What’s in the DP World deal for NCT?

The Chittagong Port Authority (CPA) and global port operator DP World signed a 15-year concession agreement yesterday (8 October) to operate and modernise the New Mooring Container Terminal (NCT) and its Overflow Container Yard, bringing one of the world’s largest port operators into Bangladesh’s main container terminal.

CPA Chairman Rear Admiral Md Moniruzzaman and DP World Chairman Essa Kazim signed the agreement at the Invest Bangladesh auditorium in Dhaka in the presence of Shipping Minister Shaikh Rabiul Alam, State Minister for Shipping Md Rajib Ahsan, Invest Bangladesh Chairman Chowdhury Ashik Mahmud Bin Harun and UAE Ambassador to Bangladesh Abdulla Ali Al Hamoudi, among others.

Here is a summary of the agreement and its potential economic implications, based on details shared by Ashik Mahmud in a Facebook post and other available information.

Key terms of the agreement

• The agreement will remain in force for 15 years, with an option to extend it by another 15 years by mutual consent, subject to specific conditions. If the two parties fail to reach an agreement on the extension, it will not take effect, and the CPA can withdraw from the negotiations.
• DP World will pay the CPA around Tk600 crore at the beginning of the agreement. Of this amount, 25% will be paid upon signing and the remaining 75% before operations begin.
• DP World has committed to investing more than Tk1,000 crore in the terminal during the first 10 years. The broader investment package includes around $150 million in investment and other commitments, including approximately $90 million for equipment, technology and upgrades.
• The agreement includes a minimum annual container-handling guarantee of 1.23 million twenty-foot equivalent units (TEUs). This may be reduced to 1 million TEUs once a new terminal becomes operational.
• The CPA will receive 67% of the revenue generated from each TEU handled at the terminal, along with a fixed annual fee of around Tk10 crore. Based on an estimated average revenue of $140-$150 per TEU, the CPA’s share would amount to roughly $93-$100 per TEU.
• A minimum volume guarantee and revenue-sharing arrangement are intended to protect the port authority’s earnings. However, the precise revenue-sharing formula, including the income streams covered and allowable deductions, has not been publicly disclosed.
• DP World must meet specified key performance indicators, including improvements in truck turnaround time and crane productivity. Financial penalties will apply if contractual targets remain unmet for three consecutive months.
• The agreement contains provisions to protect the jobs and benefits of existing port employees.
• The port authority will retain operational oversight of the terminal. CCTV surveillance will remain in place throughout the terminal area, while DP World must submit detailed operational information, including vessel-handling figures and revenue reports, in specified formats every week and month.
• The government says DP World will bear operational, investment and maintenance risks, including equipment repair costs. The agreement also provides for financial penalties if the operator fails to meet contractual obligations.

How much does the NCT contribute to port revenue?

• CPA’s annual earnings: The CPA earned Tk6,629 crore in FY2025-26 by handling 3.52 million TEUs.
• NCT’s share of container handling: The NCT accounts for around 44% of the port’s container handling. Applying the CPA’s average revenue per TEU to this volume suggests an estimated Tk2,917 crore in revenue attributable to NCT’s share of container handling. This is an estimate, not an officially reported figure for NCT revenue.
• Concerns over future earnings: Workers’ leaders have questioned whether the investment adequately reflects the value and earning capacity of an already-developed and profitable terminal. They argue that handing its operations to a foreign company for 15 years could mean foregoing substantial future earnings.
• The government’s position: The government argues that DP World’s investment, operational expertise and responsibility for maintenance and equipment costs will improve efficiency and reduce the risks associated with running the terminal.

How does Chattogram Port compare with international ports?

• Current performance: Chattogram Port, including the NCT, ranks 364th in the Container Port Performance Index 2025. Containers spend an average of 9.4 days at the port, while vessels spend around 2.53 days.
• Oman’s Port of Salalah: The port keeps both container dwell time and vessel time below one day.
• Vietnam’s Cai Mep Port: Containers remain for around two to three days, while vessels spend approximately one day.
• Singapore’s PSA: Container dwell time remains below one day.
• India’s Jawaharlal Nehru Port: Vessels spend around 22.6 hours at the port, while container dwell time remains below two days.
• Economic cost of inefficiency: Invest Bangladesh estimates that port inefficiencies cost the economy around Tk3,000 crore annually. World Bank data cited by the agency suggests that reducing container dwell time by one day could increase exports by 7.4%.

What changes are expected under DP World?

• Modern equipment: DP World is expected to introduce modern scanning systems and upgrade or replace cranes to improve cargo-handling efficiency.
• Automation and paperless operations: The operator is expected to introduce automated gates, digital processes and other technologies to reduce manual intervention and delays.
• Faster truck movement: The government targets a truck turnaround time of around 90 minutes.
• Higher crane productivity: The operator is expected to improve crane productivity from the second year of operations.
• Zero vessel waiting time: The government aims to eliminate vessel waiting time at the NCT, reducing delays and costs for shipping companies and exporters.
• International experience: DP World operates similar systems in India, Pakistan, Thailand and the Philippines, including electric cranes, green energy, automated gates and electric transfer vehicles.
• Experience in Manila: In Manila, a $100 million investment by the operator increased annual container-handling capacity from 1.45 million TEUs to nearly 2 million TEUs.

What could the deal mean for Bangladesh?

The agreement aims to increase NCT’s container-handling capacity, improve operational efficiency and reduce the time ships, trucks and containers spend at the port. These changes could lower logistics costs, support exporters and strengthen Bangladesh’s trade competitiveness.

However, the deal’s long-term economic benefits will depend on whether DP World meets its performance targets, delivers the promised investment and improves handling efficiency while ensuring that the CPA receives the agreed revenue share and fixed annual payments.

The undisclosed details of the revenue-sharing formula and the concerns raised by workers’ leaders over the terminal’s future earnings remain important issues in assessing the agreement’s overall value to Bangladesh.