The government is in talks with more leading global port operators, including Singapore-based PSA International, to operate container terminals at Chattogram Port. Shipping Minister Shaikh Rabiul Alam said this is part of efforts to modernise port management and increase handling capacity.
The announcement followed an agreement with Dubai-based global port operator DP World to operate and manage the New Mooring Container Terminal at Chattogram Port. The signing ceremony took place at Invest Bangladesh’s office in Dhaka’s Agargaon.
The government has already taken steps to bring APM Terminals into the operation of the Laldia Terminal. Discussions with PSA and other leading operators are also ongoing, and the minister hopes to reach agreements as soon as possible.
Chattogram Port handles about 92% of Bangladesh’s imports and exports. The minister said the government is working to make the port more modern and expand its capacity to support economic growth.
Under the 15-year agreement, DP World will operate and manage the New Mooring Container Terminal. Ownership and control of the land and infrastructure will remain with the Chittagong Port Authority.
DP World will pay an upfront fee of around Tk600 crore at the start of the contract. The company has committed to investing more than Tk1,000 crore in modernisation, equipment and technology during the first 10 years.
The agreement includes financial penalties if the company fails to meet its targets. The Chittagong Port Authority will receive a fixed annual fee and 67% of the revenue from container handling per twenty-foot equivalent unit.
The government plans to introduce paperless operations at Chattogram Port to improve efficiency. The average container dwell time is currently around 9.4 days, and the government aims to reduce it to three to four days.
A ship currently takes around two and a half to three days to unload its containers and leave the port. The government expects this turnaround time to fall further following the agreement.
DP World will take over responsibility as soon as possible. The terminal will require some modernisation in digital and manual management systems, which the minister believes will take up to six months.
The government has set an annual container-handling target of 1.23 million twenty-foot equivalent units for the terminal. With DP World, that figure could rise to 1.6 million to 1.8 million twenty-foot equivalent units.
All relevant laws of Bangladesh will remain in force under the agreement. The port authority and the government will be able to take necessary decisions if any deviation or irregularity occurs.
Responding to concerns raised by different groups, the minister described the debate as part of democracy. He noted that some stakeholders may be worried about losing their jobs or authority, but the government takes their opinions into account.
The minister also highlighted Bangladesh’s plans to strengthen economic ties with the United Arab Emirates. Bangladesh receives around $4.5 billion in remittances annually from the United Arab Emirates, while bilateral trade stands at approximately $2 billion, with a goal to reach $10 billion by 2030.
Chittagong Port Authority Chairman Rear Admiral Mohammad Moniruzzaman signed the agreement on behalf of the port authority. Essa Kazim, chairman of DP World’s board of directors, signed on behalf of the company.