Trade
6 years ago

BSC wins tug-of-war to stay sole chartering agent

Hiring vessels for transporting all public entities' goods

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Bangladesh Shipping Corporation (BSC) triumphs in a tug-of-war over authority to remain sole agent for chartering vessels for transporting goods of all government entities.

Officials said intervention by higher authorities provided the leverage for the BSC to outweigh reservations by some of the defiant state corporations.

A set of rules is to overrule their independent posture in managing their own house.

The government is now preparing 'rules on chartering vessels for transporting goods of state-sector entities-2017' vesting in the shipping corporation sole agency, the sources added.

This step came against the background of a sort of conflict of authority since, in the recent years, some state-owned entities chartered vessels avoiding the BSC.

The BSC has been pursuing the task since 1973 for all state entities as 'secretariat to the inter-ministerial chartering committee'. But, after 2010, the Bangladesh Chemical Industries Corporation (BCIC) went its own way in chartering vessels, citing "incompetence" of the BSC in this job.

Bangladesh Agricultural Development Corporation (BADC) followed suit--it, of late, began giving a snub to BSC by way of chartering vessels in case of transporting Di Ammonium Phosphate (DAP) fertilizer.

Amid such a situation, the ministry of shipping (MoS) held an inter-ministerial meeting in May last year that decided to prepare 'rules on chartering vessels for transporting goods of state-sector entities 2017'.

An additional secretary of the ministry of agriculture drafted rules, which are now waiting for vetting from the ministry of law.

In a recent meeting on the draft rules at the MoS a representative of BCIC said, alongside producing fertiliser, the corporation imports nearly 1.5 million tonnes of fertiliser by chartering vessels on its own arrangement.

He pointed out that fertiliser is a very sensitive product and needs to be supplied to the farmers by quick chartering of vessels. Failing to supply fertiliser timely may create unrest in the country.

An official of the ministry of agriculture said that, until now, BADC itself had chartered vessels in case of DAP fertiliser transportation while TSP (Triple Superphosphate) fertiliser is carried under BSC arrangement.

However, officials from the Bangladesh Petroleum Corporation and CPTU (Central Procurement Technical Unit) were of the opinion that BSC should remain main agent for chartering vessels.

Contacted over telephone Friday, BSC managing director Yahya Syed said the concerns raised by BCIC and the BADC were addressed in the final draft of the rules and sent to the law ministry again for vetting.

"Once the rules get final approval, all the state-owned entities will follow it compulsorily," he said.

Established in 1972, the shipping corporation is entrusted with the responsibility of carrying bulk cargo, food-grains and crude oils, chartering, feeder services, unloading, providing agency service and ship repairing.

The BSC carries majority portion of fuel oils the Bangladesh Petroleum Corporation (BPC) imports annually for the country.

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