Tk 5m revenue loss in absence of a fully-operational NCT
Monday, 13 April 2009
Sheikh Shahariar Zaman
The Newmooring Container Terminal (NCT) is yet to be fully operational even after two years of its inauguration leaving the Chittagong Port Authority (CPA) to count the loss of at least Tk 5 million (50 lakh) in revenue per day.
"The NCT, which started operation in 2007, has the capacity to handle 1.0 million twenty-feet equivalent units (TEUs) of containers but now it manages just over 0.2 million units," said Md Hadi Hussain, member of the CPA.
The CPA started the process in September last to appoint a reputed company having the capacity of investing $136 million for installing cranes and other supporting machinery at the NCT and managing those, he added.
"The port is expected to earn Tk 2,000 million (200 crore) per year from the company for cargo handling," he added.
Another CPA official said the port could have earned revenue from the current year if the government started the tender process in 2007.
It takes 24 to 30 months to complete the tender process and set up machinery, he said adding, "Had the process begun in 2007 it could have been completed by now."
The port started the process in 2008 and four short-listed companies took part in the pre-qualification bid.
The companies are APM Terminals (part of AP Moller/Maersk Group of Companies), Hutchison Port Investment Limited, International Container Terminal Limited, and Peninsular & Orient Steam Navigation Company (part of Dubai Ports World).
"We sent the names to the shipping ministry in March last and it is expected that the ministry will provide the agreement documents to the CPA by June," the official said.
After getting the documents, the CPA would invite tenders to appoint an operator from among the four companies, he said.
The appointment is likely to be completed by March next year and the company would take one year to install the machinery, he explained.
The company is required to install 10 gantry cranes in the 1,000-metre long terminal, he said.
The government started the development work of NCT in 2005 and invested more than Tk 5,000 million.
The port handled more than 1.0 million TEUs, the highest ever, in 2008.
The Newmooring Container Terminal (NCT) is yet to be fully operational even after two years of its inauguration leaving the Chittagong Port Authority (CPA) to count the loss of at least Tk 5 million (50 lakh) in revenue per day.
"The NCT, which started operation in 2007, has the capacity to handle 1.0 million twenty-feet equivalent units (TEUs) of containers but now it manages just over 0.2 million units," said Md Hadi Hussain, member of the CPA.
The CPA started the process in September last to appoint a reputed company having the capacity of investing $136 million for installing cranes and other supporting machinery at the NCT and managing those, he added.
"The port is expected to earn Tk 2,000 million (200 crore) per year from the company for cargo handling," he added.
Another CPA official said the port could have earned revenue from the current year if the government started the tender process in 2007.
It takes 24 to 30 months to complete the tender process and set up machinery, he said adding, "Had the process begun in 2007 it could have been completed by now."
The port started the process in 2008 and four short-listed companies took part in the pre-qualification bid.
The companies are APM Terminals (part of AP Moller/Maersk Group of Companies), Hutchison Port Investment Limited, International Container Terminal Limited, and Peninsular & Orient Steam Navigation Company (part of Dubai Ports World).
"We sent the names to the shipping ministry in March last and it is expected that the ministry will provide the agreement documents to the CPA by June," the official said.
After getting the documents, the CPA would invite tenders to appoint an operator from among the four companies, he said.
The appointment is likely to be completed by March next year and the company would take one year to install the machinery, he explained.
The company is required to install 10 gantry cranes in the 1,000-metre long terminal, he said.
The government started the development work of NCT in 2005 and invested more than Tk 5,000 million.
The port handled more than 1.0 million TEUs, the highest ever, in 2008.