Two Letters Within 3-Hour On Handing  Over NCT Operation to DP World

The Ministry of Shipping has issued two directives in a single day to hand over the operation of the New Mooring Container Terminal (NCT) to Dubai-based DP World. The first directive tasked Chittagong Port with the responsibility of negotiating and canceling the appointment of an international operator. Within a three-hour gap, a new directive was issued, instructing the port to proceed with the task, deciding to continue negotiations.

The NCT, considered the heart of Chittagong Port, is currently the most profitable among the port's terminals. The port's annual revenue is Tk 5,000 crore, of which Tk 1,500 crore is contributed solely by the NCT. Additionally, 45% of the total container handling is conducted at this terminal.

Two orders from the same official of the Ministry of Shipping on the same day have created confusion and ambiguity among the government, administration, and port users. This division is clearly reflected even among ruling party members of parliament, both of whom are involved in cargo handling at the port.

Regarding this ambiguity, the Secretary of the Ministry of Shipping, Zakaria, said, "There was some confusion about what the new government is doing regarding the DP World proposal for the NCT. To clarify that, we sat in a meeting and made a formal decision." According to him, "This is a negotiation process, not a decision on operations."

While discussions about handing over NCT operation to DP World had remained secret until now, the matter was formalized in a ministry meeting on Thursday.

During the interim government's tenure, the BNP criticized the process as "hasty and against national interest," and built a labor movement to block the agreement. Now, after assuming power, the BNP is moving forward with a new, larger-scale negotiation process with the same DP World, creating considerable dissatisfaction within the government and administration.

BNP lawmaker from the Lakshmipur-1 constituency, Shahadat Hossain Selim, alleged that a vested group is misleading the government to hand over the NCT to DP World for personal gain. According to him, there is no benefit for Chittagong Port, nor for the country. He claims there is no scope to demonstrate greater efficiency than what is being performed now. Moreover, the NCT is located next to a sensitive installation like a naval base. Handing it over to foreigners would compromise national sovereignty and send domestic money abroad. He stated he had been vocal about this since the Yunus government's time.

Shahadat Hossain, former Managing Director of Everest Enterprise, a berth operator at Chittagong Port, said, "I have already informed the National Parliament about this matter. I will present the reality to the highest level of the government. If that doesn't work, we will build a labor movement if necessary to stop the process. The NCT will not be handed over to foreigners under any circumstances."
Ruling Party MP and Whip ABM Ashraf Uddin Nizam also stated that the government's decision to operate the NCT with a foreign operator should be reviewed. According to him, if, due to the memorandum of understanding with the previous government and geographical reasons, DP World must ultimately be given the operation of the NCT, then the process should be transparent, open, and competitive. DP World, other foreign operators, and local operators should compete and be selected through bidding. This would ensure the government's transparency.

Ashraf Uddin, owner of berth operator Cosmos Enterprise, believes, "Even if the NCT is handed over, we must ensure that no foreign operator comes to operate the remaining terminals, such as CCT and the 12 jetties of GCB. If anyone wants to demonstrate greater efficiency, they should go to the Bay Terminal."

Businesspeople, who are vocal about increasing Chittagong Port's efficiency to reduce the cost of doing business, also want foreign operators to come, but without unnecessarily increasing costs.

Pacific Jeans, which single-handedly exports about 15% of Bangladesh's denim or jeans apparel. The company's Managing Director, Syed Muhammad Tanvir, claimed, "If global operators come, we get the opportunity to compare our efficiency and capabilities. Our image improves. Global operators have the opportunity to showcase their own designs, value addition, and maximum efficiency in greenfield projects. I believe that if the government allows global operators to work in the current terminal, it will do so through a transparent process and will not take any steps against national interests."

During the Awami League government's tenure, the decision to hand over NCT operation to DP World was backed by former Prime Minister's private advisor Salman F. Rahman. During Dr. Muhammad Yunus's interim government, PPP Authority CEO Ashik Chowdhury advanced the process. Although the interim government hurriedly finalized the date and time for signing the agreement with DP World just two days before the end of Dr. Yunus's term, a labor movement forced a postponement. When the BNP came to power, this stalled process was advanced behind the scenes by the same Ashik Chowdhury.

During the BNP government's time, on April 8, a meeting was held in Dubai with DP World to initiate discussions, giving momentum to the stalled agreement process. Ashik Chowdhury also led there. The meeting decided that negotiations for the NCT's Request for Proposal must be completed within the stipulated timeframe. To that end, DP World was asked to submit a revised tender proposal as quickly as possible if needed. The meeting saw proposals from DP World to operate the NCT, the back-up yard behind the NCT, and, for the first time, the Chittagong Container Terminal (CCT).

Following that discussion, a meeting was held at the Secretariat on Thursday, June 4. The meeting included Shipping Minister Sheikh Rabul Hossain, Secretary Zakaria, PPP CEO Ashik Chowdhury, Chittagong Port Chairman Rear Admiral S.M. Moniruzzaman, and other senior officials. After the meeting, a directive signed by Farzana Hossain, Senior Assistant Secretary of the Ministry of Shipping, instructed the Chairman of Chittagong Port Authority to take necessary measures regarding two specific options or decisions. The first was to proceed with the ongoing negotiation process if deemed logical. The second was that if the port authority was unwilling to proceed with the negotiation with DP World, then to take necessary measures to directly cancel the entire process.

After issuing the first directive, a second letter, signed by the same official on the same day, gave the green light to continue with DP World. This created confusion about the government's changing decision on the same day. Allegations have arisen that such a directive came after office hours through the verbal note of a particular authority. However, Shipping Ministry Secretary Zakaria has denied any such occurrence.