The long-pending process to appoint a new operator for Dhaka’s Kamalapur Inland Container Depot (ICD) has once again been postponed, extending a three-year deadlock marked by legal disputes, controversial tender conditions, and repeated court interventions.
The latest development came as a court extended its stay order on the tender process.
In light of the court’s stay order, a notice signed on March 29 by Director (Traffic) Enamul Karim of the Chattogram Port Authority stated that the suspension of the tender process – invited for the appointment of a contractor for container and cargo handling operations at Kamalapur ICD in Dhaka for a period of five years under the One Stage Two Envelope Method – has been extended, in continuation of previous orders and in compliance with the court’s directives, until May 20, 2026.
Repeated legal hurdles
The tender process has faced multiple setbacks since its initiation in 2023. According to CPA officials, courts have issued stay orders three times following cases filed by various stakeholders, including the current operator, Saif Powertech. Each stay has forced the port authority to halt or revise the process, resulting in repeated delays.
Although the original contract period expired in 2023, Saif Powertech has continued operations at Kamalapur ICD under the Direct Procurement Method (DPM) over the past three years, in the absence of a new operator.
CPA spokesperson and Secretary Syed Refayet Hamim said the latest delay stems from a case filed by the incumbent operator Saif Powertech, leading to the renewed court order. He added that the port authority is planning to assign the operation of this terminal to another organisation.
Amid the ongoing uncertainty, the Chattogram Port Authority is considering an alternative arrangement to ensure uninterrupted operations at the ICD. The port is planning to entrust management of the facility to the Bangladesh Navy’s Narayanganj Dockyard, similar to the model used for operating the New Mooring Container Terminal (NCT) in Chattogram.
CPA sources said the proposal to involve the Navy-run dockyard will be placed before the CPA board meeting for a final decision.
Controversial tender conditions
The Kamalapur ICD tender has been mired in controversy since its inception, primarily due to specific eligibility criteria that many industry stakeholders claim were designed to favour a particular company.
When the CPA first invited tenders on June 18, 2023, it included conditions requiring bidders to have extensive prior experience in handling container operations involving both railway wagons and sea-going vessels. Additionally, contracts cited as experience needed to be at least 70 per cent complete.
Industry representatives, particularly private ICD owners, objected to these criteria, arguing that they effectively excluded most local operators from participating. They filed complaints with both the CPA and the Central Procurement Technical Unit (CPTU), claiming the tender was tailored to benefit a single company.
In response to the objections, the CPA cancelled the initial tender and issued a revised one on September 12, 2023. However, the same contentious conditions were retained, prompting further criticism.
Stakeholders alleged that the requirement for experience in loading containers onto sea-going vessels was irrelevant to Kamalapur ICD’s operations, which are limited to rail-based container handling. They argued that such conditions were repeatedly inserted to restrict competition.
Political transition and fresh tender
Following the fall of the Awami League government amid a student-led uprising, the tender process was temporarily scrapped. During this period, Saif Powertech was allowed to continue operations under the DPM system to maintain service continuity.
Later, on April 7, 2025, the CPA issued a fresh open tender for a five-year contract, removing the controversial experience requirement in an effort to encourage broader participation.
The move was welcomed by logistics sector stakeholders, including berth operators and ICD owners, who expected a more competitive bidding process. However, the optimism was short-lived as fresh legal challenges emerged, once again halting progress.
Industry concerns and legal battle
Private ICD owners maintain that the repeated delays are disrupting fair competition and undermining confidence in the tendering process. They argue that container handling at Kamalapur ICD is similar to operations carried out by private ICDs and port berth operators, using comparable equipment and processes.
According to them, the condition requiring experience in rail-based container handling was unnecessary, as many domestic operators possess the technical capability to perform such work.
On the other hand, Saif Powertech has defended its position, citing the sensitive nature of rail-based container transportation. The company’s Managing Director Tarafdar Ruhul Amin said no other local operator has comparable experience in handling such operations.
He explained that the CPA’s decision to remove the condition related to railway container handling experience prompted the company to seek legal recourse. The court subsequently issued a stay order in response to the case.
Established in 1987, Kamalapur ICD plays a crucial role in Bangladesh’s logistics network by easing pressure on the Dhaka-Chattogram highway. The facility enables efficient movement of containers between the country’s main seaport in Chattogram and the capital city Dhaka via rail.
Import containers arriving at Chattogram Port are transported by train to Kamalapur ICD, where consignees take delivery. Conversely, export goods are consolidated at the ICD and shipped to the port for onward transportation.
Despite its importance, Kamalapur ICD handles only a small portion of the port’s overall container throughput. In the 2024–25 fiscal year, Chattogram Port handled a total of 3,296,066 TEUs, of which 72,998 TEUs were processed at the Kamalapur facility.
