Legal clouds, labour fury trail interim govt's push on Ctg port deal
After eight-hour work abstention for three days, port workers now call a 24-hour strike from tomorrow.
A high-stakes race to hand over Bangladesh's most profitable maritime asset to a foreign operator has ignited a firestorm of legal challenges, labour strikes, and allegations of massive financial undervaluation.
Under the watch of an interim administration, the Chattogram Port Authority (CPA) is fast-tracking a 15-year concession for the New Mooring Container Terminal (NCT) to UAE-based DP World. While officials defend the move as a necessary leap towards global efficiency, critics argue the deal is being "rammed through" just days before national elections and in defiance of a sub judice court process.
At the centre of the controversy is the New Mooring Container Terminal (NCT), a strategic facility that handles around 90% of Bangladesh's containerised cargo. The Chattogram Port Authority (CPA) has moved to lease out the terminal and its adjacent Overflow Container Yard to UAE-based global operator DP World for 15 years under a government-to-government arrangement.
The move has raised concerns among economists and labour leaders over whether the interim government has the mandate to finalise a long-term international concession involving a strategic national asset.
Critics have also questioned the valuation and single-bidder nature of the process, while officials argue the deal is necessary to expand capacity and improve efficiency at the country's main maritime gateway.
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The government has not publicly responded to questions about the interim administration's legal authority to sign long-term concessions.
Timeline set before court verdict
Documents reviewed by The Business Standard reveal that the CPA issued a 63-page RFP on 8 January, seeking proposals for the operation and maintenance of the NCT and its Overflow Container Yard. Crucially, this occurred three weeks before the Supreme Court's 29 January ruling, which upheld the legality of the leasing process.
The deadline for clarification was 11 January, with pre-bid meetings held on 14 and 15 January. An addendum followed on 20 January, and the bid submission deadline has been fixed for 19 February 2026.
A senior official of the Public Private Partnership Authority, speaking on condition of anonymity, said most formalities had already been completed.
"Now, a few final-stage formalities are under process. Once they are completed, the concession agreement can be signed anytime this week before the election," the official said.
Legal experts have questioned the propriety of proceeding while the matter was sub judice.
Barrister Anwar Hossain, representing the petitioners, told TBS, "When a matter is sub judice, you cannot proceed with it. If the CPA submitted the RFP and held meetings during the court hearing, they defied the court."
He added that an application seeking a status quo on the verdict has already been filed. "Even if the court sends the appeal to a full bench without issuing a status quo, the authority is not legally allowed to proceed with the agreement," he said.
Labour strike disrupt port operations
The proposed handover has triggered strong resistance from port workers. A two-day eight-hour work abstention from Saturday to Sunday, followed by another protest today (2 February), paralysed cargo handling and vessel movement at Chattogram Port.
Workers today announced a further 24-hour strike from 8am tomorrow, which they say coincides with an initial target date for signing the concession agreement.
Chattogram Port, which typically handles 8,000-9,000 TEUs of containers a day, has seen a significant drop in its activity.
Labour leaders argue that NCT is a highly profitable facility and accuse authorities of undervaluing it. According to them, the current tariff generates around $161 per TEU at NCT. Even if operating costs are estimated at $56 per TEU, the port earns roughly $105 per container.
"The CPA and the Rate Negotiation Committee want to hand over NCT to DP World at $105 per TEU. A top government official is pressuring Chattogram Port to hand it over at just $42 per TEU," alleged Humayun Kabir, coordinator of the Bandar Rokkha Sangram Oikya Parishad.
CPA documents reviewed by TBS do not publicly disclose the basis for the proposed per-TEU rate.
Another protesting leader, Ibrahim Khokan, questioned the urgency of the decision. "The country will have an elected government in just 10 days. Why doesn't the interim government leave such a strategic decision to the elected government?" he said, alleging personal interests behind the rush to finalise the deal.
Lease process
Operational since 2007, NCT is one of the most critical facilities at Chattogram Port, Bangladesh's principal maritime gateway. The brownfield riverine terminal has an 820-metre quay wall, four container berths and extensive back-up facilities. The adjacent Overflow Container Yard, developed in 2015, provides additional container storage.
According to the RFP, the government aims to expand port capacity and improve efficiency to support growing manufacturing and export sectors. DP World was selected as the potential partner, with the International Finance Corporation (IFC) acting as transaction adviser.
The concession includes a transition period of up to six months, followed by a 15-year operation and maintenance phase. At the end of the term, the facilities will revert to the CPA at no cost, except for any additional equipment installed by the operator. A feasibility study estimates the project cost at $205 million.
The RFP restricts bidding to DP World or a consortium led by it, with the lead member holding at least 51% equity. Bidders must submit legal, technical and financial proposals in English, along with a $1.5 million bid security valid for 180 days.
Technical bids will be evaluated first, followed by financial bids. The successful bidder will have to pay a $2 million project development fee to the IFC and a $4,00,000 success fee to the PPP Authority. A Bangladeshi special-purpose vehicle must be formed, with shareholding locked in for 10 years.
To qualify, bidders must show experience in managing at least one container terminal handling a minimum of 7,50,000 TEUs annually in each of the last three financial years and a net worth of at least $100 million per year over the same period.
The process received in-principle approval from the Cabinet Committee on Economic Affairs in March 2023. A writ petition filed by the Bangladesh Young Economists Forum later challenged the lack of open competition and transparency.
After a split High Court verdict in late 2025, the Supreme Court's 29 January ruling removed the final legal hurdle. However, an application seeking a status quo on the verdict was subsequently filed.
Omar Faruk, director (administration) of the CPA, told journalists at a briefing on Sunday that leasing out NCT to DP World is a government decision. "The CPA is just implementing the government's decision," he said.
Professor Anu Muhammad, a noted economist, questioned the legal authority of the interim government to proceed with a long-term international agreement. He argued that the interim administration's mandate was limited to holding elections and did not extend to signing strategic international contracts.
"They must withdraw from activities related to international agreements, including Chattogram Port. Advisers and special assistants should stop engaging in these matters," he said, expressing solidarity with protesting port workers.
