C T Online Desk: Oct 8, 2026- Chattogram Port Authority (CPA) and global port operator DP World today signed a 15-year concession agreement for the operation and modernisation of the New Mooring Container Terminal (NCT), marking a major step towards improving the efficiency and capacity of Bangladesh’s principal maritime gateway.
CPA Chairman Rear Admiral SM Moniruzzaman signed the agreement on behalf of the Chattogram Port Authority, while DP World Chairman Essa Kazim signed on behalf of the international terminal operator at a ceremony held at Invest Bangladesh auditorium here.
Shipping Minister Sheikh Rabiul Alam, State Minister for Shipping Md. Rajib Ahsan, UAE Ambassador to Bangladesh Abdulla Ali Al Hamoudi and Invest Bangladesh Chairman Ashik Chowdhury, among others, attended the signing ceremony.
Under the concession, DP World will operate and manage NCT for an initial period of 15 years, while ownership of the terminal’s land, core infrastructure and assets will remain with CPA and, ultimately, the government of Bangladesh.
The agreement provides an upfront payment of around Tk 600 crore, with 25 percent payable upon signing and the remaining 75 percent before commencement of operations.
DP World will also invest more than Tk 1,000 crore during the first 10 years to modernise the terminal through new equipment, technology and operational improvements.
In addition, CPA will receive a share of terminal revenue or royalty, ranging from around 40 percent to 67 percent per TEU depending on average terminal revenue, along with a fixed annual fee of approximately Tk 10 crore.
The agreement includes a minimum annual volume guarantee of 1.23 million TEUs, with provision for adjustment to 1 million TEUs once a new terminal becomes operational.
Speaking at the ceremony, Shipping Minister Sheikh Rabiul Alam said the government’s objective was to rapidly increase the capacity and efficiency of existing strategic assets.
“Modern equipment, digital systems, international operating standards and global logistics connections will make NCT more competitive,” he said.
He said the government’s wider policy was to engage multiple international operators across terminals to improve service quality and reliability and strengthen supply-chain resilience.
DP World Chairman Essa Kazim said Bangladesh was becoming an increasingly important trading and manufacturing economy and DP World was committed to supporting its continued development.
“Through this partnership, DP World will connect the New Mooring Container Terminal to our global network of ports, logistics infrastructure and supply chain services, helping create more seamless links between Bangladesh and international markets,” he said.
He said the company would combine its operational expertise, technology and end-to-end logistics capabilities to support trade, attract investment and create new opportunities for businesses across Bangladesh.
CPA Chairman Rear Admiral Md. Moniruzzaman said the partnership reflected Bangladesh’s commitment to strengthening its maritime and trade infrastructure through the public-private partnership framework.
He said the agreement would enhance operational performance, ease logistics constraints and strengthen connectivity with international markets.
Invest Bangladesh Chairman Ashik Chowdhury said bringing DP World into NCT was an important step towards bringing Bangladesh’s trade operations up to global standards.
“We want faster operations, stronger connectivity and higher standards at one of our most important trade gateways,” he said.
NCT is one of four dedicated container-handling facilities at Chattogram Port. Since commencing operations in 2007, it has become a key component of Bangladesh’s trade infrastructure and currently handles around 44 percent of the port’s container traffic.
Chattogram Port handles approximately 92 percent of Bangladesh’s foreign trade.
However, the port continues to face challenges related to container dwell time, vessel turnaround time, equipment performance and overall productivity. Container dwell time at Chattogram Port and NCT exceeds nine days, compared with less than two days at several peer ports, while vessels spend more than 2.5 days at the port, compared with around 15-24 hours at benchmark ports.
The 2025 Container Port Performance Index ranked Chattogram Port 364th among 400 container ports worldwide.
The government estimates that operational inefficiencies and inadequate modernisation of the port cost the economy around Tk 10 crore a day, or more than Tk 3,000 crore annually. According to World Bank data, reducing container dwell time by one day could increase Bangladesh’s exports by around 7.4 percent.
The concession agreement has introduced key performance indicators, phased performance targets and financial penalties for failure to meet agreed standards, including targets related to truck turnaround time and crane productivity.
If a performance target is missed for three consecutive months, the applicable financial penalty will be triggered.
CPA will retain oversight of terminal operations through monitoring, audits and regular reporting. The agreement provides for weekly and monthly reports on container and vessel handling, revenue and other operational indicators.
The arrangement does not transfer ownership of, or sovereign authority over, the terminal. Security, customs, immigration and other functions currently exercised by the relevant government agencies will remain under Bangladeshi authority.
The agreement also provides safeguards relating to cybersecurity, data localisation, access control and background screening, subject to government-approved standards.
Local employment will continue under the concession, while DP World’s investment in modern equipment, technology and international-standard training is expected to enhance the skills of Bangladeshi workers in the port and logistics sectors.
The selection of DP World was conducted under the government-to-government (G2G) policy and the public-private partnership (PPP) framework, involving prequalification, technical and financial assessments, due diligence and negotiations.
The process began on March 23, 2023, when the Cabinet Committee on Economic Affairs (CCEA) gave in-principle approval. The Transaction Structure Report was approved on October 20, 2025, followed by the issuance of the Request for Proposal (RFP) on January 8, 2026.
Bids were received on January 25, while negotiations continued from January 27 to August 6. The CPA Board approved the arrangement on September 16, followed by CCEA approval on October 1.
The agreement is expected to complement the development of the Laldia Container Terminal, the fifth container terminal at Chattogram Port, which is being developed by Denmark-based APM Terminals and is expected to be ready by 2030.
DP World operates more than 80 marine and inland terminals in over 40 countries, with its network handling around 10 percent of global container traffic.
The company has port operating experience in major markets including India, Pakistan, Saudi Arabia, Egypt, the United Kingdom and the United States.
