Bangladesh Shipping Corporation (BSC) has opted for big seaborne cargo-transportation business worldwide but partnering a new private company to make it happen raises scepticism, sources said.

They say the state corporation that struggles to run its own small fleet through self-arrangement now aims to launch feeder service, short-sea service, and even a mainline-vessel service.

An overriding objective is to "earn and save foreign currency" for the country -- in time of global and local scramble for the greenback to navigate a dearth of the main trading currency.

To aid the corporation in this stride, the corporation last week signed a memorandum of understanding (MoU) with a recently formed company, namely, 'Marine House-the Relief Group (MRG)', owned by a legal firm and a consultancy house jointly, which never worked to carry out such a big task.

Under the accord, MRG will help BSC start up shipping business as an NVOCC (non-vessel operating cargo carrier) or box operator, and mainline operator or vessel-operating cargo carrier.

Under the flagship venture it will launch feeder service, short-sea shipping, conventional liner service, project and heavy lift carrier, inter-modal door-to-door combined transport-service provider, off- dock and container-freight station, sea-and air-cargo forwarding and handling agencies, and logistics services, among others.

The MRG owners will create new and grab existing opportunities of BSC operation within the purview of the MoU, find out an innovative implementable approach to doing shipping business in the regional and international routes of waterways, and will provide ways and means for expansion of operations of liner services.

Also, the "inexperienced" company will find out merchandise goods in bulk in an uninterrupted supply chain to feed the ships in BSC fleet operating in and connecting different trade zones to and from Bangladesh, and also between third countries.

The facilitator is also promise-bound to make arrangement of interagency interfacing relating to the sourcing of ships, containers, and arrangement for berthing those in different ports and terminals.

Working out mode and methodologies with an aim to ensure efficient, safe, reliable and competitive operation of shipping business is also under purview of the MoU.

Before the inking of this deal between BSC and MRG, the ministry of shipping had held a number of meetings, with its top bosses in the chair.

Flying 'Shipping Business: Beyond Boundary to Earn and Save Foreign Currency' as the banner-head, the discussions were focussed mainly on BSC's business expansion alongside two other organisations under the ministry -- Bangladesh Inland Water Transport Corporation, and Bangladesh Inland Water Transport Authority (BIWTA).

One meeting had fixed a timeline for BSC to sign the MoU with MRG.

A former senior secretary of the Legislative and Parliamentary Affairs Division, Mohammad Shahidul Haque, currently managing partner of The Relief, a legal-service firm, and now one of the owners of MRG, had attended all these meetings, suggesting business prospects, the sources said.

The incumbent shipping secretary at a meeting on January 09 expressed the hope of augmenting income both in domestic and foreign currencies by expanding the operations of the units under the ministry.

He in this case stressed the need for adopting short-, medium- and long-term implementable policies through 'clinical surveys' of global shipping operations and basis of reliable data.

Mr Haque of MRG at the meeting had suggested diversification of services of the entities engaged in shipping and launching businesses by chartering ships, instead of buying new ships for the BSC, as it will take at least three more years even if a decision taken just now.

The meeting decided that BSC and BIWTC "can form one or more new companies or make partnership with private entities which may unfailingly contribute to bringing forces and factors together in line with grabbing opportunities in shipping".

At the meeting, the shipping secretary was quoted as saying unless BSC's capacity is enhanced by the formation of companies like those of entities established under the Power Division and Bangladesh Power Development Board, it is difficult to succeed.

He then stressed the need for the formation of "subject-specific" companies as sister concerns which will be engaged in enhancing the BSC capacity.

The meeting then decided to have partnership or engagements with MRG by signing MoU in achieving goals like diversification of BSC's business.

Shipping-sector officials say if BSC really wants to launch feeder service, short-sea service, and mainline-vessel-service-type wings, it ought to have partnership or other kinds of deals with internationally reputed companies that have experience of dealing with these businesses.

In this case, BSC can invite expression of interest (EoI) by launching i

They said MRG is a company that was formed when its owners got down to talks with BSC through shipping ministry top bosses. The company owners have no prior experience of launching such big shipping-sector expansion business.

Contacted, MRG's Mr Haque told the FE over the telephone that he has a consultancy firm named 'The Relief' and it recently partnered with a company to form 'Marine House-the Relief Group (MRG) to work with the shipping corporation.

He said the company got registration from the Office of the Registrar of Joint Stock Companies while having talks with the shipping ministry and BSC.

Asked whether his company has any experience in working for the launch of such big business and why they are going to engage in such business, he said: "None stays involved in all fields from the very beginning. None inherits everything from their forefathers."

Mr Haque argued that BSC can take any decision independently and sign deals for business expansion. "We have signed a non-binding MoU, and if BSC in the future wants to expand, then we will work together, and will check if any other question arises and any other law becomes applicable," he said replying to a query whether Public Procurement Rules (PPR) were followed in this deal.

Contacted, BSC managing director Commodore Ziaul Hoque told the FE the corporation had signed a number of MoUs with different companies in the past and was not required to follow PPR for the same, or informing the securities regulator being a stock- market-listed company.

"Under this MoU we will explore opportunities. If find anything beneficial, then we will go for separate agreement with them," he said.

Mr Hoque also said he had the permission from the ministry and the board to sign the MoU and didn't need to follow the PPR or float tender.

"We see MRG has the scope to bring lot of big and experienced persons, so we signed the MoU," he said in reply to a query on the reason for partnering with an in-experienced company.

"We can see the light for business expansion by them," he adds.

Mr Hoque said BSC would not invest a single penny in this venture. "If MRG can bring business, and BSC finds them suitable, then the business will be run, and profit will be shared."

Asked why BSC did not go to globally reputed companies to launch the liner service or feeder service, he said those companies would ask BSC for making large investments which the corporation at present is unable to do because of lack of funds.

Contacted, shipping secretary Mostafa Kamal said BSC has its own board and takes decision on their own. He would not discuss details with the press rather suggested contacting the BSC managing director.