Govt recommends Navy to run NCT for next 6 months using existing workforce

The government has recommended that the Bangladesh Navy take over operations of the New Mooring Container Terminal (NCT) at the Chattogram port for the next six months, starting from 7 July, following the expiry of the current contract with Saif Powertec.

The Navy will manage the terminal using the existing workforce presently employed under the current operator. If needed, the Navy may also seek assistance from previous terminal operators.

Additionally, the Chattogram Port Authority retains the option to appoint a new operator to manage NCT during this interim period.

Shipping Adviser Brigadier General (retd) M Sakhawat Hussain disclosed the government's decision today (2 July) following a meeting on port management. The meeting was held in presence of Rear Admiral SM Moniruzzaman, chairman of the Chattogram Port Authority.

"A formal agreement will be signed between the Navy and the port authority," the shipping adviser said, adding, "A committee led by a naval commander will be formed, and the Chattogram Port Authority chairman will authorise it to oversee operations."

Officials at Saif Powertec said the nearly 3,800 workers currently employed under the company to operate the New Mooring Container Terminal (NCT) will remain in their positions. They also pledged full support to the Navy.

However, discussions are ongoing regarding whether these workers will continue under Saif Powertec's payroll or be transferred to another entity during the interim period.

Saif Powertec, a local company, has been operating as the terminal operator at NCT for the past 17 years. With its contract set to expire, the Chattogram Port Authority decided not to renew the agreement. Instead, on 18 June, the government opted to run the terminal under the port authority's management.

Preliminary discussions are ongoing with Dubai-based DP World regarding the long-term operation of NCT, said the shipping adviser following yesterday's meeting.

He clarified that DP World, if appointed, will operate the terminal under a fixed-term agreement – similar to arrangements it has with other major ports around the world – and solely under the authority of the Chattogram Port Authority.

"Full control and ownership of the terminal will remain with the CPA," the adviser added.

Speaking to The Business Standard, Saif Powertec Ltd Managing Director Tarafder Ruhul Amin said, "Our priority is to ensure that operations at NCT and the port do not stop for even a single minute. We will do whatever is necessary to make that happen."

He noted that no formal agreement has yet been signed regarding the involvement of Saif Powertec's workforce or management in the upcoming operational arrangement. "The matter is still under discussion," he added.

However, criticising the decision to retain the existing workforce for NCT operations, Humayun Kabir, publicity secretary of the Chattogram Port Workers' Association (former CBA), said the shipping ministry should have made this decision much earlier.

"Only Saif Powertec's employees are trained to operate the gantry cranes and other specialised equipment," he said. "This crisis could have been avoided if the CPA had trained its own staff to handle this machinery earlier."

Following the shipping ministry's decision on 18 June not to renew Saif Powertec's contract, the CPA has begun extensive preparations to take over operations of NCT.

Various departments within the port have been mobilised to ensure readiness across all aspects – including equipment, manpower, operations, accounting, and systems. Several task force committees have been formed. On 24 June, the port authority floated a six-month tender for the use of tractor-trailers and prime movers.

Port stakeholders have said they are less concerned about who runs the terminal and more focused on ensuring uninterrupted and efficient operations.

Attempts to reach CPA Chairman Rear Admiral SM Moniruzzaman for comment were unsuccessful.

Speaking to TBS, CPA Secretary Md Omar Faruk said, "The port authority is taking full preparations to run NCT in line with the shipping ministry's directives. We are moving forward with a plan to ensure that operations continue without disruption."

The New Mooring Container Terminal, which has four jetties capable of handling four container vessels simultaneously, has a designed capacity of 1.1 million TEUs (twenty-foot equivalent units) per year.

However, it currently handles around 1.3 million TEUs annually and generates nearly Tk1,000 crore in revenue for the port.