdul Monem Ltd. 6, Nawab Habib Ullah Road,Shahbag , Dhaka-,-,- Abir Trading Corporation 285, Free School Street,Dhaka Ajit Kumar Bosh Dewanpara, Jamalpur 406711,- AKA-BRE (JV) 248/4, 2nd Colony, Mirpur, Dhaka- ALMA-SC-IT (JV) Banochiri PTI Road, Moulobibazar- AMEL-MAR-SE (JV) 58, Kamal Ataturk Avenue (3rd floor),Banani C/A, Dhaka-1213 AS-STL Consortium 14/10 Iqbal Road (1st floor),Mohammadpur, Dhaka Azad - Didar (JV) 29/2, Lake Circus Kalabagan (2nd floor),Dhaka Badrul Iqbal & JC (JV) B-33, Sentury Estate Apartment,Baro Moghbazar, Dhaka Banna Enterprise & Rahmat Ali (JV) 342/C, Malibag, Chowdhurypara, Dhaka Basic Engineering Ltd. House # 86 (1st floor),New Airport Road,Banani, Dhaka -,- BDCL (Bengal Development Coporation Ltd) 125/A, Motijheel C/A (7th floor),Dhaka-,- Bim & ARSS Consortium 1/G, Jigatala, Dhammondi, Dhaka Bismoy Construction (Pvt.) Ltd. 27/11/3-C, Hasan Bhaban (2nd floor),Topkhana Road, Dhaka BTC-SI-ZK Jonit Venture Safiullah Complex (2nd floor),27, M.K. Road,Jessore-,- Capital Engineering (Pvt.) Ltd. Malopara, Rajshahi- Columbia Engineers Ltd. 494/1, Shewrapara, Mirpur, Dhaka Compass Saikat Ahsan J.V. 80 Kapash Gola, Chowk Bazar,Chittagong-, 651587, 614124, Concord Pragatee Consortium Ltd 5/10 Lalmatia Housing Society,Block -D, Dhaka -,- Consortium Of Reliance International , Md. Mokhlesur Rahman Pvt. Ltd. (JV) 8/35-A Eastern Plaza, Sonargaon Road, Dhaka-,- Continental Construction Saleh Ahmed J.V. 199 Doctor para,Feni-, 74592 Corolla Corporation (BD) Ltd. 19/1 Kakrail,Dhaka -,-,- Eastern Trading and Construction and Ata Traders Ltd. 23/8, Khilji Road, Block # B, Flat -8D,Shamoli, Mohammadpur, Dhaka Eathen - TTS (JV) 3/4 A Purana Paltan,Dhaka -1000 EL-HE & USE Engineering Construction Co. Akur Thakur Para, Tangail Eva Overseas Corporation 115/116 Motijheel C/A,Dhaka-1000 Everst International Ltd. House # 11/A, Road # 12 (New) 31 (Old), Dhanmondi, Dhaka Fair Construction -BC (JV) 231, Mir Mosharaf Hossain Road, Kushtia FEL-SHK & Co. TE (JV) House # 17/A, Road #126,Gulshan-1, Dhaka -1212 Fortune Syndicate 45/J, New Eskaton, Dhaka Haidar Construction Pvt. Ltd. Sabbir Tower (6th floor),3/4 A Purana Paltan,Dhaka-,- Haque & Chowdhury Construction Co. Ltd. Badurtala,Bogra-, 658211, 73607 HB-SE (JV) (2nd floor),Room # 270,85 New Circular Road, Siddeshwari, Dhaka -1217 Himu- Kabita (JV) Mollar Hat, Charkumaria, Sariatpur-,- Intraco (BD) Associates Ltd. 78, Motijheel C/A (5th floor),Dhaka Islam -Bisal (JV) 12/A/A Mazar Road, 2nd colony,Mirpur, Dhaka Islam Trading Consortium Ltd 9/A, Toyenbee Circular Road ,Nirala Bhaban (3rd floor), Motijheel C/A ,Dhaka -,- J-R-I (JV) 23/21 Pallabi, Mirpur, Dhaka-,- J.J. International Sabbir Tower (3rd floor),3/4 A Purana Paltan, Dhaka Jahedul - Rumi - KICL (JV) 56 West Panthapath,Dhaka -1205 Johirul Ltd. Mallik Para, Meherpur,P.O. + Dist. Meherpur-,- K-L (JV) 15/1, Segun Bagicha, Dhaka Kamal Associates H-80/1 New Airport Road (2nd floor),Banani, Dhaka -,-, Kh. Mainul Islam Rais House, Hossinigonj, Rajshahi 774508, 773945,- Khalifa Kamaluddin Komolapur, Faridpur Khandakar Business International 89 Mothijheel C/A (3rd floor),Lucky Chember, Room #-,- Latif Construction Latif Real Eastate Building,Road # 7, Baitul Aman Housing Society,Dhaka-,- Leena Commercial Enterprise Ltd. 54, Inner Circular Road (3rd floor ),Shantinagar, Dhaka-,- Lotus Trading Agency White House, West Mazampur,Kushtia-, 55355 M. Abubakar Traders Laxmikul, Jhenaidah M. Ehteshamul Huque Zail Road, Dinazpur-,- M.A. Jabbar Blue Bard (JV) Sundarban Hotel, 1/de Free School Street, Sonargaon Road, Dhaka-,- M.Co. Engineering Sevices 54, Parana Paltan Line (2nd floor),Metro Scout Market, Dhaka-,- M.M.Builders & Engineers Ltd. House: 71 (2nd floor), Road # 7 Block - H, Banani Dhaka -1213 M/S . Rising Construction 8 , Segun Bagicha ,Dhaka-, M/S Abdus Samad 1, Arambag MC College Road,Sylhet- M/S Abdus Samud & Ohiduzzaman Chow. J.V. Arambagh IMC College Road ,Sylhet- M/S DJS Construction (JV) Sialkol, Sirajgonj-,- M/S Feroza Construction Chanchora, Rajbari, Jessore 73434,- M/S HH&H (JV) Mizmizi, Siddirgonj, Narayangonj-,- M/S Islam Construction Uttar Bargacha, Natore-, 62755 M/S Ismail Hossain 9 Segun Bagicha ,Dhaka - 1000 M/S Logistic Support Ltd. 190 Innar Circular Road,Arambag, Motijheel C/A,Dhaka- M/S M. Ali Corporation House #8/C, Road # 14 (New),Dhanmondi, Dhaka 912290,- M/S Maitri Builders Zail Road, Brahmanbaria- M/S Md. Ilias and Syed Shafiqul Bari 19, Ashamoshe Nagar Road,Moulobibazar M/S Md. Matiar Rahman 22 , Fazlul Hoque Avenue,Barisal ,-, 55573, 52289. M/S Md. Shamsuzzaman D-119 Dorgapara, Rajshahi-,- M/S ME & SC (JV) House #79/3, Block # K,New Airport Road, Banani, Chairmanbari, Dhaka M/S Mehedi Enterprise 7, East Basabo,Dhaka -1214 M/S Millon Traders- Ruhul Amin Bhuiyan (JV) 183 Trunk Road, Feni- M/S Niaz Traders 16/1, R.K. Mission Road,Dhaka - 1203, 955439,- M/S Rado Construction Co. Dream Apartment, House # 46,Road # 11/A, Dhanmondi, Dhaka-,- M/S Rana International Builders 2/C Shawon Tower, Suit –D,Purana Paltan, Dhaka - M/S Rokib Brothers and M/S Rouf Construction (JV) 2/602 Eastern Circuit House Road,Dhaka-,- M/S Rupayan Prokashali Ahmed Complex,83, Kazi Nazrul Islam Avenue,Tejgaon, Dhaka -,-,-,- M/S Sabuz Biplob Construction 232/1/B, North Goran,Dhaka - 1219 M/S Saifuddin Khaled 48/A, Kumarpara, Sylhet- M/S Sucarcon Traders 4, Dilkusha C/A,BSS Bhaban (3rd floor), Dhaka M/S Surma International 28, Dilkusha C/A (2nd floor),Dhaka M/S Tanbir Traders 47/3/Ga Indira Road, Tejgaon, Dhaka-,- M/S Turna Enterprise New Bogra road, Shirajgonj-, 62787 M/S, SK. Enterprise Gopai Binadpur,Maijdi Court,Noakhali- M/S. A.K.N. Construction House # 71 (2nd floor) Road # 7, Block –H Banani, Dhaka-,- M/S. Abdul Mannan & Sons(JV) & Bisharat Trade International 440 North Shajahanpur, Dhaka M/S. Adunik Nirman Prokoshali 64/A, Monipuripara, Tejgaon, Dhaka. M/S. AL-Haj Abdul Haque Rabeya Mohal,Nanua Dighi, East,Comilla-, 68272,-,- M/S. Alam Construction Nurpur, Alamnagar,Rangpur-, ,- M/S. Chittra Construction T.B Clinic Road,Bazpara, Jessore-,- M/S. Chowdhury Co. & M/S. Md. Jamil Iqbal J.V. 28, Brahmman Para, Shibgonj,Sylhet - M/S. Drubo Construction Library Bazar, Pabna- ,- M/S. Friends International Mollik Road, Barisal-, 53968,- M/S. Gazi Shah Jaman- Lucky International and M/S. Gazi Associates (JV) 251, New Elephant Road, Dhaka M/S. Habib & Co. Alipur, Faridpur-,- M/S. Halim and Asociates Pvt. Ltd & Kabir's International 246, West Dhanmondi,Road # 19 (Old), 10/A (New) M/S. Hamid Uddin and Associates Helena Centre, 95 New Eskaton Road, Dhaka M/S. Huque Enterprise 53/3, Noya Paltan (2nd floor),Dhaka-,- M/S. Jahanara Corporation House # 54, road # 44, Block # C,Shahjalal Upshahar, Sylhet- M/S. Jahanara Enterprise Bhatikhana Road ,Barisal,- ,-,- M/S. Johirul Islam and Fency Enterprise (JV) 25/4, Khilji Road, Block # B,Mohammadpur, Dhaka -1205. M/S. Joya Construction (Pvt.) Ltd. 17, Free School Street, Kathalbagan, Dhaka M/S. Khan Construction 13, Mallick Absik Alaka,Mirpur-7, Dhaka M/S. Khandaker Shahin Ahmed Road # 1, Goalchamot, Faridpur,154/4 West Rampura Wapda Road (Dhaka Office-, 64393 M/S. M. A. Zaher 250 Mallik West Bagichagaon, Comilla- M/S. M.A. Engineering G-4, south Banasree,,Goran, Khilgaon,Dhaka -,-,- M/S. M.M.Buillah HSS Road, Jhenaidah-,- M/S. M.R. Enterprise 14/C, Goshpara, Savar, Dhaka M/S. MC-RE (JV) 204, East Nakhalpara, Tejgaon, Dhaka M/S. Mozahar Enterprise Eastern Shorshed 1/603, 16/12,Segunbagicha, Dhaka -,- M/S. N. Amin & Sons 8, Segun Bagicha,Dhaka -, M/S. N. Islam Enterprise 53, North Pirerbag,Mirpur, Dhaka - 1216 M/S. N.M.Consortium Nazrul Avenue, Kandirpar, Comilla M/S. N.N.Traders Sawrupnagar, Chapai Nawabgonj- M/S. Quashem Construction Sattan Manson (1st floor),52, Katalgonj, Panchlish, Chittagong 670250,- M/S. Rafique Enterprise Balubari, P.O. + Dist. : Dinajpur-, 65984 M/S. Raj & Brothers Parerhat Road, Pirozpur-,01304,62659 M/S. Rana Enterprise 343, Jurain, Demra, Dhaka M/S. Rashid Enterprise Pathanpara, Chapai Nawabgonj-, 56000 M/S. Richi Enterprise 1033, Malibag Bazar,Khilgaon, Dhaka. M/S. Rimi Nirman Sangtha 103, South Jatrabari, Dhaka M/S. Roni Selim Brothers (JV) 29, Miranda Lane, Patharghata, Chittagong-, 620798,- M/S. Rupali-Iqram & Jashim (JV) Paris Plaza,Main Road, Maijdi Court,Noakhali M/S. S. Rahman & Co House # 12 E2, Road-3, Dhanmondi,Dhaka- M/S. SAAB Construction 42/1, Segun Bagicha (3rd floor),Dhaka -,- M/S. SASA Enterprise 67, Dilkusha C/A (4th floor),Dhaka-,- M/S. Shafique Traders Narical Bagan Road, Shibrampur, Pabna-,-,- M/S. Sugandha Enterprise 414 South Monipur, Mirpur,Dhaka -,- M/S. Syed Mojibur Rahman Collage Para , Tangail 0921 . 54259 ,53126 ,53348 M/S. ZR Enterprise 285 Free School Street,Kathalbagan, Dhanmondi, Dhaka Mahmood Builders and Associates Ltd. 34, Green Road (2nd floor),Dhanmondi, Dhaka-,- MCE-NK (JV) 338/4 East Nakhalpara, Tejgaon, Dhaka MCL-HA & HC (JV) Concord Arcadia (4th floor),Road # 4, House # 1-2, Dhanmondi, Dhaka Md. Abdul Mannan Plot # 03, Section # 02,Housing State, Comilla-,- Md. Abul Hossain & Kamaluddin (JV) Saheb Bazar. Ghoramara, Rajshahi 77945, 773970 Md. Akter Hossain Talukder Par Dighulia ,Tangail - Md. Enamul Heque Pvt. Ltd Flat # F/3, Vaduri Tower,1/B Paribagh, Dhaka -,- Md. Fazlur Rahman 129/2, Up-shahar Housing State,Safura, Rajshahi- Md. Jashim Uddin Ahmed Road No. 136,House # 13/A, Gulshan-1,Dhaka-,- Md. Moyenuddin Bashi 13, Al-Haj Super Market,Mirpurt Road, Sobhanbag,Dhaka -,-,- Md. Nasir Uddin Khan Chack Bazar Jame Maszid Building,Thana Road, Faridpur Md. Nazrul Islam North Balubari,Dinazpur- Md. Nuhu darul Huda House # 34, Matrisadan Road, Magura 62730,- Md. Omar Ali & Md Shobrab Ali (JV) 10, Sajeda Plaza, Bara Road,Laxmipur, Rajshahi Md. Rofizul Ahsan Chowdhury Khetoripara, Dinajpur Md. Saidur Rahman Co. & Pvt. Ltd. Alupatti, Ghoramara, Rajshahi 773158,- Md. Shahidul Islam and Md. Mahfuzul Alam (JV) G-62 Sasthitala, Rajshahi- Md. Shahinoor Alam B.B.Road, Jhenaidah-,- Md. Shajahan Ali Laxmipur, T .B . Road,Rajshahi-, 771319. Md. Wahid Miah 69/1, Green Road,Pantha Path,Chandrashila Suvastu Tower (4th floor) Md. Zahid Mia Karim Chembar 83/1 Mujib Road, Faridpur- Mir Akhter Hossain Ltd House # 13, Road # 12,Dhanmondi R/A, Dhaka-,- Mir Habibul Alam Uttar Bargacha, Natore-,- Mir Shariful Alam Uttarbaragacha,Nator-,- ,- MK HC J.V. House # 43 (3rd floor), Road # 31, Block # E,Niketon, Gulshan - 1, Dhaka-,-, Mohammad Eunus & Brothers Pvt. Ltd. 67, Panchlaish Residential Area,Chittagong- Monami International Pvt. Ltd House# 31, Road # 17,Block # E, Banani, Dhaka -,- Monico Ltd House # 71/1, Road # 7/A,Dhanmondi R/A,Dhaka -,-,- Mr. DE Consortium Mahbub Plaza (2nd floor),21/A Topkhana Road,Dhaka -1000 N.S.K. Int. (JV) Cicuit House Road,Maizdee Court, Sadar, Noakhali-,- Nabarun Traders Ltd. House # 55/c/2, Road # 9/A,Dhanmondi R/A,Dhaka - ,- Nagorik International Alambag, Puraton Cosba, Kadamtola, Jessore Nasir - Jashim (JV) 16 North Dhamondi,Lake Circus, Kalabagan,Dhaka National Civil Engineers Ltd. National Plaza (9th floor),1/G Free School Street, Sonargaon Road,Dhaka -,- , NCC Maitree (JV) 181/d, Noyatola Bara Mogbazar, Dhaka- Nirman Shilpi, Amjad Traders (JV) 43, Noya Paltan (4th floor), Dhaka Nurul Anwar Pvt. Ltd. Hotel Sugandha,2, Zillaparisad, Supar Market, Laldighi,Chittagong-, 625584,- Orient Trading & Builders Ltd. 57/2 East Rajabazar (2nd floor),Dhaka -,- PAEL-CCL JV 34, Green Road (2nd floor), Nawab Mansion,Dhaka -, Popular - Khondokar (JV) House # 4/A, Road # 4/A,Old DOHS, Dhaka Cantonment Dhaka Project Builders Ltd. 692/B, Bara Moghbazar, Dhaka PTSL- ATCO J.V. Sabbir Tower (3rd Floor),3/4-A, Purana Paltan,Dhaka -,-, Pubali Construction Co. Ltd. 39, Kawran Bazar C/A (1st floor),Dhaka -,- Raz Engineering and Co. 90, Indira Road,Tejgaon, Dhaka RB-MK (JV) Hudaloz (2nd floor), Jordan Road, Barisal RB-UC-ATC (JV) Sabbir Tower (4th floor),3/4 A Purana Paltan,Dhaka RC-IC (JV) Nurpur, Alamnagar, Rangpur RCL-SE (JV) House # B168, Road #23,New DOHS, Mohakhali, Dhaka-,- Reza Construction Ltd House # B-168, Road # 23,New DOHS, Mohakhali,Dhaka-,- RMK Construction (JV) 66/A, Ghop Central Road, Jessore Road & Bridge Engineering Co. Ltd. 41, Samsuddin Mansion (1st floor),North Gulshan C/A, Dhaka - S. Ananta Bikash Tripura Milonpur Sadar, Khagrachari-,- Samsul - Mamun (JV) Par Nagaon, Nagaon-, 52705 Sarkar & Co. Pvt. Ltd 2/167 Housing State, Upashahar,Rajshai- Sarker Gholam Md. Co. Ltd. Dream Apartment,House # 46, Road # 11/A,Dhanmondi R/A ,Dhaka-,- SECL-JH (JV) Saguin Tower, 8/12 Pallabi, Dhaka Sekh Emdadul Haque Al Mamun Rezia Cotage, South Bargacha Natore-,- Shafi & Sons Hosneara Vila,823 North Bagichagaon, Comilla-,- Shajahan Loskar Akhrabazar, Kishorgonj-,- Shamim Enterprise Pvt. Ltd. 4, K. B. Ismail Road Maymensingh- SI-JI (JV) 28, Brammanpara, Shibgonj, Sylhet- Sivicon-RNR Construction (JV) 20, Lower Jessore Road, Khulna- SK-CB-KS (JV) Easel Hat (F11), 345 Dilu Road, Moghbazar, Dhaka-,- Soil Treat Equipment & Engg. Ltd. 27 Link Road, Banglamotor,Dhaka -,- Sonarbangla Prokosoli Pvt. Ltd. Victoria Road, Tangail-,- Sraboni Construction Station Road, Faridpur-,- SS Engineering and Construction Ltd. Dhaka Chembar Building (9th floor),65/66 Motijheel C/A, Dhaka Starlite Pvt. Ltd. Planners Tower (16th floor),13/A Biponan C/A,Sonargaon Road, Dhaka-,- Subod-Chokori (JV) 56, West Panthapath (1st floor),Dhaka Suchi Enterprise Ltd. 61, North Kafrul, Dhaka-,- Syed Abdul Bari Tikapara, Ghoramara, Boalia, Rajshahi 772601,- Taher & Sons (PVT) Ltd. 55, Pantha Path , Lake cercus ,Kalabagan,(Saltact Tower)E-Flat,Dhaka -,-,- Taher Brothers Ltd North Patenga,Chittagong- Tareque-Vandaria (JV) House # 91, Road # 13,Block - B, Banani, Dhaka -1213 TBCL-SI (JV) 69/Q Green Road,Panthapath, Dhaka -1205 TC-MC (JV) Suite # 1/10 (1st floor),Eastern Commercial Complex,73 Kakrail, Dhaka-1100 TE-BB (JV) 375/4, North Pirerbag, Mirpur, Dhaka Texsas Construction Co. B-24/A, Malibag Chowdhuripara (5th floor),DIT Road, Dhaka-,- The Concrete Builders Ltd 60-D, Gulshan (South),,Road # 131,Dhaka-,-,- The Nirmitee & M/S. Janmabumi Nirmata J.V. 27/3, Jalabad R/A,Sylhet- The Rupsha Engineering Ltd. House # 3, Road # 81,Gulshan -2,Dhaka- The Stone Steel Faraji Brothers J.V. Manoshi Lake view Shine Pukur, Mirpur Dhaka -,- The TNB Karim (JV) Fire Service Road,East Adalat Para, Tangail Tower Enterprise Ltd. & M/S Mehedi Construction (JV) 54, Niloy, Chowhatta, Sylhet-,- UCL-KKD-MRC (JV) House # 1, Road # 30,Kabi Golam Mostafa Road, Arappur, Bus Stand, Jhenaidah United Engineers 69/C, Green Road (4th floor),Panthapath, Dhaka Govt. initiative for 60/70 grade Bitumen Expert opinions & initiatives As part of sustainable road construction, the government has decided to use only 60/70 grade bitumen while ensuring its longevity, officials said. The 60/70 grade bitumen is being regarded as appropriate penetration grade taking into consideration the weather pattern and traffic management system of the country. A recent meeting at the local government division decided that state-owned Eastern Refinery Ltd (ERL) will be asked to produce only the 60/70 grade bitumen. The Eastern Refinery now also produces 80/100 grade bitumen. Presently, the annual demand for bitumen is over 0.3 million tonnes, while the ERL can produce only 70,000 tonnes. The rest of the demand is met through import. Apart from 60/70 grade, bitumen of other lower grades is also being imported in the country. The issue came to fore as roads and highways are found to be damaged much earlier than the expected. The meeting decided to carry out quality test at ports to ensure standards of imported bitumen. It decided not to allow import of no bitumen other than of 60/70 grade. The decisions were taken based on a report prepared by Bangladesh University of Engineering and Technology (BUET) on Road Design and Pavement Standard, according to officials. BUET Professor Dr. Muhammad Zakaria in the meeting referring various global studies said 60/70 grade bitumen is appropriate for road construction in countries like Bangladesh. He said roads are being damaged because of high temperature, incessant rains, and prolonged floods. In this case, bitumen to be used for road construction must have appropriate adhesiveness, coating capability, flexibility, and anti-stripping agent. According to officials the meeting has decided to set up bitumen mixing plant in 150 places across the country. A senior official at the ministry of commerce told the FE his ministry has been requested to ensure import of only 60/70 grade bitumen, not other types. "We are working on it," he said. Officials said the energy and mineral resources division has already asked the Eastern to produce only 60/70 grade bitumen and stop producing 80/100 grade. Eastern managing director Akterul Hoque could not be reached for comments on the matter, despite several attempts.5 Bitumen Shortage in Bangladesh Bitumen crisis has hit road and highway construction and maintenance across the country, mainly the Dhaka-Chittagong and Dhaka-Mymensigh highways' four-lane construction work, making timely completion of both projects uncertain. Officials said the crisis of bitumen, which is an essential ingredient for road construction, had led to holding an emergency meeting at the Prime Minister's Office (PMO) last month with the principal secretary in the chair. They said all stakeholders including the Roads and Highways Department (RHD) and the Local Government Engineering Department (LGED) also sat with the Bangladesh Petroleum Corporation (BPC) and the Eastern Refinery Corporation last week to find out a solution to meeting the growing demand the bitumen. Bitumen is a byproduct produced refining of oil, and the Eastern Refinery is the major local source of the ingredient. RHD officials said the demand for bitumen had increased in the current fiscal year as both Dhaka-Mymensingh and Dhaka-Chittagong highways need a huge quantity of this ingredient to carpet several hundred kilometres of roads with the beginning of the dry season, the peak construction season. "As this year has been crucial for the Dhaka-Chittagong four-lane project as well as for the Dhaka-Mymensingh highway project for starting carpeting, the demand has risen," said a Communications Ministry official who attended both the meetings. He said the local bitumen production and the imported bitumen also could not meet the demand. According to RHD and BPC, the bitumen demand - supply gap this year has peaked to 80,000 tonnes as 70,000 tonnes are produced locally and another 50,000 tonnes are imported on an average. Officials said RHD's yearly requirement had been assessed at about 150,000 tonnes followed by 26,000 tonnes of the LGED. Besides, all city corporations need a handsome amount of bitumen. The Aviation also requires a portion of the bitumen. But against the total demand, 60,000 tonnes are needed only for carrying countrywide maintenance work this year while the Dhaka-Chittagong four-lane highway project will need around 70,000 tonnes of bitumen by the end of 2013. As Communications Minister Obaidul Quader has set the monthly target of carpeting the 193-kilometre Dhaka-Chittagong highway, project officials said over 18,000 tonnes would be required by April for the four-lane road project. When asked, the minister told the FE that efforts were made to overcome the crisis. However, contractor sources said the crisis would turn more acute in the coming days due to the lack of efforts by the government. They said the capacity of Eastern Refinery had been limited to 70,000 tonnes of bitumen since inception. A contractor, who has been engaged in constructing both national highways and regional roads since the 90s, said due to corruption in distribution of bitumen by different agents of the Eastern Refinery, the crisis got worse forcing them to buy it at an exorbitant rate. "Bitumen crisis is always there in the country due to a gap between the demand and supply, but it has become acute due to the lack of control over distribution process since 2004," he told the FE adding that the condition was likely to get worse in absence of efforts to increase the Eastern Refinery's production capacity. An RHD official of Khulna zonal office said, due to the crisis getting bitumen on time is nowadays not possible forcing the contractors to manage it from importers at higher prices. At present, bitumen is being sold at around Tk 70,000 per tonne. In the 90s, the price varied between Tk 5000 and Tk 6000, which increased to Tk 10,000 to Tk 12,000 due to the Iraq war. The ministry concerned and RHD officials said the overall crisis had been discussed in the PMO's meeting, and directives were given to prioritise RHD's work mainly for the two important four-lane highway projects. "As RHD accounts for 66 per cent of the total demand, a decision was taken to give priority to RHD projects," said the RHD official adding that they had to verify the work order. However, sources said with the start of using bitumen by big projects like the two four-lane highway projects, another crisis would hit the small projects hampering overall development of road network in the country. The RHD itself is at present implementing 153 road and bridge development projects.  Commercial Aspects Bitumen to Chittagong Bangladesh For the past 10 years we have been active in the export of Bitumen to Chittagong Bangladesh. Our company has come to appreciate the close cooperation it has with the Bangladeshi people. Bangladeshi bitumen importers normally work through a respectable broker whom they trust. This trustee handles the entire bitumen procurement process for the buyer. Therefore; it is important to respect their position and rights. Most of them are also responsible for doing the banking procedures for their clients as well. How many metric tons is each order to Chittagong Bangladesh? Most orders for road bitumen from Bangladesh are 500 metric tons. Some are 1,000 metric tons. Some clients purchase several thousand metric tons at once but they break them into smaller orders. We believe this is due to their limitations on their import permits. Payment to Chittagong Bangladesh and Discrepancies When dealing with Bangladesh the only form of payment is a letter of credit. This is because their import laws commands this. It is said that each company can only import 25,000 USD annually worth of products through Telegraphic Transfer. If imports exceed this figure the rest has to be imported via a LC. Discrepancies on the Letter of Credit Bitumen exporters who have dealt with Bangladesh’s banks have become accustomed to experiencing unwelcomed and often unjustifiable discrepancies. The main reason for these discrepancies in the LC are aimed at delaying their payment. The norm with the top banks of the world to process a payment is maximum two weeks. The purpose of these discrepancies are to avoid payment before the goods have reached Chittagong. Some Bitumen exporters believe that this mechanism is used to reserve their foreign currency until it is truly needed to be released. Others claim it is so that the goods can safely arrive first. We also have our own theory: this is a safety mechanism used to block unwanted bitumen qualities from being accidentally bought. We believe the goods are checked first through a special cooperation between the client, customs and the bank. If everything is in accord, then the payment is released to the seller. Bitumen Shipments to Bangladesh Unlike most countries, in Bangladesh bitumen shipments must include destination handling charges DTHC. The payment as discussed above is released once the goods have arrived in their port. Because the bitumen clients in Bangladesh have a limmited time to clear their goods from customs ( 4 days) once the goods arrive the payment is usually made within 24 hours. Drums weight for Chittagong Even though it costs bitumen importers from Chittagong Bangladesh an average of 15.00 USD/MT to secure 145 +/- 2 Kg drums they usually avoid purchasing 180 Kg drums. The reason 145 Kg also known as 150 Kg drums cost higher is due to the fact that less weight can be shipped. An average of 16 metric tons versus 20 metric tons can be shipped when using the smaller sized drums than the standard 180 Kg packaging. Our suggestion to the Bangladesh bitumen importers Please don’t make the same mistake as one of your neighboring countries has made and allow low quality mixed bitumen to enter your market and prevail. More and more each day we see buyers focusing on prices from Bangladesh more than quality and service. By doing so they are risking securing undesired quality bitumen. Even certain healthy exporters from Iran in order to compete have found themselves accidentally purchasing mix bitumen at competitive prices. However they have found themselves losing greatly when their quality was rejected in Bangladesh and their money blocked and returned to the buyer. 30.00 USD fee per container charged by the shipping lines for Bitumen to Chittagong Bangladesh Shipping lines are charging 30.00 USD per container under the header of Insurance fees. However we have learned that these fees are aimed at restoring the condition of the containers. So far our company noticed several shipping companies charging their clients and it appears that for the time being this unwanted fee is unavoidable. Sample letter of intent LOI for bitumen In this post Sample letter of intent LOI for bitumen we will introduce important information which should be contained within your LOI for bitumen. When it comes to writing a letter of intent LOI for bitumen there are several items a bitumen supplier requires knowledge on. Below is a list of the required information for a formal quote: The type of bitumen you require. For example bitumen 60/70, bitumen 80/100 or oxidized bitumen or cutback bitumen. The type of packaging you require your bitumen in. For example bitumen in new steel drums, bitumen in poly bags or polycubes, bitumen in jumbo bags, bulk bitumen, or bitumen in bitutainers. The quantity of bitumen you require. For example, 500 metric tons, or 5,000 metric tons. The initial order quantity you require. Some bitumen buyers may want 100,000 metric tons over the course of 1 year. This should be known to us in advance.  For example, 10,000 metric tons for the initial order. Your method of payment. For example, Telegraphic Transfer with 30% advance payment and the balance against the email copy of the bill of lading. Another mode of payment is Letter of Credit also known as L/C at sight. Please mention destination port. For example, to Yangon port in Myanmar or Djibouti port in Ethiopia. If you wish to purchase your bitumen on a FOB basis we still would like to know to which port it will eventually be shipped to. (To understand why please contact us) When you wish to place your order. This is the time period when you expect to place your order. For example in one or two month time from the time of this inquiry.