Govt signs 15-year concession deal with DP World to operate NCT
Bangladesh has signed a major Public-Private Partnership (PPP) agreement with Dubai-based global port operator DP World to modernise, manage, and operate the New Mooring Container Terminal (NCT) at Chittagong Port under a 15-year operational concession.
The agreement was signed on Thursday at Invest Bangladesh auditorium at Agargaon in Dhaka in the presence of 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.
Rear Admiral Md. Moniruzzaman, Chairman of CPA, signed the deal on behalf of the port authority while Essa Kazim, Chairman of DP World’s Board of Directors, for the UAE state-owned terminal operator.
Under the agreement, full ownership and regulatory control of the terminal, its land, and underlying infrastructure will remain strictly with the state-run Chittagong Port Authority (CPA) and the Government of Bangladesh.
But the move has drawn strong opposition from port workers and other stakeholders.
According to official project details, the deal involves an upfront fee of approximately Tk 600 crore payable to the government, alongside a commitment by DP World to invest over Tk1,000 crore within the first 10 years for terminal modernisation, heavy equipment procurement, and digital logistics technology.
In addition to the upfront fee, the CPA will receive an annual fixed fee alongside a share of operational revenues generated by the terminal.
The contract establishes key performance indicators (KPIs), regular reporting standards, and financial penalties for missed operational targets.
Existing security protocols will remain under the jurisdiction of the Bangladesh Navy, Coast Guard, Customs, and Immigration authorities.
DP World, which operates over 80 marine and inland terminals across 40 countries and handles nearly 10 percent of global container trade, will also retain local port workers while introducing international training programsme.
Speaking at the signing event, Shipping Minister Shaikh Rabiul Alam said the government is pursuing a strategic policy to engage multiple reputed global operators across key port facilities to foster competition and strengthen supply chain resilience.
"Modern equipment, digital systems, international operating standards, and global logistics connections will make NCT more competitive," Alam added.
DP World Executive Chairman Essa Kazim said the group aims to integrate NCT into its global maritime and logistics network. "Bangladesh is an increasingly important trading and manufacturing economy. By combining our operational expertise, technology, and end-to-end logistics capabilities, we aim to support trade, attract investment, and create new opportunities for businesses across the country."
Invest Bangladesh Chairman Ashik Chowdhury emphasised that bringing in a global leader aligns with the target of moving trade at "global speed," reducing turnaround times at Bangladesh's prime maritime gateway.
The move comes against the backdrop of persistent logistics bottlenecks at Chattogram Port which handles roughly 92 percent of Bangladesh's sea-borne foreign trade.
In the 2025 Container Port Performance Index (CPPI) published by the World Bank and S&P Global, Chattogram Port ranked 364th out of 400 container ports worldwide due to long dwell times and slow vessel turnaround.
NCT, which began operations in 2007 and features five berths, is the largest of Chattogram Port's four operational container facilities, handling approximately 44 percent of the port's total container traffic.
Since July, 2025, the facility has been managed on an interim basis by Chittagong Dry Dock Limited (CDDL), an entity under the Bangladesh Navy.
Currently, average container dwell time at NCT exceeds nine days—compared to less than two days in benchmark regional ports. Ships spend more than 2.5 days at berth, compared to 15 to 24 hours at modern facilities.
Industry data estimates that operational inefficiencies cost the national economy approximately Tk 10 crore per day (over BDT 3,000 crore annually). World Bank studies indicate that reducing container dwell time at Chattogram Port by just one day could boost Bangladesh's exports by up to 7.4 percent.
DP World joins Saudi Arabia's Red Sea Gateway Terminal (RSGT)—which currently operates the Patenga Container Terminal (PCT)—as the second foreign operator handed terminal management rights at Chittagong Port.
Meanwhile, Denmark’s APM Terminals is developing a fifth facility, Laldia Container Terminal (LCT), which is scheduled for completion by 2030.
Source: UNB