Who should run Bangladesh's busiest container terminal?

Advantages:

• Foreign Direct Investment to boost the economy, though the government did not clarify how much the company will invest
• Capacity and efficiency enhancement (No clarification yet)
• The government claims that, foreign company will create more employment
• The government claims, local workers will be able to develop skills

Disadvantages:

• PCA has already invested Tk4,000 crore to procure equipment for NCT
• NCT is already running overcapacity, handles 1.3m TEUs against 1.1m TEUs capacity
• Foreign control over strategic asset like NCT, which is adjacent to major naval base, poses a security threat, say experts
• Foreign operator for a self-sufficient terminal raises question
• Foreign companies not showing interest in the other terminals, GCB and CCT, which require technological modernisation
• Experts question authority of interim govt for signing the port deal that would impact country's economy in the long term
• Local companies have proven competence to operate port terminals and are interested in taking chances
• Almost all political parties, labour organisations, and experts oppose the decision to appoint a foreign operator

The New Mooring Container Terminal (NCT) in Chattogram is quietly doing what few infrastructure projects in Bangladesh can claim—it is outperforming expectations, generating revenue, and operating with homegrown expertise. And yet, it is at the centre of a heated national debate.

During a recent visit to the port, Chowdhury Ashik Mahmud, executive chairman of the Bangladesh Investment Development Authority (Bida), praised NCT's operational efficiency, drawing comparisons with the port of Dubai. "The technology here is almost the same," he said, adding, "Only the gantry cranes are manually operated, whereas in Dubai they're automated."

He added that bringing in a foreign operator could usher in newer technologies and enhance overall capacity. That statement, however, has deepened an ongoing controversy.

Built with local resources, NCT is a success story

Commissioned in 2007 by the Chattogram Port Authority (CPA) with a Tk4,000 crore investment, NCT was designed to handle 1.1 million twenty-foot equivalent units (TEUs) annually. Today, it processes 1.3 million—15% above capacity, and contributes over Tk 1,000 crore to port revenues each year.

Port officials credit this to a combination of technological upgrades and the growing competence of local operators. By all measures, NCT has become one of Bangladesh's few infrastructure success stories.

Yet, despite its performance, the government, first under the Awami League and now under the interim administration, has been pushing to hand over operations to Dubai-based DP World, without conducting an international tender.

Critics question lack of transparency 

The move has sparked sharp criticism from port users, labour unions, and most political parties, who argue that placing such a strategic asset under foreign control threatens both economic sovereignty and national security.

"There is no ship or container congestion at NCT," said Khayrul Alam Sujon, vice president of the Bangladesh Freight Forwarders Association. "We're satisfied with how things are running. So why fix something that isn't broken?"

He and others argue that foreign investment should be directed toward underperforming or upcoming terminals like Bay Terminal or Matarbari, not facilities that are already functioning efficiently.

Questions over interim government's authority

Economist Anu Muhammad has taken a firm stance. "The interim government's mandate is to hold elections and oversee reforms—not to sign long-term commercial agreements," he told The Business Standard.

He also questioned why the current administration is continuing the previous government's plans without reviewing the terms. "What change have they brought then?" he asked. "Ports are strategic assets. Control over them is crucial to our economic sovereignty."

Bangladesh's track record with foreign operators raises red flags

The concerns aren't merely theoretical. The Patenga Container Terminal, which began operating under Saudi firm RSGTI in April 2024, has used just 12% of its capacity over the past year. This underperformance has reignited concerns about whether foreign firms are genuinely committed to operational efficiency, or just profit extraction.

Despite these lessons, the interim government appears keen to finalise the NCT deal with DP World by September. Shafiqul Alam, press secretary to the chief adviser, confirmed that multiple port agreements, including those for NCT and Bay Terminal, are likely to be done by September this year.

But stakeholders say there is still little clarity on the terms: how much will be invested, what improvements will be made, and how revenue will be shared. The CPA has said it's waiting for a report from the International Finance Corporation (IFC), which is acting as transaction adviser.

Why foreign interest is focused solely on NCT

Experts are also questioning why foreign companies are so focused on NCT while leaving behind outdated terminals like the General Cargo Berth and Chattogram Container Terminal, both of which require major upgrades.

"The trend is worrying," said a port consultant. "Investors appear to prefer stepping into facilities that are already running well, rather than helping develop the parts of the port that actually need investment."

This sentiment is echoed by business leader Mohammed Amirul Haque, who served on the 2007 committee that reviewed foreign operator proposals. "We're not against foreign investment," he said, "but it must be on our terms. We recommended that any foreign company float 40% of shares on the local market, and that CPA hold at least 30%."

Calls for a national port policy grow louder

The debate around NCT is exposing a deeper governance gap: Bangladesh lacks a comprehensive national port policy to guide such strategic decisions. Experts believe such a policy is urgently needed—not just to manage foreign partnerships, but also to protect public assets.

"If local companies are given policy support, they can compete globally," said Amirul Haque. "The profits will stay in the country, and national interests will be better served."

Karnaphuli Dry Dock Ltd, a local firm, has already shown promise by building and operating a private jetty on the Karnaphuli River. Many believe this is evidence that local companies can scale their operations if given the opportunity.

At a recent views-exchange meeting, Mohammad Mizanur Rahman, chairman of PHP Family, emphasised the need to prioritise local investment in large infrastructure projects. "If given the opportunity, we are ready to invest more—and the profits will stay within the country," he said. "In contrast, foreign companies will repatriate their earnings abroad."

'DP World's $1 billion investment proposal under review' 

Speaking to The Business Standard, Shipping Adviser Brigadier General Shakhawat Hossain stated that DP World, a globally reputed port operator managing five ports in India as well as facilities in the UK, Canada, and other countries, has proposed a significant investment in Bangladesh's infrastructure.

"They have proposed investing USD 1 billion to construct a dedicated rail line connecting Dhaka to the port," he said. "All their proposals are currently being reviewed by the transaction adviser. We will move forward only if the adviser finds the deal to be beneficial for Bangladesh. Once finalised, all information will be made public."

Brigadier Shakhawat added that the government has placed several conditions during preliminary discussions. "We've asked them either to purchase equipment or to pay rent in advance for the entire agreement period. We have also requested that not all equipment be automated, as full automation could lead to job losses among local skilled workers," he said.

"We've further insisted that the wage structure for workers be aligned with international standards, and under no circumstances should any workers be laid off," he added.

Addressing concerns over continuing negotiations with DP World—a company selected during the tenure of the previous Awami League government—Brigadier Shakhawat explained the rationale. "DP World is owned by the UAE government, where more than 1.9 million Bangladeshi expatriates are employed. Turning down their proposal outright would have been risky. If even half of our expatriates were sent back in protest, it would severely impact our economy."

On the continued presence of Saif Powertech at the port despite the expiration of their contract, he clarified, "The transaction adviser requested additional time—six months—to evaluate the potential for a foreign operator. As appointing a new operator within such a short window was not feasible, we extended Saif Powertech's tenure temporarily."

He further alleged that Saif Powertech is funding efforts to provoke public opposition to the government's decision. "They are spending significant amounts to stir up unrest. Although we have clear evidence, we are refraining from immediate action to avoid destabilising port operations. However, they are under close watch, and appropriate measures will be taken at the right time," he warned.