Bangladesh, DP World Set to Sign 15-Year NCT Operations Agreement

Bangladesh and the United Arab Emirates are set to sign a 15-year agreement today for the operation and maintenance of the New Mooring Container Terminal (NCT) and its overflow container yard at Chattogram Port.

The agreement will transfer terminal operations to DP World under a government-to-government arrangement, while ownership and overall control of the facility will remain with the Chattogram Port Authority (CPA).

Built in 2007 at a cost of around Tk 2,000 crore, NCT has five jetties and 14 of Chattogram Port’s 18 quayside gantry cranes. The terminal handles more than 40 percent of the port’s container throughput.

The agreement comes amid opposition from groups representing sections of the local port community. The Chattogram Bandar Rokkha Committee staged a sit-in outside the Port Building on October 5 and has warned of a halt to port operations if the agreement with the foreign operator is finalised.

NCT was previously operated by Saif Powertec Limited. Following the expiry of its contract on July 6 last year, operations were transferred the next day to Chittagong Dry Dock, an entity operated by the Bangladesh Navy.

“We expect the agreement to create new opportunities for businesses and help them expand,” said Shipping Secretary Md Zakaria.

The government expects the involvement of an international terminal operator to reduce vessel turnaround and container dwell times and lower logistics costs for importers and exporters. It has identified industries including garments, agricultural products, processed goods and light engineering as potential beneficiaries.

Worker Protection and Training

Concerns have also been raised about the impact of the agreement on existing workers.

According to a summary of the agreement seen by The Daily Star, no existing worker will be laid off. Workers will be integrated into the new operating system, while their wages and benefits will remain unchanged.

The government also expects workers to receive training in modern terminal management and technology, which could support the development of additional employment opportunities.

DP World, which is wholly owned by the Dubai government, will operate NCT for 15 years and be responsible for maintenance and repairs of terminal equipment.

At the end of the concession period, the terminal will be returned to CPA along with the technology and technical knowledge required for continued operations.

Investment and Revenue-Sharing Structure

A feasibility study estimated the project cost at $205 million. Under the agreement, DP World is expected to invest around $150 million during the concession period in terminal modernisation, equipment upgrades and technology improvements.

CPA will receive between 40 percent and 67 percent of royalty or revenue per TEU, with the applicable share linked to the terminal’s average income, according to the agreement summary.

The Chattogram Bandar Rokkha Sangram Parishad has claimed that NCT generated around Tk 4,500 crore in revenue and Tk 2,500 crore in net income during fiscal 2025-26.

Performance Targets for NCT

The agreement includes operational performance indicators for the terminal. These include gradually reducing truck turnaround time to 90 minutes, improving crane productivity from the second year of operations and introducing paperless processes through automation.

The proposed operating structure follows a landlord-port model. CPA will retain ownership and control of the terminal, while DP World will manage day-to-day operations, maintenance and equipment repairs.

International Operator Selection Process

The process of appointing an international operator for NCT began in 2019.

The Cabinet Committee on Economic Affairs granted in-principle approval in March 2023 to appoint an international private operator under the public-private partnership framework.

The interim government subsequently revived the process and selected DP World, but negotiations were delayed following opposition to the proposal and a workers’ strike earlier this year.

The new government later resumed negotiations, leading to the agreement scheduled for signing today.