Dhaka: The cabinet on Monday approved a proposal for formation of the ‘Container Company of Bangladesh Ltd’ in order to run Bangladesh Railway container transportation services as an independent company, to make the container service sustainable.

The approval came from the regular weekly meeting of the Cabinet held at Bangladesh Secretariat today with Prime Minister Sheikh Hasina in the chair.

Briefing the reporters after the meeting, Cabinet Secretary Mohammad Shafiul Alam said there are such companies in many countries including neighboring India and those are profitable organisations.

Alam said there was a proposal of the Asian Development Bank (ADB) to bring the railway container system under a company to make container business sustainable.

In line with the proposal, he said, the memorandum of association and the article of association were framed after reviewing the ADB proposal.

Subsequently, the formation of the company was finalized subjected to the vetting of the law ministry.

The Cabinet Secretary said there would be a 10-member board of directors for running the company and it would be formed comprising a chairman, vice-chairman, a managing director and seven directors.

The railways secretary would act as the president of the board of directors as the ex-officio and the managing director would be appointed from the private sector.

The cabinet secretary said a decision was taken that the additional director general (operations) would start the operation of the company initially as the MD. They would make arrangements for appointing an MD within one year.

He said the authorised capital of the company is Tk 400 crore, while the paid up capital is Tk 10,000,1001. The company will be established under 100 percent government ownership and the price of each share has been fixed at Tk 100.

At the outset of the meeting, the cabinet adopted a thanksgiving motion on the inclusion of the name of Prime Minister Sheikh Hasina in the annual list of the World’s 50 Greatest Leaders by US magazine, “Fortune”. Sheikh Hasina has been ranked No. 10 on the list.

Ministers and state ministers concerned attended the meeting, while secretaries concerned were present.