FDI in CPA Terminals to benefit country: Stakeholders

CHATTOGRAM Oct 6: The Country will immensely be befitted with the handing over Chattogram Port’s New Mooring Container Terminal (NCT) and Chattogram Container Terminal (CCT) to experienced global operators like DP World and RSGT International bringing faster cargo handling, advanced port technology, and major foreign investments, according to stakeholders.

Stakeholders of the country’s prime sea port observed that the International operators use digital automation and modern management to unload and load cargo much faster, reducing ship waiting times.

Alongside, Global firms bring modern cranes and real-time tracking systems to replace aging local equipment. Expert management can boost container handling volumes by up to 20%, easing severe supply chain bottlenecks.

Higher efficiency and better global shipping integration can reduce overall shipping and import-export costs for local businesses. Major global operators commit billions in fresh investments to upgrade port infrastructure without losing state ownership of the land and facilities.

As per decision of the government, the Concession tenor will be for 15 years during which DP World (Concessionaire) will be responsible for refurbishment, operations, and maintenance of the NCT terminal. During the contract term, there is a committed investment amount of USD 150 million approximately to be incurred by the terminal operator as upfront payments, for modernization of the terminal, machinery upgrades, and technology development (out of which a significant portion is expected to come in the form of FDI).

Higher throughput and efficiency gains from this NCT project will lift port dues and tax receipts. In addition, the concession allows for a Revenue Share mechanism where CPA will receive a revenue share per TEU (container) handled which will be determined based on the terminal's average earnings. If average earning increases, CPA revenue share will also increase.

The existing workers at NCT will be systematically transitioned into the new system under PPP following international best practices.  

Global port operators such as DP World bring efficiency in port operations through - faster vessel turnaround, improved container dwell times via their operations which will result in a cut in the logistics costs for exporters and importers, the stakeholders observe.

Throughout the concession term, CPA retains the ownership of port assets, and the concessionaire is required to maintain all terminal assets and civil works in good working condition. At the end of the concession, the terminal will be handed back to CPA.

Reliable terminal capacity encourages private investment in inland container depots, cold chains, and industrial parks along Dhaka-Chattogram and other corridors-spreading economic activity beyond port cities. The NCT project is expected to contribute towards the same.

CPA CHAIRMAN
Talking to the Daily Observer, CPA Chairman Rear Admiral SM Moniruzzaman said the concession period is set for 15 years, during which DP World will handle the refurbishment, operations, and maintenance of the NCT terminal. During this period the operator DP World has committed approximately USD 150 million of investment for terminal modernization, upfront payments, technology development, and machinery upgrades (primarily as Foreign Direct Investment). 

CPA Chairman also said that the DP World has also submitted broader proposals to invest nearly USD 1 billion across Bangladesh's port and logistics sector. 

He confirmed that the CPA would retain full ownership of port assets throughout the 15-year term. At the end of the concession, the terminal and all civil works will be handed back to CPA in good working condition along with complete technology and operational know-how.

“Beyond increased port dues and tax receipts, CPA will receive a direct revenue share per TEU handled, linked to average terminal earnings-meaning CPA’s earnings increase as average earnings rise, CPA Boss said.

Moniruzzaman disclosed that the Equipment availability at NCT had dropped to 70% (well below the global 93% standard) hoping he said that the DP World's modern crane productivity and automated operating systems will boost container handling speed from 20-22 moves per hour to 35+ moves per hour.

He also hoped that the Vessel turnaround times are targeted to drop from the current average of 2.53 days down to 24-36 hours, reducing shipping delays and lowering trade/logistics costs for Bangladeshi importers and exporters (especially in RMG, agro-processing, and light engineering).

Terminal security remains 100% under the control of CPA and domestic security forces under ISPS Code compliance. DP World personnel cannot access sensitive areas or data without prior approval and strict screening. Real-time CCTV feeds and Terminal Operating System (TOS) data will connect directly to Bangladesh Customs, NBR, and national intelligence agencies.

Reliable terminal capacity will drive private investment in inland container depots and cold chains along the Dhaka-Chattogram corridor. 

CCCI PRESIDENT
Amirul Huq Chowdhury, President of the Chattogram Chamber of Commerce and Industry (CCCI) said, “We always encourage the foreign and Private Investment in all sectors of the government.” He opined that the private investment in all sectors including Energy, petroleum, all other productive Industries alongwith the port facilities must gear up the national economic growth.
He advocated for private investment in all sectors to give a boost of the national economy.

PORT USERS FORUM (PUF)
Amir Humayun Mahmud Chowdhury, President of the Port Users Forum (PUF) demanded the government to publicly disclosed the toal conditions of the agreement with the DP Worlds so that the people as well as the Port workers are fully aware of the actual position of the agreement.
 
He said, “We are welcoming the foreign investment in the port facilities like Laldiar Char terminal with APM.” He also opined that the financial benefit from the foreign operators should be disclosed to the nation.

Meanwhile, the Cabinet Committee on Economic Affairs approved a draft 15-year concession agreement for the NCT and its overflow yard. DP World (Dubai) has been engaged in ongoing negotiations regarding the NCT operations.