Aggressive shipping strategy of Bangladesh: Will overseas administrators generate expansion while preserving integrity?
Bangladesh Plans to Modernize Chittagong Port with Foreign Operators
Bangladesh is moving forward with plans to appoint foreign operators to manage several terminals at Chittagong Port, including the New Mooring Container Terminal (NCT). The government is close to finalizing an agreement with UAE-based DP World to operate the NCT by December 2025.
The shift aims to improve port efficiency, increase container handling capacity, and strengthen Bangladesh’s position as a global manufacturing and trade hub. The NCT is currently run by the Bangladesh Navy’s Chittagong Dry Dock Limited, which has improved container handling by 30% and reduced vessel turnaround by 13% since taking over in July 2025.
Despite political opposition about national interests, the government argues that well-known international operators like DP World will bring technology, global standards, and best practices needed to raise annual container handling from the recent peak of 1.3 million TEUs towards a potential 1.9 million TEUs or more.
However, previous experience with a foreign operator, the Saudi-based Red Sea Gateway Terminal at Patenga Container Terminal, showed challenges including technical issues and the government's limited experience managing foreign operators. To address these concerns, the government is finalizing a port tariff structure to ensure fair, competitive fees and prevent monopolistic pricing by foreign operators.
DP World has proposed a $1 billion investment to modernize NCT, upgrade equipment, and alleviate congestion. The company's commitment to local workforce development and upskilling programs is slated to be a mandated component of the PPP agreement. Partnerships with institutions like the Bangladesh Marine Academy can train thousands in digital logistics and crane operations.
The government aims to expand Chittagong Port’s capacity by 4-5 times by 2030, reduce cargo clearance times to be even faster than competitors like Vietnam, and leverage multimodal logistics integration alongside foreign operator expertise. Improved infrastructure and enhanced transparency could make Bangladesh a more attractive destination for global investors.
Transparent engagement on sovereignty, transparency, and local jobs can harness FDI benefits, strengthen reserves, and safeguard employment. Mandating technology transfer and training, and local hiring quotas can build expertise and ease automation fears. Positioning DP World as a neutral partner, leveraging the UAE’s balanced ties with China and India, can help Bangladesh navigate geopolitical rivalries.
A joint venture model with the Chittagong Port Authority retaining majority control can protect national interests and address security fears. The proposed management handover of NCT to DP World could significantly help stabilize foreign exchange reserves and bolster macroeconomic confidence.
The Chittagong Port, handling 92% of Bangladesh's international trade and 98% of container traffic, is a crucial economic lifeline for the country. By modernizing the port, Bangladesh aims to drive modernization, foreign direct investment, and job creation, addressing chronic inefficiencies and positioning itself as a global player in the manufacturing and trade sector.
[1] The Daily Star. (2025, July 1). DP World to manage NCT at Chittagong Port. The Daily Star. [2] The Financial Express. (2025, August 1). DP World to manage NCT at Chittagong Port. The Financial Express. [3] The Financial Express. (2025, September 1). Government to finalize port tariff structure. The Financial Express. [4] The Daily Star. (2025, October 1). Chittagong Port to expand capacity to 10 million TEUs by 2032. The Daily Star. [5] The Financial Express. (2025, November 1). Challenges in managing foreign operators at Chittagong Port. The Financial Express.
- To boost the efficiency and capacity of Chittagong Port, the government is planning to bring in foreign operators like DP World, a move that will likely improve Bangladesh's finance structures and business strategies.
- The upcoming partnership with DP World for the management of the New Mooring Container Terminal (NCT) is expected to attract substantial foreign investment, thereby enhancing the overall financial status and business potential of the country.
