Saif Powertec to build ICD investing Tk 308cr

Saif Powertec Limited, the terminal operator, will build and operate the inland container depot (ICD) in Chattogram on behalf of the Container Company of Bangladesh (CCBL) for 20 years, according to an agreement signed on Tuesday.

The construction cost has been estimated at Tk 308 crore. The ICD will be built in the Halishahar area on the outskirts of the port city on 21.29 acres of land owned by the Bangladesh Railway.

ICD facilitates quick clearance of full container load cargo by allowing un-stuffing and delivery from outside the port area.

The ICD is expected to generate Tk 3,482 crore in revenue and Tk 649 crore in net profit for 20 years, said an executive at Saif Powertec. The container depot will have the capacity to handle over one lakh containers a year and will create about 500 jobs, he said.

Saif Logistics Alliance (SLA)—the subsidiary of Saif Powertec—and the CCBL under the Bangladesh Railway signed the agreement in Dhaka.

Railways Minister Md Nurul Islam Sujan, CCBL Chairman and Railways Secretary Md Salim Reza, SLA Chairman Muhammad Ruhul Amin Tarafder, its managing director Tarafder Md Ruhul Saif, Bangladesh Railway Director General Dhirendra Nath Mazumder, and CCBL Managing Director Belal Uddin attended the event.

According to the agreement, the SLA will operate the ICD, collect the revenue from the customers and pay the royalty to the CCBL. After 20 years, the SLA will hand over the project to the CCBL.

After the agreement, CCBL Managing Director Belal Uddin said CCBL will get Tk 7 crore as the signing money, and get 21.50 per cent of profits earned from the ICD operation and Saif Powertec will get the rest.

Saif Powertec was picked up out of 14 companies, including four foreign ones, which submitted bids for the ICD construction, according to him.

The SLA Chairman said the capacity of Chittagong port will be increased through the construction of a container terminal on Chattogram railway line.

Listed in 2014, Saif Powertec, which operates the Chattogram Container Terminal (CCT) and New Mooring Container Terminal (NCT), makes up 65 per cent of the total twenty-foot equivalent units (TEUs) of containers handled by the Chattogram port.

On Tuesday, Saif Powertec share declined 3.63 per cent to Tk 39.80 on the Dhaka Stock Exchange.

As of September 30, the general public holds 43.14 per cent, sponsor director 40.06 per cent, and institute 16.80 per cent of the company’s total shares. The company has been involved in the operation of Chattogram port since 2007.