Published on 12:00 AM, April 02, 2015

CPA to allot a jetty exclusively to Singaporean feeder operator

The move draws ire from other shipping liners, berth operators

Breaking a 128-year-old practice, the Chittagong Port Authority now plans to allot a jetty exclusively to a foreign container feeder operator for berthing its vessels.

The Chittagong Port Authority (CPA) is set to allot one of its jetties exclusively to a foreign container feeder operator for berthing its vessels, in a departure from the port's 128-year practice.

But other shipping liners, local shipping agents and berth operators have strongly opposed the decision, saying it would be 'detrimental' and 'discriminatory' to other feeder operators who have been operating in the port for long.

A CPA official said the jetty would be allotted on a trial basis and it would take much time for the deal to be effective.

On Tuesday, the port authority signed a deal with Singapore-based container feeder vessel operator firm Orient Express Lines (OEL) for dedicating one of its deep draft berths -- Jetty No. 1 of New Mooring Container Terminal -- to the firm for three months.

Currently, shipping agents need to complete the registration procedure of berthing at least five days ahead of the arrival of its vessel, according to the procedures of Chittagong port.

The vessels have to wait at the outer anchorage of the port after entering into the Chittagong port area for getting schedule of berthing in any jetty.

The berth is allotted to a vessel following the 'first come, first served' principle, which has been followed by the port in its 128 years of operations, said Ahsanul Huq Chowdhury, senior vice-chairman of Bangladesh Shipping Agents Association or BSAA.

According to the deal, the port will have to give preferences to the vessels of OEL for berthing at the particular jetty, denying other vessels that have entered the outer anchorage earlier.

“If the deal is effective, the particular operator's vessels would be able to berth at the particular jetty overtaking other operator's vessels, which is a straight violation of the existing procedure,” Chowdhury said.

Currently, 12 container feeder operators run their 44 vessels between Chittagong and Singapore, Colombo and Malaysia, he said.

The port authority arranged only two of its jetties in the NCT -- Jetty No. 1 and 2 -- for berthing vessels with 9.5-metre draft couple of months ago, port users said.

Ten out of 14 container jetties of the port are now operational, while only two jetties of NCT are capable to berth vessels with up to 9.5-metre draft. The other jetties can berth vessels ranging from 8.5 metres to 9.2 metres draft.

Many big vessels have been coming to the port with lower volumes of containers due to the constraint at the port, Chowdhury said.

Moreover, vessels can ply between the port jetties and the outer anchorage, a distance of nine nautical miles, for only four hours in a day especially during the high tide.

Vessels at the outer anchorage have to wait for the high tide to be able to berth at a jetty, the users said.

If the new move is introduced, the particular feeder operator would be able to maintain berthing schedule with around 3,000 tonnes of additional loading in a month, while other operators would be deprived of one, the BSAA said in a letter to the CPA chairman.

Terming the deal as 'discriminatory' to other feeder operators, Hadi Hossain Babul, former CPA member for planning, told The Daily Star that such approach from a state-owned port is not professional.

Berth Operators, Ship Handling Operators and Terminal Operators' Owners Association also sent a letter to the CPA chairman on March 30 terming the deal as detrimental to shipping business.

The association's chief Fazle Ekram Chowdhury said berth operators of other port jetties would lose business, as big vessels of the particular shipping liner would berth only at the particular jetty.

CPA Chairman Rear Admiral Nizamuddin Ahmed said the deal would be effective only after all the five jetties of NCT are operational. Currently, two out of the five NCT jetties are operational and Saif Powertech is operating these two jetties for container handling.

Ahmed said though the jetty is allotted, vessels of other feeder operators would also be able to berth at that jetty if it remains vacant and the port authority would monitor it.

The port authority has the power to cancel the deal at any time, he said.