Bangladesh has signed a 15-year concession agreement with UAE-based DP World to operate and maintain Chattogram port’s New Mooring Container Terminal (NCT), paving the way for a foreign operator to take over the terminal’s day-to-day management.
The deal comes as the government faces protests against handing over port operations to foreign companies.
The agreement was signed on Thursday at the Invest Bangladesh office in Agargaon by Chattogram Port Authority Chairman Rear Admiral Md Moniruzzaman and DP World Chairman of the Board Sultan Ahmed Bin Sulayem?
The terminal’s ownership, land and core infrastructure will remain with the Chattogram Port Authority, while security, customs, immigration and sovereign control will stay with Bangladesh, Invest Bangladesh said.
NCT handles more than 40 percent of Chattogram port’s container traffic, making it a critical gateway for the country’s external trade.
Built at a cost of nearly Tk2,000 crore in 2007, the terminal has five jetties and 14 of the port’s 18 quay-side gantry cranes.
Under the concession, DP World will invest more than Tk1,000 crore during the first 10 years to modernise equipment, technology and terminal facilities.
The operator will also bring in its global operating systems, technology and training to improve terminal productivity and reduce vessel and cargo-handling times.
The government and CPA will receive an upfront fee of about Tk600 crore. Twenty-five percent is payable upon signing, with the remaining 75 percent due before operations begin.
The CPA will also receive a revenue share of around 40-67 percent per 20-foot-equivalent unit, depending on the terminal’s average revenue, along with a fixed annual fee of about Tk10 crore.
The agreement guarantees a minimum annual handling volume of 1.23 million TEUs, although this can be adjusted to 1 million TEUs if a new terminal comes into operation.
Invest Bangladesh said Bangladesh would not have to take any loan for the arrangement, as DP World would finance the required investment.
The agency said the NCT deal therefore differs from the Hambantota port arrangement in Sri Lanka, where the government had borrowed from China for construction before granting a Chinese company a 99-year operating concession in 2017 amid debt pressures.
DP World Chairman of the Board Essa Kazim said the company would connect NCT to its global network of ports, logistics infrastructure and supply chains.
He said the partnership would help facilitate trade, attract investment and create new opportunities for Bangladeshi businesses.
CPA Chairman Rear Admiral Md Moniruzzaman said the agreement would improve the terminal’s operational capacity, ease logistics constraints and strengthen Bangladesh’s connectivity with international markets.
NCT currently accounts for around 44 percent of Chattogram port’s total container handling, but the port still lags behind international competitors in vessel turnaround time, cargo handling, equipment capacity and productivity.
The government said the international operator was being brought in to address these efficiency gaps.
The agreement includes key performance indicators, phased performance targets and financial penalties. Failure to meet targets such as truck turnaround time and crane productivity for three consecutive months could trigger penalties.
DP World will also be required to submit weekly and monthly reports on container and vessel operations, revenue and other performance indicators, while the CPA will retain audit and monitoring rights.
The government said existing local workers at NCT would continue to be employed under the new operating structure, with opportunities for training and skills development alongside the introduction of modern equipment and technology.
The operator selection process took more than three years. The Cabinet Committee on Economic Affairs gave policy approval in March 2023, while the tender was invited in January this year.
Negotiations continued from late January to August, before the CPA board approved the agreement on September 16 and the Cabinet Committee on Public Purchase gave final approval on October 1.
The government, however, will not publish the full concession agreement, saying it contains commercially sensitive information and operational strategies.
It said key public-interest terms—including the concession period, upfront fee, investment, revenue sharing, minimum handling commitment, performance indicators, oversight arrangements and ownership structure—had been disclosed.