Negotiations between Bangladesh and Dubai-based DP World to operate Chattogram Port’s New Mooring Container Terminal (NCT) have stalled amid widening disagreements over tariffs, operational control and infrastructure access, according to official and port sources.
Despite months of discussions under a government-to-government (G2G) framework, key commercial and operational issues remain unresolved, raising questions over the viability and timeline of one of the country’s most significant port concession proposals.
Tariff gap at core of deadlock
At the centre of the deadlock is a sharp gap in container handling charges. The Chattogram Port Authority (CPA) has proposed a tariff of USD 90 per TEU (Twenty-foot Equivalent Unit), while DP World has offered USD 62 per TEU. Although both sides have agreed on handling up to 1.4 million TEUs annually, the port authority has pushed for a higher rate of USD 125 per TEU beyond that threshold, a proposal yet to be accepted.
Beyond pricing, control over critical port infrastructure has become a major sticking point. DP World has sought exclusive use of the overflow yard serving both NCT and the adjacent Chattogram Container Terminal (CCT), but port officials warn this could disrupt container flow across the wider port system.
A similar dispute has emerged over access roads. While DP World has demanded exclusive control of a dedicated route for NCT operations, the CPA insists the corridor must remain shared, as it also serves multiple inland container depots (ICDs) linked to national logistics routes.
Tensions have also surfaced over the NCT-1 jetty, currently used for domestic container movement, including services connected to the Pangaon Inland Container Terminal. DP World has proposed exclusive operational use of the jetty in return for separate charges, but port authorities fear such a move could fragment existing operational coordination and reduce system-wide efficiency.
Strategic scale of concession
Sources say the concessions under discussion would give DP World control over a terminal handling nearly 45% of Chattogram Port’s annual throughput of 3.2 million TEUs, intensifying concerns within policy circles over the balance between efficiency gains and national operational sovereignty.
While several issues have been agreed, including concession tenure, revenue mechanisms, worker retention guarantees and continued access to port utilities, officials acknowledge that the most sensitive commercial and operational terms remain unsettled.
The government has instructed the CPA to form a committee to continue negotiations within a fixed timeline. Shipping Secretary Zakaria told TIMES of Bangladesh that discussions would resume shortly, adding that a final decision would be taken if differences could not be bridged.
New technical concerns have further complicated talks, including DP World’s proposal to handle 60-ton TEU containers; well above the 40-ton capacity currently supported by NCT cranes and jetty infrastructure. Officials say this raises unresolved questions about equipment capability and required upgrades.
Policy tension over control vs efficiency
The negotiations are being conducted under a confidential G2G framework involving Bangladesh and the UAE, with authorities citing commercial sensitivity and diplomatic considerations for limited disclosure. The process follows the G2G Partnership Policy 2017, which allows direct state-to-state agreements outside competitive bidding.
Meanwhile, domestic players have also expressed interest in operating the terminal, including Saif Powertec, whose previous contract was cancelled. At present, NCT is operated by Chittagong Dry Dock Limited, a Bangladesh Navy entity, with operational support from Saif Powertec.
Officials say the talks now hinge on whether the widening gap over pricing, exclusivity and infrastructure use can be bridged or whether the flagship concession risks further delay.
