Chattogram port, a critical hub for Bangladesh's trade, is facing increasing scrutiny over procurement practices that deviate from global standards.
Allegations of giving direct contracts replacing open tenders have raised concerns about transparency and fairness, calling into question the port's operational integrity.
Industry insiders stress that this approach significantly contrasts with international benchmarks, where competitive bidding and rigorous oversight are fundamental in preventing corruption and ensuring efficient operations. The lack of competition in the procurement process is seen as a major red flag, especially for a port handling over 90% of the country's maritime trade.
The port's reputation is now at risk, with operational inefficiencies and alleged irregularities linked to a Dhaka-based company that has monopolized several key operations at Chattogram Port. This has contributed to the port's global ranking slipping to 67th in the 2023 edition of the 'Lloyd's List Hundred Ports,' a fall by three positions from the previous year.
According to media reports and sector insiders, Saif PowerTech, a logistics firm with no prior history in port operations, has maintained a stronghold over Chattogram's key container terminals for nearly two decades. Exploiting regulatory loopholes, the company has bypassed competitive tenders, securing contracts through the Direct Procurement Method (DPM), a process typically reserved for emergencies.
This method has allowed the firm to monopolize operations at multiple critical facilities, including the Chittagong Container Terminal (CTT), New Mooring Container Terminal (NCT), Dhaka Kamalapur ICD, Pangaon Container Terminal (PCT), and other container yards.
Port users have voiced serious concerns about the company's practices, particularly regarding unauthorized fees. These include "speed money" charges ranging from BDT 200 to BDT 300 per container, which have become an unavoidable cost for those utilizing the port. Moreover, there are allegations of fraudulent activity, with the company reportedly submitting false bills by fabricating crane operations and container movements.
This, insiders claim, is draining the port's resources and undermining its long-term viability. In global ports like Singapore and Rotterdam, transparency and audit systems ensure that every operation is tracked, minimizing downtime and maximizing efficiency.
By contrast, Saif PowerTech has allegedly failed to reinvest in critical port infrastructure, with claims surfacing that outdated machinery is being sold as scrap rather than being upgraded. These practices, according to experts, have further eroded the port's global standing.
An official from the Bangladesh Public Procurement Authority (BPPA), formerly known as the Central Procurement and Technical Unit (CPTU), commented on the DPM process.
"Direct procurement is meant to address urgent needs for a short period. When issues arise in the tendering process, this method can be used," the official said.
However, he expressed surprise at the extent of Saif PowerTech's control over the port's operations without competitive bidding, adding, "We will look into this matter."
The port officials, however, have downplayed these concerns. A senior figure from the Chattogram Port Authority (CPA) stated that Saif PowerTech is "abiding by all rules and regulations." He explained that the company's uninterrupted tenure, spanning both previous and current administrations, was evidence of compliance.
"We are open to any operator who can meet the CPA's standards, and that's why Saif PowerTech continues to work," he said.
Despite such assurances, critics argue that the company's dominance is suffocating competition at the port, stifling growth, and contributing to rising operational costs.
Logistics experts point to international best practices, where transparent tendering systems allow for a diversity of operators and minimize the risk of corruption.
Attempts to reach Saif PowerTech for comments on the raised allegations went unanswered.
As Chattogram port remains central to Bangladesh's trade ambitions, its procurement and operational practices will continue to face scrutiny.
With growing voices calling for reforms and investigations into how contracts are awarded, pressure is mounting on both the CPA and the government to uphold global standards and ensure that the port remains competitive on the world stage.
