News / Open tender set to launch to find new operator for Chittagong box terminal

8 © Asmtamanna

Bangladesh is to launch an open tender for the chance to operate its largest box facility, the New-mooring Container Terminal (NCT) at Chittagong Port. 

The agreement between the port authority and current operator Saif Powertec will end in the first week of January and the port authority originally asked the shipping ministry to approve a tender under a “direct purchase method” (DPM).

However, with the deadline fast-approaching, the authority changed its proposal to seek an open tender, in the hope of appointing a new operator soon. 

The original plan had been to appoint a foreign operator, but progress stalled following the appointment of an interim government in August, after the prime minister fled, following protests. 

DP World had expressed an interest in investing $1bn in the port, container terminals and infrastructure in 2020, and was in talks with the government, Rizwan Soomar, DP World’s CEO for Middle East, North Africa & India Subcontinent, holding high level meetings. It is thought to remain interested in the project.

Saif Powertec is also thought to want to continue to operate the terminal, but has faced complaints over service levels, among other issues. It has been alleged that its dominance of the port has prevented local companies with expertise from applying to operate the port.

And with a new government in place, talks have slowed amid some port sector players opposing a foreign operator for NCT.  

Omar Faruk, spokesperson for Chittagong Port Authority, said: “We are waiting for ministry approval to float a tender under the Open Tender Method to appoint a new operator for the NCT. The present agreement will expire on 7 January. 

“We can’t keep port operations closed until we have a new operator. So we have been continuing works under the direct purchase method with the current operator. Once we can appoint a new operator, we will cancel the agreement and hand over the terminal. 

He added: “There is no visible progress regarding the appointment of a foreign operator.” 

NCT has a 1,000 metre berth and back-up facilities on 65 acres of land and commenced vessel operations in May 2007 with operator Saif Powertec. The terminal has five berths with a maximum 186-metre length, and draught of 9.5 metres. According to Saif Powertec, it has 10 quay gantry cranes, one mobile harbour crane and 90 internal transfer vehicles. 

It also has a container storage yard of 292,287 sq metres for back-up operations and a 700 reefer plug capacity – based on four days’ dwell time – and total handling capacity of 1,198,295 teu a year.