DP World to handle bulk of Ctg port containers

Dubai-based multinational DP World will handle nearly half of Chittagong seaport’s seaborne trade containers under a deal signed with Bangladesh on Thursday to operate the New-mooring Container Terminal.

 Government authorities have said this option is an imperative for improving the country’s trade logistics and reducing chronic delays at its main gateway, as protests in the port city and the capital city marked the NCT deal-making.

Under the 15-year concession agreement, DP World will operate and maintain the country’s biggest terminal — NCT — and its overflow container yard at the Chittagong Port.

The agreement was signed at Invest Bangladesh office in Agargaon, Dhaka, by Rear Admiral SM Moniruzzaman, chairman of the Chittagong Port Authority (CPA), and Sultan Ahmed bin Sulayem, chairman and chief executive of DP World, on respective side.

Shipping Minister Sheikh Rabiul Alam and State Minister for Shipping Md Rajib Ahsan attended the signing ceremony.

Essa Kazim, chairman of DP World’s board, UAE Ambassador in Bangladesh Abdulla Ali Al Hamoudi and Ashik Chowdhury, chairman of Invest Bangladesh, were also present.

The International Finance Corporation (IFC), part of the World Bank Group, acted as transaction adviser for the deal.

Under the agreement, the CPA will retain ownership of the NCT while DP World will receive operating rights for an initial period of 15 years.

The operator will pay an upfront fee of about Tk 6.0 billion and invest more than Tk 10 billion during the first 10 years in modern equipment, technology and infrastructure.

The CPA will also receive a share of revenue and a fixed annual fee.

The government expects the arrangement to substantially increase the terminal’s capacity and productivity in trade handling.

Also, the government expects that the container-handling capacity at the NCT might go up from existing 1.2 million twenty-foot equivalent units (TEUs) to around 1.8 million TEUs as operational efficiency improves within next few years.

DP World operates more than 80 marine and inland terminals in more than 40 countries and handles about 10 per cent of global container traffic.

“The government’s aim is to rapidly increase the capacity of existing strategic assets,” Mr Rabiul Alam said.

“Modern equipment, digital systems, international operating standards and global logistics connections will make NCT more competitive.”

The government’s wider policy is to bring multiple international operators into Bangladesh’s port sector to improve service quality, reliability and supply-chain resilience, he told the function.

Mr. Kazim said DP World was committed to supporting Bangladesh’s development as an increasingly important trading and manufacturing economy.

“Through this partnership, DP World will connect the New Mooring Container Terminal to our global network of ports, logistics infrastructure and supply-chain services,” he said.

The move would create more seamless links between Bangladesh and international markets, he added.

Mr. Moniruzzaman said the agreement reflected CPA’s commitment to strengthening maritime and trade infrastructure through public-private partnerships.

“The New Mooring Container Terminal plays a critical role in supporting the country’s trade and logistics ecosystem,” he said. The partnership would improve operational performance, ease logistics constraints and strengthen connectivity with international markets.

Mr Chowdhury of Invest Bangladesh struck an upbeat note: the objective is to “move trade at global speed”.

“Bringing DP World into New Mooring Container Terminal is an important step in that direction,” he told the audience.

At a press briefing after the signing, the shipping minister sought to address concerns over what Bangladesh was giving up under the concession.

Asked about the “give-and-take” involved, Rabiul Alam said Bangladesh was handing over management responsibility for one terminal but gaining an internationally operated, modern container facility.

The government expected truck waiting times, currently about 24 hours, to fall to two hours in the first year, 1.5 hours in the second and one hour in the third year.

A vessel currently spends about 2.5 to three days at the port to unload containers, but that could fall to between one and 1.5 days under the new operating model, according to the minister.

Container dwell time is another major concern. Containers bound for the Chittagong Container Terminal can currently remain there for about 9.4 days. The government expects the period to fall sharply as operations become more efficient.

The minister compared the target with international benchmarks, saying that dwell times at India’s Jawaharlal Nehru Port are below two days, while Vietnam averages about two to three days and Singapore less than one day.

“Everything will be visible, leaving no room for manual intervention, personal grudges or discretion,” he said, arguing that greater transparency would reduce the scope for harassment and delays.

Customs-related tax collection would also be integrated into the digital system, reducing paperwork and the need for importers and exporters to make repeated visits to officials, he added.

The minister said the government would also receive 67 per cent of the applicable container-handling revenue, while annual payments would provide an additional income stream.

He said the NCT had originally cost about Tk 5.72 billion to build, with China Harbour completing the construction in 2007.

Current port-handling efficiency was around 70 per cent, compared with about 93 per cent at leading international container terminals, Mr Rabiul Alam said.

The port handles roughly 92 per cent of Bangladesh’s foreign trade, making its performance critical to the country’s exporters and importers.

The 2025 Container Port Performance Index ranked Chittagong Port 364th out of 400 container ports globally.

According to World Bank estimates cited by officials, reducing container-dwell time by one day could increase Bangladesh’s exports by about 7.4 per cent.

Responding a question relating Bangladesh’s sovereignty following the foreign-operator engagement, the minister said the foreign operators handle around 80 per cent global container terminals and asked: “Are they losing their sovereignty? Are they becoming subservient?”

“No,” he said in reply to the rhetorical question. “Competition remains.”

Following its completion, local operator Saif Powertec became involved in Chittagong Port’s container-handling operations.

The company initially operated the Chittagong Container Terminal (CCT), the country’s first dedicated container terminal, and later expanded its operatio0n into the NCT in the disguise of facilitating the port operations.

Its involvement in port operations was subsequently continued without a conventional competitive tender, while, during the interim period, operational responsibility was transferred to state-owned Chittagong Dry Dock.

The latest agreement marks a significant shift towards international private-sector participation in the operation of Bangladesh’s principal container gateway.

For the government, the calculation is that the concession will exchange direct operational control for higher productivity, technology, investment and international connectivity — while retaining ownership of the strategic asset and securing a substantial share of future revenues.

For DP World, the deal provides access to one of South Asia’s important emerging manufacturing and trading markets and an opportunity to connect Chattogram more closely with its global port and logistics network.

According to economists and manufacturers, the government’s decision to bring global port operator DP World into the operation and maintenance of the NCT at Chittagong Port could mark a significant shift in the country’s efforts to modernise its trade infrastructure.

The agreement is expected to improve port efficiency, expand container-handling capacity and introduce international operating standards at a time when Bangladesh’s external trade is growing faster than the capacity of parts of its port infrastructure.

Economists and business leaders think the move could have a broader economic impact by reducing delays in the movement of goods and making Bangladesh’s export-and import-supply chains more competitive.

Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh, told The Financial Express that the agreement would help ensure global-standard port operations and improve efficiency.

“This signing is an important step towards ensuring global-standard port operations and the highest possible efficiency,” he said.

Bangladesh’s trade volumes have increased significantly over the years, but port capacity and operational efficiency remained poor, he added.

DP World, a globally recognised port operator, brings extensive experience in managing large container terminals and a network connected to international maritime trade, Mr. Masrur further said about the merit of the move.

Port efficiency is closely linked to the competitiveness of the country’s export-oriented manufacturing sector, particularly garments, as well as the cost and reliability of imported raw materials, machinery and intermediate goods.

Md. Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country’s apex trade organisation representing chambers and business associations, told the FE that the agreement was also a positive signal for foreign direct investment.

“DP World is a global giant in the shipping and port sector. Its investment in Bangladesh is a good indicator that foreign investment could increase,” he said.

Mr. Hoque said the presence of a major international operator could improve the country’s image among global investors.

“Efficiency will rise, and the image of the country will also improve. Many investors will take DP World’s investment as a signal that Bangladesh is becoming a more attractive destination,” he said.

But he aired concern that the benefits could be undermined if the new arrangement resulted in substantially higher charges for port users.

The concern is particularly relevant for Bangladesh’s export industries, which operate in highly competitive international markets where logistics costs can directly affect profit margins and the ability of companies to compete on price and delivery time

MA Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), sees the agreement as a milestone for the country. He has said the new operator could improve efficiency in both export and import handling and make better use of capacity that is currently underutilised.

“Trade is rising, but the port has remained relatively static. This operator will be able to raise capacity by utilising the unused capacity,” Mr. Hatem told The FE.

Bangladesh’s external trade is expected to expand further in the coming years, making improvements in port infrastructure increasingly urgent, he said.

“The decision is very much time-befitting.”

For exporters, faster vessel turnaround and more efficient container handling could reduce lead times and improve the reliability of shipment.

Importers, meanwhile, could benefit from smoother movement of machinery, industrial inputs and consumer goods through the port.

source : thefinancialexpress