DHAKA — Bangladesh has signed a 15-year concession agreement with Dubai-based port operator DP World to operate the New Mooring Container Terminal (NCT) at Chattogram Port, moving ahead with the controversial deal despite opposition from political parties and labour organisations.
The agreement was signed on Thursday afternoon at the Invest Bangladesh office in Agargaon, Dhaka, between the Chattogram Port Authority (CPA) and DP World. CPA Chairman Rear Admiral Md Moniruzzaman signed on behalf of the port authority, while Rizwan Soomar, DP World’s chief executive officer and managing director for the subcontinent, Central Asia and Egypt, represented the company.
Shipping Minister Sheikh Robiul Alam and State Minister for Shipping Md Rajib Ahsan attended the signing ceremony, along with DP World Chairman Essa Kazim and United Arab Emirates Ambassador to Bangladesh Abdullah Ali Al Hamoudi.
Investment and Revenue-Sharing Arrangements
Under the agreement, DP World will invest more than Tk 10 billion during the first 10 years to modernise the terminal through new equipment, technology and improved operational systems.
The contract guarantees minimum annual handling of 1.23 million twenty-foot equivalent units (TEUs) of containers. This threshold may be reduced to one million TEUs if a new terminal becomes operational.
According to Invest Bangladesh, the Chattogram Port Authority will receive a share of terminal revenue or royalties ranging from 40 per cent to 67 per cent, depending on average terminal revenue per container. DP World will also pay a fixed annual fee of approximately Tk 100 million.
Shipping Minister Sheikh Robiul Alam said the government’s objective was to bring multiple international operators into different port terminals to improve service quality, operational reliability and supply-chain stability.
He assured reporters that no existing NCT employees would be laid off and that their salaries and benefits would not be reduced. Financial penalties would apply if DP World failed to meet the contractual targets, he added.
Protests Over Foreign Management
Several left-wing political parties and organisations staged protests outside the signing venue. Police used batons to disperse demonstrators.
Opponents argue that handing the terminal’s operations to a foreign company could expose Bangladesh to financial losses, geopolitical risks and potential security vulnerabilities. They have also raised concerns about foreign-exchange outflows and the handling of dangerous cargo.
Economist Anu Muhammad, a member of the Democratic Rights Committee, criticised the agreement, describing it as a form of neo-colonialism under the banner of development.
He argued that the port’s major operational challenges stemmed from issues such as maritime depth, customs procedures and bureaucracy, which the government could address without transferring operational responsibility to a foreign company.
Muhammad also questioned the transparency of the process, saying the public had not been adequately informed about the contract’s terms, potential costs and benefits, legal basis, or implications for government revenue, employment and national security.
He argued that retaining formal ownership would not necessarily ensure effective control if operational authority rested with a foreign operator.
Government Says Ownership Will Remain With Bangladesh
Invest Bangladesh said the agreement would not transfer ownership of the NCT to a foreign company. The terminal will remain under the ownership of the Chattogram Port Authority, while DP World will manage its operations for an initial period of 15 years.
The authority will monitor performance through key performance indicators, regular reporting, audits and financial penalties for failure to meet agreed targets.
The government expects improved terminal management and automation to reduce vessel and truck turnaround times. One target is to gradually reduce truck turnaround time to 90 minutes.
Invest Bangladesh also said existing security protocols involving the Navy, Coast Guard, immigration authorities, customs and other state agencies would remain in force.
DP World Executive Chairman Essa Kazim said the agreement would connect the NCT to the company’s global network of ports, logistics infrastructure and supply-chain services, strengthening Bangladesh’s commercial links with international markets.
The company operates more than 80 marine and inland terminals across over 40 countries, according to the information provided by Invest Bangladesh.
Modernisation to Address Port Inefficiencies
The government says modernisation is necessary to address persistent inefficiencies at Chattogram Port, which handles approximately 92 per cent of Bangladesh’s foreign trade.
According to Invest Bangladesh, Chattogram Port ranked 364th among 400 container ports in the 2025 global port-efficiency index. The authority attributed the low ranking partly to lengthy container dwell times, extended vessel stays and shortcomings in equipment performance and overall productivity.
Containers remain at Chattogram Port for more than nine days on average, compared with fewer than two days at some international ports. Ships also spend more than two and a half days at the port, while benchmark ports typically record turnaround times of 15 to 24 hours.
Invest Bangladesh estimates that port inefficiencies cost the Bangladeshi economy around Tk 100 million a day, or more than Tk 30 billion annually. It also said reducing container dwell time by just one day could increase the country’s exports by approximately 7.4 per cent.
The NCT, which began operations in 2007 and has five jetties, currently handles about 44 per cent of the port’s total container traffic. Since July 2025, its management has been overseen by Chittagong Dry Dock Limited, which operates under the Bangladesh Navy.
A Long-Running Initiative
The process of bringing an international operator to the NCT began in 2019 under the Awami League government. In March 2023, a Cabinet committee on economic affairs granted in-principle approval for appointing an international private operator under a public-private partnership framework.
The initiative was revived by the interim government, prompting protests and labour unrest after DP World emerged as the preferred operator. The process stalled earlier this year amid workers’ strikes before moving forward under the BNP-led government.
At the end of the 15-year concession, DP World will be required to hand the terminal back to the Chattogram Port Authority.
Separately, Prime Minister Tarique Rahman invited DP World to explore investment opportunities in Bangladesh, including free trade zones and rail-linked inland container depots.
The prime minister made the appeal during a meeting with a DP World delegation led by Chairman Essa Kazim at the Secretariat on Thursday evening.
Discussions also covered port infrastructure development, regional trade expansion and the modernisation of Bangladesh’s logistics network. The delegation expressed interest in exploring cooperation and investment in the proposed areas.
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