Foreign port operators key to ending corruption and boosting efficiency: Bida chief
Local businesses have long complained of entrenched corruption at the port, and bringing in an internationally reputed operator would be a decisive step towards eliminating it
The government's move to engage foreign operators at Chattogram Port is part of a wider push to make the country's main gateway corruption-free and more efficient. Officials expect the initiative to strengthen Bangladesh's business environment, draw foreign investment, and ease import–export operations. These objectives were outlined by Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (Bida) and the Bangladesh Economic Zones Authority (Beza), in an interview with The Business Standard's Staff Correspondents Jahir Rayhan and Anisur Rahman.
Why bring in foreign port operators despite debate?
The primary aim is to build a corruption-free, high-performance logistics system. Global operators bring transparency, advanced technology, professional management, and opportunities for skills transfer to Bangladeshi workers.
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Local businesses have long complained of entrenched corruption at the port, and bringing in an internationally reputed operator would be a decisive step towards eliminating it. Reputation matters for a global operator, so malpractice becomes highly unlikely.
Bangladesh cannot become a manufacturing hub without a world-class port. Our global ranking remains low because we lack experience and professionalism in port operations. We need operators who can maximise output using modern tools and practices. Ownership will remain with Bangladesh; foreign firms will only manage operations.
Why not opt for a joint venture?
Joint ventures are possible under the Public–Private Partnership framework, and the Laldia Container Terminal in Patenga—being developed with Netherlands-based APM—is an example, with a local partner holding a minority stake.
However, knowledge transfer happens through management, not ownership. At Laldia, only about five out of roughly 5,000 staff will be foreigners. Bangladeshi managers and workers will operate the terminal, with some receiving training at APM facilities in Rotterdam or Croatia. In a decade, they could manage operations independently. The real question isn't ownership; it's whether we learn—and we will.
Some allege that Bida only works for foreign investors. How do you respond?
This perception stems from a flawed standard: when FDI falls, Bida is blamed; when it rises, it is praised. This creates the impression that we focus solely on foreign investment.
Earlier this year, we identified 32 issues to improve the business environment, most affecting both local and foreign investors. Working closely with the NBR, we found complaints from local investors were actually higher and have resolved many of them. We've also introduced initiatives like the Authorised Economic Operator system, the National Single Window, and partial bonded warehousing – the latter mainly benefiting local SMEs.
So, it is inaccurate to say Bida works only for foreign investors. Domestic entrepreneurs receive regular support as well.
Why should foreign investors choose Bangladesh? What are the three key reasons?
First, Bangladesh offers a rapidly expanding domestic market. Studies suggest it will become the world's eighth-largest consumer market by 2030, making it highly attractive to global firms.
Second, our young and trainable workforce ensures a steady long-term labour supply.
Third, Bangladesh's strategic location offers easy access to a market of 2 to 2.5 billion people within four hours – a major logistical advantage.
Asia is set to remain the global growth engine, and with our positioning and potential, Bangladesh can tell a compelling story. The key is to present it clearly and assure investors that we will keep our promises.
The government has decided to establish a 'Specialised Defence Economic Zone'. What roles are Bida and Beza playing, and which countries have shown interest in investing?
This is a Beza-led project and one I'm personally passionate about. Beza is working on three special initiatives.
The first is a Free Trade Zone. A national committee has submitted its report, soon to be presented to the advisory council. A site has been selected, and the zone is expected to be a major development, modelled on successful projects in Dubai and Singapore. Many export-focused foreign companies prefer operating outside complex customs systems, making this essential.
The second is a Halal Economic Zone, for which we plan to explore collaboration with the Malaysian government.
The third is the Specialised Defence Economic Zone. It has both national security and commercial significance. We are currently finalising the policy framework, after which the next government will announce the zone and define its business scope and international partners.
Several friendly nations have expressed interest. We are yet to decide on single or multiple collaborators but have a shortlist and discussions underway. The plan includes technical support, technology transfer, and the development of a full industrial city.
Regarding continuity under a future government, national interest must always take priority, and I've already consulted major political parties, whose feedback has been very positive.
A drone factory is being set up in collaboration with China. Could this create pressure from global powers?
Not at all. We're not trying to become a nuclear power or take any aggressive stance. I don't think producing a few drones will trigger any reaction.
Historically, Bangladesh has maintained a neutral position — neither leaning East nor West. That balance will likely continue. We're open to working with all partners, choosing whichever serves our national interests best.
Why is the government allowing Philip Morris to produce nicotine pouches locally despite criticism?
The law tells me, this is an absolutely legal business to do in Bangladesh. Those who are saying this permission should not have been given are, of course, speaking from their conscience, and they have every right to do so. But the government has a policy, a framework, and it is meant to operate according to the law. If I start making decisions based on my personal judgment, and if every policymaker does the same, then the government will no longer function the way it is expected to behave.
What are the main barriers to investment, and how are you addressing them?
The list of challenges is long. Doing business in Bangladesh can be complex, yet it offers significant opportunities. We've been addressing key investor concerns: of 32 identified issues, 21 are resolved, and we aim to address the rest before the election.
For example, within my first week at Bida, the chairman of Youngone Corporation noted he prioritises his Vietnam factory over Chattogram because shipments from Bangladesh take longer to reach Europe. He stressed that without improving the port, our export economy cannot grow – an issue we've focused on.
Another concern was excessive bureaucracy, with investors moving between multiple ministries just to start operations. To address this, we are merging investment promotion services. Officials from the central bank, NBR, environment ministry, and the fire service now operate from Bida's building, allowing investors to complete most formalities in one place.
I believe that comparing January 2024 to January 2026 will show a marked improvement in Bangladesh's investment climate.
A recent investment conference in Bangladesh saw several local and foreign companies submit proposals. What investment has materialised so far?
We had created a foreign investment pipeline through our relationship managers, roughly valued at $1.8 billion. Of this, about $300 million is expected to materialise.
Globally, the pipeline materialisation ratio typically ranges between 10% and 20%. Ours is currently around 16%, which is a decent rate. We hope to fully realise this figure from the conference alone. I believe the event has delivered a fantastic outcome for our country.
Can you update us on the G2G economic zones, particularly the Chinese Economic Zone?
The Chinese Economic Zone is a priority project. With the Chinese acting as developers, we expect rapid progress. As a G2G initiative, their strong network in Bangladesh will likely boost investor interest once established.
Their domestic connectivity is far stronger than ours. Work has advanced significantly, and we aim to sign the development agreement before the election. If successful, ground-breaking could begin soon after, with substantial progress expected in 60 to 90 days.
