Consortium linked to two MPs bids for New Mooring terminal amid DP World talks

A consortium of three local port operators, linked to two sitting lawmakers, has formally proposed taking over the operation of Chattogram Port's New Mooring Container Terminal (NCT), adding a new dimension to the ongoing debate over the management of the country's busiest container facility.

The proposal, submitted to the Ministry of Shipping on 28 April under the banner of the Saif-Cosmos-Everest Port Services Consortium, surfaced more than a month after filing. It was submitted on the same day that local conglomerate MGH Group also placed its own proposal to operate the terminal.

Shipping Secretary Mohammad Zakaria confirmed that the ministry has received the proposal.

The development comes as the government continues renewed discussions with UAE-based DP World, which has long been seeking a long-term concession to operate the NCT.

The NCT is the largest of Chattogram Port's four operational container terminals, handling around 44% of the port's total container throughput last year.

The newly formed consortium comprises Saif Powertec Ltd, the current operator of Chittagong Container Terminal (CCT), along with berth operators Cosmos Enterprise and Everest Port Services Ltd. The three firms collectively have decades of experience in cargo and container handling at the port.

Notably, two consortium partners are linked to sitting members of parliament. Cosmos Enterprise is chaired by Lakshmipur-4 MP and government whip ABM Ashraf Uddin Nizan, while Everest Port Services Managing Director Shahadat Hossain Selim is the BNP lawmaker from Lakshmipur-1.

A different model from DP World

Unlike DP World and MGH Group, which have proposed operating NCT under a public-private partnership framework, the local consortium has suggested a service-based operating model.

Under the proposal, ownership, control and revenue collection would remain with the Chattogram Port Authority (CPA). The consortium would only handle operations, maintenance, staffing and fuel costs for a 15-year period.

In return, the consortium has proposed an operational fee of $69 per container.

It argues that this arrangement would allow the CPA to retain the majority of terminal earnings while avoiding expenditure on manpower, maintenance and fuel.

According to figures cited in the proposal from a CPA audit report, the port currently earns $161.82 per container and spends $56.15, leaving a net income of $105.67 per unit.

The consortium claims that under its model, the port would continue to retain around $92 per container without requiring additional investment.

Local operators highlight performance record

The proposal also argues that domestic operators have already demonstrated the ability to exceed international benchmarks.

It notes that German consultancy Hamburg Port Consulting had estimated NCT's annual handling capacity at 1.1 million TEUs. However, local operators are currently handling around 1.33 million TEUs annually.

Saif Powertec Managing Director Tarfder Mohammad Ruhul Amin said the three companies have between two and three-and-a-half decades of operational experience at Chattogram Port.

"If local companies operate the terminal, the money remains in the country. Domestic operators should be given the opportunity to strengthen national capacity," he said, adding that NCT could potentially handle up to 1.7 million TEUs annually.

Saif Powertec operated NCT from 2007 until 6 July 2024 and currently runs CCT. The company said it handled around 23 million container units and more than 15,000 vessel calls during its tenure at NCT.

Cosmos Enterprise has been engaged in stevedoring and berth operations since 1989, while Everest Port Services has been operating at the port since 1988 and currently manages a container jetty at the General Cargo Berth.

Everest Port Services Managing Director Shahadat Hossain and Cosmos Enterprise Chairman ABM Ashraf Uddin Nizan could not be reached for comments.

Government yet to consider new proposals

Despite the growing number of domestic proposals, government officials say they are not currently under consideration.

The NCT concession process, initiated during the previous Awami League government, had reached an advanced negotiation stage with DP World during the interim administration. However, labour protests, political opposition and disagreements within the negotiation committee led to the suspension of the process on 9 February this year.

The government has recently moved to revive negotiations by forming a new evaluation committee.

Shipping Secretary Mohammad Zakaria said discussions with DP World remain the government's immediate priority.

"As negotiations with DP World are ongoing, there is no scope to consider the new proposals at this stage. If the discussions do not reach a successful conclusion, a fresh tender process may be initiated, where proposals from both local and foreign operators can be evaluated," he told The Business Standard.