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[🇧🇩] Sea Ports/Air Ports/River Ports/Bridges/Mega Projects
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More threads by Saif

Their corrupt bribe money is now in questions, so "Eid ke baad andolon".
I am for giving the responsibility of Chittagong port operation to a well known foreign company so that our port operators become more efficient and become less corrupt.
 
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NEW MOORING CONTAINER TERMINAL (NCT)
Local management to operate for 6 months before foreign handover
Economic Affairs Committee decides temporary arrangement


FE REPORT
Published :
Jul 02, 2025 00:22
Updated :
Jul 02, 2025 00:22

The New Mooring Container Terminal (NCT) of Chattogram Port will remain under local management for 6 months before being handed over to foreign operators.

This policy decision was approved at a meeting of the Economic Affairs Advisory Council Committee on Tuesday.

Briefing the media after the meeting, Finance Adviser Dr. Salehuddin Ahmed confirmed the temporary local management arrangement, which precedes the planned foreign handover.

Retired Brigadier General Sakhawat Hossain, Adviser of the Ministries of Shipping, Labour and Employment, said that the final decision on the entity to be entrusted with managing Chattogram Port will be taken at a meeting of the Ministry of Shipping today.

According to ministry sources, the upcoming operator will be selected through a direct procurement method, bypassing any open tender process. The temporary arrangement will be valid for six months.

For the past 17 years, NCT has been operated by a local private entity, Saif Powertec Limited. The company's contract is set to expire on July 6.

Sources within the Ministry of Shipping indicated that from July 7, the Bangladesh Navy is expected to take over operations of the terminal, with logistical and administrative support from the Chattogram Port Authority (CPA).

NCT is the country's largest container terminal, comprising five jetties capable of accommodating four seagoing vessels and one inland vessel simultaneously. It handles a significant volume of the country's containerised cargo.

Earlier at a meeting on June 18, the Ministry of Shipping had decided that the CPA would operate the terminal directly and submitted a proposal seeking government approval for Tk 420 million. However, the port authorities later reversed this decision.

A follow-up meeting on Saturday between the Shipping Adviser and CPA officials, held at the port building's conference room, resulted in a revised policy decision to assign operational responsibility to the Navy, supported by the CPA.

The process of handing over NCT to foreign operators began under the previous Awami League-led government, with Dubai-based DP World identified as the intended operator. The current interim government is continuing with that process.

A formal agreement with DP World is expected to be signed by November. The International Finance Corporation (IFC), a member of the World Bank Group, is acting as the transaction adviser and intermediary on behalf of the Bangladesh government. Until the agreement is finalised, the Bangladesh Navy is likely to continue operating the terminal under the interim arrangement.​
 
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Navy Chief visits New Mooring Container Terminal at Ctg port

BSS
Published :
Jul 09, 2025 20:42
Updated :
Jul 09, 2025 20:42

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Chief of Naval Staff Admiral M Nazmul Hassan on Wednesday inspected the activities of the New Mooring Container Terminal at Chattogram Port.

With the active participation of naval personnel, country’s development activities continue in addition to ensuring national security. In continuation of this, the Chief of the Bangladesh Navy inspected the activities of the New Mooring Container Terminal at Chattogram Port, said an ISPR press release.

During the visit, he inspected the container handling activities at NCT-2 JT area, container handling activities at the appraise point and terminal operation system activities at CTMS building.

He also provided necessary directives to the officers and members of Chattogram Dry Dock Limited working at NCT and all those related to the port activities for the management of the port activities.

The commander of Chattogram naval region, chairman of Chattogram Port Authority and MD of Chittagong Dry Dock Limited and other senior military and civilian officials were present, it said.

It is mentionable that the Chattogram Port Authority handed over the responsibility of operating the NCT of the Chattogram Port to Chattogram Dry Dock Limited on Monday.

The Navy Chief hoped that the Chattogram Dry Dock Limited taking take over the responsibility of the NCT will further accelerate the activities of the port by increasing discipline, punctuality and efficiency in the port’s activities.

If the rapid movement and transportation of goods is ensured through proper port management, the country’s import-export process will be dynamic, which will play a direct role in the country’s economy, he said.

He also hoped that if the overall performance of the port increases through efficient management, it will increase the confidence of foreign investors and play an important role in the progress of the national economy.​
 
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Container handling rises at New Mooring terminal after Navy takeover

1752453590415.webp

Star file photo

Container handling at the New Mooring Container Terminal (NCT) of Chattogram Port increased in the first week of operational management by Chittagong Dry Dock Limited (CDDL), Bangladesh's sole dry dock currently operating under the Bangladesh Navy.

The CDDL started running the NCT at the country's largest port from July 7.

Until yesterday, the terminal recorded an average of 3,181 twenty-foot equivalent units (TEUs) handled per day, compared to 2,956 TEUs daily during the previous seven days when the terminal was managed by Saif Powertec Ltd, according to a statement issued by the Chief Adviser's office.

This marks an increase of 8 percent, or 225 TEUs per day, reflecting a positive improvement in efficiency and performance, it states..

The NCT terminal had long been operated by Saif Powertec. Upon the expiration of its contract with Chittagong Port on July 6 this year, the shipping ministry approved the handover of operational responsibility to CDDL, effective from July 7.

"Since the transition, the terminal has shown improved coordination and operational discipline."

Between July 7 and July 13, container loading and unloading of 10 vessels was successfully completed, and currently, four vessels are being handled simultaneously at the four berths of the NCT.

Saif Powertec had been running Chattogram Port's two terminals – Chittagong Container Terminal (CCT) and NCT – since their inception.

The NCT opened for operations in 2007. Saif Powertec initially operated two of the NCT's jetties on an ad hoc basis. In 2015, it was directly appointed by the CPA to operate four jetties.

The terminal remained underutilised for eight years following its construction due to a lack of necessary equipment. By 2022, the CPA had completed purchasing and installing the key equipment — quayside gantry cranes.

The NCT handled 38.5 percent of a total of 32.75 lakh TEUs of containers that passed through Chattogram Port in 2024, according to official data.​
 
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EXPORTERS FEAR FRESH BLOW TO INDUSTRY, TRADE
Outbound container-handling charges set to surge 81pc


Syful Islam
Published :
Jul 21, 2025 00:24
Updated :
Jul 21, 2025 00:24

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Container-depot owners have announced a steep hike in charges of outbound goods-laden box handling up to 81 per cent which exporters term a fresh blow amid troubling reciprocal- tariff tussle with the United States.

Bangladesh Inland Container Depots Association (BICDA) has also declared the charge hike in case of handling empty cargo boxes and some other services they provide.

A circular issued by the BICDA says the hiked charges will be effective from September-in what comes as a double bind with a 35-percent additional US tariff on Bangladeshi exports possibly taking effect on August 01.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the top user of the off-docks, says the move to raise charges will create a big pressure on the export-oriented industry.

The BICDA in its circular has said the investment cost of the Inland Container Depots (ICDs) has increased "so significantly" that capacity expansion of depots "has become very difficult".

"Similarly, the new ICDs are also struggling to attain financial viability and achieve full operational capability," says BICDA Secretary-General Ruhul Amin Sikder.

He says against the backdrop of significant operational and investment cost escalations, considerable increase in labour costs, increase in equipment import/purchase and maintenance costs, devaluation of the taka against the US dollar, sharp increase in overhead costs due to massive inflationary pressures, and increasing bank interest rates, BICDA has reviewed upward the empty-container-handling charges and export-cargo-handling charges.

According to the circular, from September 01, the ICDs will realise Tk 9,900 as handling charge for a 20-foot goods-laden export container, accounting for a 60-percent rise from the existing rate of Tk 6,187.

For a 40-foot container, the revised charge will be Tk 13,200 in a rise from the existing charge of Tk 8,250. The revised charge will go up by 81 per cent to Tk 14,900 from the present cost of Tk 8,250 in case of a 40-foot-high cube container and 45-foot container.

In case of empty boxes, the BICDA says, ground rate for a 20-foot container will increase from Tk 115 to Tk 150 while for 40-foot container it will go up from Tk 230 to Tk 300. Their lift-on/lift-off charges will be Tk 750 and Tk 700 respectively from the existing Tk 512.

The documentation charge will be increased to Tk 450 from existing Tk 276 for both 20-foot and 40-foot boxes.

The haulage charge will increase to Tk 2,500 from Tk 1,705 in case of 20-foot boxes while for 40-foot boxes the charge will rise to Tk 5,000 from existing Tk 3,410.

Also, BICDA is bent on raising CFS storage charges, labour charge, sorting charge, and reefer plug-in charge, among others.

Inamul Haq Khan, senior vice president, BGMEA, told the FE that depot owners were unexpectedly raising charges without discussing that with the main users of their facilities.

"They should have discussed with us whether we can absorb the higher charges or not."

Because, he says, if charges go up all of a sudden, it will create a big pressure on the export- oriented sector that is poised to face a tariff wall on the single-largest export market-the United States.

Mr Khan mentions that already there is another move to raise charges by the port authority.

"Our capability is getting reduced gradually," he says, adding that exporters are already under pressure over the proposed reciprocal tariff by the United States. "That is a matter of survival for us."

He laments it will be a "bad timing" for the industry as the depot association is raising charge when all are engaged with the United States in tariff negotiation.

Syed Mohammad Arif, Chairman, Bangladesh Shipping Agents' Association (BSAA), echoes the industry concern.

He says in the past, the depots had handled containers carrying only 38 items which now increased to 65 items, nearly doubled, which means they will make good business.

"This is not an appropriate time for them to increase charges when their business is growing. They should reconsider it now," he opines.

Mr Arif explains that ultimately, the charge will fall on export-import business of the country. "When tariff goes up, the principal would not bear it, rather they will realise it from exporters and importers that means from product prices."

On a greater note of concern, he says, "If the different authorities raise charges at once, none will be able to do business in Bangladesh."

And goods prices will go beyond the reach of all.​
 
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ICDs' handling charge hike to affect export trade

SYED FATAHUL ALIM
Published :
Jul 24, 2025 23:48
Updated :
Jul 24, 2025 23:48

1753402078768.webp

A view of inland container depot at Kamalapur Railway station —FE File Photo

Bangladesh's external trade, especially export, is now up against the wall and the factors behind this are of both domestic and international origin. At a time, when the government's ongoing talks with the current Trump administration of the US, which has imposed a 35 per cent reciprocal tariff on its import of Bangladesh-origin products are in an uncertain territory, the Internal Container Depot (ICD) owners have unilaterally decided to hike up export cargo handling charges to be effective, according to reports, from September 1.

This development adds a new layer of complication to an already fragile trade environment, where exporters are reeling under the pressure of increasing global competition, trade policy uncertainties and sluggish post-pandemic recovery in demand.

The timing of this enhanced export container handling fees does not seem to be sensitive to the difficulties the country's export trade is at the moment faced with. For, the Bangladesh Inland Container Depot Association (BICDA)'s announcement of enhanced handling fees might further contribute to compromising the competitive edge of the Readymade Garment (RMG), the largest export industry of Bangladesh, in the global market. Given the RMG sector's high sensitivity to cost fluctuations, any increase in logistics-related expenses could erode already thin profit margins and weaken Bangladesh's position against rival exporting countries such as Vietnam, India and Cambodia.

In fact, the ICDs, also known as off-docks, which are located in and around the port city, handle 90 per cent of the total export goods by stuffing those into containers before their shipment through the Chattogram port. Also, close to a quarter of the import containers are sent from the port to these ICDs wherefrom the import goods are delivered.

So, the positive role played by the ICDs in the country's external trade cannot be overstated. Even so, its decisions to raise container handling charges, often, like this time, made without holding prior consultations with the stakeholders including the ministry of shipping, on various pretexts including fuel prices, labour costs, equipment maintenance, devaluation of the Bangladesh Taka (BDT) against the US dollar (USD), rising bank interest rates, overall inflationary pressure and so on, have led to heightened concerns among the exporters particularly those in the RMG sector. Such unilateral pricing strategies not only disrupt budgeting and planning for exporters but also risk triggering a domino effect throughout the export supply chain - from subcontractors and freight forwarders to international buyers already wary of price hikes.

This time, too, the BICDA's tariff hike on export cargo handling will see a 36 per cent to 44 per cent increase in handing fees compared to the existing rates. Also, the handling charges for the empty containers are going to be enhanced by 31.8 per cent. However, the import cargo containers have been spared any handling tariff hike this time around. The apex body of the Bangladesh's readymade garment manufacturers and exporters, the BGMEA, says, BICDA's decision will create a big pressure on the export-oriented industry. The BGMEA has further urged the authorities to consider temporary relief or subsidies to offset the burden on exporters, especially small and medium enterprises that lack the resilience to absorb cost shocks.

Notably, some days back, the Chattogram Port Authority (CPA) itself proposed a raise in its tariffs by 70 per cent to 100 per cent across 50 service categories. But the CPA's proposal, too, could not come at a worse time, when the export sector, particularly the apparel industry was struggling against rising global headwinds that include soaring energy costs, supply chain disruptions, harsher compliance conditions and falling demands in the overseas markets, mainly in Europe and North America. The convergence of domestic cost escalations and global market contractions is squeezing exporters from both ends, raising serious concerns about long-term sustainability.

Now, as if to rub salt to the wound, the BICDA has now come up with a declaration of raised cargo handling fees on the grounds that the investment costs of their depots have risen so significantly that their capacity for expansion has become difficult. They also complained that their new ICDs are in financial straits affecting their operational viability. So, to keep those ICDs viable, exporters will have to pay, for instance, at a 60 per cent higher rate for handling a 20-foot goods-laden container and at a 81 per cent higher rate for the 40-foot-high cube containers and 45-foot containers. Other types of cargo handling fees are also going to experience similar raises. Such a unilateral decision to burden exporters with additional costs risks undermining the entire trade ecosystem. The BICDA should have taken a collaborative approach before announcing the hike.

In these circumstances, the government needs to intervene so that any decision on container handling charge hike is made through concurrence of all the stakeholders involved. Last but not least, before going for any fresh service charge hike, ICD operators should consider the overall state of the export trade, which is now in a struggle for survival.​
 
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Export-import goods, shipping vessels to count higher charges
Ctg port tariffs poised for steep rise
Govt okays jacked-up rates, some up to 10 times higher


Syful Islam
Published :
Jul 24, 2025 23:45
Updated :
Jul 24, 2025 23:45

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Bangladesh's external trade is set to get costlier as the government Thursday approved a proposal for increasing tariffs on both goods and vessels at Chittagong seaport, in some cases up to 10 times or above, officials said.

The ministry of finance gave the all-clear to the proposal submitted by the ministry of shipping for taking measures for "improving the quality of services and efficiency" at the country's prime seaport.

Chittagong Port Authority officials say the port-use tariffs have not been increased since 1986. However, it was found that tariffs for five services saw upward revision last time in May 2008.

The port users sharply reacted to the charge hike at a time when export to the United States is "under threat" from a steep 35-percent reciprocal tariff imposed by the Trump administration in addition to the existing 15 per cent.

Under the revised charges, as just approved, port dues per gross register tonnage (GRT) have been increased from $0.241 to $0.306 while pilotage charge (for 10,000 GRT vessel) incised from $357.75 to $800. The shifting charge for night has been raised from $59.60 to $80.

The tugboat charge for 200 GRT to 1000 GRT has been ramped up from $158 to $615, for 1000 GRT to 5000 GRT from $316 to $615, for 5000 GRT to 10000 GRT from $632 to $1230.

For the vessels over 10000 GRT to 20,000 GRT tug charge is re-fixed $2050 and over 20,000 GRT the charge will be $3415.

The rate for the hire of tugboat for any other purpose is increased from $158 to $512.50, ship berthing or un-berthing charge increases from $88.50 to $94.32 and mooring- occupancy charge raised from $167 to $224.85.

Also, the jetty crane charges for below-10-tonne capacity has been increased from $42 to $58.24, quay gantry-crane charge (loaded), not exceeding 21-foot, increased from $15 to $20.80, and over-21-foot-crane charge increased from $22.50 to $31.20.

The tugboat cost for fire fighting is to see over tenfold increase in the latest revision-from $30 to $325.89.

Diving-board charge increases from $178.60 to $286.21, hire for salvage-diving unit shoots up from $71.50 to $344.59, dredger rentals increase from between $2235 and $4470 to $10,281.

Entry fees for people and vehicles are also to see a significant rise. A gate pass (temporary) for one user will now cost Tk 100 in a rise from previous Tk 25 while covered van, truck, and trailer-entry charge will go up to Tk 200 from Tk 12.5.

In the multipronged rate-rise package, the port authority is raising charge for hiring dump barges from $41.70 to $68.37 while the same for explosives barges will be from $59 in the past to $98 now.

The charges for loading or discharging containers are also seeing a good rise. Boxes not over 21 feet will be charged $68 from previous $43, while boxes over 21-foot size will be charged $102 from previous $65, and over 40-foot containers will be charged $115.

The Less-than-Container Load (LCL) containers loading or discharging charge-for not over 21-foot size-will be $204 from $130, for over 21 feet will be $306 from $195, while over 40-foot containers will be charged $344.

Empty containers-not over 21-foot size-will be charged $34 in a hike from the present $22.10, over 21-foot boxes will be charged $51 from current $33.20, and the over 40-foot containers will be charged $57 for loading or discharging.

Rakibul Alam Chowdhury, a former vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), sees the government move to increase port charges as "illogical" as no exporter would be able to absorb this additional cost.

"Without any consultation with port users and without any improvement in service quality, the hike in service charges cannot be considered business-friendly," he told the FE, in an instant reaction.

Mr Chowdhury questions how the entrepreneurs would be able to run their businesses or make new investments amid such "policy and infrastructure uncertainty".​
 
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Port needs global operator for efficiency boost: Sakhawat

bdnews24.com
Published :
Jul 25, 2025 20:05
Updated :
Jul 25, 2025 20:05

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Shipping Advisor M Sakhawat Hussain has said Bangladesh is “lagging behind” in global port operations and must bring in international operators to raise efficiency.

On Friday, he visited the New Mooring Container Terminal (NCT) in Chattogram, where he assessed its operations and highlighted the need for international involvement to “improve” performance.

He said that while current efforts have yielded some results, they are not enough to match the standards set by ports in countries such as Singapore and the United Kingdom.

According to Sakhawat, foreign operators can bring in the advanced technology and management systems that Bangladesh lacks, and without them, port performance will remain “limited”.

“A port only enters the international arena when a foreign operator is appointed,” he said.

He noted that the NCT had been operated by Saif Powertec Limited for nearly 18 years, and acknowledged their contribution.

The advisor, however, said the interim government is now aiming for higher efficiency through changes in management.

“No one stays in place permanently. Everyone is eventually replaced, so they too deserve appreciation,” he said.

On Jul 7, Chattogram Dry Dock Ltd, a state-owned enterprise under the Bangladesh Navy, took over the NCT operations on an interim basis for six months.

Plans are under discussion to hand over the terminal to Dubai-based DP World through international bidding.

Since the takeover, container handling at the NCT has increased by 30 percent, said Sakhawat.

He expressed confidence that the trend would continue under the next operator.

On the issue of port tariffs, he said: “The ministry has not raised the tariffs unilaterally. Inter-ministerial discussions have taken place, and talks have been held with port users.

“The hike has been made after consultations with all sides. Even now, compared with many of the world’s major ports, Chattogram’s tariffs remain significantly lower.”

Rear Admiral Mir Ershad Ali, commander of the Chattogram Naval Area, said: “In the 17 days since Dry Dock took over the NCT, the average turnaround time for ships has dropped by 10 hours, and container handling has increased by 30 percent.”​
 
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Teesta Bridge to cut Gaibandha-Dhaka distance by 135kms
The bridge will be opened for use on Aug 2

OUR CORRESPONDENT
Published :
Jul 25, 2025 10:20
Updated :
Jul 25, 2025 10:20

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Construction work of the Teesta Bridge, much-awaited by the residents of Gaibandha and Kurigram district, has already been completed with the installation of 32 spans.

The infrastructure of the bridge is now visible, and this is the biggest bridge constructed by the Local Government Engineering Department (LGED) in the country.

It will be opened for the use of people of the two districts on August 2.

The much-hyped Teesta Bridge covers the Haripur side in Sundarganj upazila of Gaibandha district and Chilmari upazila of Kurigram district.

The total length of the bridge is 1,490 metres, and all its

32 spans have been installed.

With the completion of the Teesta Bridge, millions of people of the region are beaming with new hopes and aspirations.

After the bridge is opened, especially from Kurigram, Chilmari, Bhurungamari, Nageshwari and Ulipur, the distance with Dhaka by road will reduce by about 135 kilometres.

Along with the bridge construction, river management over an area of about 3.5 kilometres is being done on both sides.

A total of 86 kilometres of connecting roads have been built on both sides of the bridge. This will prevent river erosion on one side and, at the same time, will create new employment opportunities for people on both sides.

According to the Gaibandha LGED office, the foundation stone of the bridge was laid on January 26, 2014.

But due to some complications, the construction work was started later in 2021.

The construction cost of the bridge was estimated at Tk7.3085 billion (Tk730.85 crore).

Gaibandha LGED Executive Engineer Ujjal Chowdhury told the Financial Express that the Haripur-Kurigram Chilmari bridge in Gaibandha's Sundarganj has been built by the LGED.

The bridge will simplify communication for businesses in the region.​
 
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Poor timing for port fee hike

FE
Published :
Jul 26, 2025 22:35
Updated :
Jul 26, 2025 22:35

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The decision to sharply increase tariffs at Chittagong port, Bangladesh's primary gateway for external trade, could hardly have come at a worse time. Amid an economic downturn, falling export demand and the looming threat of a 35 per cent additional duty on Bangladeshi goods entering the United Statesm, this sweeping hike in port charges threatens to push already beleaguered export-oriented businesses to the brink. According to the newly approved tariff structure, charges on more than 50 categories of services including pilotage, berthing, mooring, loading and unloading, crane use, diving, dredging and entry fees are set to rise significantly, some of them by more than tenfold. Port dues, for example, will jump by over 25 per cent, while the cost of fire-fighting tugboat is set to soar to levels many times higher than before. Charges for loading or unloading containers will climb by nearly 60 per cent across all sizes. Even basic gate pass fees for vehicles and individuals will quadruple.

This escalation, reportedly based on recommendations from a foreign consultancy firm, is being marketed as a step towards aligning with international standards and improving service efficiency. A tariff structure that was created four decades ago is undoubtedly out of date for a contemporary maritime economy, and while it makes sense to rationalise fees to reflect growing operational costs and modernisation needs, such changes must take into consideration the ground realities. Chittagong port remains far from world-class in terms of turnaround time, automation, digital tracking and labour productivity. Crucially, no tangible improvements in infrastructure, service quality or operational efficiency have preceded this hike. Yet, businesses are being asked to pay more for the same subpar services at a time when their profit margins are already under intense pressure. All things considered, this is perhaps the worst possible time to demand premium prices for substandard services.

Concern is mounting among exporters that the increased port charges will seriously erode Bangladesh's competitiveness, particularly in the readymade garments sector which brings in over 80 per cent of the country's export earnings. Global buyers are already shifting orders due to rising production costs, intensified competition and labour unrest. In this context, any additional increase in shipment expenses could be the final nail in the coffin for many exporters. Since logistics costs are either passed on to consumers or absorbed by exporters, the new tariffs will likely translate into higher domestic prices for imported goods. On the export side, this may lead to more factory closures, lost jobs and a decline in foreign earnings. There is also growing apprehension that international shipping lines may seize this opportunity to raise freight charges, further driving up the cost of essentials such as food, fuel and industrial inputs, thereby worsening the inflationary burden on ordinary citizens.

It's also hard not to question the motive and the timing behind this decision. If successive governments postponed tariff reforms for nearly four decades, why has this interim administration chosen to impose them now, in the midst of a crisis? The government must understand that timing matters and this is certainly not the time to increase trade-related costs. If tariff updates are necessary, they must follow wide-ranging consultation with stakeholders and be tied to measurable improvements in service delivery. Increases in port charges should not come ahead of visible gains in efficiency, digitisation and turnaround time. Until the time when the domestic economy recovers and external conditions stabilise, policies must prioritise resilience over revenue.​
 
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Deals with foreign firms likely by Oct to operate Ctg port facilities
Govt facilitators also cite other port ventures, altogether to make Bangladesh an entrepot


Doulot Akter Mala
Published :
Jul 27, 2025 23:58
Updated :
Jul 27, 2025 23:58

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Foreign direct investment is set to flow in Chittagong-seaport facilities as the interim government intends to break long-lasting FDI droughts before national elections to make its finish memorable.

By October, the appointment of internationally reputed port contractors is expected to be finalised through "transparent deals", Shipping Adviser Brigadier-General (rtd) M Sakhawat Hussain told The Financial Express, as dedicated government facilitators kept clearing the messy decks to push through the foreign-investment bids.

A recent report of the United Nations Conference on Trade and Development (UNCTAD) shows an irreversible decline in Bangladesh's FDI inflow continuing for the fourth consecutive year in 2024.

The net flow of foreign direct investment (FDI) into Bangladesh declined by 13.20 per cent to $1.27 billion in 2024 from $1.47 billion in 2023, said The World Investment Report 2025.

The most lucrative investment sector in the country, as of now, is deemed Chittagong seaport areas along the Bay of Bengal that came under global spotlight in recent months, with big-name firms trying to put respective stakes on the business prospects in sight.

To pull much-sought-after foreign investment in the country's prime-port ventures, in the first take, negotiations with the aspiring investors are going full steam ahead. Among the bidders in the beeline are DP World of the UEA, PSA-Singapore and APM Terminal, a subsidiary of Danish AP Moller Maersk.

A synergy of effort from the Ministry of Shipping, Chittagong Port Authority (CPA), Bangladesh Investment Development Authority (BIDA) and Chief Adviser's Office is "progressing fast", officials said.

"Chittagong seaport has all the potential to transform into a regional maritime hub in next three years if efficiency, vibrancy in port operations is ensured," says one of the official engrossed in doing the spadework.

Attuned to the preparation, in the meantime, the port's tariff-hike proposal is in the final stages to implement that would determine Bangladesh's port -tariff benchmark to the foreign investors for the defined port services.

The CPA secretary, Omar Faruk, says the tariff proposal that received clearance from the Ministry of Finance would come through a gazette notification after law-ministry vetting.

The date of effect to the port tariffs would be mentioned in the Gazette, he adds.

"The foreign investors won't be able to set any monopolistic port tariff on the services defined by CPA, as currently Red Sea Gateway in Patenga Container Terminal (PCT) following," he told the FE writer.

Investors may set their own tariffs for additional services where their investment in equipment, logistics matter, he added.

"… the agreements would be transparent without 'hide n seek' on what the government awarding the contract and on what conditions," said the Shipping Adviser of the post-uprising government.

"So far, the shipping ministry is on a right track in port-sector decision-making…growth in container handling by dry dock in NCT is the best example," he added.

The CPA awarded Navy-led Dry Dock the piloting job to operate the New-mooring Container Terminal for six months, starting July 6, 2025, after Saif Powertec's contract expired and the government didn't allow extension.

Initially, there was doubt over slipping the container-handling ratio in the transition period after a long 15-year period operated by one company, but it proved wrong, he said.

Average container handling by the navy-run dry dock increased 7.0 per cent per day.

"We expect to sign deal on Bay Terminal by October next," he said.

On the tariff-hike move, the Shipping Adviser said the port tariffs for the CPA would be set in line with international standards.

As for foreign investors, they would set their own tariffs on the basis of their investment, operational cost and the time period to get profits out of their investment under build-own-transfer (BOT) method.

On Laldia, the adviser said APM Terminal is keen to invest here and sought some additional land but, as there is an air funnel, the process in under review.

Ashik Chowdhury, BIDA Executive Chairman, says all new terminals would need at least until 2028 to come into full operation.

"We have to depend fully on Chattogram port by that time. So, there is no alternative but to improve port efficiency within this period, reducing turnaround, clearance, customs processes."

The new chief promoter of investment notes any foreign investor first makes queries on port efficiency before making any investment in any sector.

"Our preferences would be the port operators having proven track record on port efficiency, be it local or international," he adds.

Responding to a query as to whether next political government will scrap such contract signed by the interim government, Mr Chowdhury said it is unlikely as those international deals have several legal aspects and it is not possible practically.

"There are several geopolitical and diplomatic angles of such agreements. "

There will be sustainable framework on those agreements so that it cannot be deviated, he says about the guardrails.

On LCT, shipping ministry, BIDA, CPA , CA, and IFC (the transaction adviser) are holding meeting every two weeks to proceed on to sign concession agreement by October so the investor can start construction by January of next year,

"It will take two-three years to complete the LCT construction, but we want to complete the documentary part in interim government's regime," he adds.

The FDI would then start to flow in from early next year, and by next two years, there might be $ 600 to $ 800 million worth of FDI in this LCT investment, he expects.

For the Bay Terminal, the Ministry of Shipping has appointed new Project Director. The Shipping Adviser and the internal affairs special envoy to the Chief Adviser, Lutfey Siddiqi, visited PSA-Singapore that is willing to invest in the terminal.

For Laldia port terminal, the transaction adviser of the International Finance Corporation (IFC) has submitted its report to the CPA.

The New-mooring Container Terminal, now under operation by the navy, may also get well-reputed investors, with DP World on top priority, for port operation.

On July 21, key CPA officials-including the chairman and the member (engineering)-attended a meeting at the Shipping Ministry to review the draft of the Transaction Advisory Services Agreement (TASA) supported by the Asian Development Bank (ADB).

The agreement is intended to facilitate the appointment of a transaction adviser for the construction of the Bay Terminal.

Though private sector rings alarm on port-tariff hike this time when Trump's jacked-up tariff is a major concern, the CPA may not have any other option but to raise the tariff rates that remained unchanged since 1886.

With such port tariffs, officials think, no foreign investors would find investment in Bangladesh viable.

To improve customs efficiency, the NBR chairman along with his senior members have started physical inspection of major ports, including Chittagong, Mongla, Benapole, Pangoan.

According to CPA data, the Bay Terminal will enhance the port's annual handling capacity to 5.0 million twenty-foot-equivalent units (TEUS). The CPA secretary mentions that the Matarbari terminal is also progressing fast and may start operation by next year.

"We have already signed civil construction contract with a Japanese company for Matarbari port terminal. It would enhance Chittagong port efficiency."​
 
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Wisest option for hiking port tariff

FE
Published :
Jul 30, 2025 00:54
Updated :
Jul 30, 2025 00:54

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Developing the required infrastructure is undeniably the first condition to meet before attracting foreign direct investments (FDIs) in an economy. A seaport, in this regard, acts as the gateway to international trade to drive the engine of economic growth. In that case, sooner the Chattogram (Ctg) port is able to increase its efficiency to deliver quality service for its local, regional and international clients, the better for the nation's faster economic growth. To that end, the interim government is learnt to have fast-tracked its efforts to finalise deals with port development companies of global repute so the task of handing over the Ctg port's operation to them could be completed by next October, that is, before handing over power to the next elected government.

As reported earlier, the Ctg Port Authority (CPA) has raised its tariffs on a number of items including its goods, container and vessel handling services by large margins to set the benchmark so that after taking charge the interested foreign investors in port development could decide their own service charges based on it (government-fixed benchmark). The CPA secretary reportedly informed that the tariff-hike proposal has been already cleared by the finance ministry and awaiting law ministry's vetting before its publication through a gazette notification. But the local port users and stakeholders have been dismayed at the move, since the final decision of tariff raise, they claimed, has been made leaving them out in the cold. The port tariffs for some widely used services as finalised by the government are in cases 10 times higher than the current rates, they complained, though according to some port officials, the average tariff hike would actually stand at around only a 60 per cent in excess of the existing rates. Vehemently opposed to the final decision on raising port tariff rates, which are far higher than what they suggested should be (by around 10 to 20 per cent during their initial talks with the Shipping ministry), would be to the utter detriment of the country's foreign trade, especially Readymade Garment (RMG) export, which is, of late, battling severe headwinds. Worse, the port charges so outrageously enhanced will increase cost of doing all kinds of business and thereby burdening the economy and the general consumers with higher inflation. Arguments for or against the drastic port usage rates hike apart, the first thing that the government, or the Ctg port authorities for that matter, would do well to keep in mind is that however essential the move is, it should be made keeping the stakeholders in the picture. For any unilateral action in this regard might lead to a serious stalemate, which given the few months it is still left with to run, the interim government will find itself in quite a bind to resolve.

The reported assurance from the government that the frameworks for the agreements could not be scrapped by any future government as those (agreements) will be of international standards and bound by legal as well as diplomatic obligations with their possible geopolitical dimensions as well. This smacks of riding roughshod. In the final analysis, if things are left to widespread discontent of and non-cooperation from port usersand, even worse, to be settled through prolonged future court battles, that hardly bodes well for the desired development of the port and its potential to draw expected FDIs to spur the nation's economic growth.

While there is no point denying the overriding question of making Ctg port's efficiency and capacity for providing quality service to all users to match, if not excel, its regional competitors, it cannot be at the expense of national interests including those of the local users. Hiking tariff rate in anticipation of the port's questionable foreign takeover is flawed argument. The interim government would do well to look for wiser options.​
 
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Easing congestion at Chittagong port

FE
Published :
Aug 05, 2025 23:57
Updated :
Aug 05, 2025 23:57

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Bangladesh's main seaport and gateway to international trade, the Chittagong Port, has no dearth of barriers to overcome and deliver up to its full capacity. Ironically, it is the main users of the port facilities who in most cases, get in the way. So, one is hardly surprised when the Chittagong Port Authority (CPA), the body that manages, maintains and looks after the governance and operation of the seaport, had to issue a notice threatening its main users with penal rent to be charged unless they promptly clear port yards. Notably, of late, the port's normal operation is being severely hampered as the volume of empty containers has surpassed its capacity many times over. In consequence, it is causing delay in key operations like delivery of the imported FCL (full container load) goods as well as stacking and storing of freshly unloaded containers. Since repeated warnings have fallen on deaf ears, the CPA has been constrained to declare in a notification August 7 as the cutoff date to clean up the yard following which, it warned, the section 160 of Regulations for Working of Chittagong Port (Cargo and Container) 2001, would come into force. Meanwhile, as notified, the port authority would monitor progress, if any, of the cleanup work.

There is no question that the port authority, if it is to continue serving its users, has to take, if necessary, harsh measures to keep the port's container storage space clean and in order. One would like to believe that the CPA's deadline would be met by the port users sine it is they who would ultimately suffer if the clogged up yards bring the port's normal activities to a standstill to the detriment of the country's entire external trade. It's indeed unfortunate that a humongous pile of empty containers was lying on the port's storage yard putting huge obstacles in the way of its normal functioning. It is worth noting that the Chittagong Port has a combined container storage capacity of 53, 518 TEUs (twenty-foot equivalent units) in its several storage yards. That means already large portion of the port's entire container storage capacity has been adversely occupied by the empty boxes yet to be shifted to the off-docks. So, one would earnestly like to hope that the CPA's cleaning up deadline as notified would not go unheeded by its stakeholders. Currently, the storage rent for empty containers stands at USD6 per TEU per day for the first seven days and jumps to USD12 per TEU from the 8th to 20th day of container yard usage and USD24 per TEU per day thereafter. In that case, if any action is taken by CPA after the passage of the deadline, it should be justified and any clamouring from any user feeling aggrieved at it should not stand to reason.

Since last March, the CPA has been imposing four times the usual store rent on cargo containers so that the congestion of the cargo storage space could be eased. But no visible move has been made so far by the stakeholders concerned to keep the port's container storage space free from empty containers. In the final analysis, in an arrangement where cooperation between the provider and recipient of service should be the basis of work ethic, resorting to any executive or legal action is the last option.

So, it is in the interest of all the parties, the port users and the CPA, that they would come together and agree towards further enhancing the country's premier port's service giving potential.​
 
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Foreign operators for NCT by Dec: Bida

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New Mooring Container Terminal, the largest at Chattogram port. Photo: Rajib Raihan/file

The authorities will appoint a foreign operator for New Mooring Container Terminal (NCT) of the Chattogram port by December this year, according to Chowdhury Ashik Mahmud Bin Harun, executive chairman of Bangladesh Investment Development Authority (Bida).

He said by this time, the government also wants to appoint foreign operators for Laldia Container Terminal and for at least one terminal of Bay Terminal of the Chattogram port.

At a press briefing in the Chattogram port yesterday, Mahmud said work was ongoing to prepare an international "request for proposal" (RFP) in this regard.

The development comes after Bangladesh Navy-run Chittagong Dry Dock Limited took charge of the NCT from a private operator in early July.

With the Chattogram port's contract with the private operator coming to an end and the government showing interest to appoint a foreign firm for the container terminal, political parties are now opposing the appointment of foreign firms.

Citing national interest, the parties argued that it was not logical to appoint a foreign firm to the fully equipped terminal.

However, the government said bringing a renowned foreign port operator would increase container handling efficiency and boost the overall outcome of the port.

In the face of the opposition, the authorities let Bangladesh Navy operate the terminal for a temporary period.

At yesterday's press briefing, the Bida chairman underscored the importance of recruiting world-class port operators to keep the Chattogram port among the top-ranking ones globally.

"The government's ambition is to achieve some milestones in progress in the major port development projects by December this year," he said.

The government is currently in talks with UAE-based DP World to operate the NCT.

Mahmud emphasised that the Chattogram port must perform at its full capacity to realise the government's long-term vision of transforming Bangladesh into a global manufacturing hub by leveraging its skilled workforce.

"If the Chattogram port doesn't perform efficiently, other development projects such as Beza, Bepza, hi-tech park, and various industrialisation initiatives may stall," he warned.

He said the volume of containers handled at the NCT has increased by 30 percent while the turnaround time of vessels decreased by 13 percent in a month after Chittagong Dry Dock Limited took over the responsibility to operate the terminal.

Considering such monthly growth, container handling at the NCT might reach 1.7 million TEUs in the current fiscal whereas it was 1.3 million TEUs last year, he hoped.

"We have consistently said the Chattogram port must rank among the top global ports for our sake. To achieve this, we need to bring the world's best port operators here," he asserted.

"Our long-term plan is to increase Bangladesh's total port capacity by four to five times by 2030," Ashik added.

He also expressed hope that ongoing reforms focused on digital transformation at the Chattogram port would significantly reduce delays, hassles, and irregularities.

Responding to a question, the Bida chairman candidly admitted that the experience with Saudi firm Red Sea Gateway Terminal (RSGT) in Bangladesh has not been satisfactory.

It is worth noting that under the previous Awami League-led government, the Saudi firm was appointed as the first foreign operator of a newly built Patenga Container Terminal (PCT) at the Chattogram port.

Ashik Mahmud explained that the RSGT has struggled to achieve the expected growth in container handling at the PCT due to several technical issues.

"The RSGT has encountered complications, and a major reason for these complications lies on our side," he also said, acknowledging the government's inexperience in dealing with international terminal operators.

During the visit, the Bida chairman inaugurated a Shipping and Logistics Online Desk, KEPZ Green Channel, and the Vehicle and Container Digital Data Exchange System at the port.​
 
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Chittagong Port is profitable, why increase surcharges?

Kallol Mustafa
Published: 11 Aug 2025, 08: 24

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Photo shows containers at the New Mooring Container Terminal (NCT) in Chittagong Port. Sourv Das

A total of 92 per cent of the country’s import-export trade is conducted through the Chittagong Port. Imports through this port include food grains, cement, fertiliser, coal, salt, sugar, fuel oil, and edible oil, among others. Exports through the port include readymade garments, jute, jute goods, leather products, tea and frozen goods. As a result, the entire economy of the country depends on this port.

Recently, news reports have said that the interim government has decided to raise various service tariffs at Chittagong Port by an average of 40 per cent in one go. Although the average is 40 per cent, the rate of increase for some services is even higher. For example, loading and unloading containers from vessels. In this sector, the charge for a 20 ft container has been proposed to be raised from 43 dollars 40 cents to 70 dollars 11 cents, an increase of about 62 per cent. Earlier, on 15 July, the private Inland Container Depot (ICD) Association announced in a circular that rates for private container handling would be increased. According to that announcement, starting from 1 September, charges will rise by between 30 and 100 per cent depending on the service.

There is already a kind of stagnation and uncertainty in the country’s economy. Added to this are concerns over Trump’s increased tariffs and the announcement of higher service charges at privately owned inland container depots. In such a situation, Chattogram's port tariff hike has come as a double blow.

The government says that charges for most port services have not been raised since 1986. While rates for five services, including port tax, berthing fees, forklift charges and other utility costs, were slightly adjusted in the 2007-08 fiscal, all other charges have remained unchanged since 1986. Therefore, the government argues, raising tariffs is necessary to expand the port’s capacity. There is, however, a catch in this argument: port charges are collected in US dollars. In 1986, the dollar stood at 30 taka 41 paisa. It is now 122 taka. So, even without any official tariff hikes, the increase in the exchange rate has automatically pushed up charges by more than four times.

Chittagong Port is a service-oriented institution. According to the Chattogram Port Authority’s annual report, one of its key commitments is to provide port services at the lowest possible cost and in the shortest possible time. As a service provider that plays a crucial role in the national economy, the justification for raising its tariffs is questionable, especially since the port is not operating at a loss. For example, in the 2024-25 fiscal year, the port earned 5,227 crore taka against an expenditure of 2,314 crore taka, resulting in a profit of 2,913 crore taka. Why would a state-run service institution that makes nearly 3,000 crore taka in profit annually need to raise tariffs in this way?

If tariffs are increased, the cost of importing consumer goods and raw materials will rise-costs that businesses will ultimately pass on to consumers. This will further fuel the already high inflation in the country. On the other hand, for export goods, transportation costs will go up, which may weaken exporters’ competitiveness in global markets.

Many fear that the tariff hike, despite the port not being in deficit, is intended to make the port more attractive for DP World. Under the previous Awami League government, electricity and fuel prices were repeatedly raised to attract private and foreign investment in those sectors. This has prompted questions about whether the same model is now being applied to make Chittagong Port appealing to foreign companies.

Both the leasing of the New Mooring Terminal to a foreign company through a PPP arrangement and the tariff hike initiative were undertaken during the tenure of the previous authoritarian government. According to information from the PPP Authority, the UAE state-owned company DP World expressed interest in investing in Chattogram's port in 2020. As reported by Bonik Barta, in 2022 Spanish consultancy firm Messrs IDOM Consulting was hired to review the port’s tariff structure and prepare new proposals. Although there had been previous efforts to review port fees, there is strong reason to believe that the process gained momentum specifically in anticipation of DP World’s investment.

In the case of exports to the United States, Trump’s additional tariffs may add to the burden. For imports too, extra tariffs will apply at every stage. Therefore, the decision to raise tariffs at an already profitable Chattogram Port must be scrapped.

DP World has a bad reputation in many countries around the world for frequently raising port tariffs. According to a report by the United Nations Conference on Trade and Development (UNCTAD), in Australia, DP World unilaterally and dramatically increased its infrastructure surcharge in order to recover its investment. At the Port of Melbourne, the surcharge per container jumped from 3.45 Australian dollars in 2017 to 85.30 dollars in 2019, an increase of over 2,000 per cent. Similar extra charges were imposed in Brisbane and Sydney, which raised concerns for Australia’s competition regulator. (Review of Maritime Transport 2019, UNCTAD, 31 January 2020)

In Bangladesh’s case, was this advance tariff hike made to prevent DP World from gaining such a negative reputation here? The interim government’s plan is to complete negotiations and sign an agreement with DP World by November of this year. After the deal is signed, the terminal will come under DP World’s control. They will collect tariff and hire staff. In return, the port will receive lump-sum payments, annual payments, and container fees. Naturally, the surcharge hike will mean that DP World’s earnings will be higher than the current rates.

Raising tariffs Chattogram's port in the present economic situation would not be reasonable. If both the port and private inland container depots (ICDs) raise tariffs, costs will increase at every stage of the import-export process. For exports, there will be an extra tariff when goods are kept at a private ICD from the factory, and another extra tariff when they go through the port for shipment.

In the case of exports to the United States, Trump’s additional tariffs may add to the burden. For imports too, extra tariffs will apply at every stage. Therefore, the decision to raise tariffs at an already profitable Chattogram Port must be scrapped. At the same time, through discussions with private ICD owners, their tariff hike should also be brought down to a reasonable level.

It is also necessary to reconsider the decision to hand over the operation of the New Mooring Container Terminal (NCT) of Chattogram port to a foreign company. After the expiry of the port’s contract with the controversial Saif Powertec Limited, the navy-run Chittagong Dry Dock Limited took charge of operating the NCT for six months starting from 7 July. This has further accelerated port operations, which demonstrates the capability of domestic institutions in port management. Therefore, considering the strategic importance and economic significance of Chattogram port, the interim government should refrain from increasing port surcharges and from handing over terminal operations to foreign companies.

* Kallol Mustafa is a writer on power, energy, environment and development economics.​
 
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