Chattogram Port scraps 5-year tender for 'shifting empty containers' accused of favouring 2 operators
The tender, floated on 14 June, was cancelled today.
Highlights:
- Key dispute was over bidders using their own container handlers and trailers
- CPA relaxed some conditions but retained the disputed requirement
- Berth Operators Association calls for a fresh, transparent tender
Chattogram Port Authority (CPA) has scrapped a five-year tender for shifting empty containers at its General Cargo Berth (GCB) area after operators alleged that restrictive conditions were designed to favour two specific companies.
The tender, floated on 14 June, was cancelled today (9 August), according to a notice signed by the port's director (Traffic) Golam Md Sarwarul Islam.
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The notice said the tender was cancelled on the instructions of the competent authority due to "unavoidable reasons", confirmed CPA Secretary Sayed Refayet Hamim.
The tender had drawn criticism from industry operators over several eligibility conditions that they said effectively narrowed the field to Saif Powertech and Everest Port Services, a company owned by BNP lawmaker Shahadat Hossain Selim.
The controversy centred on a requirement that bidders must have experience of handling containers using their own empty container handlers and tractor-trailers.
Operators said the condition was particularly restrictive because no other company had been allowed to operate its own empty container handlers inside the port for the past 17 years.
As a result, they argued, retaining the condition would effectively give the two companies an advantage over other potential bidders.
Following the objections, the CPA held a pre-bid meeting on 16 July chaired by its Member (Finance) Md Mahbub Alam Talukder and subsequently relaxed several tender conditions.
The requirement for Tk50 crore worth of work experience within the previous 10 years was changed to at least Tk40 crore worth of experience in any five years during the previous 25 years.
The maximum age of equipment was increased from one year to two years, while the security deposit was reduced from Tk1 crore to Tk50 lakh.
However, the authority did not change the requirement for bidders to use their own empty container handlers and tractor-trailers.
According to the minutes of the pre-bid meeting, a representative of Everest Port Services strongly argued for retaining the own-equipment requirement, citing an earlier Supreme Court directive.
Other operators subsequently alleged that the relaxation of the financial and experience requirements did little to address their core concern because the own-equipment condition remained unchanged.
The deadline for submitting bids was extended to 10 August following the pre-bid meeting. But objections over the tender continued, with industry operators calling for the disputed conditions to be removed.
The CPA eventually cancelled the entire tender rather than proceeding with the bidding process.
Copies of the cancellation notice were sent to 11 companies, including Saif Powertech and Everest Port Services. The other firms were MH Chowdhury Ltd, Fazlissons Ltd, Bashir Ahmed & Company Ltd, FQ Khan & Brothers Ltd, QC Shipping Ltd, Transmarine Logistics Ltd, Portlink Logistics Centre Ltd, A & J Traders and AR Raihan Terminal Operator.
Fazle Ikram Chowdhury, president of the Bangladesh Berth Operators Association, said the CPA should issue a fresh tender with transparent, simple and logical eligibility criteria.
"All capable businesses should have the opportunity to participate in the tender," he said.
He warned that restrictive tender conditions could lead to legal disputes or a shift to direct procurement, potentially allowing prolonged control of the work without meaningful competition.
"If a competitive environment is not ensured, the port will suffer financially," he said.
