DP World gets 15-year concession to operate New Mooring Container Terminal

Highlights:

• CPA, DP World sign 15-year concession agreement
• DP World will operate, maintain, and modernise NCT
• Agreement includes around Tk600 crore upfront payment
• DP World to invest Tk1,000 crore over 10 years
• CPA to receive revenue share and annual fees
• NCT guarantees minimum annual volume of 1.23m TEUs
• Full-fledged DP World operations expected within two years

The Chittagong Port Authority (CPA) and global port operator DP World today (8 October) signed a 15-year concession agreement to operate and modernise the New Mooring Container Terminal (NCT) and its Overflow Container Yard, bringing one of the world's largest port operators into Bangladesh's main container terminal.

CPA Chairman Rear Admiral Md Moniruzzaman and DP World Chairman Essa Kazim signed the agreement at the Invest Bangladesh auditorium in Dhaka in the presence of Shipping Minister Shaikh Rabiul Alam, State Minister for Shipping Md Rajib Ahsan, and UAE Ambassador to Bangladesh Abdulla Ali Al Hamoudi, among others.

Essa Kazim also led a delegation at a meeting with Prime Minister Tarique Rahman today to discuss expanding trade and investment between Bangladesh and DP World. 

Tarique sought an update on DP World's interest in establishing free trade zones and rail-based inland container depots in Bangladesh, as well as making new investments in the country.

NCT handled about 13.85 lakh TEUs last fiscal year, accounting for roughly 44% of Chattogram Port's total container handling.

Under the concession, DP World will operate, maintain and modernise NCT, while the CPA will retain ownership of the terminal, land and infrastructure, as well as regulatory oversight and overall control.

The government has highlighted around $150 million in investment and other commitments over 15 years, higher CPA revenue, modern equipment, automation and faster cargo handling as key benefits.

However, the full concession agreement has not been made public, including detailed investment obligations, performance benchmarks, revenue-sharing terms, worker protections, maintenance requirements and termination conditions, raising questions over how key commitments will be measured and enforced.

Rabiul Alam said DP World would start work within six months of signing and begin full-fledged operations within two years.

Investment and returns

DP World will make an upfront payment of around Tk600 crore to CPA, with 25% payable upon signing and 75% before operations begin.

It will invest more than Tk1,000 crore in the first 10 years, while the broader package includes about $150 million in investment and other commitments, including around $90 million for equipment, technology and upgrades.

CPA earned Tk6,629 crore in FY26 by handling 3.52 million TEUs. NCT's 44% share of container handling translates to an estimated Tk2,917 crore at CPA's average revenue per TEU, though this is not a reported NCT revenue figure.

Workers' leaders have questioned whether the investment adequately reflects the value and earning capacity of an already-developed and profitable terminal. They argue Bangladesh could forgo substantial future earnings by handing its operation to a foreign company for 15 years.

The government says DP World will bear the operational, investment and maintenance risks, including equipment repair costs. Rabiul said the agreement includes financial penalties if contractual targets are not met.

CPA will receive 67% of the terminal's revenue from each TEU handled, plus a fixed annual fee of about Tk10 crore. Based on an estimated average revenue of $140-$150 per TEU, CPA's share would be roughly $93-$100 per TEU.

The concession carries a minimum annual volume guarantee of 1.23 million TEUs, reducible to 1 million once a new terminal becomes operational. But the precise revenue-sharing formula, including covered income streams and allowable deductions, has not been publicly disclosed.

A terminal under pressure

Chattogram/NCT ranks 364th in the Container Port Performance Index 2025, with containers staying an average 9.4 days and ships 2.53 days.

Oman's Port of Salalah keeps both below a day, while Vietnam's Cai Mep limits container dwells to 2-3 days and vessels stay for about a day. Singapore's PSA keeps containers under a day, while India's Jawaharlal Nehru Port records vessel stays of 22.6 hours and containers dwell below two days.

Invest Bangladesh estimates port inefficiencies cost the economy around Tk3,000 crore annually, while World Bank data cited by it suggests cutting dwell time by one day could boost exports by 7.4%.

DP World is expected to address these gaps through modern scanning, upgraded or replacement cranes, automation and paperless operations. The government targets truck turnaround of around 90 minutes, improved crane productivity from the second year and zero vessel waiting time at NCT.

The operator uses similar systems in India, Pakistan, Thailand and the Philippines, including electric cranes, green energy, automated gates and electric transfer vehicles. In Manila, a $100 million investment raised annual capacity from 1.45 million to nearly 2 million TEUs.

Rabiul said DP World is one of the world's top five container terminal operators, running around 80 terminals in nearly 70 countries. APM Terminals, another top-five operator, has already been brought into Laldia Terminal, while talks are underway with Singapore's PSA.

Kazim said DP World also sees scope to invest up to $1 billion in Bay Terminal, rail terminals, logistics parks and free zones, while supporting Bangladesh Single Window and improved rail connectivity, subject to government priorities.

Workers and oversight

The government says existing NCT workers will retain their jobs, wages and benefits, with expanded training and career-development opportunities. It expects technology and skills transfer in automation, equipment management, safety and cargo handling.

Workers' leaders, however, have raised concerns over job security, transparency and foreign control of a strategically important facility. They question why an already-profitable terminal should be handed to a foreign operator for 15 years and whether the investment commitments adequately reflect an asset developed and owned by Bangladesh.

Automation could also alter some jobs, making retraining and technology transfer important.

CPA's ownership will only provide effective oversight if it can enforce performance standards, independently verify revenue, monitor investment and maintenance and impose penalties for breaches. 

Maintenance and replacement requirements will determine the condition of equipment and infrastructure returned to CPA after 15 years, while termination provisions will matter if commitments are repeatedly missed.

From approval to signing

The process began with in-principle approval from the Cabinet Committee on Economic Affairs on 23 March 2023. The transaction structure was approved on 20 October 2025, followed by the RFP on 8 January 2026 and bids on 25 January. 

Negotiations continued until 6 August, before CPA Board approval on 16 September and Cabinet Committee approval on 1 October.

Essa Kazim said DP World's approach would focus on "continuity, Bangladesh's long-term objectives and the capabilities of its workforce".

Over the 15-year concession, key measures will include actual investment, CPA's realised revenue, container dwell time, vessel and truck turnaround, crane productivity, worker retention and training, equipment condition, and the cost and predictability of cargo movement.