The controversial move to appoint DP World, a Dubai-based multinational logistics company, as operator of the New Mooring Container Terminal (NCT) at Chattogram port has hit a roadblock due to a writ questioning its legality.
However, the Chattogram Port Authority (CPA) is still preparing to award DP World control of the NCT under a 22-year lease by mid-December this year. CPA officials informed they are pushing ahead with the move as the court will likely dismiss the writ through its verdict due on December 4.
This development follows years of political intervention, operational errors and failed attempts to hire other foreign companies to operate the terminal.
The NCT was constructed in 2007 using the port funds. The CPA had launched its search for a foreign operator through competitive tender immediately after.
By February 2009, four leading international terminal operators – APM Terminals of the Netherlands, Hutchison Port Holdings of the British West Indies, ICTSI of the UAE, and P&O of the UK (now a part of DP World) – had qualified to bid.
But due to political interference from ruling party leaders in Chattogram, those plans were dropped. Instead, the contract was awarded to a local company, Saif Powertech, which had supplied equipment to the port.
Over the years, the CPA spent roughly Tk4,000 crore on the NCT’s construction and equipment, with all investments having been paid for using port funds. On the other hand, Saif Powertech was only supplying labour.
Criticism over the terminal’s inefficiency grew over time, prompting the CPA to revisit the idea of appointing a global operator. In 2023, during the previous government’s tenure, the CPA proposed operating terminal under a public–private partnership (PPP) with a foreign partner. The move was then approved by the Cabinet Committee on Economic Affairs in March of that same year.
Now, after repeated complaints and declining service standards, the CPA has set its sights on handing over the NCT to DP World under a government-to-government (G2G) agreement between Bangladesh and Dubai.
The concession agreement, which includes financial terms (one-time, annual and per-container payments) and duration (reportedly 22 years), will follow negotiations.
The writ petition was filed on behalf of the Bangladesh Youth Economists Forum by its President Mirza Walid Hossain. The writ challenged the legality of handing over the NCT to a foreign company under the current terms.
As a result, the handover was halted pending the verdict.
Meanwhile, the terminal is being temporarily run by Bangladesh Navy’s Chittagong Drydock Limited (CDDL) on a six-month contract ending on January 7 next year.
As such, the CPA was left with a narrow window to transfer control to DP World or extend CDDL’s contract.
A port official, speaking anonymously, recently told TIMES that if the DP World deal is delayed beyond January 7, the CPA may extend CDDL’s operations for a short period. However, this scenario would only be made possible if the court is unable to resolve the issue within the stipulated timeframe.
Multiple calls and messages to Shamim ul Huq, CEO of DP World Logistics Bangladesh, went unanswered by the time this report was filed.
Sources say DP World’s strategic team in Dubai is actively monitoring developments.
Contacted, CPA Secretary Md Omar Faruk declined to comment.
The planned handover to DP World has stirred strong reactions, especially from labour and civil-society organisations. Groups like Sramik Karmakar Oikya Parishad (SKOP), Port Protection Council and several political parties have organised protests, demanding the NCT not be handed over to foreigners.
They argue that such a move would threaten national control over a critical asset and also hurt the port workers.
Conversely, port-related businesses and other stakeholders are pushing for a global operator. They said that without a world-class terminal operator, Chattogram port cannot handle global cargo efficiently.
Besides, the port’s handling capacity will increase if global operators such as PSA International, MSC, Maersk Line or others start using terminals managed by DP World.
Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association (BSAA), said despite tariff hikes over the years, the service quality has not improved.
He emphasised the need for modern equipment and efficient operations.
“Like global ports, Chattogram port should unload and sail containerised cargo within 24 hours at the ship’s jetty. That is only possible under a global operator,” he added.
Under the proposed agreement, DP World would fully take over NCT’s operations, including collecting tolls, arranging staff, maintaining equipment, and handling container traffic.
DP World would pay the CPA one-time concession fees, annual payments, and per-container royalties.
Given that the NCT currently handles more containers than its official annual capacity of 1.1 million TEUs and earns more than Tk1,000 crore per year for the CPA, the financial stakes are significant.
Chattogram port currently processes about 3.3 million TEUs of containers annually, handling around 55 percent of Bangladesh’s import-export cargo.
Experts say updating the NCT’s management with a global operator could significantly increase the throughput, especially if combined with other terminals.
