Debates over leasing NCT to foreign operator intensifying

The debate over whether to lease out the New Mooring Container Terminal (NCT) at Chittagong Port to a foreign operator is intensifying, with political parties, including the BNP, Jamaat-e-Islami, and left-leaning groups, uniting in opposition.

The move, initially introduced under the previous Awami League government through the Public Private Partnership (PPP) Authority, has gained traction under the current interim government.

While some political and labour groups are vocal in their opposition, authorities say that a feasibility study is ongoing, with the final decision to be based on its findings.

However, Shipping Adviser Brig Gen (Retd) M Sakhawat Hussain indicated that the administration is in favour of bringing in a foreign operator to manage the terminal.

Opposition parties argue that the NCT is already well-equipped and capable of delivering world-class services without external involvement. They claim there is no scope for expansion, making foreign investment "unnecessary" and appointing a foreign operator "irrational".

Completed in 2007 at a cost of Tk 469 crore, the 950-metre-long NCT has five jetties -- four for ocean-going vessels and one for smaller ships on inland routes.

'What's the point of leasing out a functional terminal?'

Humayun Kabir, former publicity secretary of BNP's labour wing Jatiyatabadi Sramik Dal (Port unit), said that the Chittagong Port Authority (CPA) invested Tk 2,000 crore to fully equip the terminal.

Now, he argued, there is little left to invest in.

Since 2007, local firm Saif Powertec Ltd had been running two of the jetties of the NCT on an ad hoc basis. In 2015, the CPA formally appointed Saif Powertec as the operator for four jetties.

Kabir criticised the appointment as being "politically motivated" and argued that if a new operator is to be selected, it should be done transparently through an open tender.

"Leasing out NCT to a foreign operator would drain revenue from a fully operational terminal," he claimed.

According to the CPA, the NCT generated Tk 1,216 crore in revenue in FY23, with net income after expenses amounting to Tk 574 crore. In the same period, Saif Powertec received Tk 79.13 crore as handling charges.

Jamaat-e-Islami city unit Ameer Shahjahan Chowdhury echoed Kabir's concerns.

He said, "We are not against foreign investment. But bring foreign investment for greenfield projects, for new ports and terminals; not for an already established terminal."

For the construction and operation of the proposed Bay Terminal and Laldia Container Terminal, the previous Awami League government started talks with global operators including PSA Singapore, DP World, AP Moller Maersk and Abu Dhabi Port.

In 2023, the previous government leased out the newly built Patenga Container Terminal (PCT) to Saudi firm Red Sea Gateway Terminal (RSGT) International for 22 years.

However, all those moves involving foreign companies did not face that much opposition.

Push for foreign investment

During a recent visit to the Chittagong Port, Bangladesh Investment Development Authority (Bida) Executive Chairman Chowdhury Ashik Mahmud Bin Harun stressed the need for global operators to manage port facilities, citing efficiency and optimal utilisation as key to transforming Bangladesh into a global manufacturing hub.

"With limited land, we must ensure that every port facility operates as one of the world's best," he said. "Otherwise, we won't achieve our ambitions."

CPA Chairman Rear Admiral SM Moniruzzaman also supported the move, saying that a global operator could introduce advanced technology and increase efficiency through competition.

"Appointing a foreign operator could maximise financial returns while modernising port operations," he said.

Political pressure foiled initial foreign operator plan

After the NCT's construction was completed in 2007, the CPA floated an international tender to appoint a foreign operator.

However, then shipping minister Shahjahan Khan and Chairman of the Parliamentary Standing Committee on Shipping Nur-e-Alam Chowdhury intervened, leading to the tender's cancellation.

The CPA then opted to equip the terminal using its own funds and appointed a local operator.

The terminal remained underutilised for eight years after construction. By 2022, it had its key equipment installed.

In 2022, talks to appoint a foreign operator at the NCT started. Salman F Rahman, the then private industry and investment adviser to the prime minister, was in favour of leasing out NCT to DP World.

In March 2023, the then Awami League government approved the appointment of an international private operator for operation and maintenance of NCT under Public Private Partnership.