CHATTOGRAM, July 01: Chittagong Port Authority (CPA) Chairman Rear Admiral SM Moniruzzaman said the proposed involvement of UAE state-owned port operator DP World in managing Chattogram Port's New Mooring Container Terminal (NCT) is part of a broader Bangladesh-UAE partnership, warning that prolonged delays could affect commitments between the two governments.
Speaking at a press conference on Wednesday after inaugurating the port's one-stop service centre, the CPA chief said discussions on the project began in 2019 through government-to-government engagement and should not be viewed solely as a commercial proposal.
The new service centre, built at a cost of around Tk 800 million, brings key port-related services under the same roof and is equipped with security systems compliant with the International Ship and Port Facility Security (ISPS) Code.
Mr Moniruzzaman further said, "DP World is a 100 per cent UAE government-owned company. Around 2.6 million Bangladeshis work in the UAE, and the country receives about $4.65 billion in annual remittances from there. Considering these broader bilateral ties, this initiative has been pursued at the government level.
"Bangladesh and the UAE had signed memorandums of understanding on the project, while the transaction is being structured as a public-private partnership (PPP). The International Finance Corporation (IFC), the World Bank's private sector lending arm, has been appointed as transaction adviser, with both sides investing resources to advance the process."
He said that the proposal had encountered repeated obstacles over the years but cautioned that failure to implement the project could affect commitments made between the two governments.
He also defended the proposal on operational grounds, arguing that private investment is needed to modernise the NCT before ageing equipment begins affecting port performance.
He said the terminal's cranes and handling equipment are becoming obsolete, with equipment availability falling to around 70 per cent, well below the global benchmark of more than 93 per cent.
"If the port authority replaces the equipment itself, it would require Tk 30.0-40.0 billion and take three to four years. If DP World takes over operations, it can complete the upgrades within a year because it has the commercial incentive to invest quickly," he said.
According to the CPA chief, an inter-ministerial committee is currently reviewing the proposal following discussions at a Bangladesh-UAE platform meeting held in Dubai earlier this year.
He stressed that the government would not compromise Bangladesh's interests during negotiations. "We will not sacrifice national interests. Bangladesh comes first, and so do its people. The negotiations are being conducted transparently and in line with international standards," he said.
The CPA chairman said the authority is also pursuing a broad digital transformation through its CPA Sky platform.
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