NST, May 13th, 2002 - Using an online procurement solutions, Westport broke new ground when it accepted the successful tender for the construction of the new container terminal three yard.

The contract for the construction of the new container terminal was awarded to Putra Perdana Sdn Bhd for a tender price of RM 33 million.

Westport said the internet-based e-procurement provider, Procurehere.com, used the Online Bidding Platform to conduct a bidding session for the construction of its container terminal.

The online bidding session, which was held over eight hours, attracted eight Class A contractors, four of which were listed companies. The participating contractors submitted their respective bids online via Procurehere.com e-procurement, the port said.

Prior to the bidding, contractors were pre-qualified and then invited to submit their tenders online for a bid session for the container terminal yard.

Procurehere was involved in organizing and providing the support for the bid. All pre-qualified parties were trained and briefed on the system.

The difference between an online bid and a open tender was that all suppliers were given the opportunity to re-bid if they so wished after submission of tender documents.

Westport has been utilizing Procurehere's service since May last year although the bid for the construction of the terminal yard represents the largest transaction carried out online..

"The transaction alone brought about 15 per cent savings and we believe we are able to enjoy this these savings due to the significant benefits which the e-procurement system provides through reduction in procurement cycle time and operational costs, as well as reduction in redundant purchases due to document reconciliation," Westport said.

The port said Procurehere realized a turnover of RM70 million in 2001 and this was expected to increase to RM150 million this year.