The Chittagong Port Authority (CPA) has nearly completed auctioning off 1,057 empty containers, reasoning that it was to realise a fraction of arrear bills incurred by bankrupt shipping giant Hanjin Shipping Lines.

The South Korean shipper, which has been doing business in Bangladesh through a joint venture with Karnaphuli Group, filed for bankruptcy protection on August 31, 2016.

This prompted the CPA to bar the containers from leaving the port. It filed a lawsuit on January 31 this year claiming Tk 33.68 crore in arrears and a Seoul court declared Hanjin bankrupt on February 17.  The joint venture -- Hanjin Shipping Bangladesh Ltd -- then deposited Tk 7.68 crore on August 28 for bills incurred till the day Hanjin filed for bankruptcy protection.

The Admiralty Court in Dhaka directed the CPA to go for the auction and keep all the money in the account of the court until a verdict is passed. The arrears now amount to around Tk 172 crore, mostly from rent, say sources at the CPA traffic department.

Most of the arrears are said to have been incurred from August 31, 2016 and cannot be claimed as the CPA seized the containers that day and has to take on all liabilities from then on, said Anis Ud Dowla, executive director of Regensea Lines, a concern of Karnaphuli.

Besides, the Tk 7.68 crore came from Karnaphuli's own pockets, he told The Daily Star on Monday, adding that Hanjin has informed all concerned through letters and advertisements to claim whatever it owes.

CPA Secretary Md Omar Faruq said they have not received any such notification.

The auction will bring in around Tk 9.65 crore, said CPA Director (Traffic) Golam Sarwar. From April to December last year, 969 containers were auctioned off to seven firms for Tk 7.40 crore.

The remaining ones are refrigerated and the CPA is currently evaluating bids of seven firms, two of which in unison offered the highest Tk 2.25 crore for the lot.