DP World's NCT proposal part of broader Bangladesh-UAE partnership: CPA chief
CPA says ageing port equipment requires urgent upgrades
The proposed involvement of UAE state-owned port operator DP World in operating Chattogram Port's New Mooring Container Terminal (NCT) is part of a broader Bangladesh-UAE strategic partnership, and prolonged delays in implementing the project could affect commitments made between the two governments, Chattogram Port Authority (CPA) Chairman Rear Admiral SM Moniruzzaman has said.
Speaking at a press briefing after inaugurating the port's new one-stop service centre today (1 July), Moniruzzaman said discussions on the project began in 2019 under a government-to-government initiative and that it should not be viewed merely as a commercial proposal.
He said DP World is wholly owned by the UAE government, while around 26 lakh Bangladeshis work in the Gulf country, which sends about $4.65 billion in remittances to Bangladesh annually. Given the broader bilateral relationship, the initiative has been pursued at the government level, he added.
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According to the CPA chairman, Bangladesh and the UAE have signed memorandums of understanding on the project, which is being structured under a public-private partnership (PPP). The International Finance Corporation (IFC), the World Bank Group's private sector arm, is serving as transaction adviser, with both sides investing resources to advance the process.
Moniruzzaman acknowledged that the proposal has faced repeated obstacles over the years but warned that failure to move the project forward could have implications for commitments made between the two countries.
He also defended the proposal on operational grounds, saying private investment is needed to modernise the NCT before ageing equipment begins to undermine port performance.
According to him, the terminal's cranes and cargo-handling equipment are becoming obsolete, with equipment availability falling to around 70%, significantly below the global benchmark of more than 93%.
He said replacing the equipment through the port authority alone would require Tk3,000-4,000 crore and take three to four years, whereas DP World could complete the upgrades within a year because of its commercial incentive to invest quickly.
Moniruzzaman said an inter-ministerial committee is currently reviewing the proposal following discussions at a Bangladesh-UAE platform meeting in Dubai earlier this year. He stressed that Bangladesh's national interest would not be compromised during negotiations, which are being conducted transparently and in line with international standards.
The CPA chairman also highlighted the authority's broader digital transformation through its CPA Sky platform, which integrates port land records and operational data to improve transparency and operational efficiency.
He said digitisation has reduced truck processing time from 15-20 minutes to less than a minute through online ticketing, while online payment systems have shortened transaction times from weeks to minutes.
Moniruzzaman said improving port efficiency and lowering logistics costs are critical to attracting foreign investment and supporting Bangladesh's ambition to become a regional manufacturing and logistics hub, adding that competitive ports are essential for boosting investment, exports and employment.
