Legal complications-controversyBig change in hiring foreign operators at Ctg Port

Amidst various discussions and criticisms, agreements were signed with foreign companies on November 17 for two terminals at the Chittagong Port. One of them is for the construction and operation of the Laldia Terminal on the banks of the Karnaphuli River in Patenga, Chittagong, and the other is for the operation of the Pangaon Naval Terminal in Keraniganj, near Dhaka.

The two agreements were signed at two separate events held at a hotel in Dhaka that day. However, although the signing was public, the detailed terms of the agreement and what information cannot be disclosed were not officially announced. However, the shipping advisor said that the various terms of the agreement will be announced at a later date.

Meanwhile, various parties have already held protests, torchlight processions and issued statements opposing the agreement. However, the port authorities say that the port is not being given to foreigners. Operators are being appointed to manage it.

Amid the confrontation between the two sides, the government has taken the initiative to make major changes to the management and operation model of the country's main seaport. However, this process has now created various controversies and legal complications.

Just as the process of handing over important facilities like Patenga Container Terminal (PCT) and Newmooring Container Terminal (NCT) to foreign operators is in its final stages, the High Court's stay on the appointment of local operators has posed a new challenge to the entire process.

Although the Chittagong Port has been operated under the 'tool port' model for a long time, the port authorities are now moving towards the 'landlord' model. In this model, the land of the port is owned by the government, but the responsibility of building and operating the terminal is carried out by private or foreign companies.

Saudi Arabia's Red Sea Gateway Terminal (RSGT) has already taken over the Patenga Terminal. In addition, world-class operators such as DP World (United Arab Emirates), PSA (Singapore) and APM Terminals (Netherlands) have offered to invest in operating the NCT and Bay Terminals.

The government and the port authority claim that hiring a foreign operator will increase capacity and ensure global standard services. However, the port, which is currently ranked 67th in Lloyd's List, has built its own infrastructure, so there is strong objection among workers and local professionals to handing over the profitable terminals to foreigners.

New operator appointment amid legal complications

The port authority has taken the initiative to issue licenses to recruit new operators alongside existing berth and ship handling operators. This initiative was taken in light of the Ship Handling Operator and Berth Operator Licensing Policy-2025.

But the High Court has stayed the process of appointing a new operator for three months following a writ petition filed by berth handling operator M.H. Chowdhury Limited. The court's stay order has put the port's plans to create a competitive environment for its operations on hold for now.

In this context, Chittagong Port Secretary Md. Omar Faruk said, 'There is no opportunity to talk about the license for now, since it is a pending matter. The court has ordered a stay on it in view of an appeal. However, the development of the port in other aspects has not stopped anywhere. The port is moving forward in handling and other aspects.'

According to port officials, this massive undertaking of handling 130 million tons of goods and 3.3 million TEUs containers requires more skilled and modern operators.

In the just-ended year, Chittagong Port broke all previous records by handling a record high of 3.4 million TEUs containers.

Fear and opposition

Labor organizations have alleged that hiring a foreign operator at a self-contained terminal like the New Mooring Terminal (NCT), where the port authority has already invested around Tk 2,712 crore, will harm the port financially. In addition, some quarters have also raised claims that foreign investment could threaten the country's sovereignty.

However, Shipping Advisor M Sakhawat Hossain said that the foreign operator will only operate the terminal and the power to set the fees will remain with the government.

According to economists and port experts, hiring operators through competitive bidding is essential to increase efficiency. However, this process should ensure transparency and allow for opportunities to increase the capacity of domestic institutions.

The challenge now before the current interim government is to ensure the modernization of the port by overcoming legal obstacles and protecting the interests of all parties.

Despite the High Court's ambivalent verdict on the transfer of the New Mooring Container Terminal (NCT) at Chittagong Port to DP World, the government is continuing contract negotiations. A workshop was organized at a five-star hotel in the capital Dhaka on Monday and Tuesday to discuss the draft contract. Although the matter is still pending final judgment.

It is worth noting that on November 17, a total of two agreements were signed, including one for the construction and operation of the Laldia Terminal on the banks of the Karnaphuli River in Patenga, Chittagong, and another for the operation of the Pangaon Naval Terminal in Keraniganj, near Dhaka.

Meanwhile, the agreement for the Laldia Container Terminal was signed by Martin van Dongen, Vice President of Denmark-based APM Terminals, and Rear Admiral SM Moniruzzaman, Chairman of the Chittagong Port Authority.

On the other hand, the agreement on the Pangaon Naval Terminal was signed by Chittagong Port Authority Chairman Rear Admiral SM Moniruzzaman and Medlog Bangladesh Managing Director (MD) ATM Anisul Millat. Shipping Advisor was also present here.

According to the agreement, APM Terminals, a subsidiary of Denmark's AP Moller Maersk Group, has been given the responsibility of constructing the Laldia Container Terminal at Chittagong Port and operating it for 30 years. The company will invest $550 million, or about Tk 6,700 crore, for the construction of the terminal under a public-private partnership (PPP). Bangladesh received Tk 2.5 billion as 'signing money' immediately after the agreement was signed.

On the other hand, Swiss company Medlog SA has been given the responsibility of operating the Pangaon Maritime Terminal in Keraniganj, Dhaka for 22 years. Medlog will invest a total of $40 million or about Tk 4.9 billion in this terminal. In this case, they have given Tk 180 million to Bangladesh as signing money.

It was announced at the event that the Laldia Terminal will have the capacity to handle eight to one million single containers per year. Of this, the government will receive $21 (approximately Tk 2,500) for each single container up to eight lakh. And if more than eight lakh containers are handled, it will receive $23 for each single container.

On the other hand, Medlog has said that 160,000 single containers will be handled annually at the Pangaon Maritime Terminal. The government will receive Tk 250 from each single container.