Govt okays 15-yr plan for foreign operator to manage Ctg Port's NCT

Highlights:

• Govt gives in-principle approval for 15-year NCT concession
• Draft deal paves way for international operator to run NCT and OCY
• Dubai-based DP World is the proposed operator
• NCT handles around 44% of Chattogram Port's container throughput
• IFC is advising on the PPP transaction
• Final concession agreement still requires further approvals

The government has given in-principle approval to a draft concession agreement to hand over the operation and maintenance of Chattogram Port's New Mooring Container Terminal (NCT) and Overflow Container Yard (OCY) to an international terminal operator for 15 years.

The approval was recommended by the Cabinet Committee on Economic Affairs on a proposal from the Ministry of Shipping at its meeting today (1 October).

The project, titled "Operation and Maintenance of CPA's New Mooring Container Terminal (NCT) including Overflow Yard (OCY)," is being implemented under a public-private partnership (PPP) framework.

However, when contacted, Shipping Secretary Zakaria told The Business Standard, "Until we receive any direction from the committee, we cannot make any comment."

The development comes as the government's long-running plan to bring a foreign operator to NCT gains momentum after the process stalled during the final months of the interim administration.

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

The project received initial in-principle approval from the Cabinet Committee on Economic Affairs on 23 March 2023.

The latest approval relates specifically to the draft concession agreement for the 15-year operation of the terminal.

NCT is currently operated by Bangladesh Navy's Chittagong Dry Dock Company Limited and handles around 1.3 million twenty-foot equivalent units (TEUs) annually, accounting for about 44% of the port's total container throughput.

DP World talks back on track

Negotiations between the government and DP World over NCT have been underway for several years. The process accelerated under the interim government but was not completed after DP World sought additional time to review the draft concession agreement.

The new government subsequently 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. At the time, the ministry said DP World's proposal was under evaluation and that no decision had been made on other proposals.

The CPA later formed a 12-member support team to assist the negotiation committee handling the NCT project, indicating that discussions with DP World had advanced further.

The PPP Authority says the International Finance Corporation (IFC) has been appointed as the transaction adviser for the project. IFC is responsible for due diligence, structuring the transaction, drafting the request for proposal and concession agreement, and facilitating negotiations with the selected international terminal operator.

NCT handles largest share of port containers

NCT is the largest container-handling facility at Chattogram Port and handled around 44% of the port's total container volume in 2025, according to port data cited by TBS.

The port currently operates four container terminals – NCT, Chattogram Container Terminal, General Cargo Berth and Patenga Container Terminal. NCT and the first two terminals are operated by local entities, while Saudi Arabia-based Red Sea Gateway Terminal operates PCT under a 22-year concession.

The proposed NCT concession would further expand foreign participation in the operation of Chattogram Port's container terminals.

The government has already handed over the development and operation of the greenfield Laldia Container Terminal to Denmark-based APM Terminals under a long-term PPP concession.

The NCT project, however, differs from Laldia as the terminal is already operational and has been developed with significant investment from the CPA.