Foreign investment, expertise needed in port operations – then why the secrecy in deals?
Bangladesh performs poorly in global logistics rankings, with long lead times and slow cargo clearance regularly flagged by businesses. In short, the case for foreign investment is compelling
Bangladesh's ports urgently need modernisation, efficiency upgrades and fresh investment. Global logistics giants – Maersk, MEDLOG and DP World – are lining up to help fill that gap. Yet instead of celebration, their entry has triggered waves of scepticism, protests and mounting questions. The reason is not the foreign presence itself, but the way these deals are being stitched together – quietly, quickly and behind closed doors.
Danish shipping and logistics titan AP Moller-Maersk, already a long-time connector of Chattogram Port with major regional hubs, operates across 130 countries in areas ranging from ports to warehousing and air freight. MEDLOG SA, part of Switzerland's MSC Group, runs logistics operations in more than 80 countries. DP World, headquartered in Dubai with a strong Asia footprint, manages supply chains across over 20 markets.
For most countries, such names expressing interest in port development would signal opportunity – access to capital, expertise and end-to-end logistics solutions. Bangladesh, too, urgently needs these. Its port services lag global standards, and inefficiencies in Chattogram frequently raise export costs, slow delivery cycles, and undermine competitiveness. The Pangaon terminal near Dhaka, built in 2013, remains chronically underused due to a lack of supportive services and incentives.
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Bangladesh performs poorly in global logistics rankings, with long lead times and slow cargo clearance regularly flagged by businesses. In short, the case for foreign investment is compelling.
So, what's the problem?
The resistance surfacing now – from conservationists, port service providers and workers and even segments of the business community – is not rooted in nationalism or fear of foreign capital. Their objection lies elsewhere: the secrecy surrounding the latest port deals.
Over the past year, the interim government has made a point of cancelling unsolicited, non-competitive contracts to curb corruption and promote fairness.
Renewable power contracts, a floating LNG terminal contract were scrapped as those were not awarded through competitive bids. On the same ground, the Chinese firm did not get the go-ahead to operate the Tk8300 Crore single-point mooring it built.
Even Saif Powertech, which ran Chattogram's New Mooring Terminal for 17 years, was not given a fresh contract because its original award was given through 'direct procurement method' bypassing competition.
Against this backdrop, the newest port concessions appear to break the interim government's own rules.
The unsolicited deal with India's Adani Power, signed during the previous regime, is now under review. During the Awami League's tenure, scores of unsolicited agreements were signed, yet the public was at least able to learn the terms and conditions of most major large-scale deals, including the Rooppur Nuclear Power Plant project. The Adani power deal was an exception, which was shrouded in an absurd level of secrecy.
As a consequence, disputes are now brewing over power tariffs and coal pricing – issues that could otherwise have been better negotiated. This instance explains the logic behind growing public concern over whether national interests are being compromised through secrecy, when such deals are signed hastily and without competitive bidding.
Deals signed – but not seen
On 17 November, the Chattogram Port Authority (CPA) inked two major agreements – a 33-year design-build-operate concession for the Laldia Container Terminal in Patenga with APM Terminals (Maersk) and a 22-year operate-and-maintain contract for the Pangaon Inland Container Terminal in Keraniganj with MEDLOG.
Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun told reporters that APM Terminals will invest around $550 million in Laldia, while MEDLOG will invest $40 million in Pangaon. He said APM Terminals will pay $21 per TEU and a higher rate if annual throughput crosses 900,000 TEUs, adding that the objective was to ensure CPA does not incur losses.
A third deal – this time with DP World to run the profitable New Mooring Container Terminal (NCT) – is expected by December, again through an unsolicited process. A document seen by TBS shows Lutfey Siddiqi, special envoy to the chief adviser, urging officials to complete preparations for the DP World agreement by 15 December.
Yet none of the clauses from the 17 November deals have been disclosed. Officials cite non-disclosure provisions, but the opacity contradicts the interim government's declared commitment to open, competitive procurement. This lack of transparency is what has triggered industry unease.
Exporters, importers and trade bodies said they welcome foreign expertise and fresh investment in port development and operation, but they insist that such long-term, strategically important contracts must be transparent and competitive. With the painful experience of the underutilised Patenga Container Terminal still fresh, they fear that deals signed quietly and without scrutiny may repeat past mistakes.
Stakeholders question deals, timing
Procurement experts and port users say that key agencies – the Public-Private Partnership (PPP) Authority, CPA, and BIDA – have not disclosed a single clause of the deals, despite public demand. They warned that the Laldia project bypassed competitive tendering, conflicting with the Public Procurement Act 2006 and its rules.
The Pangao deal, although formally tendered, has raised its own questions, as only two related firms participated, and the agreement was signed within 10 days of the evaluation report – a pace that several operators described as unprecedented.
Amirul Haque, managing director of Seacom Group and a leader in the United Business Forum, said open, competitive bidding is essential. "We are not against foreign investment. But it must be fair. That's how the country benefits," he said, pointing to the Patenga Container Terminal (PCT). The facility was awarded to Saudi operator Red Sea Gateway Terminal International (RSGT) on a 22-year lease in December 2023, but even after nearly two years of operation, it continues to run far below its designed capacity.
Mahfuzul Haque Shah, another senior port user, said the government is not explaining what DP World will add to NCT or how much it will invest. "NCT is self-sufficient," he said. "When nothing is disclosed, suspicion is natural."
Khairul Alam Sujan, vice-president of the Bangladesh Freight Forwarders Association, echoed the concerns, saying the government neither shared the agreements nor consulted stakeholders. "We don't even know if the deal ensures jobs for local experts and workers. A small mistake in the clauses can create major complications later," he told TBS, adding that the deal was signed at "bullet speed."
Economist Professor Anu Muhammad was even more blunt. He said people expected transparency from the interim government, not a continuation of the previous administration's approach. "The July uprising was meant for change. Instead, they signed an unsolicited agreement with a company selected by the ousted regime," he said.
With elections three months away, the economist argued the interim government has no authority to approve long-term deals that will affect the economy.
Amir Humayun Chowdhury, president of the Chattogram Port Users Forum and former Chittagong Chamber of Commerce & Industry (CCCI) chief, said an international tender would have been the right path. "The government is following the choices of the ousted autocratic regime. That goes against the spirit of the uprising," he said. With the polls approaching, he added, such decisions should have been left to an elected government.
Business leaders and economists urged the government to release the full terms of the deals if it wants to rebuild trust. Without transparency, they warn, the country's most strategic port risks being tied to long-term commitments that the public never had the chance to scrutinise.
Terminals in foreign hands
PCT was designed and built at a cost of Tk1,270 crore CPA fund to handle about 450,000 to 500,000 TEUs annually and was expected to relieve pressure on NCT. But since its handover by the ousted regime in 2023 on a direct procurement method (DPM) arrangement to Red Sea Gateway Terminal International (RSGTI), the terminal has operated below half its capacity. Delayed equipment delivery and slow operational ramp-up have frustrated users. Many point to PCT as a warning of what can go wrong when oversight is weak and conditions are not aligned with national interest.
Laldia is the largest new capacity expansion in years. The planned investment by APM Terminals is expected to add over 800,000 TEUs of capacity, nearly one-third of the port's present annual volume. The project also includes a 10-year tax holiday. Given the scale and long tenure, stakeholders argue that transparency is essential to ensure Bangladesh does not give away long-term revenue streams without adequate safeguards.
Pangaon was built to move cargo inland by river and reduce pressure on Chattogram's yards and the Dhaka-Chattogram highway. Its design capacity is around 116,000 TEUs, but utilisation has hovered far below that for years. Under the new agreement with Medlog, CPA expects volumes to rise to about 160,000 TEUs. Yet users say structural issues, not operators alone, determine Pangaon's viability, and handing it over in haste will not fix the fundamentals.
NCT is next to go to a foreign operator. NCT is the port's main workhorse. It was built for 1.1 million TEUs but now handles about 1.3 million, making it the most profitable and efficient terminal under CPA. When Chittagong Dry Dock Ltd took over operations, turnaround time improved and congestion eased. That strong performance is why many users question why such a strategic asset would be leased out without competitive bidding or disclosed terms.
Why the debate matters
Chattogram Port handles more than 90% of the country's containerised trade. The terminals under discussion form the backbone of Bangladesh's import-export supply chain.
For port users, the concern is simple: if the government signs multi-decade deals without public disclosure, competitive scrutiny or stakeholder input, Bangladesh risks ceding control over critical infrastructure at a moment when global shipping is volatile and trade volumes are rising.
Business leaders say they will welcome any operator – foreign or domestic – who improves efficiency. What they cannot accept, they say, is being asked to trust deals they have never seen.
