Bangladesh has signed a 15-year agreement with Dubai-based DP World to operate one of Chittagong Port’s most important container terminals, pushing ahead with a controversial plan that had previously been suspended amid opposition from workers and political parties.
The agreement for the New Mooring Container Terminal (NCT), which handles nearly half of the port’s container traffic, was signed on Thursday afternoon at the Invest Bangladesh office in Agargaon, Dhaka, even as protesters gathered outside and police used batons to disperse demonstrators.
The decision marks a significant policy shift for the BNP government, whose leaders had opposed handing over the terminal to a foreign operator during the interim administration.
While the government says the agreement will modernize port operations, attract investment and improve Bangladesh’s trade competitiveness, workers and opposition groups have questioned its financial terms, transparency and implications for national control over strategic infrastructure.
The controversy intensified immediately after the signing, with Chittagong Port labour organizations announcing a daylong mass hunger strike for October 12 and warning of further programs, including action that could bring port operations to a standstill.
Later on Thursday, Prime Minister Tarique Rahman met a DP World delegation led by its board chairman, Essa Kazim, and urged the company to explore further investments in Bangladesh, including free trade zones and rail-based inland container depots.
What Bangladesh will get
Under the agreement, DP World will operate and maintain the NCT for 15 years, with an option to extend the arrangement by another 15 years through mutual consent.
Shipping Minister Sheikh Rabiul Alam said the company would invest $150 million, equivalent to approximately Tk1,500 crore, to modernize the terminal.
Bangladesh would also receive Tk600 crore as a signing fee, while the government would retain 67% of the revenue generated under the arrangement, he said.
The minister also referred to an annual payment of Tk10 crore to the port, although the precise relationship between this payment and the broader revenue-sharing arrangement requires clarification.
The terminal, built in 2007 at a cost of approximately Tk2,000 crore, has five jetties and is among the country’s most strategically important container-handling facilities.
The government maintains that ownership of the terminal is not being transferred.
“Leasing out a port and container handling are not the same thing. Those claiming the port is being leased out are unaware of the details of this agreement,” Rabiul Alam told journalists.
He said ownership, security and overall regulatory control would remain with the Chittagong Port Authority and relevant government agencies, including Customs, intelligence and security authorities.
DP World would be responsible for terminal operations, equipment maintenance and technological upgrades.
The government expects the arrangement to improve container-handling efficiency, reduce vessel waiting times and strengthen the country’s import-export infrastructure.
However, the complete agreement, including detailed financial, operational and security provisions, has not been provided in the source material.
From opposition to agreement
The decision carries particular political significance because the proposal has passed through three successive administrations.
Discussions about appointing an international operator began in 2019 during the Awami League government.
In March 2023, approval in principle was granted to pursue an international operator under a public-private partnership arrangement.
The initiative was revived during the interim government, which sought to finalize an agreement with DP World.
But protests, strikes and resistance from port workers forced the authorities to suspend the process ahead of the February 2026 national election.
At that time, BNP leaders in Chittagong opposed the proposed agreement, arguing that an interim administration lacked the mandate to make such a long-term decision involving a strategically important national asset.
After assuming office, however, the BNP government reopened negotiations.
On October 1, the Cabinet Committee on Economic Affairs gave in-principle approval to the proposed 15-year arrangement.
The agreement was finalized just a week later.
Asked about the government’s change of position, Shipping Minister Rabiul Alam said previous administrations had failed to negotiate terms sufficiently favourable to Bangladesh.
He said the current government had spent six months bargaining with DP World and securing what it considered better conditions.
“We have spent the last six months working on the areas where bargaining was necessary to secure our interests, and we have successfully reached a conclusion. This is an achievement of this elected government,” he said.
The minister argued that the agreement would protect Bangladesh’s interests while bringing international expertise and investment into the port.
Police disperse protesters in Dhaka
The signing took place against a backdrop of demonstrations in both Dhaka and Chittagong.
Activists from the Communist Party of Bangladesh, Bangladesh Samajtantrik Dal and other left-wing organisations gathered outside the Invest Bangladesh office in Agargaon on Thursday afternoon.
They demanded cancellation of the agreement and raised concerns about foreign management of a strategic national facility.
Police dispersed the demonstrators around 2:45pm, shortly before the signing ceremony.
Protesters alleged that police used batons without provocation, injuring several activists, including leaders of the Communist Party of Bangladesh.
CPB President Sazzad Zahir Chandan said the demonstrators had been holding a peaceful program.
“We were holding a peaceful program. At one point, police baton-charged us without any provocation,” he alleged.
He said the parties would continue protesting against what they considered a threat to Bangladesh’s control over its ports and national resources.
Police offered a different explanation.
Sher-e-Bangla Nagar Police Station Officer-in-Charge Monir Hossain told UNB that demonstrators had lain down on the road and obstructed traffic.
“Police removed them for the sake of vehicular movement,” he said.
The protesters’ allegations concerning injuries and the circumstances of the police action could not be independently established from the available accounts.
Shut down threats
In Chittagong, labour organizations brought out a procession and held a rally in the port area shortly after the agreement was signed.
They announced a daylong mass hunger strike outside the port building on October 12, demanding cancellation of the deal.
Leaders warned that more extensive protests, potentially disrupting port operations, would follow if the government refused to reconsider its decision.
Humayun Kabir, coordinator of the Chittagong Bandar Rakkha Sangram Parishad, described the NCT as the heart of Chittagong Port.
He argued that a strategically important and functioning terminal should remain under Bangladeshi management.
Speaking to BBC Bangla before the signing, he questioned whether bringing in a foreign operator would increase costs through additional payments and commissions.
He also argued that Bangladesh could modernize the terminal by training existing workers rather than transferring its operation to an international company.
Workers have staged demonstrations, hunger strikes and other programs over several months.
The latest agreement has therefore not ended the dispute but shifted it into a new phase, with opponents now demanding cancellation of a signed contract.
Will workers lose their jobs?
Job security remains one of the principal concerns raised by port employees.
Shipping Minister Rabiul Alam dismissed fears that the agreement would lead to job losses.
“There is no possibility of job losses or harm to workers resulting from this agreement,” he said.
He argued that modernization and additional foreign investment would create employment opportunities and improve workers’ technical skills.
Former Chittagong Port Authority member Md Zafar Alam also said international management could improve terminal capacity and operational efficiency.
However, he warned that increasing terminal productivity alone would not resolve the wider logistical bottlenecks affecting the port.
He said roughly 70% of containers were destined for Dhaka, but inadequate road and rail connections continued to constrain cargo movement.
The port also needed to improve container unloading performance and reduce dependence on storage charges for revenue, he said.
Zafar Alam stressed that workers’ employment rights should be protected during the transition.
PM seeks further investment
Hours after the agreement was signed, Prime Minister Tarique Rahman met DP World Board Chairman Essa Kazim and his delegation at the Secretariat.
According to Assistant Press Secretary AKM Nazmul Haque, the meeting covered the expansion of Bangladesh-UAE trade and investment, port management, logistics and infrastructure development.
The prime minister invited DP World to consider investments in free trade zones and rail-based inland container depots.
The delegation expressed interest in exploring cooperation in those sectors.
The meeting also reviewed the newly signed terminal agreement and opportunities to modernize Bangladesh’s logistics network.
The government views the deal as part of a broader effort to attract international investment and increase the efficiency of the country’s principal maritime gateway.
Questions over transparency
Despite the government’s assurances, several important questions remain unanswered.
The full concession agreement has not been made available in the supplied reporting, leaving its detailed financial and operational provisions unclear.
Among the issues requiring scrutiny are the exact revenue-sharing formula, the nature of the signing fee, performance targets, contractual penalties, worker protections and arrangements for returning operational responsibility at the end of the concession.
Questions have also been raised about the selection process, including whether the operator was chosen through competitive international bidding and whether an independent assessment established the economic advantages of foreign operation.
Opponents have demanded disclosure of the complete agreement so its implications for national security, commercial control and public revenue can be examined.
The government insists the port will remain under Bangladeshi ownership and that the arrangement concerns only the operation and maintenance of the terminal.
For the administration, the immediate challenge will be demonstrating that the promised investment and modernization translate into measurable improvements in container handling, vessel turnaround times and trade costs.
For the workers, the agreement has intensified an already prolonged confrontation.