DP World NCT concession sets course for Chittagong upgrade

Summary

Bangladesh’s Chittagong Port Authority has signed a 15-year agreement with DP World to operate New Mooring Container Terminal and its overflow yard. The concession retains public ownership while introducing private operation and modernisation commitments at a major container gateway, following years of negotiations and opposition to the proposed arrangement.

Agreement covers terminal and overflow yard

The DP World NCT concession, signed in Dhaka on 8 October 2026, gives the Dubai-based logistics group responsibility for operating and maintaining New Mooring Container Terminal and its Overflow Container Yard under a public-private partnership. Ownership remains with the Chittagong Port Authority (CPA).

CPA chairman Rear Admiral S. M. Moniruzzaman and DP World executive chairman Essa Kazim signed the agreement, according to the company’s official announcement. Shipping Minister Shaikh Rabiul Alam and senior government and business representatives attended the ceremony.

Bangladesh Sangbad Sangstha reported that the signing took place at the Invest Bangladesh auditorium. The state news agency described the arrangement as a step towards improving the capacity and efficiency of Bangladesh’s principal maritime gateway.

Investment and revenue arrangements

DP World will pay approximately Tk600 crore upfront, with one-quarter payable upon signing and the balance before operations begin. The operator is expected to invest more than Tk1,000 crore during the first decade in equipment, technology and terminal improvements.

CPA will receive a revenue share and a fixed annual fee. It also said the agreement provides for performance indicators, reporting requirements and financial penalties for missed targets, with oversight through monitoring and audits. State agencies will retain their existing security responsibilities.

The investment figures reported locally were not specified in DP World’s announcement. Its stated development programme covers infrastructure, equipment and digital improvements, alongside better berth planning, yard management and maintenance. These are planned measures; the announcement does not establish that the upgrades have already been completed.

A substantial share of container handling

NCT is an established facility with a significant role in Bangladesh’s container trade. Dhaka Tribune reported that it was built in 2007 for approximately Tk2,000 crore and has five jetties. Fourteen of Chittagong Port’s 18 quayside gantry cranes are located there.

The terminal handles more than 40% of the port’s container traffic. Changes to its operating arrangements therefore concern a substantial part of the gateway’s existing activity, rather than merely the development of additional facilities.

Negotiations followed a contested process

The move to appoint an international operator began in 2019. In March 2023, Bangladesh’s Cabinet Committee on Economic Affairs gave in-principle approval for a private international operator under a PPP framework.

The initiative subsequently stalled amid opposition and industrial action before negotiations resumed. The concession’s signing consequently concludes a lengthy selection process, although it does not resolve all objections surrounding foreign operation of the terminal.

Wider port development provides context

The concession comes against a broader effort to improve Bangladesh’s maritime infrastructure. In June 2024, the World Bank approved $650 million for the Bay Terminal Marine Infrastructure Development Project, a separate development intended to improve trade competitiveness and reduce transport costs.

That project includes a six-kilometre climate-resilient breakwater and dredging of the basin and access channels. The World Bank said the proposed terminal would accommodate larger vessels and reduce turnaround times. At the time, it identified Chittagong as the gateway for over 90% of Bangladesh’s international trade volume and 98% of container traffic.

Bangladesh and the World Bank signed the associated financing agreement in April 2025. Bay Terminal concerns new marine infrastructure, while the NCT concession addresses an existing operating terminal. Together, these developments illustrate the country’s parallel pursuit of additional capacity and improvements to established trade gateways.

FAQs

What does the DP World NCT concession cover?

It covers operation and maintenance of New Mooring Container Terminal and its Overflow Container Yard for 15 years.

Will DP World own the terminal?

No. Ownership remains with the Chittagong Port Authority.

Why is NCT important?

It handles more than 40% of Chittagong Port’s container traffic.

Is Bay Terminal part of this agreement?

No. Bay Terminal is a separate infrastructure development supported by World Bank financing.