From Our Staff Correspondent, DHAKA: The government’s decision-making process regarding the long-term lease of the Newmooring Container Terminal (NCT), the heart of Chittagong Port, to Dubai-based global port operator DP World has taken a dramatic turn. Two seemingly contradictory letters sent by the Ministry of Shipping on June 4 (Thursday) have caused a major stir not only among port users but also within the country’s policymaking circles.
Insiders believe that these twin letters are not just a matter of administrative uncoordination. Rather, they represent a complex equation involving the protection of domestic interests, labor unrest, and intense competition among multinational corporations.
The first letter, sent by the Ministry of Shipping on Thursday morning, issued an ultimatum to the Chittagong Port Authority (CPA) to either rapidly conclude the ongoing lease agreement process with DP World or cancel it entirely. However, within a few hours, a second letter sent in the afternoon reversed this stance, directing the authority to keep negotiations open.
Shipping Secretary Md. Jakaria declined to label this as a policy shift. According to him, the first letter was issued based on an observation or opinion from the Public-Private Partnership (PPP) Authority. Later, when the CPA sought clarification, the second letter was dispatched to keep the discussion active.
However, port stakeholders argue that this haste and indecisiveness prove that the government is under immense psychological and strategic pressure regarding the fate of this sensitive terminal, which handles 44 percent of the country’s container volume.
The Big Investment Bait: DP World Eyeing CCT Alongside NCT
In February this year, the former interim government was forced to halt the NCT lease process in the face of labor strikes and intense protests. However, after the new government took charge, DP World placed a new and larger proposal on the table during the fourth meeting of the Bangladesh-Dubai Joint PPP Platform held in Dubai on April 8.
DP World has expressed interest in modernizing and operating both the NCT and its adjacent Chittagong Container Terminal (CCT) as a single “integrated terminal.” They claim that the geographical proximity of the two terminals will make operations highly cost-effective. With this major move, they are desperate to secure the lease agreement in their favor for a period of 15 years.
The Domestic vs. International Corporate Warfare
Parallel to DP World’s attempt to establish exclusive dominance, a fierce commercial competition has emerged behind the scenes. Domestic multinational giant MGH Group and Saudi Arabia’s RSGT, which operates the Patenga Container Terminal, have shown intense interest in joining this lease process. Specifically, MGH Group has submitted a formal proposal to invest $250 million to $300 million to operate both CCT and NCT. They have even claimed to offer $5 more revenue per container than DP World. However, their proposal has not yet been placed on the formal evaluation table.
Local Operators vs. Foreign Dominance
A clear division has surfaced among port users and the business community regarding handing over the control of NCT to foreign hands.
Local operators and a section of businessmen argue that the NCT is a fully functional, modern, and highly profitable terminal. They question the logic of handing over a terminal to a foreign entity when it has recently set a record by handling 1.26 lakh TEUs of containers in a single month under domestic management. In their view, if DP World wishes to invest, they should focus on new mega projects like the Bay Terminal; handing over functional and profitable state assets is against the national interest.
Labor resistance has also intensified. The Sramik Kormochari Oikya Parishad (SKOP) and the Port Protection Council held a press conference at the Chattogram Press Club on May 21, branding the agreement with DP World as “anti-national” and calling for fierce resistance. Earlier in February, their strike completely paralyzed the port, causing significant damage to the country’s import and export sectors.
Conversely, supporters of foreign management, including a section of importers and government policymakers, argue that involving a global giant like DP World will significantly enhance the port’s efficiency, technological standards, and Chittagong’s rating in the international logistics chain.
CPA Active Even on Holidays
Upon receiving the green light from the ministry’s second letter, the Chittagong Port Authority has moved swiftly to finalize the agreement process. Despite last Friday being a weekly holiday, the CPA Chairman’s office sent a letter to the ministry seeking approval to form a 7-member “Evaluation Committee” for final negotiations with DP World. The control of this lifeline of Bangladesh’s international trade now hinges heavily on the report of this committee.
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