Chattogram:The Chattogram Port Authority (CPA) and global port operator DP World have entered a 15-year concession agreement to manage and upgrade the New Mooring Container Terminal (NCT). This partnership aims to enhance the efficiency and capacity of Bangladesh's main maritime hub.
According to Bangladesh Sangbad Sangstha, CPA Chairman Rear Admiral SM Moniruzzaman and DP World Chairman Essa Kazim signed the agreement at Invest Bangladesh auditorium. The event was attended by notable figures including Shipping Minister Sheikh Rabiul Alam, State Minister for Shipping Md. Rajib Ahsan, and UAE Ambassador to Bangladesh Abdulla Ali Al Hamoudi.
Under the agreement, DP World will manage NCT operations while the CPA retains ownership of the terminal's land and infrastructure. DP World will make an upfront payment of Tk 600 crore, with a phased payment plan, and invest over Tk 1,000 crore in the first decade to modernize the terminal with new technology and equipment.
The CPA will receive a share of terminal revenue, ranging from 40 to 67 percent per TEU, along with a fixed annual fee of approximately Tk 10 crore. The agreement includes a minimum annual volume guarantee of 1.23 million TEUs, with provisions for adjustments.
Shipping Minister Sheikh Rabiul Alam highlighted the government's commitment to rapidly boosting capacity and efficiency through international partnerships. Essa Kazim of DP World emphasized Bangladesh's growing role in global trade and the benefits of linking NCT to DP World's global network.
CPA Chairman Rear Admiral Md. Moniruzzaman expressed confidence that the partnership would improve operational performance and connectivity. Invest Bangladesh Chairman Ashik Chowdhury noted the significance of aligning Bangladesh's trade operations with global standards.
Chattogram Port, handling about 92 percent of the country's foreign trade, faces challenges such as long container dwell times and vessel turnaround times. The port's inefficiencies are estimated to cost the economy Tk 10 crore daily. The new agreement includes performance indicators and penalties for failing to meet targets.
The partnership will maintain local employment while enhancing workers' skills through DP World's investment in training and technology. The selection of DP World followed a government-to-government policy and public-private partnership framework, culminating in approvals from the CPA Board and Cabinet Committee on Economic Affairs.
The agreement is expected to complement the development of the Laldia Container Terminal, set to be completed by 2030. DP World's vast experience in port operations across various countries positions it to support Bangladesh's trade infrastructure development effectively.