Chattogram Port handles 92% of Bangladesh’s trade, and the port’s importance to the national economy is enormous. To compete in the global market, efficient port service and trackability of consignments can reduce supply uncertainty and costs. The port should not be a profit-making organ of the nation but rather a service provider for international trade. Port efficiency can address these issues and increase both ways of trade.
It is proven that port authorities around the world are lagging in managing ports efficiently to reduce the cost of international trade. Port operations around the world are now handed over to efficient operators. Around 250 container terminals worldwide are operated by four major companies, with international operators managing approximately 80% of them. After a long time, Bangladesh has decided to follow the competitors and let efficient port operators handle our ports.
The Chattogram Port Authority and Dubai-based DP World have signed a 15-year concession agreement to operate and maintain the New Mooring Container Terminal (NCT) and its Overflow Container Yard, bringing one of the world’s largest port operators into Bangladesh’s main container terminal. Chattogram Port has several terminals. The NCT handled about 13.85 lakh TEUs in the last fiscal year, accounting for roughly 44% of Chattogram Port’s total container handling. Bangladesh has already brought APM Terminals into the Laldia Terminal project. DP World is also among the world’s top five operators. Under the agreement, the terminal will remain under the port authority’s ownership, while DP World will take responsibility for its operation and maintenance for 15 years. The agreement includes financial penalties if the company fails to meet its targets. The CPA will receive a share of the terminal’s operating revenue along with a fixed annual fee.
Bangladesh will receive Tk600 crore as signing money from DP World, with 25 percent paid at signing and the remaining 75 percent before the terminal is handed over to DP World. Bangladesh will receive 67 percent of the handling revenue per 20-foot container (TEU), while a minimum handling volume has also been set. Based on current handling charges, the government’s share could average around $90-$100 per TEU, although the amount would vary.
NCT began operations in 2007, currently handling around 1.23 million TEUs a year. The government expects the volume to rise to 1.6-1.8 million TEUs as efficiency improves. DP World will invest to modernise NCT, including upgrading equipment and introducing greater automation to reduce container and ship stay time. The plan has certain targets. The current truck waiting time for loading, unloading and document processing is around 24 hours and could be reduced to two hours in the first year and eventually to one hour.
DP World will also introduce paperless operations at Chattogram Port to improve efficiency and reduce delays. The operator is expected to introduce automated gates, digital processes and other technologies to reduce manual intervention and delays.
A ship currently takes around two and a half to three days to unload its containers and leave the port, and hopefully this turnaround time will fall further following the agreement with DP World. The average container dwell time at the port is currently around 9.4 days and now aims to reduce it to three to four days. Dwell time is the time a container will remain at the port area. A modern terminal can clear containers within one to three days. Bangladesh will also move towards that standard.
According to World Bank data, cutting dwell time by one day could increase Bangladesh’s exports by about 7.4 percent. The agreement aims to eliminate vessel waiting time at the NCT, reducing delays and costs for shipping companies and exporters. Faster cargo handling would shorten lead times for exporters and help make the garment and other export industries more competitive.
DP World have paperless operations, and naturally other stakeholders like the customs department will be forced to go partially paperless. According to the shipping minister, the automation would limit manual intervention in container handling. The customs department will remain responsible for collecting taxes and completing the related procedures. Once container operations become automated, there will be fewer opportunities for customs officials to hold up containers or intervene manually, the minister said.
DP World operates container terminals across South and Southeast Asia, including in India, Pakistan, Thailand and the Philippines, as well as other Asian markets. In India, DP World operates several ports and terminals and has been introducing automated operations, advanced terminal operating systems and electric equipment. In Pakistan, DP World operates the Qasim International Container Terminal at Port Qasim near Karachi. In Thailand, DP World operates Laem Chabang International Terminal. In 2025, it introduced electric internal transfer vehicles and plans to convert the terminal’s fleet to electric vehicles. In 2026, it announced further investment in electric reach stackers and empty-container handlers. In the Philippines, DP World and local partner Asian Terminals invested about $100 million in Manila South Harbour. Its regional operations range from conventional container terminals to facilities where it has introduced automated systems, new cranes and electric cargo-handling equipment.
The Bangladesh agreement provides for about $150 million in investment over the 15-year concession. Of this, around $90 million is expected to go towards upgrading equipment, technology and the terminal, while $50 million will be paid to the government as an upfront payment.
It was agreed that initial modernisation work is expected to be completed within six months, while the terminal is expected to operate at full capacity within about two years. The operator is expected to introduce modern scanning equipment, upgrade or replace cranes where necessary and move towards paperless operations. The agreement also requires DP World to bear the cost of equipment maintenance and repair during the concession. Existing workers are not supposed to be laid off; rather, they are to be integrated into the new system with their existing wages and benefits unchanged.
A minimum volume guarantee and revenue-sharing arrangement are intended to protect the port authority’s earnings. DP World must meet specified key performance indicators, such as improvements in truck turnaround time and crane productivity. Financial penalties will apply if contractual targets remain unmet for three consecutive months.
After the agreement expires, if the two parties fail to reach an extension agreement, it will not take effect, and the CPA can withdraw from the negotiations. The agreement contains provisions to protect the jobs and benefits of existing port employees.
The port authority will retain operational oversight of the terminal. CCTV surveillance will remain in place throughout the terminal area, while DP World must submit detailed operational information, including vessel-handling figures and revenue reports, in specified formats every week and month. DP World will bear operational, investment and maintenance risks, including equipment repair costs. The agreement also provides for financial penalties if the operator fails to meet contractual obligations. Collaborating with established international operators positions Bangladesh as a reliable regional manufacturing and transshipment hub, supporting ambitious trade targets with regional partners.
The partnership will train Bangladeshi personnel in automated container handling, digital tracking, and modern port engineering. Upgrading logistics performance helps lift Bangladesh’s international standing by moving past low rankings in global port indices, lowering overall supply chain costs, etc.
Overseas buyers shall monitor their consignments for efficient warehouse and stock management to reduce costs and smooth supply from RMG manufacturers in Bangladesh to customers worldwide.
The views expressed in this article are solely those of the author
The writer is the CEO, Bangla Chemical & Legal Economist. E-mail: [email protected]
