Govt signs 15-year deal with DP World to operate NCT

The government on Thursday signed an agreement with UAE-based port operator DP World to operate Chattogram Port’s New Mooring Container Terminal (NCT) for 15 years.

The agreement was signed at 3pm at the Investment Bangladesh auditorium under a public-private partnership arrangement.

Chattogram Port Authority (CPA) Chairman Rear Admiral SM Moniruzzaman and DP World Chairman Essa Kazim signed the agreement on behalf of their respective organisations.

Shipping Minister Shaikh Rabiul Alam, State Minister for Shipping Md Rajib Ahsan, UAE Ambassador to Bangladesh Abdulla Ali Al Hamoudi and Invest Bangladesh Chairman Ashik Chowdhury, among others, attended the signing ceremony.

Under the concession, DP World will operate and manage NCT for an initial period of 15 years, while ownership of the terminal’s land, core infrastructure and assets will remain with CPA and, ultimately, the government of Bangladesh.

The agreement provides an upfront payment of around Tk600 crore, with 25 percent payable upon signing and the remaining 75% before commencement of operations.

DP World will also invest more than Tk1,000 crore during the first 10 years to modernise the terminal through new equipment, technology and operational improvements.

In addition, CPA will receive a share of terminal revenue or royalty, ranging from around 40% to 67% per TEU depending on average terminal revenue, along with a fixed annual fee of approximately Tk10 crore.

The agreement includes a minimum annual volume guarantee of 1.23 million TEUs, with provision for adjustment to 1 million TEUs once a new terminal becomes operational.

NCT is one of four dedicated container-handling facilities at Chattogram Port. Since commencing operations in 2007, it has become a key component of Bangladesh’s trade infrastructure and currently handles around 44% of the port’s container traffic.