DP World, RSGT in race to operate Ctg Container Terminal
DP World and RSGT submitted separate proposals to the authorities on 8 April and 22 April respectively.
Highlights:
- Both foreign companies submit proposals
- Local MGH Group also in race
- MGH proposes paying highest $98.5 per container
- RSGT already secures 22yrs contract for Patenga Container Terminal
- DP World remains in talks over NCT
Dubai-based logistics company DP World and Saudi Arabian port operator Red Sea Gateway Terminal (RSGT) have entered in a race to secure operating rights of the Chittagong Container Terminal (CCT), one of the busiest container-handling facilities at Chittagong Port.
DP World and RSGT submitted separate proposals to the authorities on 8 April and 22 April respectively.
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The race has also drawn in local conglomerate MGH Group, which has placed proposals for terminal operations.
In 2024, RSGT secured a 22-year contract to operate the Patenga Container Terminal, while talks on awarding the New Mooring Container Terminal (NCT) to DP World are still ongoing.
This marks the first time the two port operators from UAE and Saudi Arabia are competing for operation of the same terminal at the port.
Contacted, Syed Aref Sarwar, head of commercial at RSGT, Chattogram, confirmed that the company has expressed interest in operating both the CCT and General Cargo Berth (GCB).
"Like other international and local operators, we have submitted our interest in operating the terminals. If the government gives us the opportunity, we have plans to invest around $1 billion," he told TBS.
Shamimul Huq, chief executive officer of DP World Bangladesh Limited, could not be reached by phone for a comment on the proposal.
Repeated attempts to contact Anis Ahmed, managing director of MGH Group, for comments on the proposal were unsuccessful.
Strategic value of CCT
The country's main seaport currently operates four container terminals: GCB, CCT, NCT, and Patenga Container Terminal.
Of them, the Chittagong Port Authority (CPA) is operating the first three terminals by local entities while RSGT is handling Patenga terminal.
Interest in CCT has grown because of its strategic location. Situated between NCT and GCB, the terminal links the port's largest container-handling zones.
According to port data, NCT handled around 44% of the port's total container volume last year, followed by GCB with 36%, CCT with 16%, and Patenga with nearly 4%.
Industry insiders say if CCT is integrated with NCT under DP World, the UAE operator could gain influence over nearly 60% of the port's container throughput. On the other hand, if CCT and GCB are eventually aligned under RSGT, the Saudi operator's share could rise to around 55%.
MGH also becomes competitor
Alongside the Gulf operators, MGH Group is actively lobbying for a local operating model.
The company first submitted a proposal for operating CCT in March last year and filed another proposal on 28 April for operating NCT.
According to documents reviewed by port stakeholders, DP World earlier proposed paying the port between $93.50 and $97.50 per container.
MGH, however, has proposed paying $98.50 per container and claims the arrangement could generate around $1.68 billion in revenue for the port over 15 years.
Govt yet to decide
The government is now moving ahead with the process to form an evaluation committee to assess DP World's proposal for NCT operations.
According to the document obtained by TBS, the Ministry of Shipping has asked the CPA to reconstitute the evaluation committee for the proposed private operation of the NCT under a public-private partnership (PPP) model.
According to an official letter issued by the ministry on 6 May, the directive relates to the project titled "Operation and Maintenance of CPA's New Mooring Container Terminal (NCT) including Overflow Container Yard (OCY) by Private Terminal Operator under PPP."
A fresh proposal regarding the formation of the evaluation committee had been submitted by the port authority following earlier correspondence on the matter, reads the letter.
Contacted, Md Zakaria, secretary to the Ministry of Shipping, told The Business Standard, "Many international and local operators have shown interest in operating NCT, CCT and GCB. DP World's proposal for NCT has been under evaluation. No decisions have been taken regarding other proposals."
He said, "The proposals came through the Public-Private Partnership Authority. They can provide details of proposals."
PPPA Executive Chairman Ashik Chowdhury, however, could not be reached for comments despite repeated attempts from TBS.
