DP World inks $150m deal

A 15-year concession awarded to global port operator DP World (DPW) is set to bring a major operational overhaul to Chattogram Port’s New Mooring Container Terminal (NCT), with the government banking on modern equipment, digital systems and international operating standards to cut costly delays in the country’s main trade gateway.

Under the agreement signed on Thursday, DP World will operate and maintain NCT and its Overflow Container Yard, while ownership of the land, infrastructure and other core assets will remain with the Chattogram Port Authority (CPA).

The operator will make an upfront payment of around Tk600 crore and invest more than Tk1,000 crore during the first 10 years.

The total investment planned under the agreement is around $150 million.

PM seeks DP World investment in free trade zones, inland depots

The deal comes as the government seeks to address persistent inefficiencies at Chattogram Port, where container dwell time is currently more than nine days. The government wants to bring it down to three to four days, while also improving vessel turnaround and container-handling efficiency.

At a signing ceremony in Dhaka on Thursday, CPA Chairman Rear Admiral SM Moniruzzaman and DP World Chairman Essa Kazim signed the agreement.

Shipping Minister Sheikh Rabiul Alam said the government wants to rapidly increase the capacity and efficiency of existing strategic port assets.

“Modernising NCT is not simply about operating a terminal; it is about improving the competitiveness of Bangladesh’s trade,” he said, stressing the need for greater efficiency, transparency and accountability.

Bangladesh handles around 92 per cent of its import and export trade through ports, making the efficiency of port operations critical to the economy, the minister said.

Cost of delay
The scale of the challenge is reflected in Chattogram Port’s performance. The port ranks 364th among 400 ports in the 2025 Container Port Performance Index.

A comparison presented at the ceremony showed that competing regional ports can handle containers in less than two days, while vessels at Chattogram Port currently spend more than 2.5 days compared with around 15 to 24 hours at benchmark ports.

The government estimates that port inefficiency costs the economy around Tk10 crore a day, or more than Tk3,000 crore a year. Officials, citing World Bank data, said reducing container dwell time by one day could increase Bangladesh’s exports by around 7.4 per cent.

NCT handled around 13.85 lakh TEUs in fiscal year 2025-26, accounting for roughly 44 per cent of Chattogram Port’s total container handling.

WHAT DP WORLD WILL DO
DP World will upgrade or replace cranes, introduce modern scanning equipment and improve terminal technology, with operations moving towards a paperless system. It will also be responsible for equipment maintenance and repairs.

The agreement sets a minimum annual handling guarantee of 1.23 million TEUs, which may be reduced to 1 million TEUs after a new terminal becomes operational.

Besides the upfront payment, DP World will pay the CPA either a share of terminal revenue or a royalty per TEU, ranging from 40 per cent to 67 per cent depending on average terminal revenue. It will also pay a fixed annual fee of around Tk10 crore.

Of the Tk600 crore upfront payment, 25 per cent will be paid upon signing the agreement and the remaining 75 per cent before DP World starts operations.

The operator will also be subject to key performance indicators, phased targets and financial penalties for failing to meet agreed standards. It will report weekly and monthly to the CPA on container handling, vessel movement, revenue and other operations.

Wider investment interest
DP World Chairman Essa Kazim said Bangladesh was becoming an increasingly important trading and manufacturing economy and that the company would connect NCT with its global network of ports, logistics infrastructure and supply-chain services.

He said the company’s wider interest in Bangladesh could extend beyond NCT. Projects such as the Bay Terminal, rail terminals, logistics parks and free-zone development could together represent investment of up to $1 billion, subject to government priorities and project development.

Invest Bangladesh Chairman Ashik Chowdhury said the partnership would help bring Bangladesh’s trade operations closer to global standards through faster operations, stronger connectivity and improved logistics services.

Workers’ concerns
The concession, however, has faced opposition from some NCT workers and employees concerned about job security, transparency and foreign operation of the strategically important terminal.

The government has said existing registered workers will not lose their jobs and that their wages and benefits will be protected.

State Minister for Shipping Rajib Ahsan urged DP World to prioritise Bangladesh’s laws, environmental standards and national interests. He also called for special attention to the interests and living standards of workers who have long been working at NCT.

The agreement ultimately puts the focus on whether the new operator can deliver the faster vessel turnaround, shorter container dwell time and higher operational efficiency promised by the government.

For Bangladesh, the stakes extend beyond NCT itself: with the overwhelming majority of the country’s international trade passing through ports, improvements in the speed and efficiency of cargo handling could directly affect the competitiveness of its trade.

UNB adds: Prime Minister Tarique Rahman on Thursday sought DP World’s investment in free trade zones and rail-based inland container depots in Bangladesh as he discussed expanding trade, investment and logistics cooperation with the UAE-based global port operator.

A delegation, led by DP World Chairman Essa Kazim, met the Prime Minister at his office at the Bangladesh Secretariat and discussed various issues of mutual interest, including trade and investment between Bangladesh and the United Arab Emirates, port management and development of the logistics sector, said PM’s Assistant Press Secretary Md Nazmul Haque Khan.

The meeting also discussed the 15-year concession agreement signed between Bangladesh and DP World for the operation and modernisation of the New Mooring Container Terminal (NCT) at Chittagong Port.

Under the agreement, DP World will operate and maintain the container terminal and its overflow container yard.

The partnership is expected to play an important role in modernising the terminal, improving operational efficiency and enhancing the capacity of Bangladesh’s port and logistics infrastructure.

During the meeting, the Prime Minister asked about DP World’s interest in establishing a free trade zone and a rail-based inland container depot, as well as making new investments in Bangladesh, Nazmul said.

The DP World representatives expressed interest in cooperation and investment in these areas.

The two sides also discussed opportunities to further expand Bangladesh-UAE trade and investment ties and strengthen cooperation in port management and logistics.

The meeting comes as Bangladesh seeks to enhance its port and logistics infrastructure and attract greater foreign investment to support trade and economic growth.