Govt to allow pvt sector to build, operate jetties, terminals at seaports

Highlights 

• Govt plans to allow private sector jetties and terminals at seaports.
• Shipping ministry is drafting the Private Jetty and Terminal Policy-2026.
• Bangladesh handles 93% of foreign trade through seaports.
• Private firms may build terminals on govt or private land within port areas.
• Businesses say private participation could improve efficiency and reduce costs.
• Approved operators must deposit Tk1 crore as security with the government.

The government is set to allow the private sector to build, operate and manage jetties and terminals at seaports. The initiative has been taken to expand trade and commerce, improve ease of doing business, and attract foreign investment. 

To facilitate this, the shipping ministry is drafting the "Private Jetty and Terminal Construction, Operation and Management Policy-2026". The policy will be published soon,  Shipping Secretary Md Zakaria told TBS on 10 May.

Infographics: TBS

The draft states that import-export trade centred around seaports has expanded significantly. Considering future economic growth, more industries are expected to be set up, which will further increase trade volumes.

As a result, alongside the government, the private sector may be included in constructing, operating and managing jetties and terminals to ensure smooth cargo unloading, loading and other services, it says.

According to Bangladesh Bank data, Bangladesh exported goods worth $43.96 billion worldwide in FY2024-25, while imports stood at $64.36 billion during the same period, with 93% of external trade being handled through seaports.

According to the shipping ministry, in FY2024-25, ports handled 3 million TEUs of containers, 105 million tonnes of cargo, and 4,500 ships.

At times, current port capacity is insufficient to handle containers, cargo and ships efficiently, leading to congestion, delays in raw material supplies to factories and export shipments to destinations.

A jetty or berth is a port structure that includes platforms, stages, ramps and docking points where ships can safely berth for unloading, loading and transshipment.

Under the draft policy, private entrepreneurs will be able to establish such jetties on both government and privately owned land within port boundaries, subject to approval from the shipping ministry.

Companies in which the government holds shares will also be allowed to jointly establish such jetties with private investors.

Selection process must be transparent 

East Coast Group Chairman Azam J Chowdhury told The Business Standard that the initiative is undoubtedly positive.

"It will benefit domestic entrepreneurs. The more terminals there are, the lower different service charges at ports will become. In most countries, port operations are managed by the private sector. At the same time, modern technology will be introduced, making port-related activities easier and faster," he said.

However, he added that the process for selecting who will receive responsibility for building and operating jetties must be transparent.

"If qualified institutions are not selected, the benefits of this policy will not be realised. It must be ensured that financially and technically capable organisations receive the responsibility," he said.

Speaking to TBS, BGMEA President Mahmud Hasan Khan said including the private sector in building, operating and managing jetties and terminals would create competition in service delivery.

"Customers will go wherever they receive better service. This will create competition between government and private services, ultimately benefiting users," he said.

How ports are managed globally

Port insiders said there are four types of port management systems globally: service port, tool port, landlord port and pure private port.

The government plans to allow private sector participation under the landlord port model.

In a landlord port, land belongs to the government, while most infrastructure is built and operated by the private sector. Bangladesh's Laldia Container Terminal and Patenga Container Terminal fall under this category.

Currently, Chattogram Port, Mongla Port and Payra Port operate under the tool port model.

In a tool port, land, infrastructure and equipment belong to the state or port authority, while private companies use the facilities for cargo loading and unloading.

A service port is fully state-owned, including land, infrastructure, equipment and labour.

A pure private port is one where everything, including land ownership, belongs to private entities.

India's Mundra Port, owned by Adani, is an example of a pure private port. Similar ports exist in the Philippines, Indonesia, Australia, the UK and Brazil.

The draft policy also states that private jetties and terminals must use the relevant port's operational system or an approved automated system.

They must pay designated fees to port authorities.

For customs operations, private jetties must provide the necessary infrastructure for customs officials.

Modern equipment and technology must be used for cargo loading, unloading and handling to reduce users' time, cost and physical presence.

Tariffs or fees for imports, exports and handling at private jetties will be determined by the port authority.

Private jetty owners and port authorities will sign separate tariff-sharing agreements specifying how revenue generated from the jetty or terminal will be divided.

According to the draft policy, the application fee for setting up such jetties or terminals will be Tk20 lakh, non-refundable.

Approved companies will also need to deposit Tk1 crore as security with the government.

Among the major port users are members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), as more than 80% of the country's exports come from the ready-made garment sector.

The sector also imports cotton, yarn, fabrics and other raw materials.

Bangladesh currently has three seaports – Chattogram, Mongla and Payra. In addition, the Matarbari Deep Sea Port is under construction and expected to be operational this year. 

Chattogram Port, with 18 jetties and container terminals, handles around 90% of the country's trade with the world. It has general cargo berths, container terminals and the New Mooring Container Terminal.