Sanmar Denizcilik, a Turkish shipbuilding firm, has taken a strong exception to the Port Qasim Authority's (PQA) 'presumptuous observation' that the $2.2 million pilot boat it had supplied to the port operator in May 2013 had a refurbished caterpillar engine. The rebuttal came in the face of a letter Sanmar's managing director Cem Seven wrote to PQA in response to a letter the latter had written to the Turkish company last month on 5.
Undersigned by Secretary Muhammad Saqib, the PQA letter number PQA/OPS/OM/B.D/2015 warned M/s Sanmar of blacklisting under Rule 19 Black Listing of Supplies and Contractors of Pakistan Procurement Rules 2004 for supplying PL Lahoot with, what the port operator apprehended, a 'refurbished' engine. The brand-new pilot boat, which PQA had inducted in its floating fleet in May 2013, is standing out of order since March 19 after its C-18 model main engine developed an 'unusual' fault only after 5129 running hours.
"This is very unusual in marine practice and indicates that the engine may have been refurbished or otherwise of defective make," the PQA letter reads. The Authority, in its letter, also flayed the Turkish shipbuilders and its local representatives from Salateen Syndicate for their lukewarm response to its "several reminders" after the vessel went faulty. "We are very surprised to see the contents of your letter," MD Sanmar Denizcilik Cem Seven told the PQA secretary in a letter dated May 11.
The reason for serving the said hearing notice upon his company under PPRA Rule 19, he said, was completely beyond comprehension and in contradiction to the facts. Asking the PQA for any available evidence proving that PL Lahoot's damaged engine was 'refurbished', Sanmar referred to various quality manufacturing certificates issued by its US-based producer Caterpillar, American Bureau of Shipping (ABS) and surveyors from Germanischer Lloyd.
"Both engines of PL Lahoot were manufactured in August 2012, same year when the contract was awarded to SANMAR," said Seven, adding that the production and subsequent support of engines were centrally controlled and monitored by CAT through their in-country support centers. In case of an engine being refurbished or old, the warranty support was not provided by the in-country support center, he reminded PQA. Whereas, the Sanmar chief said, it was well known to PQA that Allied Engineering had provided its warranty support for one year. "This was done because Allied Engineering had the confirmation from CAT that these are newly manufactured engines," he argued.
Further, the MD said, a PQA team had tested both MT KADIRO and PL LAHOOT in Turkey and had then signed a comprehensive acceptance report. "The crafts were also tested and cleared for performance, hull and machinery by the Classification societies. No such reporting of engine being refurbished was observed or reported at that time," Seven said in the letter. When arrived in Pakistan, the two crafts again went through Acceptance Trials at Port Qasim by a PQA team. "Upon final acceptance before start of training period, all certificates, documents etc were handed over to PQA team. No observations of engine being refurbished or any other objections were reported at that time as well," said Sanmar official.
As for PQA's assumption that the company had not been responding to its several request, Seven said PQA itself had repeatedly acknowledged and praised its prompt and efficient support at various levels. "And rightly so as Sanmar had extended its support over and above the provisos of our contractual bindings such as placing an engineer onboard for complete 12 months against contractual requirement of three months," said the company head.
Moreover, Seven said, it was not before April 14 when PQA officials had sought his company's assistance as the earlier correspondence was merely for information of the engine breakdown. "First ever request for assistance was received through Mr Amir Malik... which was promptly responded... on same day," said he. Based in Turkish capital, Istanbul, the managing director said ever since the contract was signed his company had supported and performed beyond the contractual requirements.
"The reason for serving this hearing notice under PPRA Rule 19 is completely beyond our comprehension," seven said adding that "If PQA has any evidence to prove that the engine was refurbished, please share that evidence with us". The Turkish company also asked PQA for the findings of Allied Engineering regarding reasons for engine damage. "Sanmar would like to see a logical conclusion to this issue as we take strong exception of such presumptuous observations being extremely damaging to our reputation," he told PQA secretary. Therefore, seven strongly demanded the PQA to either furnish a concrete evidence of its observation for Sanmar installing a refurbished engine on PL LAHOOT or correct the records at its end. The shipbuilder also demanded the Authority of cancelling its May 5 letter "unconditionally" to avoid any further misunderstandings.
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