Workers, parties oppose handover of Ctg container terminal to foreign operator

Concerns over handing over operations of Chattogram port's largest terminal, New Mooring Container Terminal (NCT), to a foreign operator have become more pressing, as the interim government furthers an initiative originally taken by the previous Awami League government.

Port workers and several political parties have been demonstrating against the move, raising concerns that handing over the profitable, fully operational terminal to a foreign company would not be economically viable.

Constructed at a cost of Tk 2,000 crore, the 950-metre-long terminal was completed by the Chittagong Port Authority (CPA) in 2007. Equipped with five jetties, NCT can simultaneously accommodate four ocean-going container vessels at four jetties, while the fifth jetty is dedicated to the berthing of smaller container ships plying on inland routes to Pangaon.

Of the port's 18 quayside gantry cranes (QGCs), an important container handling equipment, NCT alone has 14.

Local private firm Saif Powertec Ltd has been operating two of the terminal's jetties (two and three) on an ad hoc basis since May 2007.

In 2015, CPA awarded two separate tenders appointing Saif Powertec Limited as the operator for these two jetties, and its joint venture with A&J Traders and M/s MH Chowdhury Limited as the operator for jetties four and five.

In 2024, Saif Powertec handled around 12.61 lakh TEUs (twenty foot equivalent units) of containers, representing about 44 percent of the port's total container handling. In comparison, Chittagong Container Terminal (CCT) handled 19 percent, and General Cargo Berth (GCB) handled 37 percent of the port's containers.

Meanwhile, the newly built Patenga Container Terminal (PCT) is yet to become fully operational, with appointed Saudi operator Red Sea Gateway Terminal (RSGT) in the process of acquiring handling equipment.

In March 2023, the Awami League government approved the appointment of an international private operator to operate and maintain NCT under a Public-Private Partnership (PPP) model, with the talks progressing with a UAE-based terminal operator DP World.

What are the concerns?

Demonstrating port workers have questioned leasing out a ready-made terminal to a foreign operator, raising concerns that over 1,000 workers currently engaged at NCT could lose their jobs if the move materialises.

Former assistant publicity secretary of Jatiyatabadi Sramik Dal's port unit, Humayun Kabir, said foreign operators could be better involved in greenfield projects like the proposed Bay Terminal or Laldia Terminal, where new infrastructure can be developed.

"NCT has been constructed using the money from CPA's fund while CPA also spent around Tk 2,000 crore to install handling equipment," he said, adding, "there is nothing much left for investment in this readymade terminal."

He also alleged that the Awami League government engaged in nepotism by appointing Saif Powertec Ltd through a direct tender process.

"A new operator can be appointed through open tender and it can operate the terminal as per current system where the port authority collects all the charges and pays handling charges to the operator," he said.

Kabir further said that if NCT is leased out to a foreign operator, it would collect and take away with most of the revenue, paying only a meagre handling charge despite operating a fully equipped terminal.

According to CPA data, the Chattogram Port Authority earned Tk 1,216 crore as revenue from NCT during fiscal year 2022-23, with a net income of Tk 574 crore after expenditures.

Saif Powertec was paid Tk 79.13 crore as handling contractor charges.

At a press conference today, Chattogram city unit of Bangladesh Jamaat-e-Islami also opposed the move.

"Handing over NCT, a self-sufficient terminal, to foreign hands would be a direct blow to the national economy," said Jamaat city unit Ameer Shahjahan Chowdhury.

Claiming that local operators had efficiently managed the terminal for the past 17 years, he added, "Handing over a profit-making terminal to a global operator is illogical ... such a move would put the country's sovereignty at stake."

However, the government maintains that appointing a foreign operator equipped with modern technology would enhance NCT's efficiency.

The International Finance Corporation (IFC), appointed as the transaction adviser for the project by CPA, is expected to submit its report next month.

A senior port official, preferring anonymity, said the government is inclined towards appointing DP World, considering the bilateral relations between Bangladesh and the UAE, where a significant number of Bangladeshis are employed.

During his visit to the port in October, Shipping Adviser Brig Gen (retd) M Sakhawat Hussain assured journalists that "the government would not approve any foreign investment at Chattogram port compromising the interests of the country, the port and its workers," and promised that no workers would lose their jobs if a foreign operator is appointed.

CPA Chairman Rear Admiral SM Moniruzzaman on Thursday said CPA would achieve maximum financial benefit if a foreign operator is brought in, while efficiency would also improve through increased competition.

Moniruzzaman said, "Most of the expensive container handling equipment including gantry cranes at the NCT are overused. Huge amount of money is needed to collect new equipment. Rather, what we need immediately is efficient service for keeping uninterrupted import and export activities."

He added that a global operator would install modern equipment and introduce the latest technology available.

The CPA Chairman further said the process of appointing Dubai-based DP World at NCT is being carried out under a treaty signed between the governments of Bangladesh and the United Arab Emirates.