BusinessToday24 Correspondent, Dhaka: The contract of Saif Powertec Limited, the current operator of the New Mooring Container Terminal (NCT) under the Chittagong Port Authority, is set to expire on July 6. As the authority could not complete the process of appointing a new operator through open tender within the stipulated time, it will take over interim operations of the terminal.
According to sources from the Ministry of Shipping, the decision was made at a meeting held on June 18. It is estimated that appointing a new operator will take at least six months. In the meantime, the Port Authority informed the ministry on June 19 that it would require approximately Tk 42 crore for operational costs including essential equipment like quay gantry cranes, rubber-tyred gantry cranes, and IT infrastructure. This translates to a monthly operating cost of around Tk 7 crore. A letter seeking approval has been sent to the Senior Secretary of the Ministry for clearance from the Cabinet Committee on Economic Affairs.
Earlier, the Port Authority had proposed to extend Saif Powertec’s contract for an additional three months. However, the ministry decided not to accept the proposal and opted for direct management by the port instead. In cases of emergency, the provision for applying the ‘Direct Procurement Method’ (DPM) exists under Section 68 of the Public Procurement Act 2006 and Rule 76(2) of the Procurement Rules 2008.
Preparations are currently underway to appoint an international operator to manage the NCT. The International Finance Corporation (IFC), a World Bank affiliate, is acting as the transaction advisor. On IFC’s recommendation, the port had proposed a temporary extension of the current operator’s term. The government aims to finalize an agreement with UAE-based DP World by September. However, the move to appoint a foreign operator has drawn criticism from various political parties, labor unions, and professional groups. They argue that a terminal built with domestic funding should not be handed over to a foreign company.
The NCT consists of five berths, capable of accommodating vessels up to 200 meters in length with a 10-meter draft. Although its annual capacity is 1.1 million TEUs, it currently handles 1.3 million TEUs. The terminal generates about Tk 1,000 crore in revenue each year for the Port Authority.
According to port sources, the terminal was constructed in 2007 at a cost of Tk 4,000 crore with funds from the Chittagong Port Authority. After operating through open tender for the first two years, Saif Powertec has been managing the terminal under direct procurement. The most recent extension of their contract was made on January 7 this year for a six-month term.
