The Chattogram Port Authority (CPA) has extended the suspension of the tender process for appointing a new contractor to operate the Kamalapur Inland Container Depot (ICD) in Dhaka until 31 August 2026, prolonging uncertainty over the management of one of the country’s key inland freight facilities.
A CPA notification issued on 27 July said the procurement process would remain suspended under court directives, preventing the appointment of a contractor for a five-year term. The suspension, previously due to expire on 31 July, has been extended until the end of August as the legal proceedings remain pending.
The litigation allows Saif Powertec Ltd to continue operating the ICD under the Direct Procurement Method, nearly three years after its 10-year contract expired in 2023.
A notice signed by the CPA Director (Traffic) said the “One Stage Two Envelope Method” tender remains suspended under court orders, leaving the authority no option but to extend the suspension.
Years of disputes over tender conditions
The dispute began as Saif Powertec’s 10-year operating contract, awarded in 2013, neared expiry and the CPA invited bids for a new operator.
Private ICD owners and berth operators objected to the eligibility criteria, particularly the requirement for previous experience in handling containers from railway wagons, alleging that it restricted competition and favoured the incumbent.
The CPA cancelled the first tender following the objections, while a second tender issued in September 2023 also drew criticism for retaining similar conditions.
After the country’s political transition, the authority issued a fresh open tender on 7 April 2025 without the disputed requirement. Competing operators welcomed the change, saying it created a level playing field.
Saif Powertec challenged the revised process in court, arguing that removing the specialised experience requirement violated the Public Procurement Rules.
Alternative operating model under consideration
With no immediate resolution in sight, the CPA is exploring alternative arrangements to ensure uninterrupted ICD operations.
Port officials said the CPA was considering handing Kamalapur ICD’s management to the Bangladesh Navy-run Narayanganj Dockyard, following a model similar to Chattogram Port’s New Mooring Container Terminal (NCT).
CPA Secretary and spokesperson Syed Refayet Hamim said the authority was exploring legal options to assign operations to another organisation if necessary.
“We are planning to appoint another organisation through the proper legal process, although no final decision has been taken yet,” he said. Officials said the tender had been restructured into five phases because of the court stay, but no progress was possible until the legal restrictions were lifted.
Industry divided over tender requirements
Private ICD operators and logistics businesses have repeatedly argued that the earlier tender conditions restricted competition.
They say many private ICDs and berth operators already carry out similar container-handling work with comparable equipment and should have been allowed to compete without the disputed railway-handling experience requirement.
Saif Powertec Managing Director Tarafder Md Ruhul Amin defended the legal challenge, saying specialised experience was mandatory under the Public Procurement Act and Rules for sensitive operations such as rail-based container movement.
“We wanted the operator to be selected through a competitive tender, but the tender must comply with the Public Procurement Rules. Without requiring relevant operational experience, the process would violate procurement regulations. That is why we sought legal remedy, and the High Court issued a stay order,” he said.
He also questioned the proposal to place Kamalapur ICD under the Narayanganj Dockyard, arguing that it lacked experience in operating an inland container depot or managing container-handling activities.
Under the NCT model, he said, Chittagong Dry Dock mainly performed supervisory functions, while Saif Powertec handled day-to-day operations, logistics, information technology support and container handling.
The Chittagong Port Authority constructed Kamalapur ICD in 1987 to transport containers from Chittagong Port to Dhaka by rail and reduce pressure on the Dhaka-Chattogram highway.
Of the 3,296,066 TEUs of containers handled by Chittagong Port in the 2024–25 fiscal year, 72,998 TEUs were handled through Kamalapur ICD.
