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With Dubai-based DP World recently securing operational rights to the New Mooring Container Terminal (NCT), the Ministry of Shipping is now mulling whether to hand over other key infrastructure of Chattogram port to foreign operators.
On 8 October, Bangladesh and the UAE penned a public-private partnership for DP World to operate, maintain and upgrade the NCT under a 15-year concession deal.
From inception, the much-discussed agreement faced protests from various quarters, led by the Chattogram Port Protection Struggle Council with support from other unions.
The protesters had alleged that giving foreign operators authority over significant areas of the country’s premier seaport would work against national interests by eroding revenue.
"Handing it to any foreign company would amount to giving away an asset that already generates a substantial annual net profit of about Tk2,500 crore," Humayun Kabir, president of the port council, told journalists while announcing protests on 19 September.
He also said the arrangement may affect around 1,000 workers of the Chattogram Port Authority (CPA) who are stationed at the NCT.
However, the days since then have proven that hiring foreign operators improved the port’s efficiency, lowered costs, and enhanced its competitiveness in global maritime trade.
So, the government is considering whether to hand over the Chittagong Container Terminal (CCT) and General Cargo Berth (GCB) to global operators as well.
Meanwhile, APM Terminals, a subsidiary of Danish shipping giant Maersk Group, is already developing Laldia Container Terminal (LCT).
The discussion on appointing more foreign operators gained momentum after the shipping ministry sent a letter to Invest Bangladesh Chairman Ashik Chowdhury on 28 September.
The ministry asked Ashik to process a separate letter to appoint Saudi's RSGTI at the CCT.
The RSGT is now operating Patenga Container Terminal (PCT) as the country’s first foreign operator, and has already installed all committed equipment, including sophisticated ship-to-shore cranes.
The Berth Operators, Ship Handling Operators and Terminal Operators Owners Association submitted a separate proposal to the CPA.It highlighted that the GCB is the oldest terminal, with six jetties built in 1954 and the other six reconstructed in 1979.
The association proposed gradually rebuilding the jetties and equipping them with modern machinery, over a 25 to 30-year period.
Furthermore, it plans to form a consortium and finance the development through domestic and foreign investment, with an initial investment estimated at $627 million.
Contacted, Shipping Secretary Md Zakaria on Friday said the CPA would evaluate the proposal to hand over the CCT before forwarding it.
Captain Md Salah Uddin Chowdhury, chairman of the Bangladesh Shipping Agents Association, said the RSGT is performing well and DP World’s involvement would help improve efficiency and enhance port workers’ skills.
“However, efficiency does not depend on port operations. Hinterland connectivity, customs performance and other factors also play key roles,” he said. “So, the government should evaluate the foreign operators already engaged and select future ones through open tendering.