DP World Secures 15-Year Terminal Operating Concession in Bangladesh

en.Wedoany.com Reported - On October 8, UAE-based DP World and the Chittagong Port Authority of Bangladesh formally signed a 15-year concession agreement for the New Mooring Container Terminal. Under the agreement, DP World will invest more than BDT 10 billion over the first 10 years to upgrade terminal equipment, modernize infrastructure, and implement digital transformation, and will pay approximately BDT 6 billion in upfront fees. Ownership of the terminal land, core facilities, and assets will remain with the Government of Bangladesh and the Chittagong Port Authority.

The agreement adopts a public-private partnership model and covers the New Mooring Container Terminal and its associated overflow container yard. DP World will be responsible for terminal operations, maintenance, and modernization, including existing civil infrastructure, container handling equipment, digital management systems, and operational process upgrades. The port authority will continue to be responsible for asset ownership management and will oversee the operator's performance through supervision, audits, and regular reporting mechanisms.

According to the payment arrangement published by the Government of Bangladesh, 25% of the upfront fee is payable upon signing of the agreement, with the remaining 75% payable before commencement of operations. The Chittagong Port Authority will also receive a fixed annual fee and a revenue-sharing payment calculated on container business revenue. The fixed fee is approximately BDT 100 million per year, and the revenue-sharing ratio is determined based on average revenue per container.

The agreement sets an annual minimum throughput guarantee of 1.23 million TEUs for the terminal. Under the relevant terms, after the new container terminal begins operations, this guaranteed volume may be adjusted to 1 million TEUs. Operational performance will be assessed through contractually specified key performance indicators, and corresponding financial penalty provisions will apply in cases where targets are not met.

The NCT terminal began operations in 2007 and currently handles approximately 44% of Chittagong Port's container traffic. Since July 2025, the terminal has been managed by Chittagong Dry Dock Limited, which is affiliated with the Bangladesh Navy. According to data published by Bangladesh's investment development agency, the current container dwell time at Chittagong Port exceeds 9 days, and the average vessel time in port exceeds 2.5 days.

DP World plans to work with the port authority to adjust berth planning, yard management, equipment utilization, and preventive maintenance arrangements, and to introduce digital operating systems and employee training mechanisms. The two sides had previously carried out project cooperation under the framework of a memorandum of understanding on infrastructure cooperation signed in 2019 between the Government of Dubai, UAE, and Bangladesh's public-private partnership authority, and have now formally signed the terminal operating concession agreement.