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New Mooring Container Terminal (NCT) Source: SaifPowerTech
A Bangladeshi high court has thrown the future of Chittagong port’s largest container terminal into uncertainty, issuing a split verdict that effectively suspends the government plan to hand operations of the New Mooring Container Terminal (NCT) to DP World.
Two justices reached opposing conclusions on the legality of the process, forcing the matter to be sent to the chief justice, who will assign a third bench to deliver the final judgment.
The dispute has become highly political, with local port operators and political parties staging protests against a foreign operator taking over the high-volume terminal.
NCT, built to handle just over 1m teu annually, has been run by local operator Saif Powertech since 2007. Despite the facility operating beyond its official design-capacity, stakeholders argue that local handlers have kept cargo moving without needing foreign intervention.
Syed Iqbal Ali Shimul, former senior vice-chairman of the Bangladesh Shipping Agents Association, says foreign involvement makes little sense at NCT.
“The terminal is already performing at full capacity under local management,” he said. “A foreign operator will not bring any meaningful improvement. They should instead be invited to develop new terminals, where fresh investment and technology transfer are needed.”
After Saif Powertech’s contract expired, the government awarded temporary control of NCT to Chittagong Drydock, a subsidiary of the Bangladesh Navy, in July. But at the same time, officials continued advancing plans to transfer long-term operations to DP World, sparking widespread criticism.
Opponents say a foreign operator would also create “unnecessary foreign currency outflow”.
The writ petition was filed by Mirza Walid Hasan, president of the Youth Economic Forum, who questioned the legality of the process by which DP World was being positioned to take over the terminal.
The controversy comes just weeks after the government handed two other major terminal projects to foreign operators: APM Terminals, part of Maersk, secured the Laldia Container Terminal in Chittagong and is expected to bring in $550m in FDI, and will build and operate the terminal for 30 years; Medlog, MSC’s logistics and intermodal arm, received the contract for a river terminal in Dhaka, with commitments to introduce foreign investment and technology.
These awards intensified scrutiny of the DP World deal, with critics questioning whether Bangladesh is moving too quickly to cede port infrastructure to global players.
Kaiser Kamal, lawyer for the writ petitioner, said the split verdict alone should halt any progress toward transferring NCT to DP World.
“It would not be ethical to continue with the process until the third bench delivers its decision,” he said.
DP World declined to comment when contacted by The Loadstar.
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