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

[Saif]

Govt not giving port to anyone rather wants to renovate it: Shafiqul

Chief Adviser’s Press Secretary Shafiqul Alam today said the government is not giving Chattogram Port to anyone rather it wants to renovate it. “The government wanted that the world's biggest companies can manage the Chattogram Port. We are not giving the port to anyone. We want them (

thefinancialexpress.com.bd

Govt not giving port to anyone rather wants to renovate it: Shafiqul

Published :
May 25, 2025 22:20
Updated :
May 25, 2025 23:57

Chief Adviser’s Press Secretary Shafiqul Alam today said the government is not giving Chattogram Port to anyone rather it wants to renovate it.

“The government wanted that the world's biggest companies can manage the Chattogram Port. We are not giving the port to anyone. We want them (foreign companies) to invest in the terminal and manage it. We have already received assurances from foreign investors that they will invest $3 billion,” he told an event of the Capital Market Journalists Forum (CMJF) at its office in Paltan in the capital, BSS reports.

Shafiqul said: “In a country like Bangladesh we are talking about one port and a few terminals. Many countries have 20-30 such port terminals. So we have to strengthen it. That is the challenge.”

He said the interim government is working for reforms, judicial processes and elections as economic reforms are underway.

After the reforms, the economic situation will improve, he hoped.

“We are trying to create a broader economic platform where our Bangladeshi economy takes off. If the growth of the economy takes off, then its impact will be felt on the stock market. If the overall economic situation is very good, it is expected that the Bangladeshi stock market will rise to a new height very quickly,” he said.

About the national elections, the press secretary said national elections will be held by June 30 next year.

Turning to capital market, he said it has become a den of robbers as small investors here have only been victims of fraud and lost their capital.

Those who took responsibility for the reform of the capital market in the past, they always served interests of a group, he said.

Referring to the meeting of the Chief Adviser Prof Dr Muhammad Yunus on the capital market, he said, for this reason, the chief adviser has given importance to bringing in foreign experts who know how to globally reform the share market and bring it to global standards.

“A three-month timeline has been given for this. They will come within three months and tell us what is needed to do in the share market and accordingly, action will be taken very quickly,” he said.

As a result, the capital market of Bangladesh will not be held hostage by any group, Shafiqul Alam said.

Stating that the banking sector is being pulled out of the hole, the press secretary said, "Our banking system was very weak. Everything was in a state of ruin. From there, we are trying to pull the banking system out of a hole and raise it to the mountain."

He said, "The currency has been floated for two weeks. But the currency has not depreciated. This indicates that the reforms are giving a good signal."

Stating that increasing foreign investment will have a positive impact on the capital market, Shafiqul Alam said, "If we can get foreign investment right, bring it in a lot, and the macro economy is fine, then we think it will have an impact on the capital market. The capital market is bound to grow well."

He said, "Another issue is to reduce inflation. This was a huge challenge for us. We have increased interest rates, now it is probably more than 10 percent, after doing that, we see that inflation has started to decrease. Our hope, which our central bank governor has said, is to bring inflation down to 5 percent by the end of this year."

He said, "Foreign investment has started coming. In June, you will see that about 150 Chinese investors are coming to Bangladesh, led by a commerce minister. If the Chinese come to Bangladesh, the job growth that we want will be very fast."

Stating that dividing the NBR into two was the government's priority, he said, "Our tax collection was always low. This is because we gave a lot of tax exemptions and the tax collection system was very inefficient. The government has given a lot of focus on this area. In that light, the NBR has been divided into two. As a result of this, we think that tax collection will increase."

CMJF President Golam Samdani Bhuiyan presided over the program, which was moderated by General Secretary Abu Ali.​

 

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Planning Adviser stresses Ctg port's potential as 'strategic trade hub'

Planning Adviser Wahiduddin Mahmud has underscored the potential of Chittagong Port as a strategic hub for trade and commerce for regions, especially for India's northeastern region. He said the port could facilitate the export of goods from that area while also enabling the import of raw ma

thefinancialexpress.com.bd

Planning Adviser stresses Ctg port's potential as 'strategic trade hub'

FE REPORT
Published :
May 27, 2025 00:56
Updated :
May 27, 2025 00:56

Planning Adviser Prof Wahiduddin Mahmud speaks at a seminar on "Economic Corridor and Logistics Development in Bangladesh: Investment Opportunities" at a city hotel on Monday, with International Chamber of Commerce-Bangladesh (ICCB) President Mahbubur Rahman in the chair. — FE Photo

Planning Adviser Wahiduddin Mahmud has underscored the potential of Chittagong Port as a strategic hub for trade and commerce for regions, especially for India's northeastern region.

He said the port could facilitate the export of goods from that area while also enabling the import of raw materials, which could be processed in Bangladesh for further export.

However, he revealed that the budget the interim government is going to present soon cannot include aspirational projects people expect as most of the development budget is going to nearly 1,200 inherited projects which could not be abandoned half-done despite their poor feasibility status.

He came up with the comments and observations at a seminar on Economic Corridor and Logistics Development in Bangladesh: Investment Opportunities organized jointly by International Chamber of Commerce- Bangladesh (ICC Bangladesh) and Asian development Bank (ADB) at Hotel Sheraton in the capital.

Speaking as chief guest, he said Chittagong port is an asset and could be utilised not only for the country but for the region as well.

"The northeastern states of India are rich in natural resources like bamboo and cane. These can be exported through Chittagong Port. What's more, those raw materials can be processed in the Chittagong Economic Zone and then exported, benefiting both countries."

However, he cautioned that a conducive geopolitical environment is essential for this vision to materialise.

"Favorable geopolitics foster favorable geo-economics," he remarked, adding that if such conditions are achieved, Bangladesh could assume a highly advantageous position in the region.

"That's why we're planning and undertaking projects centered on Chittagong Port."

The advisor stressed the importance of enhancing internal connectivity before pursuing transnational corridors.

"Improved communication with neighbouring countries is important, but we must first upgrade our domestic infrastructure. That said we cannot afford to waste resources on unviable projects."

Mahmud expressed concern over the current state of the development budget.

"This year's development budget includes around 1,200 projects-98 to 99 percent of which are inherited from the previous government. These projects are consuming our resources, leaving limited room for new initiatives or increased allocations in other sectors."

He noted that many of these projects were flawed and required corrective measures.

"We've restructured some, but if a road is already half-built, we can't just abandon it and redirect the funds to education or health which are hungry for allocation actually. That's why we couldn't take up the kind of new development projects people were expecting from the interim government."

He also criticised the lack of proper scrutiny in past project approvals. Citing the Bus Rapid Transit (BRT) project from Gazipur to Dhaka airport as an example, he said, "The project is reportedly 95-98 per cent complete, but the design was fundamentally flawed. Initially budgeted at Tk 30 billion, it now needs another Tk 30 billion to fix those errors."

Mahmud mentioned other problematic projects, such as the Dhaka-Bhanga expressway built via the Padma Bridge. "It's a world-class road, but it ends in a region with limited onward connectivity. While the Padma Bridge has eased transport across the river, the high construction costs have yet to yield significant private investment in the surrounding areas."

Speaking as chair, President of ICC Bangladesh Mahbubur Rahman said the case for economic corridor development is no longer inspirational. "It is urgent, evidence-based, and actionable."

He stated that if implemented effectively, the corridor could increase the region's combined output from $32 billion in 2020 to $286 billion by 2050 under a business-induced scenario (BIS), and generate up to 71.8 million jobs over the same period.

Mr Rahman emphasised that regulatory reforms, digitised customs processes, and strategic partnerships with regional and multilateral institutions - particularly the ADB - are positioning Bangladesh as a key player in South Asia's evolving trade landscape.

"ICC Bangladesh stands ready to support this agenda," he said, noting the institution's role in bridging the private sector with the global policy community.

He said the economic corridor envisions transforming 14 districts by linking manufacturing hubs in Khulna and Jessore to Sylhet and Mymensingh, covering nearly 34 percent of the national population.

"This is not just about infrastructure - it's about uplifting communities long left behind," he added.

Anisuzzaman Chowdhury, special assistant to the Chief Adviser at the Ministry of Finance, suggested that Bangladesh could draw valuable lessons from the transformative economic journeys of South Korea, the People's Republic of China, and Japan, particularly in their successful transition from poverty to prosperity.

He emphasised the need to synergise both financial and social capital to ensure Bangladesh fully benefits from its LDC graduation.​

 

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How Bangladesh should ensure strategic port management

Recently, public debate has intensified over the government’s decision to bring in foreign operators to manage key ports.

www.thedailystar.net

How Bangladesh should ensure strategic port management

The question of who controls our ports must rise above partisan politics. File photo: STAR

The journey toward sustainable development in Bangladesh is deeply linked with the strategic management of its land, sea, and air ports. In recent weeks, public debate has intensified over the government's decision to bring in foreign operators to manage key ports. In an era where globalisation is reshaping geopolitical realities, Bangladesh must re-evaluate how it governs these critical national assets. It is no longer just about infrastructure expansion; it is about how strategically, transparently, and efficiently we operate them for the betterment of the country keeping the security uncompromised.

Historically viewed as channels for imports and exports, ports today hold a far more complex identity as instruments of global competitiveness and a tool for diplomacy whereas security is seen as an important component. Bangladesh's major maritime gateways, Chittagong, Mongla, and Payra, and airport gateway like Hazrat Shahjalal International Airport (HSIA) are increasingly caught in the crosscurrents of regional power interests. Major regional powers including China, India, Japan, and the United States have each expressed varying levels of interest in port operations, among others.

This reality presents Bangladesh with a critical dual-edged challenge: how to modernise port infrastructure through foreign collaboration while preserving strategic sovereignty. Striking this balance is not optional. It is imperative.

While foreign partnerships promise greater efficiency and investment, they might also pose risks of undue influence, particularly if not carefully regulated. Strategic autonomy must be the cornerstone of port policy. Welcoming foreign investment requires robust regulatory oversight, clear contractual safeguards, and regular audits. Growth must not come at the cost of sovereignty.

With regards to airports, they are vital to Bangladesh's economic and strategic architecture. Hazrat Shahjalal International Airport (HSIA) in Dhaka, the primary air gateway, has long been plagued by mismanagement, from baggage delays to poor customer service. However, the construction of the third terminal, co-financed by the Japan International Cooperation Agency (JICA), is a promising shift. A Japanese consortium reportedly is set to operate the terminal.

On the other hand, operations at Chattogram Port, which handles around 90 percent of Bangladesh's maritime trade and ranks 64th globally by container throughput, still remain inefficient. Container handling times are higher than global average, and outdated logistics infrastructure, alongside syndicate control and political interference, continues to drag down performance. However, any foreign or local partnership with regard to port operations must be vetted against national interests, with efficiency and integrity as the guiding principles. What's needed is institutional transparency and professionalism.

Regarding land ports, Benapole, Hili, Akhaura, and Burimari are crucial conduits for regional trade, particularly with India, Nepal, Bhutan, and Myanmar. In FY 2023–24, trade with India alone reached nearly $14.01 billion, and 40 percent of the trade takes place through land ports.

Yet these facilities suffer from operational inefficiencies, irregular customs practices, and rising security threats, particularly along the Myanmar border. Port governance here must be a joint exercise involving customs, home affairs, and defence, anchored in national security priorities.

The politics of port governance

The question of who controls our ports must rise above partisan politics. Strategic infrastructure management demands national consensus and long-term vision. Overdependence on any single factor, whether it is foreign or local, can compromise our national interest. Diversifying partnerships, across Europe, Middle East, South Asia, and East Asia, can spread risk, attract broader investment, and maintain diplomatic balance. The presence of reputable global operators often boosts investor confidence, but their engagement must serve our national interests. To secure both economic gains and national security, port governance must be reimagined through the following core priorities.

i) Firstly, ports must operate with modern logistics systems to reduce costs, improve turnaround times, and enhance global competitiveness. Reviewing successful global models can offer insights into operational excellence; ii) national security must not be compromised in pursuit of investment. Legal safeguards, ownership control, and policy independence are critical when engaging foreign operators; iii) investment in automation, digital tracking, and AI-based logistics is essential. A tech-savvy workforce and infrastructure upgrade will future-proof Bangladesh's ports.

In addition, iv) development must include environmental safeguards and benefit port-adjacent communities. Job creation, displacement management, and eco-friendly practices should be embedded in planning; v) outdated or fragmented legal frameworks must be replaced with streamlined laws aligned with international standards to attract credible investors and improve operational efficiency; and lastly vi) policies must be shaped through a collaborative process involving political parties, government agencies, business leaders, and civil society to ensure transparency and broad-based ownership.

Ports are no longer peripheral, rather, they are central to Bangladesh's economic trajectory, geopolitical relevance, and national dignity. Their management must reflect this reality. It is time for Bangladesh to approach port governance with unity, strategic foresight, and a commitment to sovereign progress. Through balanced, transparent, and autonomous leadership, we can anchor our future firmly in the national interest while navigating the global tides.

Alauddin Mohammad is joint member secretary of National Citizen Party (NCP) and executive director at Institute of Policy, Governance and Development (IPGAD).​

 

[Saif]

Ctg port lease: economic rationale, strategic concerns

Bangladesh interim government's decision to lease out the New Mooring Container Terminal (NCT) of Chittagong Port to Dubai-based global logistics company DP World has ignited a nationwide debate and raised significant concerns. While the government argues that the move will enhance efficiency, attr

thefinancialexpress.com.bd

Ctg port lease: economic rationale, strategic concerns

Golam Rasul
Published :
May 30, 2025 23:48
Updated :
May 30, 2025 23:48

Bangladesh interim government's decision to lease out the New Mooring Container Terminal (NCT) of Chittagong Port to Dubai-based global logistics company DP World has ignited a nationwide debate and raised significant concerns. While the government argues that the move will enhance efficiency, attract foreign investment, and modernise logistics at the terminal, critics raised concern about foreign oversight in key strategic locations and warned that it could compromise national regulatory oversight, weaken safeguard mechanisms, and expose Bangladesh to the risks of future conflict over a national strategic asset.

Chittagong Port serves as Bangladesh's primary maritime gateway. It handles over 92 per cent of the country's foreign trade and processing over 3 million twenty-foot equivalent unit (TEUs) annually. It plays a critical role in ensuring the smooth flow of essential goods, including food supplies, oil, and other strategically important commodities.

The NCT at Chittagong Port, recently developed with modern infrastructure and equipment, plays a vital role in facilitating Bangladesh's international trade. With five Jetties, this is well-equipped, fully operational and capable of handling Ocean going large container vessels. The terminal was designed to handle 1.1 million TEUs annually. Today, it operates at over 1.3 million TEUs, exceeding its intended capacity and contributing over Tk 1,000 crore to national revenue. With the terminal already over performing under local management, many argue that foreign control over such a vital asset-located next to a major naval base-poses a national security risk. This situation raises a fundamental question: how logical is the decision of handing over NCT to a foreign operator?

There is no doubt that Chittagong Port requires urgent modernisation and automation to improve efficiency and remain regionally competitive. While its capacity and operational performance have shown gradual improvement, the port still lags behind key regional hubs-particularly in areas such as vessel turnaround time, cargo clearance, and congestion management. According to UNCTAD's Port Performance Report, the average vessel turnaround time at Chittagong Port is around 3-4 days, compared to just 12-24 hours in Singapore and 24-36 hours in Colombo. Similarly, cargo clearance in Bangladesh takes 7 to 10 days, far exceeding the 2-3 days typical in high-performing ports. These inefficiencies not only delay trade flows but also significantly erode Bangladesh's export competitiveness. In fact, port congestion and logistics-related delays are estimated to increase export costs by 10-15 per cent, undermining the country's position in global markets.

Although official confirmation is not available, newspaper reports suggest that the lease of NCT to DP World is being structured as a government-to-government (G2G) agreement, bypassing an open tender or competitive bidding process. The lack of competition limits Bangladesh's options, potentially restricting the ability to negotiate more favourable terms and maintain robust regulatory oversight. This approach aligns with the precedent set by the Hasina government, which favoured direct negotiations over public bidding for large infrastructure projects. Thus, questions arise as to why the Interim Government is following the same path, raising concerns about transparency and accountability.

In fact, it does not matter whether it is the Hasina Government or the Yunus Government; this is a hallmark of neoliberal economic policy, which emphasises privatisation, globalisation, and the free movement of capital. Due to the influence of corporate power and vested interests, many developing countries are pressured to open their markets to multinational corporations and even transfer the management of strategic assets to these global entities. Institutions such as the World Bank, IMF, IFC, and WTO have played a central role in advancing and implementing the neoliberal agenda worldwide. We should not be surprised if, in the future, our Dhaka International Airport is leased out to a foreign company to improve efficiency.

The key question is whether leasing out the terminal to a foreign company is the only way to improve efficiency. A port operates within a complex and integrated ecosystem, where performance is shaped by a combination of interrelated factors such as infrastructure quality, operational capacity, container handling procedures, terminal operating systems, the efficiency of customs clearance, and labour relations. Enhancing port performance, therefore, requires a holistic strategy of the government that addresses the entire system.

Port performance is influenced not only by operations and management but also by geographic and physical characteristics. Chittagong Port is situated along the Karnaphuli River on a narrow strip of land, with a draught of approximately 9.5 meters-limiting access for larger vessels. In addition to shallow depth, the river's narrow width, sharp curvature, and tidal fluctuations further restrict vessel movement and contribute to longer turnaround times. Given these physical limitations, Chittagong Port may not be able to match the operational efficiency of ports like Singapore or Colombo. Nonetheless, significant improvements are still possible through an integrated approach-enhancing terminal operating systems, streamlining customs clearance processes, improving labour relations, and upgrading the logistics infrastructure.

Customs clearance is a major contributor to shipment delays and prolonged vessel turnaround times. According to the National Board of Revenue (NBR), it currently takes an average of 7 to 10 days to clear a vessel through customs. Streamlining and modernising customs procedures is a low-hanging fruit-an area where significant gains in efficiency can be achieved with relatively modest investment and within a short period. Without addressing inefficiencies in the national customs clearance system, simply leasing the terminal to a foreign company is unlikely to yield the desired improvements in overall port performance.

The Bangladesh government's decision to hire Saudi operator Red Sea Gateway Terminal (RSGT) to manage the Patenga Container Terminal (PCT) has raised concerns about the effectiveness of foreign-operated terminals and the risks of profit repatriation from Bangladesh. Initially projected to handle 500,000 TEUs annually, PCT has significantly underperformed, processing only 178 TEUs per day on average due to delays in procuring critical operational equipment, particularly gantry cranes, forcing reliance on less efficient ship-mounted cranes. Its underperformance also raises broader concerns about foreign-run port operations, particularly in terms of efficiency, investment commitments, and long-term financial implications for Bangladesh.

In addition, global experiences indicate that outsourcing port operations to foreign companies does not always result in favourable results. A notable example is the Doraleh Container Terminal in Djibouti, which was leased to DP World under a 50-year concession agreement in 2006. In 2018, the Djibouti government unilaterally terminated the lease, citing national security concerns and the need for greater sovereign control over its critical maritime infrastructure. This decision led to a protracted legal dispute, with DP World challenging the termination in the London Court of International Arbitration. The court declared Djibouti's actions unlawful and ordered the government to either reinstate DP World's rights or provide financial compensation of approximately $686.5 million. This case highlights the potential legal, financial, and sovereignty-related risks that can arise from long-term foreign control of strategic national assets.

A lease arrangement involves transferring control of a strategic asset for a defined period in exchange for periodic payments, commonly referred to as rent. Beyond simple possession, such agreements often grant the lessee significant authority over how the asset is utilised, including discretionary decisions on operations, access, and investment priorities. This shift in control can have far-reaching implications, particularly when the leased asset is of national or strategic importance.

Chittagong Port is one of Bangladesh's most valuable national assets, and any major decision-such as leasing it to a foreign company for operation-must be approached with careful deliberation. Due to its location along key international shipping routes in the Bay of Bengal, the port holds not only commercial value but also critical strategic significance. While leasing the port may improve operational efficiency and attract foreign investment, it also raises serious concerns, particularly potential compromise of strategic control over vital strategic resources and potential future conflicts and security risks.

The experiences of Djibouti, Sri Lanka, and Pakistan's Gwadar Port highlight the possible risks of renting out vital infrastructure to foreign companies. Such decisions should not be made hastily and should be preceded by broad national consultation and consensus-especially at a time when an elected government is not in place. The stake is not merely the future of a container terminal but the broader question of how Bangladesh should safeguard and manage its strategic assets in an increasingly complex geopolitical and economic environment. While port modernisation and operational efficiency are important goals, they must not come at the cost of economic sovereignty or increase the risk of future conflicts.

Golam Rasul PhD is Professor, Department of Economics, International University of Business Agriculture and Technology (IUBAT), Dhaka, Bangladesh.​