Chittagong:Bangladesh has entered into a significant Public-Private Partnership agreement with Dubai-based DP World to modernize, manage, and operate the New Mooring Container Terminal (NCT) at Chittagong Port. This 15-year operational concession aims to enhance the terminal's efficiency and competitiveness.
According to United News of Bangladesh, the agreement was signed at the Invest Bangladesh auditorium in Dhaka. Present at the signing were Shipping Minister Shaikh Rabiul Alam, State Minister for Shipping Md. Rajib Ahsan, UAE Ambassador to Bangladesh Abdulla Ali Al Hamoudi, and Invest Bangladesh Chairman Ashik Chowdhury. Rear Admiral Md. Moniruzzaman, Chairman of the Chittagong Port Authority (CPA), signed on behalf of the port authority, while Essa Kazim, Chairman of DP World's Board of Directors, represented the UAE state-owned operator.
Despite the deal, which leaves the ownership and regulatory control of the terminal with the CPA and the Bangladesh government, it has faced opposition from port workers and other stakeholders. The project involves an upfront fee of approximately Tk 600 crore to the government. DP World also commits to investing over Tk 1,000 crore in the first decade for modernization, equipment, and logistics technology. The CPA will receive an annual fixed fee and a share of the terminal's operational revenues.
The contract includes performance indicators and penalties for missed targets, with security remaining under the Bangladesh Navy, Coast Guard, Customs, and Immigration. DP World will keep local port workers and introduce international training programs.
Shipping Minister Shaikh Rabiul Alam stated that the deal is part of a strategic policy to engage global operators and enhance competition. DP World Executive Chairman Essa Kazim emphasized the importance of integrating NCT into the global logistics network to support trade and investment. Invest Bangladesh Chairman Ashik Chowdhury highlighted the alignment with global trade speeds and reduced turnaround times.
Chattogram Port, handling 92% of Bangladesh's sea-borne trade, faces logistics challenges, ranking 364th out of 400 in the 2025 Container Port Performance Index. NCT, operational since 2007, is the largest facility at the port, handling 44% of its container traffic but has been plagued by inefficiencies.
This partnership with DP World follows Saudi Arabia's Red Sea Gateway Terminal's operation at Patenga Container Terminal and Denmark's APM Terminals' development of the Laldia Container Terminal, set for completion by 2030.