Operating new mooring container terminal: CPA plans Saif Powertec tenure extension

CHATTOGRAM, June 20: The Chittagong Port Authority (CPA) has proposed extending the contract with Saif Powertec Limited to continue operating the New Mooring Container Terminal (NCT), as the current agreement is set to expire on July 7.

Sources at the port authority said CPA plans to appoint a foreign terminal operator for NCT through an Open Tender Method (OTM).

After Saif Powertec's initial contract expired on January 7 this year, the CPA extended the deal for six months, now ending on July 7.

However, with the tendering process yet to make adequate progress, CPA has sought an interim extension to allow the current operator to continue operations.

Saif Powertec Ltd, regarded as a private operator of international standards in Bangladesh, has been managing the NCT since 2007.

That year, the government initiated the port privatisation process, and the CPA awarded the container handling contract to Saif Powertec through open tender.

According to CPA officials, efforts to hand over the terminal to a foreign operator have not advanced significantly.

Although the authority remains committed to leasing terminals, including NCT, to international companies, no final agreement has been reached.

Discussions and reviews of proposals are still ongoing.

To support this transition, a transaction adviser (TA) has been appointed to recommend the procedure, pricing structure, and other terms for awarding the terminal contract under the OTM.

But the TA is yet to submit its final report, causing further delays in decision-making.

Until a new operator is selected, Saif Powertec will continue operations under the current terms and conditions.

The interim contract extension proposal is based on the TA's recommendation.

A final decision is expected at a ministry-level meeting before the contract's expiry.

CPA officials emphasised that terminal operations cannot be disrupted while the tender process continues, hence the need for uninterrupted management by the existing operator.

Meanwhile, a proposal has already been submitted to the shipping ministry seeking approval to launch the OTM process.

The previous Awami League government had intended to lease NCT to a foreign operator through a government-to-government agreement and had tasked the Public-Private Partnership (PPP) Authority with negotiating with Dubai-based DP World.

A feasibility study by German consultancy Hamburg Port Consulting estimated NCT's capacity at 1.1 million TEUs (twenty-foot equivalent units).

However, under Saif Powertec's management, the terminal's capacity has reportedly been upgraded to 1.3 million TEUs.

Remarkably, 60 per cent of containers at NCT are delivered directly from within the port - a container-to-cargo delivery model reportedly not practiced at any other port globally.

The terminal has a quay length of 1,000 metres, with berths designated as NCT-1 through NCT-5 to accommodate feeder vessels.

It can berth ships up to 186 metres in length overall (LOA) and a maximum draught of 9.5 metres.

Night navigation is permitted for vessels up to 175 metres LOA and nine metres draught.

Import and export operations are handled through a Terminal Operating System (TOS), supported by 14 quay gantry cranes (QGCs), mobile harbour cranes (MHCs), and 90 internal transfer vehicles (ITVs).

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