NCT leasing sparks fears of trade disruption

Fears are growing that protests over the government’s move to hand over the New Mooring Container Terminal (NCT) of Chattogram Port to an international operator for 15 years could disrupt the country’s export-import activities.
The Cabinet Committee on Economic Affairs on Thursday approved the draft concession agreement for the operation and maintenance of the NCT, including its Overflow Container Yard (OCY), under a public-private partnership (PPP) framework.
The NCT handles around 44% of the container traffic at Chattogram Port, making any disruption to its operations a concern for exporters, importers and other stakeholders.
The government says bringing in an experienced international operator will help improve the port’s efficiency and competitiveness, while protesting workers, civil society groups and other organisations are preparing a joint movement against the deal.
Shipping Minister Sheikh Rabiul Alam recently said the management of Chattogram Port was at a “stagnant stage” and that the government had opened the way for foreign companies to help improve container and cargo handling.
“The ship, container and cargo management at Chattogram Port was at a stagnant stage. It was not up to the required standard,” he said.
“Efforts are underway to attract foreign investment and increase loading and unloading of containers so that we can compete with all the big ports in the developed world,” Rabiul said.
“And by bringing in companies that know and understand container and port handling in the world, we have opened the way to further prosperity,” he added.
According to the PPP Authority’s project profile, the Chattogram Port Authority plans to award a government-to-government concession to Dubai-based DP World, nominated by the Government of Dubai, to upgrade, operate and maintain the NCT.

The project, titled “Operation and Maintenance of CPA’s New-mooring Container Terminal (NCT) including Overflow Yard (OCY),” was initially approved in principle by the Cabinet Committee on Economic Affairs on 23 March 2023 during the tenure of the previous Awami League government.
In 2023, Saudi Arabian firm RSGT was given responsibility for operating the Patenga Container Terminal, while the process of bringing DP World in as operator of the NCT also moved forward.
The interim government later stepped back from the NCT leasing plan on 8 February, three days before this year’s national election, following a nine-day strike that disrupted the country’s international trade.
After the new government took office, the issue returned to the agenda at the fourth meeting of the Bangladesh-Dubai Joint Public-Private Partnership Platform on 8 April.

Protests gather pace

Protesting port workers, civil society groups and other organisations argue that the NCT is strategically important to the country’s economy and that the agreement should be made public before any final decision.
They also argue that the terminal, developed around 19 years ago, already has the necessary infrastructure and equipment and that greenfield projects such as the Laldia Container Terminal could instead be considered for foreign investors and operators.
They have called for transparency in the concession process, disclosure of the agreement’s terms and consultation with all stakeholders.
Jatiyatabadi Sramik Dal Chattogram Bandar Unit-led Chattogram Port Protection Movement Council Co-Coordinator Humyun Kabir said they had held discussions with different levels of the government.
“We thought that the BNP government would not carry forward the deal initiated by the fascist AL and the interim government. But Thursday’s approval hurt us deeply,” he said.
“The council will announce protest programmes from a rally on Saturday afternoon and a tougher movement will be waged if the government doesn’t step back from the initiative,” Humyun warned.
“We are also considering a joint movement with other protesting organisations including Sramik Kallyan Okiya Parishad (SKOP) and Port Protection Committee,” he added.

Port Protection Committee Convener Engineer Delwar Majumder said the full draft and financial structure of the agreement should be made public and called for an independent economic and technical evaluation.
“The people are the owners of the country, so they should know about the deal,” Delwar said, vowing to continue their movement.
The Bangladesh Samajtantrik Dal (Basad) has also protested the government’s approval of the draft concession agreement, demanding that the NCT remain under state management.
In a statement on Friday, Basad General Secretary Bazlur Rashid Firoz alleged that the government was moving ahead with the deal without making its terms and conditions public. He said the proposed foreign operator was believed to be UAE-based DP World, although the government had not officially disclosed its name.
Firoz said the NCT was developed with around Tk4,500 crore in domestic funds and handles around 44 percent of the containers at Chattogram Port. He questioned the need to hand over operation of the terminal to a foreign company and expressed concern that a significant portion of port revenue could flow abroad.
He also questioned the role of the International Finance Corporation (IFC), the project’s transaction adviser, saying the government should consider the views of port users and local experts.
Basad demanded immediate cancellation of the draft agreement and called for a united movement against the decision.

Businesses fear disruption

International Business Forum Chattogram President SM Abu Tayyab said exporters and importers wanted greater port efficiency to reduce vessel turnaround and waiting times and lower logistics costs.
“We are not supporting either the movement or the government initiative. We want development of the port. But the face-off between the government and protesters might result in disruption to port operations,” said Tayyab, also a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
“The government should proceed transparently and discuss the matter with the stakeholders before taking any decision. Without convincing the protesters, especially port workers and employees, who fear job losses, the situation may turn volatile,” he said.
Any disruption, he said, could lead to vessel and container congestion and affect the timely movement of export and import goods.

“The country’s international trade has already been facing manifold problems due to the prolonged conflict in the Middle East. We are really unable to take any more pressure,” the business leader said.
Bangladesh Shipping Agents Association former Director Khairul Alam Suzan also feared that any disruption in port operations could have a serious impact on trade and damage the country’s image in the global market.
Chittagong University Economics Department Professor Alauddin Majumder said the economic implications of the NCT leasing issue should be discussed seriously, while acknowledging that foreign expertise could also be useful.
Meanwhile, the Shipping Ministry in a letter on 28 September requested the chairman of the Bangladesh Investment Development Authority to process a proposal related to appointing Saudi firm RSGT as the operator of the Chattogram Container Terminal (CCT).

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