NCT unlikely to get foreign operator soon

CHATTOGRAM, May 26: Saif Powertec Limited, an international-standard port operator in Bangladesh, which is handling the New-mooring Container Terminal (NCT), has kept its fingers crossed amid ongoing moves to appoint a foreign operator to manage the terminal, sources close to the company said.

Meanwhile, sources at the Chittagong Port Authority (CPA) indicated that the appointment of a foreign operator is unlikely to take place anytime soon, citing widespread protests from various stakeholders, experts, and political parties.

Saif Powertec Limited, a private operator, has been managing one of the most specialised container terminals at the Chittagong seaport since the port's operations were privatised in 2007. The CPA made the decision to privatise the terminal that year through the Open Tender Method (OTM) and subsequently appointed Saif Powertec to handle container operations.

The CPA plans to appoint a foreign terminal operator for the New-mooring Container Terminal (NCT) through the Open Tender Method. After Saif Powertec's original contract ended on January 7 of this year, the CPA extended the agreement for an additional six months, now set to expire on July 7. Saif Powertec will continue operating the terminal, as the tender process has yet to make significant progress.

CPA Secretary Omar Faruk said, "Contract with Saif Powertec expired on January 7 in the current year. While the open tender process is ongoing, terminal operations cannot be halted, so Saif Powertec has been asked to manage the terminal under existing terms and rates. The CPA extended Saif Powertec's contract for another six months through direct procurement process."

He added: "Transaction Adviser (TA) has been appointed to recommend the procedure, rate and other conditions to appoint new operator for the NCT through OTM. The TA is doing their work. But they are yet to submit any report. So, it will take time to take decision to hand over the NCT through OTM. The present operator will continue the operation until the call of open tender."

"It will take time to complete the procedure involved in handing over the operation of NCT through OTM. The incumbent operator may continue the operation through the direct procurement process," he said.

CPA sources said Chittagong seaport handled around 3.2 million TEUs of containers a year. Saif Powertec had started container handling operation at the Chittagong Container Terminal (CCT) and at NCT of Chittagong Port as a private terminal operator in 2007. More than 67% of containers of Chittagong Port are handled by Saif Powertec Limited. The company also operates the country's only rail Inland Container Depot (ICD) at Kamalapur in Dhaka.

On August 28 in 2019, the Cabinet Committee on Public Purchase approved Saif Powertec Limited as the terminal operator for handing the containers and container-laden cargoes at Chittagong Port for six years.

Tarafdar Ruhul Amin, Managing Director of Saif Powertec told The Financial Express, "We handled 11,977,922 TUEs of containers at NCT between 2007 and 2024. This achievement is not only of Saif Powertec, this achievement also belongs to Chittagong Port and the whole of Bangladesh. Saif Powertec is the only terminal operator of international standards in Bangladesh. But sadly, during the last 10 years of the ousted Awami League regime, it had to weather many odds. Salman F Rahman, economic adviser of the previous government, harassed the Saif Powertec and me, personally, in various ways."

He said Saif Powertec has already received accreditation certificates for port and terminal management and operation from various international organisations as a container terminal operator.

Vice President of Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) and shipping and Port Adviser of BGMEA A M Mahbub Chowdhury said, "It will not be right to hand over the operation of NCT to foreign operators as the terminal is ready and profitable one. There is no scope for new investment in NCT. Moreover, we have bad experience regarding Patenga Container Terminal (PCT), which is given to a foreign company. The charge for handling of 15 kg of an item at Chittagong Port is Tk 15.70 only while the handling charge for the same item is Tk 60 at PCT which is being operated by a foreign company. So, the local exporters and importers are counting losses."

He said, "Local operators are doing well at NCT. If the local operators fail to operate and make investment, then we have to consider foreigners. We need to employ experts to increase our capacity of the port."

"I think, we have to own our port and make it modern one through our own efforts," he added.

Shaif Ullah Mansur, a port user and importer and also BGMEA leader, said, "NCT is doing well. NCT is well-equipped terminal of Chittagong port which is also profitable one. NCT's operation is of international standard and it is operating by local manpower."

CPA sources said a proposal has already been submitted to the Ministry of Shipping to seek approval for issuing tenders under the OTM to appoint a new operator for the terminal. The previous Awami League (AL) government had planned to lease the terminal to a foreign operator under a government-to-government agreement. For this purpose, the Public-Private Partnership (PPP) Authority had been tasked with negotiating with Dubai-based DP World.

According to a feasibility study by German firm Hamburg Port Consulting, the NCT terminal has a capacity of 1.1 million TEUs. But the current terminal operator, Saif Powertec, has upgraded its capacity to 1.3 million TEUs. At this terminal, 60 per cent of containers (container to cargo) are delivered from within the port. No other port in the world delivers containers to cargo from the port.

Sources said the New Mooring Container Terminal (NCT) has a total quay length of 1,000 meters, comprising five berths designated as NCT-1, NCT-2, NCT-3, NCT-4, and NCT-5, primarily used for berthing feeder vessels. The terminal can accommodate vessels up to 186 metres in length overall (LOA) with a maximum draft of 9.5 metres. Night navigation is permitted for vessels up to 175 metres LOA with a maximum draft of 9 metres.

NCT operations -- both import and export -- are handled using 14 Quay Gantry Cranes (QGCs), Mobile Harbor Cranes (MHCs), and 90 Internal Transfer Vehicles (ITVs).

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