An agreement between the Chattogram Port Authority (CPA) and UAE-based global port operator DP World for the operation and maintenance of the New Mooring Container Terminal (NCT) at Chattogram Port is set to be signed on Thursday.
The signing ceremony will be held at the Invest Bangladesh auditorium in Dhaka.
Zakaria, Secretary of the Ministry of Shipping, confirmed to The TIMES of Bangladesh that the agreement would be signed between the CPA and DP World for the operation of NCT.
The government has long maintained its position in favour of appointing an experienced international operator for the terminal, despite protests and opposition from various groups over the move.
The invitation describes the agreement as a Public-Private Partnership (PPP) project aimed at developing Bangladesh’s logistics infrastructure through increased investment, operational efficiency and skills development.
$50m upfront fee, $15 cored investment
According to Ministry of Shipping, under the agreement, DP World will initially pay US$50 million to the Government of Bangladesh as an upfront fee.
The company has also committed to investing approximately US$15 Crore over the term of the agreement in terminal modernisation, equipment upgrades and enhancement of technical capabilities.
In addition, DP World will pay an annual fee of US$750,000. The agreement will include a minimum-revenue guarantee for the government as well as a slab-based revenue-sharing mechanism, under which the government’s share will increase as the terminal’s total revenue rises.
The investment and operational obligations are intended to improve NCT’s overall efficiency and capacity.
Turnaround time targeted to fall by 50%
The current average container dwell time at Chattogram Port is around 9.4 days, while the average vessel stay is 2.53 days.
DP World aims to reduce these times by up to 50 per cent through improved terminal management, advanced operating systems, greater crane efficiency and modern operational practices.
The initiative is expected to improve container-handling efficiency, reduce vessel waiting and turnaround times and lower logistics costs for businesses.
NCT will have an annual handling target of 1.23 million TEUs (twenty-foot equivalent units).
The use of advanced terminal operating systems and automation is also expected to reduce uncertainty in shipping-line schedules and improve the overall reliability of port operations.
Existing workers to be protected
The agreement includes provisions to protect the rights of workers currently engaged in NCT operations.
According to the government, no new external workers will be recruited for the terminal. Existing registered workers will instead have the opportunity to continue working under DP World, an experienced international terminal operator.
DP World will bear the cost of electricity and other utilities required for the terminal’s operations.
The transfer of NCT operations to DP World will take place in phases following the signing of the agreement.
The company will also implement internationally recognised standards and protocols relating to health, safety, security and environmental protection. The government expects this to reduce accidents and improve worker safety and welfare.
DP World has experience operating terminals at more than 60 ports globally. The government says international best practices in terminal operation and maintenance will be applied at NCT based on that experience.
Agreement approved in principle
The draft agreement received in-principle approval on October 1 under the Ministry of Shipping’s PPP project titled “Operation and Maintenance of CPS New Mooring Container Terminal, Including Overflow Container Yard.”
Negotiations with DP World had reached an advanced stage during the previous interim administration but were suspended in February following labour unrest and objections raised by the negotiation committee.
The process regained momentum in June after the new government assumed office and the Ministry of Shipping directed officials to resume negotiations with DP World.
NCT handles 44% of port container traffic
NCT is the largest of the four main terminals at Chattogram Port.
In the last fiscal year, the terminal handled approximately 1.385 million container units, accounting for nearly 44 per cent of the port’s total container traffic.
At present, NCT is under the management of Chittagong Dry Dock Limited (CDDL), which operates under the Bangladesh Navy.
The terminal was previously operated by local company Saif Powertec. Although CDDL currently oversees the terminal, workers and officials deployed there remain employees of Saif Powertec.
Among the other major terminals at Chattogram Port, the General Cargo Berth (GCB) and Chattogram Container Terminal (CCT) are operated by local companies, while the Patenga Container Terminal is operated by Saudi Arabia-based Red Sea Gateway Terminal International (RSGTI).
