Govt advances talks with DP World on NCT operations

The government is advancing discussions with UAE-based port operator DP World on the long-term leasing of Chattogram Port’s largest functional New Mooring Container Terminal (NCT).

The company has also proposed operating the adjoining Chittagong Container Terminal (CCT) along with NCT as a single integrated terminal.

The last interim government was close to finalising a deal with DP World to operate NCT. But in the wake of a wildcat strike enforced by port employees and workers, it has to suspend the move just before the parliamentary election in February. The new government, however, is continuing the talks.

At the fourth joint public-private partnership platform meeting of the Bangladesh-Dubai government-to-government platform held in Dubai on April 8, it was agreed that negotiations should be concluded within the validity period of the request for proposal for NCT.

According to meeting minutes obtained by The Daily Star, the session was convened to review the progress of four projects currently placed on the platform and to discuss next steps.

NCT topped the list of projects, which also included Bay Container Terminal, Dhirasram Inland Container Depot (ICD), and a digital platform with a single window system.

The agenda also featured three other projects, including modernisation of the CCT, the port’s oldest container terminal with two jetties.

According to the minutes, the UAE firm expressed interest in modernising and operating CCT, adjoining NCT, to develop them as one integrated terminal.

The Bangladesh government agreed to consider placing CCT on the Bangladesh-Dubai Joint Platform and to discuss it as a separate project in future meetings.

The CCT has the capacity to handle 6 lakh twenty-foot equivalent units of containers every year.

At the meeting, DP World requested greater transparency on the revenue, cost, and manpower structure of the Chittagong Port Authority with respect to NCT’s operation.

The firm also stressed the need to reconsider the proposed 15-year concession tenure and the additional expenditure required for modernising the terminal.

It was decided that DP World, as the bidder for the NCT project, should submit all comments, suggestions, concerns, negotiation milestones, and a revised bid, if necessary, at the earliest.

Regarding Dhirasram ICD, to be built by Bangladesh Railway, DP World as the intended operator, is set to submit a refreshed formal technical recommendation. The firm also expressed interest in considering capital investments in locomotives, rolling stock, and other rail freight infrastructure.

Discussions were also held on three other projects, including a free trade zone adjoining Chattogram Port, CCT, and Nimtala ICD.

Ashik Chowdhury, chairman of the Bangladesh Investment Development Authority and executive director of the Public Private Partnership Authority, led the four-member Bangladesh delegation.

It included the then shipping ministry secretary, Dr Nurun Nahar Chowdhury, and Bangladeshi ambassador to the UAE, Tareq Ahmed.