The contract period of the current operator Saif Powertec Limited at the New-mooring Container Terminal (NCT) of Chattogram Port is ending on July 6. However, the Chattogram Port Authority (CPA) has applied for a three-month extension of the contract period with Saif Powertec. During this period, the government has taken the initiative to appoint the United Arab Emirates-based company 'DP World' as the international operator.
The port authority said that the government is in the process of appointing the United Arab Emirates-based international company DP World as the new operator of the terminal. The contract period of the current operator Saif Powertec Limited is ending on July 6. Earlier, the contract with the company was renewed for six months on January 7 this year.
The International Finance Corporation (IFC), a subsidiary of the World Bank, is advising on the process of taking over the management of the New-mooring Container Terminal (NCT). IFC is working as a transaction advisor in the process of appointing the terminal operator. The proposal to extend the contract has also been given on the advice of IFC. "The contract with the current operator is ending on July 6. Before the expiration, we have requested the Ministry of Shipping to extend the contract for three months. A decision on this matter will be taken in the ministry meeting," said Nasir Uddin, spokesman for the Chattogram Port Authority.
He said, "The process of handing over the responsibility of operating the New Mooring Terminal to DP World is underway under the supervision of the government and the Ministry of Shipping."
According to information from the Chattogram Port, Saif Powertec has been operating the terminal since it was launched in 2007. This company was awarded the responsibility through an open tender process for two years. Later, they are operating the terminal through a direct purchase process.
Munshi Md. Moniruzzaman, joint secretary of the Port Division in Shipping Ministry, said, "The port authority has sent a letter to the ministry for renewal of the contract. However, a decision will be taken on this matter." The process of appointing a foreign operator began during the previous Awami League government. Transaction consultants have been appointed in this government-to-government (G2G) based system. The current interim government is also taking this process forward.
During his recent visit to Chattogram Port, Chief Adviser Professor Mohammad Yunus reiterated the plan to hire a foreign operator. During his visit to the port, the Chief Adviser's Press Secretary Shafiqul Alam told reporters that the government wants to reach a final agreement with DP World by September.
Khairul Alam Sujan, Vice President of the Bangladesh Freight Forwarders Association, said, "Currently, it is difficult to run the terminal smoothly without Saif Powertech. It is reasonable to run the work through the current operator until the recruitment of a new operator is completed."
However, there has been strong opposition from various political parties, labor organizations and other quarters against the plan to hire a foreign operator for the new mooring terminal.
These organizations often hold protest programs. They demand that this terminal, built with domestic funding and operated by a local operator, cannot be handed over to a foreign company.
They are demanding that the government reverse this decision.
Chattogram Port Authority (CPA) built a new mooring container terminal with its own funds of Tk 4,000 crore in 2007. It has five berths, which can accommodate ships with a maximum length of 200 meters and a draft of 10 meters. The terminal has about 2,92,287 square meters of container storage space, including 700 reefer plugs.
The annual container handling capacity of the New Mooring Terminal is 11 lakh TEUs (20-foot equivalent units), although currently about 13 lakh TEUs are being handled annually.
From here, the Chattogram Port is able to earn about Tk 1,000 crore in revenue annually. About 55 percent of the country's total import and export goods are transported through this terminal.
