CPA on the lookout for new berth operators

The Chittagong Port Authority (CPA) has taken an initiative to issue licences to recruit new operators.

Despite the protest by the existing berth and ship handling operators, the CPA has decided to recruit the new operators.

Sources say there are currently around 60 berth operators and ship handling operators at the prime seaport of the country. New berth and ship handling operators will create much more competition and dynamism in the overall operations of the port.

According to the concerned officials of CPA, it makes no sense to have the same stevedores who previously used to handle 200,000 tonnes of goods when handling 130 million tonnes of goods and 3.3 million TEUs of containers. So, the CPA decided to appoint new operators to ensure access to port services at competitive rates.

Sources said on Thursday the CPA issued a circular for issuing licences to new operators and called for applications by October 31 next. The CPA is issuing these licences in light of a decision of the Ministry of Shipping.

The circular signed by the Director (Traffic) of the CPA stated that interested organizations should apply along with the necessary documents to the Chairman of the Chittagong Port Authority by October 31.

According to the circular, the applicants require the employer to hire employees with the necessary training and experience to load and unload goods or containers from ships at any port in Bangladesh and submit proof of this. In addition, a certificate from an appropriate institution must be submitted to verify the organisation's capacity, supporting the availability of the necessary equipment and materials.

A proof must be submitted that the ship-owner, shipping company, charterer, government or any autonomous organisation, or customs-approved shipping agent has agreed to enter into a business agreement with the applicant, the circular said.

Besides, proof of ability to pay the workers and employees' salaries, proof of citizenship including national identity cards and passports, income tax payment certificates, VAT registration certificates, trade licences, insurance coverage certificates for workers, and relevant experience certificates are also required.

The applicant must be a citizen of Bangladesh. A non-refundable pay order of Tk 100 thousand (one lakh) must be submitted in favour of the Chittagong Port Authority along with the licence application.

The CPA officials said that the licence would be issued only after proper verification and selection. It was also mentioned that the initiative was taken to manage the port activities more dynamically and efficiently as the main seaport of the country.

The ship handling operators who were previously known as stevedore companies used to handle 75 per cent of bulk cargo at the main seaport of the country.

Earlier, the number of ship-handling operators increased to 55 from 15. The sector employs about 2,500 workers.

In 2021, the CPA again floated a tender for appointment of ship-handling operators. The process of appointing operators got stuck for two years.

The process, however, has remained halted for the past year due to a High Court order after eight operators challenged the move. So, the entire unloading process of the port became monopolized. The cost of unloading products is also not competitive. Businesses are allegedly being held hostage by the ship-handling operators.