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New bidding to purchase port terminal computer system

The decision made by the management of Sri Lanka Ports Authority to call for bids to purchase a Terminal Management Computer System for its 'Jaya' container Terminal has enhanced options and cost savings for SLPA.

The SLPA called for bids to purchase a computer system for the timely functioning and operations of the 'Jaya' Container Terminal. Mitsui Engineering and Ship Building Company Limited was selected as the others were considered non responsive while they were world class systems with many installations in transshipment ports.

After the assumption of duties of Dileepa Wijesundera as the Chairman of the SLPA, under directions of Minister of Ports and Aviation, Mangala Samaraweera, immediate action was taken to stop the Mitsui tender due to high costs US$ 9.6m + US$ 3.0m in consultancy costs totalling almost US$ 12.6 million.

The system also lacked a billing system and did not have any installation in trans-shipment ports, thus, Colombo becoming the test site for the Mitsui system.

New specs were drawn up to meet the needs of SLPA as a Mega Trans-Shipment Port. At the same time arrangements were made to call for the new tenders and suspend the consultancy to OCDI, advising SLPA to purchase the said computer system.

New offers were by: Cosmos - Rs. 736,092,540.00, Navis - Rs. 757,128,800.00 and Catos- Rs. 670,660,660.00. When compared to the offer by the Mitsui Engineering and Ship Building Company Limited even the highest offer given shows a clear advantage of over 200 million to SLPA and a saving of almost another Rs. 200 million in consultancy fees to OCDI.

Therefore with the cancellation of the earlier tender, to Mitsui Engineering and Ship Building company Limited has saved the SLPA almost Rs. 400 million. In addition to this saving, the new spec includes a billing system, which was omitted in the Mitsui tender, thus a further saving for SLPA.

The installation of a modern Terminal Management System will provide JCT with the latest terminal management technology. SLPA will fund the purchase of the system with its cash flow or short-term borrowing.
(DN - 20060110)

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