Bangladesh has awarded DP World a 15-year concession to operate and modernise the New Mooring Container Terminal (NCT), giving the Dubai-based operator control of the country’s biggest container terminal in return for a Tk600 crore upfront payment, more than Tk1,000 crore in investment and a 40-67 per cent revenue share for Chattogram Port Authority (CPA).
CPA will retain ownership of the terminal, land and core infrastructure, while DP World will have operational rights under the public-private partnership agreement signed in Dhaka on Thursday.
The signing took place amid protests outside the Invest Bangladesh building, where leaders and activists of the Communist Party of Bangladesh and other left-leaning groups demonstrated against the deal and, at one stage, blocked vehicles carrying guests. Police later removed them.
Shipping Minister Shaikh Rabiul Alam described the protest as part of democracy and said the government respected the demonstrators’ views.
DP World paid 25 per cent of the upfront fee at signing and will pay the rest before taking over operations. CPA will also receive a fixed annual fee.
Shipping ministry documents provide for a slab-based revenue share of 40-67 per cent. Officials did not disclose how much the government could earn over 15 years, how much terminal revenue could rise or how far NCT could develop its role on international routes.
The concession can be extended only with the consent of both parties.
CPA Chairman Rear Admiral SM Moniruzzaman and DP World Chairman Essa Kazim signed the agreement in the presence of Rabiul Alam and State Minister for Shipping Md Rajib Ahsan.
UAE Ambassador to Bangladesh Abdulla Ali Al Hamoudi, Invest Bangladesh Chairman Ashik Chowdhury, senior officials and business leaders also attended.
Security arrangements involving the Bangladesh Navy, Coast Guard, Immigration and Customs will remain under state control.
The agreement includes key performance indicators, regular reporting and financial penalties for missed targets, with CPA retaining oversight through monitoring and audits.
Rabiul Alam rejected comparisons between appointing an operator and leasing out Chattogram Port, saying overall control would remain with CPA.
No employee will lose job, he said, stating that automation could create more work opportunities.
Local employment will be maintained while modern technology, international management practices and skills development are expected to improve efficiency.
Although the contract allows up to six months for handover, the minister said he expected DP World to take charge within two months.
NCT is currently semi-automated, and cargo clearance takes about nine days, he said. The government expects that to fall first to four days and, eventually, to one day.
Asked whether Customs could continue to delay cargo, Rabiul Alam said port processes would be automated and paperless.
He said DP World would modernise the terminal with new machinery, digital systems, international-standard management and global logistics connectivity.
“Our broader policy goal is to bring stability to the supply chain by engaging multiple international operators across various terminals, thereby improving service quality and reliability,” he said.
Asked why the current government completed a process initiated under the previous Awami League administration, Rabiul Alam said the former government failed to bargain effectively whereas the present one did not.
Kazim said DP World would connect NCT to its global ports, logistics and supply-chain network, helping trade expansion, investment and new business opportunities.
Moniruzzaman said the deal would improve efficiency, reduce logistics bottlenecks and strengthen international connectivity, while Ashik Chowdhury said it was aimed at faster operations, stronger connectivity and better service at one of Bangladesh’s main trade gateways.
The concession comes as Chattogram Port, which handles about 92 per cent of Bangladesh’s foreign trade, continues to struggle with efficiency.
The Global Port Efficiency Index 2025 ranked Chattogram 364th among 400 container ports, citing long container dwell times and vessel stays, weak equipment performance and low productivity.
The shortcomings are estimated to cost the economy about Tk10 crore a day, or more than Tk3,000 crore a year. World Bank estimates suggest cutting container dwell time by one day could raise Bangladesh’s exports by about 7.4 per cent.
NCT, one of Chattogram Port’s four container-handling facilities, accounts for about 44 per cent of total throughput.
The terminal began operations in 2007, but container dwell time remains above nine days compared with less than two days at comparable ports. Vessel stays exceed 2.5 days against a benchmark of roughly 15-24 hours at more efficient ports.
Chittagong Dry Dock Limited, controlled by the Bangladesh Navy, has managed NCT since July 2025.
Denmark-based APM Terminals is separately developing the Laldia Container Terminal, expected to become Chattogram Port’s fifth container terminal by 2030.
The government sees the two projects as part of a wider push to bring international operators into the port sector to improve efficiency, expand capacity and strengthen global supply-chain links.
