TCP rejects 32,000 tons of imported urea

KARACHI, Trading Corporation of Pakistan (TCP) has rejected the imported urea consignment of 32,000 tons on the basis of quality and asked the supplier for fresh consignment as per the specifications, sources told Business Recorder on Wednesday. Following the federal government directive, TCP issued tender for the import of 150,000 tons of urea in June with the aim of reducing the supply and demand gap in domestic market, they added. Later, the tender was awarded to Ms Trasfert, a Dubai-based company on June 30, 2009 at the rate of 287.25 dollars per ton. TCP asked the company to supply 0.15 million tons of urea as per specification prescribed by itself and the ministry, sources said. A ship namely ST Peter carrying 32,210 tons of imported urea, first part consignment of the awarded tender, reached Gwadar Port on August 22, 2009, however after detailed inspection and laboratory test, TCP refused to accept the consignment on the basis of quality, sources added. Sources said that as per TCP specifications, urea size distribution should not be less than 90 percent, while the consignment has 86 percent size distribution. Therefore, TCP after consultation with the Ministry of Food and Agricultural (Minfa), refused to receive the consignment and asked the supplier to replace the cargo. The Pre Shipment Inspection Agent (PCI) of TCP had also pointed out size distribution issue before sailing of ship from Yuzhni port, however the supplier is still insisting for acceptance of side cargo vessel, as the ship carrying over 30,000 tons of urea is still waiting for berth at Gwadar Port for more than two weeks, sources added. "We have rejected the urea consignment after consultation with the Minfa, as it was not meeting the TCP specifications," said a high official of TCP. TCP has already issued specifications at the time of the tender and even then if someone is not fulfilling the quality standards, is it not possible for us to accept the same, he said and added that the whole expenses would be borne by the supplier. "Earlier, the supplier was asked for laboratory inspection and now we have informed the supplier about our decision this week, however the ship is still at outer anchorage of Gwadar port at supplier's responsibility," he said. Meanwhile, according to official sources in Port of Singapore Authority (PSA), the vessel was standing at the outer anchorage of the Balochistan-based deep sea port for over 20 days, as TCP and the supplier are in row over the specification issue. They said PSA, on the request of TCP, had first berthed the ship, but later sailed out of the port after the row deepened between the parties. However, TCP has clearly declared that it will not receive the imported urea, which is not meeting the specifications of the corporation and the ministry.