Tk50cr ships cause only losses for CPA in 7 years
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
TUESDAY, MAY 17, 2022
TUESDAY, MAY 17, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Tk50cr ships cause only losses for CPA in 7 years

Trade

Shahadat Hossain Chowdhury
28 August, 2020, 02:05 pm
Last modified: 28 August, 2020, 02:25 pm

Related News

  • Marshall Islands says looking at 'expelling' Russian ships on its registry
  • Saif Powertec becomes first local firm to operate ships from abroad
  • Patenga container terminal: CPA to be in-charge until a foreign operator appointed
  • In pandemic time local shippers added 32 vessels to fleet
  • Ships on the Chittagong-Barisal route after 10 years

Tk50cr ships cause only losses for CPA in 7 years

Finally, the three ships are to be auctioned

Shahadat Hossain Chowdhury
28 August, 2020, 02:05 pm
Last modified: 28 August, 2020, 02:25 pm
Three container-carrying ships, bought for Tk50 crore, have long lied uncared for at a lighter jetty of Sadarghat in the port city of Chattogram. The photo was taken on Thursday. Photo: Mohammad Minhaj Uddin/TBS
Three container-carrying ships, bought for Tk50 crore, have long lied uncared for at a lighter jetty of Sadarghat in the port city of Chattogram. The photo was taken on Thursday. Photo: Mohammad Minhaj Uddin/TBS

The Chittagong Port Authority (CPA) procured three container vessels in 2013 for transporting goods to Pangaon Container Terminal in Narayanganj. Initially, the CPA operated the ships but later handed them over to a company on a five-year contract.

The port has not seen any profit in operating these vessels so far.

Bought at Tk50 crore, the CPA has managed to earn no more than Tk16 crore by operating the three ships, namely, MV Pangaon Express, MV Pangaon Vision and MV Pangaon Success, with a capacity of 120 to 140 TEUs.

Moreover, the CPA did not get a suitable price even after issuing several rent notices. As a result, the port authorities plan to sell the ships in auction.

Port officials in the know also said the port authorities have little experience in operating ships, while importers and exporters are not interested in transporting containers on ships on the Chittagong-Pangaon route.

Photo: Mohammad Minhaj Uddin
Photo: Mohammad Minhaj Uddin

Omar Farooq, secretary of the Chittagong Port Authority, told The Business Standard that the three ships at the Chittagong port had been given to a private company to operate. Due to losses, however, the company handed over the ships to the port.

A senior official of the Chittagong Port, who did not want to be named, told The Business Standard two of the ships arrived in December 2013, with the third one following in August 2014. Initially, the ships were operated under the port's management, but later, on September 2, 2015, the port handed over the ships to Summit Alliance Port Limited in the presence of the then shipping minister Shahjahan Khan at New Mooring Container Terminal Jetty, on a five-year contract at a monthly rent of Tk42 lakh.

The lessee company handed over the ships to the port two years and six months before the expiration date due to continuous losses incurred in transporting containers on the route.

On condition of anonymity, an official concerned said the legal adviser of the port gave an opinion at the beginning of this month that there was no legal impediment to selling off the three ships.

A year and a half ago, the opinion of the legal adviser was also sought on operations on the Sri Lanka route instead of the Chittagong-Pangaon route. It was suggested that there was no impediment to the operation on the route as long as the ships were fit.

Despite this opinion, the authorities have decided to sell the ships.

Photo: Mohammad Minhaj Uddin/TBS
Photo: Mohammad Minhaj Uddin/TBS

The three ships have been lying idle in Chittagong port since the end of 2017. Port officials are sceptical about getting a good price at auction as the ships have not been in operation for a long time. They think the sooner the ships are sold, the less the loss.

A visit to the port's lighter jetty in the Sadarghat area revealed rust in different parts of the ships. Several crew members said most of the ships' equipment had been damaged due to non-operation.

Ali Azgar, a shipmaster of MV Pangaon Vision, told The Business Standard, "I joined the ship one year ago. Since then, I have seen the three ships anchored in the Karnaphuli river. On Thursday morning, the ships were brought to the port's newly constructed lighter jetty in the Abhay Mitra Ghat area of ​​Sadarghat by two tugboats."

The Chittagong Port Authorities constructed a container terminal in the Pangaon area of ​​Narayanganj in 2010 to transport container goods from the port to Dhaka by river route to reduce container congestion at the port. After unloading at Chittagong port, the Dhaka-bound container cargo was transported by river to Pangaon container terminal in small ships.

An official of the Bangladesh Freight Forwarders Association said on condition of anonymity that importers remain more interested in transporting goods by road and rail. As a result, this river route has not yet become popular. 

Economy / Top News

Ships / CPA

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
    Dollar price crosses Tk100 in open market 
  • Finland's Prime Minister Sanna Marin speaks during the plenary session at the Finnish parliament in Helsinki, Finland on 16 May 2022. Photo: Reuters
    Finland's parliament votes yes to NATO
  • Govt fixes tolls for Padma Bridge
    Govt fixes tolls for Padma Bridge

MOST VIEWED

  • Photo: Courtesy
    Ctg Chamber president slams edible oil hoarders
  • Photo: Mohammad Minhaj Uddin/TBS
    NBR to allow more firms easy release of goods from ports
  • Misuse of bond facility: Joint Collection fined Tk95 lakh
    Misuse of bond facility: Joint Collection fined Tk95 lakh
  • Onion imports halted since Eid  
    Onion imports halted since Eid  
  • Export earnings expected to reach $50B this fiscal year 
    Export earnings expected to reach $50B this fiscal year 
  • Photo: Cameron Venti/Unsplash
    Direct freight shipping to UK soon

Related News

  • Marshall Islands says looking at 'expelling' Russian ships on its registry
  • Saif Powertec becomes first local firm to operate ships from abroad
  • Patenga container terminal: CPA to be in-charge until a foreign operator appointed
  • In pandemic time local shippers added 32 vessels to fleet
  • Ships on the Chittagong-Barisal route after 10 years

Features

Despite Bangladesh having about 24,000 km of waterways, only a few hundred kilometres are covered by commercial launch services. Photo: Saad Abdullah

Utilising waterways: When common home-goers show the way

7h | Panorama
Illustration: TBS

How Putin revived Nato

8h | Panorama
The reception is a volumetric box-shaped room that has two glass walls on both the front and back ends and the other two walls are adorned with interior plants, wood and aluminium screens. Photo: Noor-A-Alam

The United House: Living and working inside nature

8h | Habitat
Pcycle team members at a waste management orientation event. Photo: Courtesy

Pcycle: Turning waste from bins into beautiful crafts

10h | Panorama

More Videos from TBS

Can your coworker be your closest friend?

Can your coworker be your closest friend?

9h | Videos
The mystery behind Pyramid

The mystery behind Pyramid

10h | Videos
Finland, Sweden decide to join NATO

Finland, Sweden decide to join NATO

21h | Videos
Where you can swim for Tk5

Where you can swim for Tk5

23h | Videos

Most Read

1
Representative Photo: Pixabay.
Bangladesh

Microplastics found in 5 local sugar brands

2
Mushfiq Mobarak. Photo: Noor-A-Alam
Panorama

Meet the Yale professor who anchors his research in Bangladesh and scales up interventions globally

3
Impact of falling taka against US dollar
Banking

Taka losing more value as global currency market volatility persists

4
Govt tightens belt to relieve reserve
Economy

Govt tightens belt to relieve reserve

5
Union Capital asked to return Tk100cr FDR to BATBC 
Banking

Union Capital asked to return Tk100cr FDR to BATBC 

6
How Bangladesh can achieve edible oil self-sufficiency with local alternatives
Bazaar

How Bangladesh can achieve edible oil self-sufficiency with local alternatives

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab