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[Saif]

Deals with foreign firms likely by Oct to operate Ctg port facilities

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

thefinancialexpress.com.bd

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

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."​

 

[Saif]

Wisest option for hiking port tariff

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

thefinancialexpress.com.bd

Wisest option for hiking port tariff

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

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.​

 

[Saif]

Easing congestion at Chittagong port

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 Po

thefinancialexpress.com.bd

Easing congestion at Chittagong port

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

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.​

 

[Saif]

Foreign operators for NCT by Dec: Bida

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).

www.thedailystar.net

Foreign operators for NCT by Dec: Bida

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.​

 

[Saif]

Chittagong Port is profitable, why increase surcharges?

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...

en.prothomalo.com

Chittagong Port is profitable, why increase surcharges?

Kallol Mustafa
Published: 11 Aug 2025, 08: 24

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.​