The BCIC has turned down requests from the BSC to charter vessels through it for importing fertilisers, blaming 'monopolistic attitude' and 'inefficiency' for carrying out the task, officials said.
According to a government decision, the Bangladesh Shipping Corporation (BSC) acts as the secretariat to the inter-ministerial chartering committee and an agent for hiring vessels for state-owned entities, they added.
The Bangladesh Chemical Industries Corporation (BCIC) had been chartering vessels to import fertilisers through the BSC since the country's independence.
But it has cut ties with the BSC more than four years back alleging that the latter has failed to offer quality services and its 'monopolistic attitude' had been causing financial losses, a senior BCIC official told the FE.
Sources said this year the BSC sent three letters to the BCIC requesting the latter to charter vessels through it again. In the letters, it also requested to hold bilateral meeting among top officials of the two corporations to resolve the issue.
However, the BSC is yet to receive any response from the BCIC in this regard.
When contacted, BCIC chairman Mohammad Iqbal told the FE that it is possible for the BSC to charter vessels only after it can assure them of providing vessels timely and shun, what he termed, monopolistic attitude.
"But our previous experience of chartering vessels through the BSC is very unpleasant. That's why we had to cut ties with the corporation," he said.
Mr Iqbal said his organisation is responsible for ensuring availability of 2.10 million tonnes of urea fertiliser in seven months through import. The rest of 0.7 million tonnes, out of total demand for 2.8 million tonnes, is being produced locally.
But the BSC fails to provide vessels timely for carrying fertilisers which may cause a big problem, he said.
The BCIC chairman said chartering vessels through the BSC is more expensive than private companies. He suggested that the BSC participate in bidding and compete with private sector when the BCIC invites tender for chartering vessels.
Mr Iqbal said the BSC needs to appoint skilled manpower having knowledge about global trade regime to carry out the job. He, however, said he will sit with top officials of the BSC to discuss and resolve the issue.
BSC managing director H R Bhuiyan last week told the FE that it is policy of the government to charter a certain number of vessels for state-owned bodies through his organisation.
But the BCIC has not been following the rules for several years, he said.
Mr Bhuiyan didn't agree that chartering vessels through the BSC leads to higher cost for the BCIC. "The BSC didn't think about profit when the government exported rice to Sri Lanka," he said citing an example.
Replying to a query, he said presently the BSC has only few vessels, but procurement of some ships is under process. "Once the vessels are bought, we will be able to provide total service by our own ships instead of chartering from others," he added.
The BSC is presently negotiating procurement of six new vessels -- three bulk carriers and three oil tankers -- with Chinese funding. Its bid to buy an old vessel was cancelled recently following an objection raised by the Prime Minister's Office.
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