Bangladesh, DP World to sign 15-year New Mooring terminal deal tomorrow

Bangladesh and the United Arab Emirates are set to sign a 15-year concession agreement with Dubai-based DP World tomorrow (8 October) to operate and maintain Chattogram Port's New Mooring Container Terminal (NCT) and its Overflow Container Yard (OCY), amid a threat from workers to shut down the port if the deal goes ahead.

The signing ceremony is scheduled for 3pm tomorrow at the Invest Bangladesh Auditorium in Dhaka, according to an invitation issued by the governments of Bangladesh and the UAE.

Invest Bangladesh Chairman Chowdhury Ashik Mahmud Bin Harun and DP World Board of Directors Chairman Essa Kazim are expected to attend, among other dignitaries.

The agreement marks a major step in the government's long-running effort to bring an international operator into NCT, the port's busiest container terminal.

But the move has triggered strong opposition from port workers and other stakeholders, who have threatened to halt port operations and vessel movements up to Kutubdia outer anchorage if the agreement is signed.

This evening (7 October), workers' organisations, including the Chattogram Bandar Rokkha Sangram Parishad, held a torch procession in front of the port building to protest the proposed leasing of NCT and the OCY.

There, they announced another protest procession for 3pm tomorrow.

The protesters have also announced further programmes for 13 October, including actions involving the port chairman.

Earlier on Monday, Ibrahim Khokon, coordinator of the Chattogram Bandar Rokkha Sangram Parishad, issued the shutdown warning during a sit-in in front of the Chattogram Port Authority (CPA) building.

"If you take steps to sign any agreement, Chattogram Port will immediately be shut down. Not only will the port, but operations up to Kutubdia outer anchorage also be stopped," he said.

The protesters are opposing the proposed involvement of foreign operators not only in NCT but also in the Chattogram Container Terminal (CCT) and General Cargo Berths (GCB).

Khokon said the workers do not want instability but want the government to consider their views before proceeding with the agreement.

"We want to cooperate with the democratic government. But you must understand the people's pulse and give priority to their opinion," he said.

The organisation has demanded direct talks with the government before any agreement is signed.

The Business Standard reached out to the Chittagong Port Authority (CPA) for comments on the matter; however, the calls and messages went unanswered.

Govt approves 15-year concession

The shutdown threat comes days after the Cabinet Committee on Economic Affairs gave in-principle approval to the draft concession agreement for NCT and OCY.

The approval, given on 1 October on a proposal from the Ministry of Shipping, clears a major hurdle for the 15-year PPP concession.

According to the Public Private Partnership Authority's project profile, the CPA plans to award a government-to-government concession to DP World, nominated by the Government of Dubai, for upgrading, operating, and maintaining NCT.

The project received its initial in-principle approval from the Cabinet Committee on Economic Affairs in March 2023.

The latest approval specifically concerns the draft concession agreement that will govern the 15-year operation and maintenance of the terminal.

Negotiations between the government and DP World have been underway for several years. The process accelerated under the interim government but stalled after DP World sought additional time to review the draft concession agreement. After coming to power, the BNP government later revived the process.

In May, the Ministry of Shipping directed the CPA to reconstitute an evaluation committee for the proposed private operation of NCT under the PPP model. The CPA subsequently formed a 12-member support team for the negotiation committee.

The International Finance Corporation is serving as transaction adviser for the project, responsible for due diligence, transaction structuring, preparing the request for proposal and concession agreement, and facilitating negotiations with the selected international operator.

NCT handles nearly half of port containers

The New Mooring terminal is the largest container-handling facility at Chattogram Port, handling around 44% of the total container volume in 2025, according to port data.

It currently handles around 1.3 million TEUs annually, equivalent to roughly 40% of the port's total throughput, and is operated by Bangladesh Navy's Chittagong Dry Dock Company Limited.

The proposed concession would mark another major expansion of foreign participation in the operation of the country's largest port.

Saudi Arabia-based Red Sea Gateway Terminal already operates Patenga Container Terminal under a 22-year concession. The government has also handed over development and operation of the Laldia Container Terminal to Denmark-based APM Terminals under a long-term PPP concession.

NCT, however, is an existing terminal developed with substantial investment by the CPA.

Workers warn of wider movement

Humayun Kabir, joint coordinator of the Chattogram Bandar Rokkha Sangram Parishad, urged the government to meet a delegation of port workers before signing the deal.

He said workers had expected the current government to stop a process that originated under the previous government.

"If we can convince you, do not hand over Chattogram Port to foreigners under any circumstances. If we fail to convince you, then you can take your own decision," Kabir said.

Tapan Dutta, president of the Chattogram unit of the Trade Union Centre and a leader of the Sramik Kormochari Oikya Parishad, warned that ignoring workers' demands could trigger a broader movement.

At the torch procession today, labour leaders described NCT as the "heart" of Chattogram Port and said leasing the important terminal to a foreign company would harm the port's interests.

Demanding that the key economic facility remain under local management, they said they would continue their protests unless the process of appointing a foreign operator was cancelled and warned that they could announce tougher programmes if necessary to protect the interests of the port.