Two letters carrying different messages on the same issue were sent on the same day regarding the lease of the New Mooring Container Terminal (NCT), the most important terminal at Chittagong Port. The two letters, both issued by the Ministry of Shipping, have once again brought the NCT lease issue into the spotlight.
In a letter sent to Chittagong Port on Thursday morning, the Ministry of Shipping instructed that the process of leasing NCT to Dubai-based port operator DP World should either be concluded quickly or cancelled. However, another letter sent later the same afternoon directed the port authority to continue discussions with DP World. As a result, the issue of leasing the terminal has returned to public debate.
The NCT leasing process, which had been suspended toward the end of the interim government, was revived under the new government. The contradictory directives have raised fresh questions both inside and outside the port about the government''s actual position on NCT.
Asked about the two letters, Shipping Secretary Zakaria told Prothom Alo on Saturday morning that negotiations with DP World are continuing.
Regarding the first letter, the secretary said that an opinion had been sought from the Public-Private Partnership (PPP) Authority. Based on that opinion, the first letter was issued to facilitate further action. When the port authority subsequently sought clarification, a second letter was sent instructing that negotiations continue. According to him, there has been no change in policy and discussions with DP World remain ongoing.
The day after receiving the ministry’s letters, the port authority issued a letter on Friday—even though it was a holiday—forming an evaluation committee to complete the negotiation process. The letter requested ministry approval for a seven-member evaluation committee.
The port’s most important terminal
Among Chittagong Port’s four operational container terminals, NCT is by far the largest. Last year, 44 per cent of all containers handled at the port passed through this terminal.
Regardless of whether discussions with DP World continue, the terminal’s current operations have not been negatively affected. Since 7 July 2024, Chittagong Dry Dock Limited (CDDL), an enterprise of the Bangladesh Navy, has been operating the terminal and has consistently set new records in container handling.
For example, in May, CDDL handled 126,000 twenty-foot equivalent containers (TEUs), surpassing all previous records. Before that, a local private company had operated the terminal.
How it started and where it stands now
During the tenure of the Awami League government, which was later removed from power through the mass uprising, an initiative was taken to lease NCT to DP World on a long-term basis under both the Public-Private Partnership (PPP) and Government-to-Government (G2G) frameworks. However, the lengthy process could not be completed before the change of government.
The initiative gained momentum during the interim government and reached the final stage—negotiations. But objections from members of the negotiating committee on various issues, coupled with labor unrest and protests surrounding DP World, complicated the situation. Ultimately, on 9 February, the interim government suspended the NCT leasing process.
After the new government assumed office, the issue resurfaced at the fourth meeting of the Bangladesh-Dubai Joint Public-Private Partnership Platform on 8 April. There, DP World proposed not only operating NCT but also combining it with the adjacent Chittagong Container Terminal (CCT) into an integrated terminal operation.
The story behind the two letters
On 29 April, the port authority sought the opinion of the PPP Authority regarding the government’s decision on DP World’s proposal.
In response, the PPP Authority stated that the port authority and the Ministry of Shipping could either proceed with the ongoing negotiations or cancel the process altogether.
Based on this opinion, the Ministry of Shipping issued the first letter on Thursday. However, a second letter issued later the same day instructed the port authority to continue discussions with DP World. Naturally, this raised questions about why the government''s position appeared to shift within such a short period.
Attempts to contact Ashik Chowdhury, Chief Executive Officer of the Bangladesh PPP Authority, for comment were unsuccessful as he did not answer phone calls.
Officials from the Ministry of Shipping nevertheless maintain that the government’s position has not changed. The decision to continue negotiations remains in effect.
MGH Group’s proposal
Although discussions with DP World are ongoing, local multinational company MGH Group has also submitted a proposal to operate NCT.
The company claims it could provide the port with an additional USD 5 in revenue per container compared with DP World’s offer. However, MGH’s proposal has not yet reached the stage of formal consideration.
Two officials from the Ministry of Shipping and the port authority told Prothom Alo that because the process with DP World remains active, there is currently no scope to consider new proposals. If negotiations fail to produce an agreement, a new tender process will be launched, at which point proposals from both domestic and international firms could be evaluated.
Now, two distinct positions have emerged regarding NCT.
Domestic port operators argue that there is no need to hand over a profitable and fully operational terminal to a foreign company. In their view, foreign investment and management could instead be directed toward new projects such as the Bay Terminal.
On the other hand, part of the policymaking establishment continues to support advancing negotiations with DP World. Their argument is that international expertise and investment would enhance the port’s competitiveness.
The central question therefore remains that will the record-setting NCT remain under domestic management, or will it be leased long-term to DP World? The answer will help determine the future direction of Chittagong Port.