Govt hands reins of Ctg port’s New Mooring Terminal to Navy, eyes DP World for long term

The government is moving forward with plans to hand over operations of the New Mooring Container Terminal (NCT) at Chittagong Port to a foreign company, despite opposition from different quarters.

As the current contract with Saif Powertec nears expiry, the Bangladesh Navy is poised to take over the terminal’s operations for a six-month interim period, Shipping Advisor M Sakhawat Hussain said on Wednesday following a meeting with Chittagong Port Authority officials at the Secretariat.

During this time, the government will continue negotiations with Dubai-based DP World before deciding whether to hand over operations to them or another international firm, he added.

On Tuesday, the Advisory Council Committee on Economic Affairs approved a proposal authorising the port authority to appoint an operator. Subsequently, the ministry and the port authority decided to place the Navy in charge for the short term.

“We advised handing it [management duties] over to the Navy, so they’re signing a deal with them. A decision was made yesterday that the Chittagong Port Authority can now appoint an operator at any time,” Sakhawat said.

Saif Powertec, a long-time operator at the port, was often seen as a “beneficiary business” during the previous Awami League government. Beyond the port, the company is involved in various other sectors, including electronics, energy, renewable energy, marketing, and contracting.

“They have worked with us for years. After the main contract expired, we gave them a six-month extension, which ends on Jul 6. We’re not extending it any further as the previous deal was under DPM (direct procurement method),” he said.

“Calling an open tender for just five months is not practical.”

He added that the port authority will now operate the terminal for six months or longer within a defined budget.

“The ministry has authorised them to manage operations and appoint an operator at any time. They’ve chosen to go with the Navy for now, which already has an operator and the necessary technical know-how.”

Rear Admiral Mir Ershad Ali, commander of the Navy’s Chattogram region, has been tasked with overseeing the transition, though he currently heads logistics, not operations.

On Saif Powertec’s personnel, Sakhawat said they will remain employed.

“No jobs will be lost. Everyone will retain their positions, regardless of who runs the terminal. Even the Navy will be supported by Saif’s workforce where necessary.”

On whether DP World would be taking over next, Sakhawat said a foreign operator was likely after the six months.

“It’s too early to confirm details, but the process is ongoing. And frankly, when people say things like ‘foreigners are taking over our port,’ it makes me laugh.”

He continued, “It’s not that we can’t bring in someone other than Saif Powertec or the Navy. If a foreign investor wants to come and invest, why shouldn’t we allow it?

“The port remains under our control. All we’re doing is letting a foreign company do what Saif Powertec used to do.

“Just like we’re giving it to the Navy now, if they’re no longer available, we’ll give it to someone else. If an international firm is interested, we’ll see if it benefits us. Forget what the previous government did. We’re continuing some things, scrapping others.”

Negotiations with DP World are ongoing, according to the advisor. “A transitional advisor has been appointed. They’ll guide the contract process. No deal will be signed that hurts Bangladesh’s interests.”

He also clarified labour policy expectations.

“We’ve told them not to bring in foreign workers. If they need people, they must hire and train Bangladeshis. No subcontracting to other South Asian countries.”

DP World plans a significant investment, including rental of existing equipment and procurement of modern replacements, he added.

“They’ve brought in cranes that can unload two containers simultaneously—we don’t have those. The rail tracks may need upgrading too, to handle these loads. Those investments will be their responsibility.”

Defending DP World’s track record, Sakhawat noted: “They operate 85 ports globally and I’ve seen it in Europe and the US. Have they ever taken over a country’s port? Some local actors have vested interests. DP World’s arrival might jeopardise those interests.”

He added, “You know the kind of extortion that goes on at ports. Even with the outdock, it’s happening. Customs officials too are involved in irregularities. But we are not moving forward blindly. We’re studying the matter thoroughly.”

The advisor believes a deal with DP World would improve Bangladesh’s trade relationship with the UAE. “We have 1.4 million Bangladeshis in Dubai. They’ve said they’ll hire another 400 engineers from here.”

Chattogram Port Authority Chairman Rear Admiral SM Moniruzzaman said DP World will handle operations, not own the port.

“If a company like DP World comes, we’ll see modern ships anchoring here. Most vessels we get now are from 2002 models. Big liner service will be available. That means better efficiency.”

He cited three major benefits - reduced turnaround time as ships will be processed faster, new direct routes to ease reliance on Singapore or Colombo for transshipment and lower costs bringing shipping and container rates down.

“Right now, container costs in this region are the highest. We could reduce them by a third. That will directly benefit consumers,” he said.

According to him, appointing a foreign operator will increase both operational efficiency and financial savings.

“At present, we’re handling around 4,500 to 5,000 TEUs (twenty-foot equivalent units) daily. With these improvements, we might raise that to over 6,000 TEUs,” Moniruzzaman said.