Saif Powertec to sign off-dock deal with railway Tuesday

Highlights

• Saif Powertec to invest around Tk300 crore
• Its ICD to have the capacity of handling 2 lakh containers per year
• The ICD will generate around 500 jobs
• Saif Powertec to give Tk7 crore to railway container company as signing money

Bangladesh Railway's Container Company of Bangladesh Limited (CCBL) and Saif Powertec Ltd are set to sign an agreement on Tuesday to build a new Inland Container Depot (ICD) in Chattogram.

Belal Uddin, managing director of CCBL and Ruhul Amin, MD of Saif Powertec, is expected to sign the agreement on behalf of their respective companies.

The signing ceremony will be arranged at Hotel InterContinental in Dhaka on Tuesday afternoon. 

According to CCBL sources, Railway Minister Nurul Islam Sujan is likely to be present as the chief guest at the signing ceremony. Md Selim Reza, secretary to the Ministry of Railways, is scheduled to preside over the programme.

Saif Powertec will build a new ICD on a 21.29-acre land, owned by the Bangladesh Railway, at Halishahar in the port city, with an estimated expense of Tk300 crore to boost the capacity of Chattogram port, said people linked to the project. 

The ICD will contribute Tk120 crore to business by handling two lakh containers per year. It will create about 500 jobs, they added. 

According to the agreement, Saif Powertec will hand over a fully operational ICD after a 20-year term and then the next operating entity will be selected through an open tender. 

Belal Uddin, managing director of CCBL, said "Saif Powertec will build and operate the ICD as per terms of the agreement. CCBL will get Tk7 crore as signing money. We will get 21.50% of profits earned from ICD operation and Saif Powertec will get the rest." 

Experience in the ICD sector, including container terminal operation, handling of at least 50,000 TEUs containers were conditions for the ideal candidate for the project. Other conditions included -- designing the ICD, preparing financial management and drafting its management plan, he said.

A total of 14 companies, including four foreign ones, submitted bids for the ICD construction out of whom Saif Powertec was selected.

Chattogram port, the main seaport of the country, handles 92% of the import and export. 98% of the total containers shipped in and out of the country are transported through the port. 

Saif Powertec operates two terminals of Chattogram Port -- Chattogram Container Terminal (CCT) and New Mooring Container Terminal (NCT),  and handles 65% of the port's total 30 lakh TEUs (twenty-foot equivalent unit) containers per annum. It has been involved in container handling at the port since 2007.

Currently, 19 private ICDs are operational in Chattogram, which handle 16 lakh TEUs of containers per year on an average.

From Chattogram port, 80% of the total containers are transported to different parts of the country by road, 18% by sea and only 4% by the railways.