Chattogram Port paralysed as open-ended strike over NCT lease defies resolution
Port officials confirmed that not a single container has been handled since the strike began at the facility, which typically processes 8,000-9,000 TEUs daily.
Chattogram Port has been shut since Tuesday after workers, who observed an eight-hour work abstention for three days from Saturday morning, launched an open-ended strike protesting the proposed lease of the New Mooring Container Terminal (NCT) to Dubai-based DP World.
The closure has halted cargo handling at the country's largest seaport, intensifying supply chain disruptions and pressure on exporters and importers.
As of Wednesday (4 February), more than 140 vessels were waiting at the outer anchorage. Gantry cranes, tugboats, and pilotage services remained idle despite vacant berths. Port officials confirmed that not a single container has been handled since the strike began at the facility, which typically processes 8,000-9,000 TEUs daily.
The situation turned critical after a five-hour meeting between labour leaders and business representatives failed to produce a breakthrough yesterday. Economists warn that a prolonged standoff could trigger national shortages and push up consumer prices ahead of Ramadan.
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We don't know what exactly is happening at Chattogram Port. Management should take locals and stakeholders into confidence.
The disruption is rippling through Bangladesh's supply chain ahead of Ramadan, with perishable imports such as fruits, dates and edible oil stranded at the port and exporters warning of missed shipment deadlines, rising costs and potential order cancellations.
Economists and business leaders have told TBS that a prolonged standoff over the NCT lease could trigger shortages, push up consumer prices and inflict lasting damage on trade and buyer confidence.
Meanwhile, the Public Private Partnership Authority and the Chattogram Port Authority (CPA) have allegedly continued negotiations with DP World to finalise the agreement ahead of the election, even after the Supreme Court accepted an appeal against the High Court verdict that had cleared the legal barrier to the deal.
Workers said the government's insistence on pushing forward with the agreement, despite the pending appeal, has reinforced their resolve to continue the strike.
If the strike continues further, we'll be in a serious challenge, such as missing the lead time and order as well.
"We don't know what exactly is happening at Chattogram Port. Management should take locals and stakeholders into confidence," said Mohammad Abdur Razzaque, economist and chairman of Research and Policy Integration for Development (RAPID). "It can't be done in isolation."
Meanwhile, Shipping Adviser Brig Gen (retd) M Sakhawat Hussain yesterday warned of tough action if any lighter ship fails to unload goods within three days of reaching the wharf.
In an inter-ministerial meeting in the capital to resolve various crises involving lighter ships engaged in transporting goods from mother vessels, he also directed the commerce ministry to publish the list in the media and cancel the licences of the responsible individuals or organisations.
Fresh fruit, dates stuck ahead of Ramadan
The impact is already being felt in the perishable goods segment. The Fresh Fruit Importers Association said more than 200 TEUs of fresh fruit containers and around 300 TEUs loaded with dates have remained stuck at the port.
Importers are now paying Tk10,000 to Tk15,000 in demurrage per container, a cost they say will inevitably be passed on to consumers.
Touhidul Alam, general secretary of the association, said that fruit imports are aligned closely with market demand. "Over the last five days of strikes, only a handful of containers have been released. If the situation continues, shortages will emerge in the market very soon," he said.
"Prices of fruits and dates will also rise," he added.
Vehicles stranded, depots clogged
Cargo delivery has remained suspended for more than 36 hours, leaving thousands of heavy vehicles stranded inside and outside the port area. To prevent further congestion, authorities have stopped allowing new vehicles to enter.
Container transportation from inland container depots has also been halted, causing a growing backlog of export cargo at depots.
Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depots Association, said all container movement has stopped. "No trucks are leaving the port and no new containers are coming in," he said.
He noted that export cargo typically accounts for 2,500-2,800 containers a day, while imported cargo delivered to depots is gradually converted into empty containers. "So far, there is some balance in the system, and the pressure has not peaked yet," he said.
However, he warned that the situation could deteriorate rapidly if the stoppage continues. "Export volumes are rising, which means loaded export containers will increase. We can store far fewer loaded containers than empty ones," Sikder said.
He added that inland container depots have a total handling capacity of about 15,000 TEUs, with around 11,000 already in use. "If operations remain suspended for long, the system will hit its capacity limit and a serious crisis will emerge," he said.
Business leaders seek alternative to strike
The current shutdown follows three consecutive days of eight-hour work stoppages that began on Saturday. Workers launched a full 24-hour strike on Tuesday at 8am, which has since turned into an open-ended programme.
As disruptions deepened, leaders of the Bangladesh Garment Manufacturers and Exporters Association, the Bangladesh Knitwear Manufacturers and Exporters Association and other business organisations met labour leaders at a hotel in Agrabad yesterday afternoon.
Business leaders expressed solidarity with the workers' movement, calling it logical in the context of protecting the NCT. At the same time, they urged labour leaders to consider alternative forms of protest and withdraw the strike to avoid further economic damage.
Labour leaders responded that they were fighting to protect the port and warned that retreating now would embolden the CPA to take harsher action, risking the loss of a national asset. They called on business leaders to stand with the movement in what they described as the greater national interest.
Exporters, importers under mounting pressure
With a growing number of consumer goods containers stuck at the port, traders have warned of shortages and price hikes in the domestic market ahead of Ramadan.
Economists and business leaders cautioned that the standoff could spiral into an unprecedented crisis, with serious consequences for the national economy.
Abu Tayub, first vice-president of BGMEA, said hundreds of containers meant for export shipments are now stuck at inland container depots. He warned that missing shipment deadlines would force exporters to resort to air freight, which is far more expensive and would result in heavy financial losses.
"If the situation continues for a few more days, the RMG sector will be at serious risk of losing export orders and buyer confidence, which could ultimately jeopardise the entire industry," he said.
MA Jabbar, managing director of DBL Group, one of the top five garment exporters in Bangladesh, said if the strike continues further, we'll be in a serious challenge, such as missing the lead time and order as well.
Allegations, resistance and revenue debate
Leaders of the Chattogram Port Protection Movement Unity Council, which is coordinating the protests, claimed workers are participating spontaneously. They alleged that senior port officials have been confined at the Bangladesh Investment Development Authority office in Dhaka and pressured to sign the DP World contract.
They warned that the indefinite strike will continue unless the government withdraws what they termed an anti-national decision to lease out the terminal.
Former BGMEA vice-president MA Salam described the workers' movement as justified and urged dialogue to reach a solution that safeguards both national and consumer interests.
Humayun Kabir, coordinator of Bandar Rokkha Sangram Oikya Parishad, raised allegations of corruption involving senior officials and questioned the financial logic of handing over profitable terminals to foreign operators. He claimed similarly sized terminals run by the port generate significantly higher revenue than those leased out.
According to sources at the Public Private Partnership Authority, the NCT generates about $100 in gross revenue per TEU under CPA operation. After deducting $12.31 in variable operating costs and $41.32 in fixed administrative costs per TEU, net revenue stands at $46.37.
Under the proposed DP World model, the CPA is estimated to receive a revenue share of $42.50 per TEU. After accounting for unavoidable fixed administrative costs of $41.32 borne by the CPA, the authority would be left with a marginal surplus of just $1.18 per TEU.
When contacted for comment, CPA Director (Administration) and spokesperson Omar Faruk did not respond to calls.
Court bars contract signing amid legal battle
The controversy surrounding the NCT lease has also taken a legal turn. The Supreme Court on Tuesday accepted an appeal against a High Court ruling that had paved the way for the DP World deal, and referred the matter to a full bench. As part of that order, the court clarified that the government cannot sign the contract until the appeal is disposed of, creating a fresh legal hurdle for the proposed lease.
According to legal records, the dispute arises from challenges to the High Court's split verdict and questions over the legality of the process under the Public-Private Partnership Act and government-to-government policy. With the matter now sub judice, signing the contract remains legally barred until the appeal is resolved.
