The process to lease Chittagong Port's New Mooring Container Terminal (NCT) by DP World, a UAE-based port operator, in fact the world's biggest port operator, had been mooted for years. We may trace its origins to the 2019 Memorandum of Understanding between the Government of Dubai and the Public-Private Partnership Authority under the Prime Minister's Office of Bangladesh, that aimed at advancing strategic infrastructure development through PPP initiatives across the country.

Although that was signed in 2019, nothing really came of it during the remaining 5 years that AL remained in power. The efforts to engage DP World for the project gained momentum notably under the interim government led by Muhammad Yunus, but ran into intense opposition from various corners, and had to back off.

Ashik Chowdhury, the Yunus appointee as chairman of the Bangladesh Investment Development Authority, or BIDA, who was heavily involved in the initiative to bring in DP World, at the time had said that a deal was unlikely to be signed during the tenure of the interim government.

When Chowdhury was subsequently retained by the BNP government that came to office through last February's election, it suggested the possibility of a deal remained alive.

Under a deal signed with the Chittagong Port Authority on Thursday (Oct. 8) to operate the New Mooring Container Terminal, the Dubai-based multinational will handle nearly half of Chittagong Port's seaborne trade containers. Under the agreement, DP World will operate the terminal for 15 years and collect fees from users.

In return, the company will pay the port authority a one-off fee and a charge for each container. However, the government has not yet disclosed any details of the agreement.

In an official statement, the Dubai-based multinational logistics company said the deal covers the terminal's Overflow Container Yard as well. The agreement was signed on October 8 by CPA Chairman Rear Admiral S. M. Moniruzzaman and DP World Executive Chairman Essa Kazim.

Minister of Shipping Shaikh Rabiul Alam, Invest Bangladesh Chairman Ashik Chowdhury, DP World Group Chief Executive Officer Yuvraj Narayan, and Chief Executive Officer and Managing Director for the Subcontinent, Central Asia, Levant, and Egypt region Rizwan Soomar also attended the deal signing ceremony along with other senior government officials and business leaders.

Under the agreement, CPA will retain ownership of the terminal, while DP World will handle its operation and maintenance during the concession period.

The development plan includes upgrading the terminal's civil and equipment infrastructure, deploying digital solutions, and introducing operational improvements to boost cargo handling efficiency. DP World will also work closely with CPA on berth planning, yard management, equipment utilization, preventive maintenance, safety, and sustainability.

Speaking at the ceremony, Minister Alam said the government aims to rapidly increase the capacity and efficiency of its existing strategic assets, adding that modern equipment, digital systems, international operating standards, and global logistics links would make the NCT more competitive.

The minister noted the government's broader policy is to engage multiple international operators across terminals to improve service quality and reliability and strengthen supply chain resilience.

CPA Chairman Moniruzzaman said the agreement would improve operational performance, ease logistics constraints, and strengthen connectivity with international markets, thereby supporting domestic industry and long-term economic growth.

He also added: "This partnership reflects our commitment to strengthening Bangladesh's maritime and trade infrastructure through the Public-Private Partnership framework. The New Mooring Container Terminal plays a critical role in supporting the country's trade and logistics ecosystem. By supporting domestic industry and facilitating more efficient trade flows, the partnership will strengthen Bangladesh's position in regional and global supply chains while creating a stronger platform for investment and long-term economic growth."

DP World Executive Chairman Kazim said the company would link the NCT to its global network of ports, logistics infrastructure, and supply chain services.

"We thank the Government of Bangladesh and the Chittagong Port Authority for awarding this concession on the Public Private Partnership model. Bangladesh is an increasingly important trading and manufacturing economy, and we are committed to supporting its continued development," he said.

The DP World boss added: "Through this partnership, DP World will connect the New Mooring Container Terminal to our global network of ports, logistics infrastructure and supply chain services, helping create more seamless links between Bangladesh and international markets. By combining our operational expertise, technology and end-to-end logistics capabilities, we aim to support trade, attract investment and create new opportunities for businesses across the country."

Invest Bangladesh Chairman Chowdhury said the aim is to move trade "at global speed."

"Bringing DP World into New Mooring Container Terminal is an important step in that direction," Chowdhury added. "We at Invest Bangladesh are pleased to have supported this major port PPP. We want faster operations, stronger connectivity and higher standards at one of our most important trade gateways. For Bangladesh, it means a port system better equipped for the scale of trade we want to build."

DP World operates more than 60 ports and terminals worldwide, handling nearly 10% of global container traffic. The company said the partnership is also expected to support the local workforce and skills development and create opportunities for local businesses.

Planned improvements include upgrades to civil infrastructure and equipment, digital solutions and operational processes. Priorities include berth planning, yard management, equipment utilisation, preventive maintenance, safety and sustainability.

The partnership is also expected to support workforce training, skills development and the adoption of international operating practices, while creating opportunities for local businesses and workers to participate in regional and global supply chains.

Despite being a high volume hub that ranks consistently in Lloyd's list of the 100 busiest container handling ports in the world (its latest ranking was 68th), Chittagong Port has been wracked by inefficiency and backward processes. It ranked 364th in the world (out of 400) in the World Bank's 2025 Container Port Performance Index (CPPI), an indicator based on the observed time container ships spend in port.

A comparison presented at the ceremony showed that competing regional ports can handle containers in less than two days, while vessels at Chattogram Port currently spend more than 2.5 days compared with around 15 to 24 hours at benchmark ports.

The government estimates that port inefficiency costs the economy around Tk10 crore a day, or more than Tk3,000 crore a year. Officials, citing World Bank data, said reducing container dwell time by one day could increase Bangladesh's exports by around 7.4 per cent.

NCT handled around 13.85 lakh TEUs in fiscal year 2025-26, accounting for roughly 44 per cent of Chattogram Port's total container handling.

DP World will upgrade or replace cranes, introduce modern scanning equipment and improve terminal technology, with operations moving towards a paperless system. It will also be responsible for equipment maintenance and repairs.

The agreement sets a minimum annual handling guarantee of 1.23 million TEUs, which may be reduced to 1 million TEUs after a new terminal becomes operational.

Besides the upfront payment, DP World will pay the CPA either a share of terminal revenue or a royalty per TEU, ranging from 40 percent to 67 percent depending on average terminal revenue. It will also pay a fixed annual fee of around Tk10 crore.

Of the Tk600 crore upfront payment, 25 percent will be paid upon signing the agreement and the remaining 75 percent before DP World starts operations.

PM dangles more opportunities

Our sister newsagency UNB adds that in a meeting with the visiting UAE firm's officials held after the signing, Prime Minister Tarique Rahman sought DP World's investment in free trade zones and rail-based inland container depots in Bangladesh as he discussed expanding trade, investment and logistics cooperation with the UAE-based global port operator.

A delegation, led by DP World Chairman Essa Kazim, met the Prime Minister at his office at the Bangladesh Secretariat and discussed various issues of mutual interest, including trade and investment between Bangladesh and the United Arab Emirates, port management and development of the logistics sector, said PM's Assistant Press Secretary Md Nazmul Haque Khan.

The meeting also discussed the 15-year concession agreement signed between Bangladesh and DP World for the operation and modernisation of the New Mooring Container Terminal (NCT) at Chittagong Port.

Under the agreement, DP World will operate and maintain the container terminal and its overflow container yard. The partnership is expected to play an important role in modernising the terminal, improving operational efficiency and enhancing the capacity of Bangladesh's port and logistics infrastructure.

During the meeting, the Prime Minister asked about DP World's interest in establishing a free trade zone and a rail-based inland container depot, as well as making new investments in Bangladesh, Nazmul said.

The DP World representatives expressed interest in cooperation and investment in these areas. The two sides also discussed opportunities to further expand Bangladesh-UAE trade and investment ties and strengthen cooperation in port management and logistics. The meeting came as Bangladesh seeks to enhance its port and logistics infrastructure and attract greater foreign investment to support trade and economic growth.

Familiar obstacles

Several left-leaning political parties and organisations staged demonstrations in Dhaka on Thursday immediately after the signing of the deal, protesting the 15-year concession agreement.

In Chattogram, port workers and several organisations also protested the deal and threatened tougher programmes, including a possible halt to port operations, if the government does not open discussions with them.

The Communist Party of Bangladesh (CPB), Bangladesh Samajtantrik Dal (Basad), Ganatantrik Odhikar Committee, Bangladesh Chhatra Union and several other organisations held a protest rally outside the Invest Bangladesh office (BIDA) in the capital's Agargaon, where the concession agreement was signed.

Police dispersed the protesters from the road using batons. However, Sher-e-Bangla Nagar Police Station Officer-in-Charge Md Monirul Islam denied that police had used batons.

CPB President Sazzad Zahir Chandan, who was present at the protest, said the agreement should have been considered from the perspective of national interest.

"This agreement amounts to selling Bangladesh. DP World has links with the US Navy. If you visit their website, you will understand the matter," he told reporters.

The Chattogram Bandar Rokkha Sangram Parishad and other worker organisations demanded that the government cancel the 15-year concession process and hold discussions with port workers and other stakeholders before handing over terminal operations to a foreign operator. Protesting workers also announced a two-hour hunger strike for October 12.

But the government, it appears, is not willing to pay them any mind. Commerce Minister Khandakar Abdul Muktadir on Friday said the agreement on the New Mooring Container Terminal at Chattogram Port was aimed at increasing the terminal's capacity and efficiency.

He said the agreement was for a fixed term, after which Bangladesh could either renew it or end it. mDescribing the deal as "selling out the country" was a cheap and baseless claim, he added.

The minister made the remarks while responding to journalists after a views-exchange meeting and a grant distribution ceremony organised by Sylhet City Corporation to mark Durga Puja.

Later while replying to questions from journalists, Muktadir said Bangladesh must make its production and export costs competitive with those of other countries to attract foreign investment and new investment from domestic entrepreneurs.

"If the government cannot make Bangladesh competitive in the global market, how can it attract investment?" he asked.

He said the government wanted to improve efficiency at Chattogram Port to achieve this goal, adding that the agreement was signed specifically to improve the country's operational efficiency. Muktadir also assured that no one currently working at the port would lose their job.

Rather, he said, improved efficiency would bring greater benefits to workers, including higher remuneration than they currently receive.

For opposition's sake

To be sure, the leftists' concerns can sound a bit tone deaf, or even archaic. Getting a foreign operator to come in and try to improve the port's operational efficiency is not some outlandish idea. It may be the only way. Besides, this isn't the first terminal under the CPA that has been handed to a foreign operator.

With this, agreements have been signed with foreign operators for three terminals at Chittagong Port: Patenga, Laldia, and New Mooring.

An agreement for the Patenga Terminal was signed with Saudi Arabia's Red Sea Gateway Terminal International in December 2023. The company began operations in June 2024. The agreement has a term of 22 years.

In 2025, an agreement was signed with APM Terminals, a subsidiary of Denmark's Maersk, to build and operate the Laldia Terminal. The company is expected to construct the terminal within three years and operate it for the following 30 years. If the conditions are met, the operating term may be extended by a further 15 years.