The government is moving quickly to hand over the operation of Chattogram Port’s New Mooring Container Terminal (NCT) to Dubai-based DP World by December 2025. A draft agreement is now being prepared. However, instead of a competitive tender, the handover is being arranged under a government-to-government (G2G) process. Authorities are also planning to award the operation of one terminal under the port’s Bay Terminal project to the same company in the future.

Experts are saying that competitive bidding under the landlord model is the most widely used system for appointing port operators worldwide. Yet, Bangladesh’s largest container terminal is being handed over to the operator through a direct government arrangement. Since there is no competition in this process, experts argue the NCT operation under DP World cannot be described as a full landlord model. Under that model, the port land remains government-owned, while the private operator builds infrastructure—such as jetties and equipment—and operates it on a long-term basis. But for NCT, the Chittagong Port Authority (CPA) has already made major investments, including heavy and advanced equipment.

Before equipping the terminal, the government did attempt to hire a foreign operator through competitive bidding in 2008. Four world-class companies were shortlisted in 2009 through that process. But allegations surfaced that the then-ruling Awami League ministers and lawmakers intervened to favor local operators, eventually leading to the cancellation of the entire competitive bidding initiative. In August 2024, the now-ousted Awami League government had revived the plan to hire foreign operators. The current Interim Government is continuing that process. The NCT is fully equipped, and Chittagong Dry Dock Limited (CDDL), a Bangladesh Navy enterprise, is currently managing its operations.

After a workshop at the port auditorium on Saturday (September 20), Brig. Gen. (Retd.) M Sakhawat Hossain, Adviser to the Ministry of Shipping, said about hiring foreign operators: “I’m tired of talking about investment in the port. What you understand as foreign investment is actually a misconception. People say we are giving away the port. Who will we give the port to? The operator? There are many big operators in the world managing 130, 140, even 180 ports. PSA Singapore alone operates 185 ports. Although Chattogram Port has been around for more than 140 years, it is still unknown on the global stage. Without bringing in international operators, we will remain stuck where we are in terms of port development.”

According to port records, the 2015 Public-Private Partnership (PPP) Act did not include provisions for government-to-government (G2G) projects. The policy was introduced in 2017, and the law was amended in 2019. It was under this amended law, passed by the Awami League government, that the way was paved to hand over NCT to a foreign operator.

However, while there has been no blanket opposition to hiring foreign operators, labor unions, professional bodies, and political groups have objected specifically to New Mooring Container Terminal’s (NCT) handover. They argue that over BDT 25 billion has already been invested in NCT, and its heavy equipment will remain functional for another 22–23 years. They question why a well-equipped and fully operational terminal should be handed over to a foreign company when no major new investments are required.

Shahadat Hossain Salim, owner of Everest Port Services Limited, told, “No one has raised strong objections regarding handing over the new terminals that are yet to be built because they don’t have infrastructure. But NCT is already fully equipped. There needs to be a logical explanation for why a profitable terminal built with state funds, vital to national security and strategic interests, should be handed to foreigners. Also, Bangladesh is losing the chance to set a precedent by hiring operators through competitive bidding.”

Meanwhile, Chittagong Dry Dock Limited (CDDL), a Bangladesh Navy enterprise, has achieved notable success after taking charge of NCT for only six months. Container handling at the terminal rose by nearly 9.5 percent in just two and a half months under its management.

CPA records show that CDDL took over NCT on July 1, 2025. From July 1 to September 15, container handling at the terminal totaled 276,153 units, compared with 249,983 units during the same period last year when private operator Saif Powertec was in charge. That is an increase of nearly 9.5 percent.

CPA Chairman Rear Admiral SM Moniruzzaman told, “NCT’s performance under CDDL’s management has been quite promising. The wastage we used to see has gone down. Capacity has increased, vessel waiting and turnaround times have dropped. Now most vessels can finish operations and leave within 72 hours. Efficiency has improved because of better yard management and discipline.”

Regarding the rationale for hiring a foreign operator despite proven local capability, he said, “Foreign operators work at global standards from the start. It will take a long time to reach that standard locally. Besides, foreign operators work directly with the world’s top shipping companies. To handle the pressures of the global supply chain, we must enhance our operational efficiency.”

The Chattogram Port currently has four container terminals: New Mooring Container Terminal (NCT), Chittagong Container Terminal (CCT), General Cargo Berth (GCB), and Red Sea Gateway Terminal (RSGT), also known as the Patenga Terminal. Among them, NCT was partially launched in 2007 and became fully operational in 2015. Saif Powertec Limited managed it from the beginning until July 6, 2025, when CDDL took over.

On the plan to hand over NCT to a foreign operator, Mohammed Amirul Haque, Managing Director of Seacom Group, told, “We have no objection to foreign investment. But in the case of NCT, both local and foreign joint operators could have been appointed through competitive bidding. That would have created opportunities for technology transfer.”