[🇧🇩] Sea Ports/Air Ports/River Ports/Bridges/Mega Projects

[Saif]

UAE group getting MoU on Bay terminal investment extended

The government is extending the tenure of a memorandum of understanding (MoU) under which the Abu Dhabi Ports Group wants to invest in the potential port sector of Bangladesh, while an impasse keeps other scrambling foreign investors at bay. An impasse over appointment of a foreign operator

thefinancialexpress.com.bd

Foreign firms bet billions on bay port ventures
UAE group getting MoU on Bay terminal investment extended

Syful Islam
Published :
May 23, 2025 00:28
Updated :
May 23, 2025 00:28

The government is extending the tenure of a memorandum of understanding (MoU) under which the Abu Dhabi Ports Group wants to invest in the potential port sector of Bangladesh, while an impasse keeps other scrambling foreign investors at bay.

An impasse over appointment of a foreign operator for New Mooring Container Terminal (NCT) has been persisting for some time now amid contentions.

The AD Ports Group had signed the non-binding Memorandum of Understanding (MoU) with the Chittagong Port Authority (CPA) one year back and its tenure expired last week, officials said.

Under the MoU, AD Ports Group had planned to invest $1.0 billion in construction of a multipurpose terminal under the Bay Terminal project near the Chittagong seaport, dubbed Bangladesh's commercial lifeline.

Also, PSA Singapore and DP World of the United Arab Emirates have put on stake $1.5 billion each to develop two container terminals under the Bay Terminal project.

The World Bank this past April signed a deal with the government to provide $650 million for construction of a 6-kilometre breakwater and access channels linking the Bay Terminal on the Bay of Bengal.

Moreover, local conglomerate East Coast Group and its foreign partners bet $3.5 billion on building a liquid bulk terminal in the Bay Terminal project.

Saif Powertech, the lone operator of the New Mooring Container Terminal since its inception, the biggest box terminal of Chittagong port, is local partner of AD Ports Group in Bangladesh.

Members of various political parties and labour organisations have stood out against the government move to appointment of a foreign operator, DP World, to operate the NCT.

According to Shipping Ministry officials, the high-ups of AD Ports Group met shipping adviser M Sakhawat Hussain on Tuesday morning to discuss an extension of the MoU and progress in Bay Terminal project implementation.

Sources say at the meeting the shipping adviser agreed that the tenure of the accord will be extended.

Contacted, Mr Hussain told the FE that the CPA chairman is now staying abroad and that "steps will be taken on the MoU after his return".

However, shipping secretary Mohammed Yousuf said following the expiry of tenure of the memorandum, AD Ports Group officials met the adviser and sought extension of the deal.

"Since this is not a legal document, we informed them that we will extend the MoU," he told the FE writer.

The Public-Private Partnership Authority (PPPA) had appointed UK-based Ernst & Young LLP transaction adviser in 2022 for the terminal. However, the company has yet to submit any report to the authorities, sources said. The tenure of this contract has also lapsed.

The Bay Terminal will enhance Chittagong Port's annual handling capacity to 5.0 million twenty-foot equivalent units (TEUs) from the current handling of around 3.2 million TEUs.

The Bay Terminal will have at least 12-metre water draft allowing 300-metre-long ships with 5,000-TEU-container-carrying capacity to take berth in the jetties any time at day and night.

The terminal will be built on 2,500 acres of land near the Bay of Bengal, now under global spotlight, according to officials concerned.​

 

[Bilal9]

Debates over leasing NCT to foreign operator intensifying

The debate over whether to lease out the New Mooring Container Terminal (NCT) at Chittagong Port to a foreign operator is intensifying, with political parties, including the BNP, Jamaat-e-Islami, and left-leaning groups, uniting in opposition.

www.thedailystar.net

Debates over leasing NCT to foreign operator intensifying

View attachment 17568

The debate over whether to lease out the New Mooring Container Terminal (NCT) at Chittagong Port to a foreign operator is intensifying, with political parties, including the BNP, Jamaat-e-Islami, and left-leaning groups, uniting in opposition.

The move, initially introduced under the previous Awami League government through the Public Private Partnership (PPP) Authority, has gained traction under the current interim government.

While some political and labour groups are vocal in their opposition, authorities say that a feasibility study is ongoing, with the final decision to be based on its findings.

However, Shipping Adviser Brig Gen (Retd) M Sakhawat Hussain indicated that the administration is in favour of bringing in a foreign operator to manage the terminal.

Opposition parties argue that the NCT is already well-equipped and capable of delivering world-class services without external involvement. They claim there is no scope for expansion, making foreign investment "unnecessary" and appointing a foreign operator "irrational".

Completed in 2007 at a cost of Tk 469 crore, the 950-metre-long NCT has five jetties -- four for ocean-going vessels and one for smaller ships on inland routes.

'What's the point of leasing out a functional terminal?'

Humayun Kabir, former publicity secretary of BNP's labour wing Jatiyatabadi Sramik Dal (Port unit), said that the Chittagong Port Authority (CPA) invested Tk 2,000 crore to fully equip the terminal.

Now, he argued, there is little left to invest in.

Since 2007, local firm Saif Powertec Ltd had been running two of the jetties of the NCT on an ad hoc basis. In 2015, the CPA formally appointed Saif Powertec as the operator for four jetties.

Kabir criticised the appointment as being "politically motivated" and argued that if a new operator is to be selected, it should be done transparently through an open tender.

"Leasing out NCT to a foreign operator would drain revenue from a fully operational terminal," he claimed.

According to the CPA, the NCT generated Tk 1,216 crore in revenue in FY23, with net income after expenses amounting to Tk 574 crore. In the same period, Saif Powertec received Tk 79.13 crore as handling charges.

Jamaat-e-Islami city unit Ameer Shahjahan Chowdhury echoed Kabir's concerns.

He said, "We are not against foreign investment. But bring foreign investment for greenfield projects, for new ports and terminals; not for an already established terminal."

For the construction and operation of the proposed Bay Terminal and Laldia Container Terminal, the previous Awami League government started talks with global operators including PSA Singapore, DP World, AP Moller Maersk and Abu Dhabi Port.

In 2023, the previous government leased out the newly built Patenga Container Terminal (PCT) to Saudi firm Red Sea Gateway Terminal (RSGT) International for 22 years.

However, all those moves involving foreign companies did not face that much opposition.

Push for foreign investment

During a recent visit to the Chittagong Port, Bangladesh Investment Development Authority (Bida) Executive Chairman Chowdhury Ashik Mahmud Bin Harun stressed the need for global operators to manage port facilities, citing efficiency and optimal utilisation as key to transforming Bangladesh into a global manufacturing hub.

"With limited land, we must ensure that every port facility operates as one of the world's best," he said. "Otherwise, we won't achieve our ambitions."

CPA Chairman Rear Admiral SM Moniruzzaman also supported the move, saying that a global operator could introduce advanced technology and increase efficiency through competition.

"Appointing a foreign operator could maximise financial returns while modernising port operations," he said.

Political pressure foiled initial foreign operator plan

After the NCT's construction was completed in 2007, the CPA floated an international tender to appoint a foreign operator.

However, then shipping minister Shahjahan Khan and Chairman of the Parliamentary Standing Committee on Shipping Nur-e-Alam Chowdhury intervened, leading to the tender's cancellation.

The CPA then opted to equip the terminal using its own funds and appointed a local operator.

The terminal remained underutilised for eight years after construction. By 2022, it had its key equipment installed.

In 2022, talks to appoint a foreign operator at the NCT started. Salman F Rahman, the then private industry and investment adviser to the prime minister, was in favour of leasing out NCT to DP World.

In March 2023, the then Awami League government approved the appointment of an international private operator for operation and maintenance of NCT under Public Private Partnership.​

I am sure the Indians are instigating the political parties in opposing appointment of foreign operators for NCT. They hugely benefit in any chaos in Bangladesh.

The political parties are unhappy because they supposedly aren't getting a cut of the foreign contract "proceeds". Which though - can be handled without much fuss.

Plus there is also massive opportunities for graft at the port, the local port operators at various levels and corrupt customs officials are the culprits, arresting some of these scumbags will set the right tone in warning them. But increasing chaos at this time may not be the best idea. Too many moving parts right now.

Bangladesh has well-established deep-rooted institutional corruption - defeating the symptoms and actors (both public and private) in one go will be tough, we have to have a concerted long-term plan. The actors have too many targeted mechanisms in keeping up graft and corruption.

 

[Saif]

I am sure the Indians are instigating the political parties in opposing appointment of foreign operators for NCT. They hugely benefit in any chaos in Bangladesh.

The political parties are unhappy because they supposedly aren't getting a cut of the foreign contract "proceeds". Which though - can be handled without much fuss.

Plus there is also massive opportunities for graft at the port, the local port operators at various levels and corrupt customs officials are the culprits, arresting some of these scumbags will set the right tone in warning them. But increasing chaos at this time may not be the best idea. Too many moving parts right now.

Bangladesh has well-established deep-rooted institutional corruption - defeating the symptoms and actors (both public and private) in one go will be tough, we have to have a concerted long-term plan. The actors have too many targeted mechanisms in keeping up graft and corruption.

Your analysis of the current situation which has been created by our political parties to stop Dr. Yunus from inviting foreign companies to operate our sea ports is correct. I blame BNP for spreading lies. Foreign companies will bring new technology and management skill required to run our ports efficiently. Local operators are corrupt and inefficient. They must not be allowed to run our ports until they reform themselves to achieve international standards in port operations.

 

[Bilal9]

Your analysis of the current situation which has been created by our political parties to stop Dr. Yunus from inviting foreign companies to operate our sea ports is correct. I blame BNP for spreading lies. Foreign companies will bring new technology and management skill required to run our ports efficiently. Local operators are corrupt and inefficient. They must not be allowed to run our ports until they reform themselves to achieve international standards in port operations.

My words exactly. Local corrupt politicians and port operators are progress and efficiency-opposing luddites.

They can see that our ports are seriously overburdened due to late implementation of new jetties but they will block things because of narrow self interest.

Their halwa-ruti is in question, so they are worried.

"Danda" is needed, but maybe not now.

 

[Saif]

CAAB hopes to complete negotiation with Japanese consortium by June

The Civil Aviation Authority of Bangladesh (CAAB) is expecting to complete the negotiation with the Japanese consortium that will take the charge of operation and maintenance work of the newly-built third terminal of the country's prime international airport by June this year. CAAB Chairma

thefinancialexpress.com.bd

HSIA 3rd terminal
CAAB hopes to complete negotiation with Japanese consortium by June

GULAM RABBANI
Published :
May 24, 2025 00:59
Updated :
May 24, 2025 00:59

The Civil Aviation Authority of Bangladesh (CAAB) is expecting to complete the negotiation with the Japanese consortium that will take the charge of operation and maintenance work of the newly-built third terminal of the country's prime international airport by June this year.

CAAB Chairman Air Vice-Marshal Md Monjur Kabir Bhuiyan told this correspondent that they are currently in negotiation with the consortium and hope to complete the formalities by June this year.

The consortium is seeking six to eight months to complete the formalities after finalising the agreement, while the CAAB is demanding that the consortium finish the tasks within five to six months, he said.

A Japanese consortium comprising four companies is likely to get operation and maintenance work of the third terminal for 15 years as the preliminary bid discussion went on successfully.

After the negotiation is completed, the consortium will need to recruit personnel, conduct training, and provide equipment and instruction to them. Finally they will have to check the equipment by running them.

All these formalities will take some time. The CAAB chairman said they are trying their best to open the 3rd terminal of the Hazrat Shahjalal International Airport (HSIA) by the end of this year.

He said the authorities are overseeing all aspects of the project, from airport development to operations, maintenance, licensing of airlines and aircraft, and pilot certifications.

The third terminal's construction is almost complete. Only some work remains in the VVIP section, which may take until June or July due to complexities in the contracts and delay in importing materials like granite flooring and ceiling components from abroad.

He noted that daily inspections at the third terminal are underway and the CAAB has a target to begin operation as soon as possible because this terminal has been built with loaned funds, which must be repaid.

"So, we are prioritising early operation," said the chairman, adding, "Each machine in the third terminal is now being checked one by one.

Our aim is to complete everything within this year and open it for passengers."

The consortium of four Japanese firms will oversee the terminal's operation and maintenance.

National flag carrier Biman Bangladesh Airlines will continue to provide ground handling of the terminal under the supervision of the consortium.

Before that, a service level agreement (SLA) will be signed between Biman and the consortium.

Biman has been offering ground services since the country's independence, but its performance has faced criticism from other airlines over the years.

Responding to a question on Biman's continued involvement and concern over service quality, the CAAB chairman said, "As per current instructions, Biman will handle ground services for the next two years."

As is the case around the world, immigration police and customs will take care of security at the third terminal, said the official.​