The Chittagong Port Authority (CPA) has opted to extend its agreement with Saif Powertec Limited, granting the company continued operation of the New Mooring Container Terminal (NCT) under direct procurement. This decision comes as the CPA faces delays in the open tender process intended to appoint a new operator for the terminal.
Initially, the CPA had planned to issue an open tender to temporarily appoint a new operator until a foreign operator could be selected under a public-private partnership or government-to-government agreement. However, complications have arisen due to existing statutory regulatory clauses that have been criticized for favoring Saif Powertec as the sole competent operator for the terminal.
Shipping Adviser Brig Gen (retd) M Sakhawat Hussain has openly criticised the direct procurement method employed by the CPA during a visit to the port in October, highlighting concerns over transparency and fairness in the appointment process. Following this, on October 30, Nazrul Islam Azad, deputy secretary of the shipping ministry, instructed the CPA chairman to initiate an open tender for the NCT’s operation.
In 2018, the previous government introduced amendments to the Regulation for Working of Chittagong Port (Cargo and Container), effectively hindering open bidding by designating Saif Powertec as the only qualified operator. Although a CPA committee proposed amendments to these clauses in November, the process remains incomplete, leaving the CPA unable to issue open tenders.
With the current agreement with Saif Powertec set to expire on January 7, the CPA board convened and decided to extend the agreement for an additional six months. CPA Secretary Md Omar Faruk reportedly confirmed that the decision was made to prevent operational disruption, as the terminal cannot be left idle. Importantly, he noted that this extension is conditional upon the cancellation of the agreement as soon as a new operator is appointed through the open tender process.
The implications of this decision are significant. While the CPA aims to maintain terminal operations without interruption, the reliance on direct procurement raises questions about the integrity of the contracting process. Critics argue that continued exclusivity for Saif Powertec undermines competition and may hinder the overall efficiency of port operations. The CPA’s commitment to pursuing open tenders and amending existing regulations will be closely monitored, as stakeholders seek a more transparent and competitive environment for terminal operations in the future.
