NCT deal safeguards Bangladesh's interests: Rabiul

Shipping Minister Shaikh Rabiul Alam said on Thursday that the 15-year concession agreement between the Chattogram Port Authority (CPA) and Dubai-based global port operator DP World has been structured with strong financial and operational safeguards to protect Bangladesh's national and economic interests.

He said the agreement, signed on Thursday for the operation, management and modernisation of the New Mooring Container Terminal (NCT), will ensure substantial financial returns for Bangladesh while bringing in fresh foreign investment, advanced technology and world-class terminal management.

"The agreement has been finalised keeping Bangladesh's interests at the highest priority," the minister said at a press briefing following the signing ceremony in the capital.

The minister said the agreement represents a major shift towards modern, technology-driven port management, but does not compromise Bangladesh's ownership, sovereignty or control over Chattogram Port.

Under the agreement, DP World will operate and manage NCT and undertake its modernisation for an initial period of 15 years.

The deal provides Bangladesh with US$50 million, equivalent to around Tk600 crore, as upfront signing money against the existing terminal equipment.

Twenty-five percent of the amount will be paid at the time of signing, while the remaining 75 percent will be paid before the physical handover of the terminal.

He said DP World has committed US$150 million, or around Tk1,800 crore, in fresh investment to modernise NCT.

The investment will be used for replacement and upgrading of terminal equipment, yard rearrangement, digital integration, automation and introduction of modern terminal operating systems.

The minister said the fresh foreign investment would reduce the pressure on the government to finance the terminal's modernisation while allowing Bangladesh to benefit from DP World's international operational expertise.

A major safeguard in the concession agreement is the continued financial participation of Bangladesh in terminal operations.

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According to the agreement, the CPA and the government will retain approximately 40% to 67% per twenty-foot equivalent unit (TEU), while DP World will receive the remaining share in accordance with the contractual terms.

Based on a standard handling charge of around US$140-US$150 per TEU, Bangladesh's share is estimated at around US$93 per TEU.

In addition, the CPA will receive a guaranteed minimum annual payment of Tk10 crore, irrespective of the volume of containers handled.

The minister said these provisions would ensure that Bangladesh does not merely gain from the one-time investment but continues to receive substantial revenue throughout the concession period.

The agreement also contains a specific mechanism to protect the CPA's revenue if container traffic is distributed among different terminals in the future.

A volume/revenue protection mechanism has been incorporated based on NCT's existing annual container-handling level of around 1.23 million TEUs.

The mechanism is intended to protect the CPA's financial position even after other terminals, including Laldia, Patenga and other facilities, become operational and competition for container traffic increases.

The minister said the provision was particularly important because Bangladesh's port sector is entering a new phase in which several modern terminals will operate simultaneously.

The agreement is expected to significantly improve NCT's handling capacity.

The terminal currently handles around 1.23 million TEUs annually, while modernization is expected to raise its capacity to between 1.6 million and 1.8 million TEUs.

This additional capacity will help Bangladesh handle growing import and export volumes and reduce pressure on the country's principal maritime gateway.

The minister said improved terminal efficiency would ultimately contribute to reducing logistics costs and strengthening the competitiveness of Bangladeshi exporters and importers.

The agreement contains specific operational targets for improving efficiency.

Truck waiting time at the port, currently around 24 hours, is targeted to come down to two hours in the first year, 1.5 hours in the second year and one hour by the third year.

Similarly, vessel turnaround time is expected to fall from the current two-three days to around 1-1.5 days.

The terminal will also introduce measures to reduce container dwell time, enabling importers and exporters to receive and dispatch cargo more quickly.

The agreement targets international-standard operational efficiency of around 93 percent.

Another major component of the modernization programme is digital transformation.

The NCT will move towards paperless terminal operations, with real-time digital tracking of vessels, containers and cargo.

The minister said automation would reduce unnecessary manual intervention, improve transparency and make cargo handling faster and more predictable.

Digital integration with relevant government systems, including revenue and Customs-related processes, is expected to reduce delays and create greater accountability in the movement and clearance of containers.

The Shipping Minister strongly rejected any suggestion that the agreement amounted to leasing out Chattogram Port.

"Port leasing and container terminal handling are not the same thing," he said.

He explained that the concession concerns only the operation and management of NCT, while 100% ownership of the port territory remains with Bangladesh.

Overall harbour management, national security, Customs administration, NBR revenue collection, intelligence and other sovereign responsibilities will also remain under the Bangladesh government and CPA.

The minister said the arrangement follows the internationally recognized Landlord Port Model, under which port authorities retain ownership and regulatory control while specialized private or international operators manage individual terminals.

He said a large majority of major container ports around the world operate under similar arrangements.

The government has also incorporated safeguards for existing port workers into the arrangement.

The minister said no port officer or dockworker would lose his or her job because of the concession.

The existing workforce and their gross salary structures have been taken into consideration in the agreement, while modernisation is expected to create opportunities for workers to acquire new technical skills.

Increased container handling and the expansion of related logistics activities are also expected to generate additional employment opportunities in transport, warehousing, freight forwarding and other supporting sectors.

The physical takeover and modernization process is expected to be completed within six months, including equipment installation, yard rearrangement and digital integration.

The terminal is expected to reach full operational capacity within two years.

The initial concession period is 15 years, with the possibility of a further 15-year extension only through mutual written agreement between CPA and DP World.

If either party does not agree to an extension, the concession will automatically end at the completion of the initial 15-year term.

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The minister said the final agreement was reached after around six months of intensive negotiations led by the Ministry of Shipping, Invest Bangladesh Executive Chairman Chowdhury Ashik Mahmud Bin Harun, a specialized negotiating team and international legal experts.

He said the government had focused particularly on securing Bangladesh's financial returns, protecting the authority's revenue, ensuring continued sovereign control and safeguarding the interests of port workers.

The minister said previous efforts to bring international operators into the country's port sector had faced prolonged difficulties, but the present negotiations succeeded in producing a commercially viable arrangement while preserving Bangladesh's key interests.

The NCT agreement also marks another significant step in Bangladesh's efforts to bring leading international terminal operators into its maritime sector.

The minister said global operators such as DP World, APM Terminals and PSA are now becoming involved in Bangladesh's port infrastructure.

DP World, which operates container terminals in major international markets, is expected to bring modern terminal management practices, advanced equipment and global shipping-line connections to NCT.

The government believes the involvement of internationally experienced operators will increase the confidence of global shipping lines and help integrate Chattogram Port more closely with international maritime networks.

The minister said the NCT modernisation would have implications beyond the port itself, as faster cargo handling and shorter vessel and truck waiting times would improve the overall efficiency of Bangladesh's trade logistics.

For an import-dependent economy and a major garment-exporting country, he said, reducing port-related delays is crucial for lowering business costs, improving delivery reliability and strengthening export competitiveness.

The minister said the government's objective was not simply to hand over terminal operations to a foreign operator, but to create a structure in which Bangladesh retains ownership and sovereign control, receives substantial financial returns, attracts fresh foreign investment and obtains modern technology and management expertise.

He described the agreement as a strategic partnership aimed at transforming NCT into a more efficient and internationally competitive terminal while keeping Bangladesh's interests firmly protected.