CHATTOGRAM, June 8: The government has revived the process of leasing out the New Mooring Container Terminal (NCT) of Chattogram Port Authority (CPA) to Dubai-based global port operator DP World.
The Ministry of Shipping on June 4 sent two separate letters to the CPA regarding the proposed lease of the country's largest container terminal.
In the first letter, issued in the morning, the ministry instructed the CPA to either expedite the ongoing negotiations with DP World or scrap the initiative altogether. However, a second letter sent later the same day directed port authorities to continue discussions with the Dubai-based company.
Shipping Secretary officials later clarified that the initial communication was based on preliminary observations from the Public-Private Partnership (PPP) Authority. Following a request for clarification from the CPA, the ministry issued the second letter, reaffirming the government's decision to proceed with negotiations without altering the overall policy.
Based on the latest directive, the CPA has moved to form a seven-member evaluation committee to finalize the negotiation process.
At present, the terminal is being operated by Chattogram Dry Dock Limited (CDDL), an enterprise of the Bangladesh Navy, which took over management pending a decision on the proposed foreign operator.
The NCT leasing process had been put on hold during the final days of the interim government, but the new administration has now brought the proposal back to the table.
Among the four operational container terminals at Chattogram Port, NCT is by far the largest, handling around 44 percent of the port's total container traffic.
Since July 7, 2024, CDDL has been operating the facility and has consistently posted record container-handling performances.
In May alone, it handled around 126,000 twenty-foot equivalent units (TEUs), the highest monthly volume ever recorded at the terminal. Before CDDL assumed responsibility, the terminal was operated by a local private company.
The initiative to lease NCT gained momentum during the interim government and had reached its final stage. However, objections from members of the negotiation committee, coupled with labour unrest and protests over the proposed DP World deal, complicated the process. As a result, the interim government suspended the initiative on February 9.
The proposal to lease NCT to DP World under a Public-Private Partnership (PPP) and government-to-government (G2G) framework was originally initiated during the Awami League administration but remained incomplete.
The issue resurfaced after the BNP assumed office. At the fourth meeting of the Bangladesh-Dubai Joint Public-Private Partnership Platform on April 8, DP World proposed operating NCT together with the adjacent Chittagong Container Terminal (CCT) as an integrated terminal complex.
Meanwhile, a competition has emerged between DP World and Saudi Arabian port operator Red Sea Gateway Terminal (RSGT) for the operation of CCT, one of the country's busiest container-handling facilities. DP World and RSGT submitted separate proposals to the authorities on April 8 and April 22 respectively. Local conglomerate MGH Group has also expressed interest by submitting its own proposal.
In 2024, RSGT secured a 22-year contract to operate the Patenga Container Terminal, while negotiations over awarding NCT to DP World remain ongoing.
This is the first time that major port operators from the United Arab Emirates and Saudi Arabia are directly competing for control of the same terminal at Chattogram Port.
The country's principal seaport currently operates four container terminals " General Cargo Berth (GCB), Chittagong Container Terminal (CCT), New Mooring Container Terminal (NCT), and Patenga Container Terminal.
Of these, the CPA manages GCB, CCT and NCT through local operators, while RSGT runs the Patenga terminal.
According to port data, NCT accounted for about 44 percent of the port's total container volume last year, followed by GCB with 36 percent, CCT with 16 percent and Patenga with nearly 4 percent.
Industry insiders say that if CCT is integrated with NCT under DP World, the UAE-based operator could control nearly 60 percent of the port's total container throughput. Conversely, if CCT is eventually aligned with GCB under RSGT, the Saudi operator's share could rise to around 55 percent.
