Ctg Port moves to recruit new operators amid opposition from existing firms

The Chattogram Port Authority (CPA) has launched a fresh initiative to recruit berth and ship-handling operators by issuing new licences, sparking a mix of support and opposition among stakeholders.

Port users have welcomed the decision, arguing that increased competition could enhance efficiency. Existing berth operators, however, have strongly criticised the move, warning of potential legal action.

The announcement comes less than a year after CPA cancelled the licences of 23 operators in November 2024, citing political influence and irregularities in the previous recruitment process.

Currently, 12 berth operators manage cargo at the General Cargo Berth (GCB), while 33 ship-handling operators handle consignments from vessels at the port's outer anchorage.

Six of the ship-handling operators belong to major business conglomerates, primarily handling their own consignments, and together they account for around 70% of the port's cargo, according to operators.

On 30 September, CPA issued a public notice inviting applications for new operator licences until 31 October. Interested firms must demonstrate operational capacity, trained manpower, adequate equipment, financial solvency, and compliance with relevant regulations.

Applicants are also required to submit proof of agreements with shipping lines or agencies, worker insurance, tax certificates, and other documents. Each application must be accompanied by a non-refundable Tk1 lakh pay order.

CPA officials said the initiative aims to enhance competitiveness and efficiency at Bangladesh's busiest seaport, which handles 130 million tonnes of cargo and 3.3 million TEUs annually.

Confirming the move, CPA Secretary Omar Faruk told The Business Standard, "The shipping ministry formulated new rules for issuing operator licences, and the notice has been published in accordance with those rules."

He added, "A committee will be formed to assess applicants' requirements and issue licences following the regulations."

Berth operators oppose

Although the CPA has not suggested cancelling existing licences, the decision has drawn criticism from current berth operators, who expressed concern over the potential impact on port operations.

Fazle Ekram Chowdhury, president of the Bangladesh Berth Operators Association, described the initiative as "illegal and disruptive."

He said, "We have agreements with CPA valid until 2027. Recruiting new operators before the expiry of these contracts will violate the deal and create chaos in port operations."

He also said berth operations require technical expertise, experience, and specialised equipment. "If CPA appoints operators under pressure, efficiency will fall and disorder will spread inside the port."

Support from ship-handlers, port users

Ship-handling operators, in contrast, have welcomed the move. Amirul Haque, managing director of Seacom Shipping Line, said port operations should be open to all qualified applicants.

"As an operator, I don't believe in monopoly. There should be fair competition," he said. However, he cautioned that new appointments must avoid political considerations, as occurred under the previous government.

Port users and trade leaders have also welcomed the initiative.

Mahfuzul Hoque Shah, former director of the Chittagong Chamber of Commerce and Industry, said opening the door to new operators would foster competition, improve services, and boost port efficiency.

"Berth operators mainly provide labour, while all technical operations are handled by CPA staff. More operators will not harm efficiency if managed properly," he said.

Shah, however, cautioned against repeating past mistakes. "Previously, CPA issued licences under political influence to unqualified firms. If that happens again, it could backfire."

He also called for modernising port operations, stressing strict adherence to workers' wages, dress codes, and safety standards.

Port performance and growth

Chattogram port is Bangladesh's main gateway for foreign trade, handling over 90% of the country's import and export cargo. In FY25, it set a record by managing 3.29 million TEUs and 130.7 million tonnes of cargo, with 4,077 ships calling at the port, according to port data.

Despite expanded capacity, growth has often outpaced upgrades. Key terminals include the New Mooring Container Terminal (NCT), designed for large-scale container handling; the Chittagong Container Terminal (CCT), one of the busiest docks; and the newer Patenga Container Terminal (PCT), where a foreign operator manages containers.

General Cargo Berths (GCB) continue to handle a mix of bulk and containerised cargo.

Altogether, the port has around 17 active jetties for containers and general cargo. Although infrastructure improvements have reduced waiting times at the outer anchorage from 5-7 days to 2-3 days, congestion risks remain, with terminals like the NCT frequently operating above capacity.