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Chittagong Drydock Ltd, a company run by the Bangladesh Navy, has taken over management of the New Mooring Terminal (NCT), the most important one at Chittagong Port, for the next six months.
The Chittagong Port Authority said the company assumed responsibility for the terminal from midnight on Sunday. The state-owned company will to oversee operations at the terminal until the next operator is appointed.
Port officials said Chittagong Drydock Limited has been handed the work under the Direct Procurement Method (DPM), reports bdnews24.com.
Previously, private firm Saif Powertec had been operating the NCT for a long time. The Chittagong Port's contract with the company expired on Sunday, and the interim government opted against extending their contract.
Instead, authorities moved ahead with plans to appoint a foreign operator.
The name of Dubai-based DP World has emerged once again in discussions around the permanent appointment, though a final decision is still pending.
In the meantime, preparations began for temporary management of the NCT.
Later, Shipping Advisor M Sakhawat Hussain said Bangladesh Navy would temporarily to take charge of the terminal’s operations.
Chittagong Port Secretary Omar Faruk said, "Saif Powertec will no longer be managing the NCT. Drydock has taken over the responsibility of managing NCT from Sunday midnight after their term ended. They (Drydock) will operate it under the management of the Navy."
“The workers and employees who worked with the previous operator will remain with the NCT management. The terminal will operate as it has before. Only the management has changed.”
Omar said formalities surrounding a work order will be completed soon. “All operational activities will continue as before. This agreement will be signed soon.”
The NCT is the largest of the four container terminals at Chittagong Port. Four of the terminal's five jetties handle large container ships, while the other jetty handles smaller ships operating in the inland waterways.
Most of the containers in the port are handled at the NCT. At least 44 percent of container handling was done at the NCT in 2024.
The construction of five NCT jetties started in February 2004 with the port's own funds and was completed in December 2007. The port spent Tk 4.69 billion on the project.
Two years later, a tender was floated to appoint a foreign operator to run the NCT on the condition of investing in equipment. Different foreign companies expressed their interest but the Chittagong Port Authority later cancelled the tender.
Another tender was issued in 2012 to operate the terminal. Then, in the name of amending the tender, several companies were included. However, progress on the work stalled due to a lawsuit. After a lengthy legal process, on Jun 25, 2015, Saif Powertec and its two partner companies signed an agreement with the port authority to operate Jetties No. 4 and 5 of the NCT.
On Sept 23 of the same year, Saif Powertec signed an agreement with the port to operate jetties No. 2 and 3 of NCT. The company was awarded the responsibility of operating the NCT for two years through a tender. Container handling work at the NCT was officially inaugurated on Oct 17, 2015.
Afterwards, no more tenders were called for operating the NCT. Saif Powertec had been operating NCT terminals for six-month terms under the Direct Purchase Method (DPM).
Saif Powertec was awarded 12 consecutive short-term contracts under DPM, including the latest six-month term that ended this week.
As of 2023, the Chittagong Port Authority had spent about Tk 20 billion to purchase various equipment, including key gantry cranes and rubber-tied gantry cranes to operate the NCT. It has a capacity of handling 1 million single containers per annum. In 2024, local private operators had handled more than 1.2 million single containers at NCT.
During the Awami League government, a policy decision was made to hand over the responsibility of operating the NCT to a foreign operator. It was then that the name of United Arab Emirates-based DP World was proposed to operate the NCT. After the Awami League government fell on Aug 5 last year, the interim government took over.
Like the Sheikh Hasina administration, the interim government also expressed interest in appointing a foreign operator to run the NCT. The name of DP World surfaced in discussions this time as well. After the government shared its stance on the matter, it drew flak from different quarters. Various organisations began to protest against the idea of foreign companies running the NCT.
Chittagong Port Secretary Omar Faruk said that Drydock will operate the NCT for six months or until a new operator is appointed later.