The Chittagong Port Authority has taken a decision to go in for an international tender within the next six months to select a private player to operate the New Mooring Container Terminal (NCT), which it had earlier shown a clear interest in awarding to Dubai-based DP World.
While the main reason for not immediately taking an outright decision in favour of DP World is not quite clear, documents accessed by Northeast News show that a “policy decision” was taken on June 18 to “implement” work at the NCT under the CPA’s own management”. The NCT operates on the Karnaphuli river that is part of the port channel.
However, well-placed sources said that negotiations with DP World “are continuing” even as documents accessed by Northeast News show that CPA Chairman Rear Admiral S M Moniruzzaman will leave on June 23 for a five-day visit to the United States to meet officials of International Finance Corporation (IFC) to negotiate with DP World.
Rear Admiral Monirozzaman “will attend a senior-level training on public-private partnerships (PPPs) organised by International Finance Corporation to be held at Standford University, Palo Alto, California…from June 23-27”. Sources said that CPA has already paid IFC Taka 8 crore as a fee for negotiating the terms and conditions with D P World.
Not only will DP World be allowed to take part in the international bidding process, which will entail having at least three potential players, for the NCT, there are also plans to involve this Dubai-based multinational logistics company, specialising in cargo logistics, port terminal operations, maritime services and free trade zones for the larger and more ambitious project bay terminal project on the sea.
During the June 18 meeting, detailed information was presented on the “operation of the said terminal for a period of six months”. The information presented by different officials at the meeting showed that heavy equipment and IT management for the NCT is an estimated Taka 42 crore for six months.
The NCT is currently being operated by a private operator Saif Power Tech whose term will expire on July 6. The June 18 meeting was held to adopt a policy decision to operate the terminal by the CPA till such time that an international private player is picked so that running the terminal operations remained normal for import and export processes at the port.
In his note to the Shipping Ministry Secretary Mohammad Mostafa Kamal, the CPA chairman recommended that “necessary steps” must be taken for the “approval of the Cabinet Committee on Economic Affairs” for operations at the NCT.
The CPA’s decision favouring an international tender and bidding process, in which both D P World and Singapore’s PSA International will likely take part, comes in the wake of an April 15 letter (accessed by Northeast News) the UAE company wrote to Rear Adm Moniruzzaman, informing him that it was “scheduled to commence the due diligence and site visit activities from April 21 with an expected conclusion by May 30”.
In this context, it was pointed out that “representatives of DP World will be arriving and visiting the New Mooring Container Terminal in small groups, batch by batch, while maintaining the highest safety and security protocols”.
