Saif Logistics Alliance Ltd, a subsidiary company of Saif Powertec Ltd, will build a new multi model container terminal on Bangladesh Railway land in Chattogram.
The Container Company of Bangladesh Limited (CCBL), a subsidiary of Bangladesh Railway, and Saif Logistics Alliance Ltd signed an agreement on Tuesday in this regard at Hotel Inter Continental in Dhaka.
The contract signing ceremony was presided over by Md Salim Reza, secretary of railways ministry and also chairman of CCBL while Railways Minister Md Nurul Islam Sujan was the chief guest.
Construction of the new container terminal will increase the capacity of the Chittagong Port's container transportation while the CCBL and Saif Logistics will also be benefited.
According to the agreement, Saif Logistics will build the new container terminal on a 21.29-acre land at Halishahar in the port city, with an estimated cost of Tk308 crore to boost the capacity of Chattogram Port. The container terminal will generate Tk3482 crore revenue in 20 years. Saif Powertec Ltd will invest 80% of the construction cost.
Saif Logistics will hand over a fully operational container terminal after a 20-year term and then the next operator will be selected through an open tender.
The company officials said the container terminal will handle two lakh containers per year and create about 500 jobs. Saif Logistics will enjoy a 78.50% share in revenue while CCBL will get the rest. Saif Logistics will operate the terminal and they will collect the revenue from customers.
At the event, Nurul Islam Sujan said it is not possible to make a profit just by carrying passengers anywhere in the world. For this reason, goods need to be transported.
He said both companies will benefit from this agreement. Saif Group is already experienced in container transportation. Hopefully, something good will happen in the future through this.
Md Selim Reza said CCBL has been formed for the transportation of goods. Saif Group will build the logistics terminal from where the container will be delivered on time to the right place across the country.
Tarafder Md Ruhul Amin, chairman of Saif Logistics, said construction of the container terminal will increase the capacity of the Chattogram Port and it will be the first railway container terminal in the country.
Saif Logistics was selected from a total of 14 companies, including four foreign ones, who submitted bids for the container terminal construction.
Chattogram Port, the main seaport of the country, handles 92% of the country's import and export and 98% of the total containers shipped in and out of the country are transported through this port.
Saif Powertec operates two terminals in 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 container terminals are operational at the port handling 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 railways.
Chairman of Saif Logistic Alliance Muhammad Ruhul Amin Tarafder, its managing director Tarafder Md Ruhul Saif, Director General of Bangladesh Railway Dhirendra Nath Mazumder, and Managing Director of CCBL Belal Uddin, among others, were present at the event.