The New Mooring Container Terminal (NCT) at Chattogram Port could face a severe operational crisis within the next one to two years as almost all of its key container-handling cranes and equipment near obsolescence, Chattogram Port Authority (CPA) Chairman SM Moniruzzaman has warned.
Speaking during an exchange of views with journalists on Wednesday, Moniruzzaman also said the government was processing Dubai-based DP World’s investment proposal for the NCT, stressing that Bangladesh’s national interests would not be compromised under any circumstances.
Equipment shortage raises alarm
The CPA chairman said the NCT’s operational capacity was declining rapidly due to ageing equipment.
“Equipment availability has already fallen to 70 per cent from the required international standard of over 93 per cent,” he said.
“Over the next 12 to 24 months, this will decline drastically, potentially hitting the 50 per cent mark. If that happens, the port’s normal operational activities will be severely disrupted, throwing a massive bottleneck into the country’s economic growth and the milestones we have achieved.”
High costs, lengthy procurement
Explaining why the CPA could not simply purchase new equipment, Moniruzzaman said state-funded procurement would require Tk3,000 crore to Tk4,000 crore, placing immense fiscal pressure on the government while causing a major outflow of foreign currency.
He said the process would also incur an additional 68 per cent VAT and tax burden, while the entire procurement cycle—from floating tenders to deployment—would take three to four years.
“By then, the NCT would face operational paralysis,” he added.
By contrast, he said, the proposed public-private partnership would allow DP World to modernise the terminal using its own capital within one year.
“Because they need to generate returns on their investment, it is in their own commercial interest to ensure state-of-the-art infrastructure is deployed as rapidly as possible,” he said.
‘No hide-and-seek’ over DP World deal
Responding to concerns over the involvement of a foreign operator, Moniruzzaman said the negotiations would not compromise Bangladesh’s sovereignty or assets.
“The port does not belong to any individual, group, or organisation; it belongs to the 180 million citizens of this country. As a public servant, my duty is to safeguard that trust,” he said.
He added that extensive reviews had been conducted during the interim government’s two-year tenure and the deal had not progressed because state interests had not been compromised.
“There will be absolutely no ‘hide-and-seek’ here. The ongoing process is fully transparent, adheres strictly to international standards, and will leave no room for questioning,” he said.
G2G framework since 2019
The CPA chairman said the DP World proposal had been under a Government-to-Government (G2G) framework between Bangladesh and the United Arab Emirates (UAE) since 2019, noting that DP World is a 100 per cent state-owned enterprise of the UAE government.
He said nearly 2.6 million Bangladeshi workers in the UAE send home about $4.65 billion in annual remittances and that prolonged delays in the project had, at times, cast a negative shadow over bilateral diplomatic and economic commitments.
According to the chairman, following the latest bilateral platform meeting in Dubai last April, the NCT and the Dhala Inland Container Depot (ICD) were prioritised under new commitments. He said the transaction framework, initially guided by the World Bank’s International Finance Corporation (IFC) as transaction adviser, is currently under evaluation by a high-level government inter-ministerial committee before final execution.
