The Chittagong Port Authority (CPA) has claimed that operating the New Mooring Container Terminal (NCT) by appointing private operators and buying equipments from its own fund will bring more profit for the country compared to the proposals given by other concerned, official sources said.
The CPA has proposed that it will buy necessary equipments for the port while private operators will operate the port by their own manpower. The port authority will collect all the tariffs and charges from users and pay the operators for their service.
On the other hand, the parliamentary standing committee on ministry of shipping (MoS) had suggested that the CPA would not buy any equipment from its own fund. The private operators would buy equipments and run the NCT from its own fund and by appointing manpower.
The CPA recently submitted its financial analysis to the MoS. A committee, headed by additional secretary of the MoS, which was formed to submit a report to the parliamentary standing committee, is now examining the proposal sent by the CPA.
Alongside the parliamentary committee's view a World Bank team also suggested not to spend any money from the CPA fund and appoint private operators for full fledged operation of the terminal.
Just a month after the suggestion of the parliamentary committee, given on April 30 last, the CPA had floated an international tender to buy six key gantry cranes worth Tk 4.0 billion for the NCT.
Chairman of the parliamentary committee on MoS, Rafiqul Islam, MP had termed the CPA move of collecting equipments from its fund a 'clear violation' of the suggestion of the body.
At one stage the CPA stopped the tender process being instructed by finance minister AMA Muhith.
Sources said recently the MoS committee had examined the financial analysis submitted by the CPA before it.
Several members of the committee said the CPA's financial analysis on operating the terminal under total arrangement and management of private sector was not justified. They also said in its analysis that the CPA has clearly favoured its own proposal of buying equipments from port fund which is very much illogical.
A member said the CPA has taken into consideration the 'higher' projection of the port study model of Asian Development Bank. But, he said the Chittagong port would not get such business after several years once the Paira port goes into operation, Mongla port's business increases after construction of the Padma Bridge and Laldia and Karnafuli container terminals go into operation.
The committee member said since the higher projection was taken into consideration, the analysis showed that return from the option of operating the NCT under total arrangement and management of private sector is very nominal.
On the other hand, he said favouring its own proposal in financial analysis, the CPA showed higher earnings and lower expenses. He said CPA took into consideration handling of full 1.0 million TEUs (Twenty-foot Equivalent Units) of containers every year which is unrealistic.
He said once the container terminals go into operation, use of Mongla port's capacity raises, and Paria port starts operation the NCT would not get such high volume of containers.
The committee member suggested operating the NCT under full management and funding of private sector for a good return.
Construction of the Tk 5.82 billion terminal ended in December 2007. But the one-kilometre-long terminal with five jetties is yet to be fully functional due to complications over appointment of operator.
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