DHAKA — The Chattogram Port Authority (CPA) and global port operator DP World today signed a 15-year concession agreement to operate and modernise the New Mooring Container Terminal (NCT), in a major move aimed at increasing the capacity, efficiency and competitiveness of Bangladesh’s principal maritime gateway.

CPA Chairman Rear Admiral SM Moniruzzaman signed the agreement on behalf of the port authority, while DP World Chairman Essa Kazim signed for the international terminal operator at a ceremony at the Invest Bangladesh auditorium.

Shipping Minister Sheikh Rabiul Alam, State Minister for Shipping Md. Rajib Ahsan, UAE Ambassador to Bangladesh Abdulla Ali Al Hamoudi and Invest Bangladesh Chairman Ashik Chowdhury were among those present.

Under the agreement, DP World will operate and manage NCT for an initial 15 years, while ownership of the terminal’s land, core infrastructure and assets will remain with the Chattogram Port Authority and, ultimately, the Bangladesh government.

The concession includes an upfront payment of approximately Tk 600 crore, with 25 percent payable upon signing and the remaining 75 percent due before operations begin. DP World will also invest more than Tk 1,000 crore during the first 10 years to modernise NCT through new equipment, digital technology and operational improvements.

Under the agreement, CPA will receive a share of terminal revenue or royalty ranging from approximately 40 percent to 67 percent per TEU, depending on average terminal revenue. The port authority will also receive a fixed annual fee of around Tk 10 crore.

The agreement sets a minimum annual volume guarantee of 1.23 million TEUs, with the possibility of adjusting the figure to 1 million TEUs once a new terminal becomes operational.

Shipping Minister Sheikh Rabiul Alam said the government aims to rapidly improve the capacity and efficiency of existing strategic assets. He said the introduction of modern equipment, digital systems, international operating standards and global logistics connections would help make NCT more competitive.

The government also plans to engage multiple international operators across port terminals to improve service quality, reliability and supply-chain resilience, he said.

DP World Chairman Essa Kazim said Bangladesh was becoming an increasingly important trading and manufacturing economy and that his company was committed to supporting the country’s development.

Through the partnership, DP World will connect NCT with its global network of ports, logistics infrastructure and supply-chain services, helping establish more efficient links between Bangladesh and international markets, he said.

NCT is one of four dedicated container-handling facilities at Chattogram Port. Since beginning operations in 2007, it has become a key part of Bangladesh’s trade infrastructure and currently handles around 44 percent of the port’s container traffic.

Chattogram Port handles approximately 92 percent of Bangladesh’s foreign trade, making improvements in its efficiency strategically important for the country’s economy. The port, however, continues to face challenges involving container dwell time, vessel turnaround time, equipment performance and overall productivity.

Container dwell time at Chattogram Port and NCT exceeds nine days, compared with less than two days at several peer ports. Vessels also spend more than 2.5 days at the port, while benchmark ports record turnaround times of roughly 15 to 24 hours.

The 2025 Container Port Performance Index ranked Chattogram Port 364th among 400 container ports worldwide. The government estimates that operational inefficiencies and insufficient modernisation cost the economy around Tk 10 crore per day, or more than Tk 3,000 crore annually.

According to World Bank data, reducing container dwell time by one day could increase Bangladesh’s exports by around 7.4 percent.

The concession agreement includes key performance indicators, phased performance targets and financial penalties for failure to meet agreed standards. The targets cover areas including truck turnaround time and crane productivity. If a performance target is missed for three consecutive months, the applicable financial penalty will be triggered.

CPA will continue to oversee terminal operations through monitoring, audits and regular reporting. The agreement requires weekly and monthly reporting on container and vessel handling, revenue and other operational indicators.

The concession does not transfer ownership or sovereign authority over the terminal. Security, customs, immigration and other functions currently performed by Bangladeshi government agencies will remain under national authority.

The agreement also contains provisions covering cybersecurity, data localisation, access control and background screening under government-approved standards.

The DP World agreement is expected to complement the development of the Laldia Container Terminal, the fifth container terminal at Chattogram Port. The Laldia terminal is being developed by Denmark-based APM Terminals and is expected to be ready by 2030.

Invest Bangladesh Chairman Ashik Chowdhury described DP World’s involvement in NCT as an important step toward bringing Bangladesh’s trade operations closer to international standards.

“We want faster operations, stronger connectivity and higher standards at one of our most important trade gateways,” he said.

DP World operates more than 80 marine and inland terminals in over 40 countries, with its network handling around 10 percent of global container traffic. The company has port operating experience in major markets including India, Pakistan, Saudi Arabia, Egypt, the United Kingdom and the United States.

The selection of DP World followed Bangladesh’s government-to-government policy and public-private partnership framework, including prequalification, technical and financial evaluation, due diligence and negotiations.

The process began with in-principle approval from the Cabinet Committee on Economic Affairs on March 23, 2023. The Transaction Structure Report was approved on October 20, 2025, followed by the Request for Proposal on January 8, 2026.

Bids were received on January 25, with negotiations continuing until August 6. The CPA Board approved the arrangement on September 16, followed by final approval from the Cabinet Committee on Economic Affairs on October 1.

The agreement is expected to play a significant role in modernising Chattogram Port, improving cargo handling efficiency and strengthening Bangladesh’s connectivity with international trade and logistics networks.

 

DHAKA — Prime Minister Tarique Rahman has urged global logistics company DP World to expand its investments in Bangladesh, particularly in free trade zones and rail-based inland container depots (ICDs), as the country seeks to strengthen its trade and logistics infrastructure.

The prime minister made the call during a meeting with a delegation from DP World led by Board Chairman Essa Kazim at the Secretariat on Thursday.

According to Prime Minister’s Assistant Press Secretary KM Nazmul Haque, the meeting focused on expanding Bangladesh-UAE trade and investment, developing port and logistics facilities, and exploring opportunities for further cooperation between the two sides.

A major issue discussed was the 15-year concession agreement between Bangladesh and DP World for the operation and modernisation of the Chattogram Container Terminal.

Under the agreement, DP World will operate and maintain the Chattogram Container Terminal along with its overflow container yard. The partnership is expected to contribute to the modernisation of the terminal, improve operational efficiency and strengthen Bangladesh’s overall port and logistics infrastructure.

During the meeting, Prime Minister Tarique Rahman also sought information about DP World’s plans for new investments in Bangladesh, including the development of free trade zones and rail-connected inland container depots.

In response, the DP World delegation expressed interest in cooperation and investment in these areas.

The prime minister also invited DP World and other international investors to explore investment opportunities in Bangladesh.

The discussions also covered potential initiatives to improve Bangladesh’s port infrastructure, expand regional trade connectivity and develop a more modern, efficient and integrated logistics system.

The proposed investments in free trade zones and rail-based ICDs could further connect Bangladesh’s ports with inland industrial and commercial centres, supporting more efficient movement of export and import cargo across the country.