In December, the Chittagong Port Authority (CPA) opted to extend its deal with Saif Powertec Limited, allowing the company to operate its New Mooring Container Terminal (NCT) under direct procurement, as the process of floating an open tender to appoint a new operator was facing delays. The agreement with the firm expired on January 7. As the terminal's operations cannot be halted, Saif Powertec was allowed to operate it under existing terms and rates for another six months.

The CPA had earlier decided to float an open tender to appoint a new operator for the NCT for an interim period until a foreign operator was appointed under public private partnership and government-to-government basis.

The CPA also sent a proposal to the Shipping Ministry to amend some clauses in a previously issued statutory regulatory order that recognised Saif Powertec as the only firm competent enough to operate the terminal. There had been criticism going back years over the appointment of Saif Powertec to operate the port's two main terminals, the NCT and Chittagong Container Terminal, through the direct procurement method. Notably, Shipping Adviser Brig Gen (retd) M Sakhawat Hussain had criticised such practices while visiting the port in October.

In a letter on October 30, Nazrul Islam Azad, deputy secretary of the shipping ministry, directed the chairman of the CPA to take steps for lodging an open tender to appoint an operator for NCT.

CPA sources said the previous government issued an order in 2018 through the inclusion of two new clauses in the Regulation for Working of Chittagong Port (Cargo and Container), 2001. Those clauses actually acted as obstacles for placing an open tender as they were included to make Saif Powertec the only firm competent for the job of operating NCT - an outrageous suggestion on the face of it.

In November, a committee of the CPA sent proposals to the Shipping Ministry for amending those clauses, but the process is yet to be completed. A senior CPA official said the authority could not float open tenders for finding operators of NCT as the amendment is yet to be made.

Since there was not enough time left for the CPA to float an open tender before Saif Powertec's previous contract ran out, the CPA board decided to extend its agreement with the firm.

CPA Secretary Md Omar Faruk said the authority had to take a decision because the terminal could not be kept idle. The Daily Star reported that the CPA board decided to extend the agreement by another six months on condition that the agreement would be cancelled as soon as a new operator is appointed through open tender.

In the meantime, the CPA will continue its process of amending the statutory regulatory order and floating an open tender, he added.

Despite political unrest earlier in the year and recurrent floods, Chattogram Port witnessed a record-breaking year in 2024, registering a 7.42 per cent growth in container handling compared to 2023. Rear Admiral SM Moniruzzaman, chairman of the Chattogram Port Authority, disclosed the information on January 2.

The port handled a total of 3.276 million containers and 123.9 crore metric tonnes of goods during the year. Cargo handling also saw a 3.11 per cent growth, as per a UNB report.

"Chattogram Port achieved the highest volume of container and cargo handling in its history in 2024," Moniruzzaman said.

Room for Improvement

Chittagong Port handles approximately 90 percent of Bangladesh's total trade and 98 percent of its container traffic. Despite some operational improvements in recent years, the port is still hamstrung by persistent inefficiencies that hamper its performance.

The port lags far behind global standards: ships often have to wait several days offshore before berthing; container turnaround times is lengthy; and dwell times in port yards are excessive. The infrastructure upgrade has so far failed to keep pace with the rapid growth in trade volume.

According to the World Bank's Container Port Performance Index 2023, Chittagong Port ranks 337th out of 405 global ports. The report reveals that average ship turnaround time at the port is 3.23 days-significantly longer than Colombo Port's 0.86 days. Import clearance takes an average of 11 days, and export border compliance requires around 36 hours.

The World Bank estimates that reducing container dwell time from 11 days to the international benchmark of three days could save the national economy hundreds of millions of dollars annually. Improved port efficiency could enhance export competitiveness by as much as 15 percent, especially benefiting labour-intensive sectors through job creation and higher wages. Needless to say that port facilities are an important consideration in the investment decisions of foreign investors.

In the current context of Bangladesh's economy, deeper integration into global value chains is essential for achieving sustained growth. This requires not only expanding export volumes but also diversifying both export products and export destinations. At present, Bangladesh exports approximately $50 billion worth of goods annually. To realise the government's ambition of turning the country into a global manufacturing hub, this figure must increase severalfold. Meeting this goal will necessitate urgent and substantial upgrades to port infrastructure, aligned with global standards.

However, capacity development alone will not suffice unless logistical bottlenecks are comprehensively addressed. Weak connectivity between ports and inland transportation networks-such as roads, railways, and inland waterways-has been a major contributor to high costs and frequent delivery delays. While initiatives like the recently launched National Single Window (NSW) system aims to streamline regulatory processes, limited port capacity and outdated infrastructure continue to undermine seamless trade facilitation.

According to the World Bank, logistics costs in Bangladesh range between 4.5 percent and 4.8 percent of total sector output-significantly higher than those in neighbouring countries and key trading partners. If Bangladesh makes specific improvements-like reducing delays at ports, improving road and rail connectivity, cutting red tape in customs, and streamlining the movement of goods-then total export earnings could rise by as much as 19 percent. This means making logistics more efficient would make it easier and cheaper for businesses to export, making Bangladeshi products more competitive internationally. Additionally, the World Bank analysis indicates that a 1 percent reduction in logistics costs alone could boost export demand for Bangladeshi products by around 7.4 percent.

Developing a multimodal logistics system that links ports seamlessly with industrial zones and economic hubs is thus vital to realising the country's commercial potential. According to UN-ESCAP, better infrastructure alone could generate an additional US$ 35.5 billion in revenue for Bangladesh by 2030.

Major upcoming infrastructure projects such as the Matarbari Deep Sea Port and the Chittagong Bay Terminal offer a ray of hope to transform Bangladesh's port management landscape. These initiatives are expected to dramatically increase port capacity, shorten export processing times, and reduce shipping costs by up to 15 percent. However, the success of such projects will hinge not only on sound initial planning, but also on the timely and efficient implementation of the projects.

Experts argue that Bangladesh has much to learn from global best practices. Vietnam's FDI-driven logistics strategy, for instance, has played a key role in improving port efficiency and enabling export diversification. Singapore's Port Community System-a digital platform integrating port users, customs, and other authorities-has streamlined processes, enhanced transparency, and accelerated trade flows. Adopting such best practices could help Bangladesh modernise its logistics ecosystem. Digital tools, including artificial intelligence, blockchain, and data analytics, can revolutionise customs clearance, reduce corruption, and improve real-time cargo tracking.

A narrow perspective

Assuming any foreign management is inherently detrimental to national interest is a narrow, outdated and conspiratorial mindset. With the right contracts, accountability mechanisms, and oversight, such initiatives can enhance development.

Chittagong Port can be a future international logistics hub for the South Asian region built on efficiency, transparency, technology and environmental responsibility. Many five-star hotels in Bangladesh are managed by international chains like Radisson, InterContinental, and Marriott without compromising national security. Similarly, proper management at Chittagong Port can elevate Bangladesh's tourism and economic potential.

Bangladesh Investment Development Authority must clarify the following four points to the nation to avoid any potential confusion arising in public mind:

1. Publish the past performance, operational competence, competitiveness and contractual terms of any foreign company under consideration, DP World in this particular context, based on mutual transparency;

2. Ensure that no compromise is made on Bangladesh's sovereignty or national security or interest under any circumstances;

3. Secure the interests of local workers and economic benefit to the country explicitly within the contract;

4. Maintain full transparency, accountability, and national acceptance throughout the entire process, to the extent possible.

The efforts to modernise the Chittagong Port, the largest in the country, must be welcomed, and if implemented with foresight, patriotism, and transparency, it could transform Bangladesh's economy in the years to come

Cornerstone of economic policy

Chief Adviser Professor Muhammad Yunus has taken to consistently describing Chittagong Port's centrality to his economic vision for Bangladesh, and the region at large, emphasising the need to transform it into a true seaport of international standards. The vision he articulated to Chinese businesses in Beijing earlier this year, that raised eyebrows in India in particular, was anchored by the development of Bangladesh's sea ports.

During his recent visit to the Port City, he talked at length about the need to modernise the port. He said a new chapter in Bangladesh's economy cannot be opened ignoring the Chittagong Port and laid emphasis on expanding its capacity and gradually making it stronger.

"Bangladesh's economy cannot be seen as the best economy if the port is not made the best port," Prof Yunus said. The Chief Adviser said they are talking to the best companies of the world having vast experience in port handling.

He laid emphasis on moving in a faster way to address the port issues.

The Chief Adviser said the enhanced port facilities will help attract foreign investment in a big way, and Bangladesh's economy will see massive growth. He said the interim government has taken initiatives to turn Chittagong Port into a world-class facility by inviting top global port management companies.

"It will be a big opportunity for us," said the Chief Adviser, adding that once the government plans are materialised, it will improve the economy of the country and create jobs for thousands of people.

"If we have to change the economy of Bangladesh, Chittagong Port is the hope. Without it, there is no alternative," he said.

The Chief Adviser said, "If the heart is weak, no physician could make it function better. This is why we have to make it world-class."

"They (top global port management firms) were called earlier, but there was no meaningful progress," he said.

"This heart has to be connected with neighbours, that is why I said about Nepal, Seven Sisters (seven northeastern states of India). If they are connected to it, they will be benefited and so will be us. Those who will not be connected will be the losers," he said.

Recalling his childhood memory with Chittagong Port, the Chief Adviser said he was waiting for this visit.

"Chittagong Port is not a new place to me. I am familiar with it since my childhood. It has changed a lot over the years, but it's sad to see that its changes are slow. Since I got a chance, from day one I was trying to see what could be done for it," he said.

"The world has moved a lot, and we are lagging a lot behind. Nobody cares about it. This is why I was pushing for change. I asked to hand over the charge of port handling to world's top operators. I hope everyone would realise it," he said.

Shipping Adviser Brigadier General (Retd) Shakwat Hossain lauded the Chief Adviser's eagerness to improve the port facilities in Chittagong. He said the construction of several terminals surrounding the Chittagong Port would ease container congestion.

"I hope within six months you will notice the change," he said.

Chittagong Port Authority Chairman Rear Admiral SM Moniruzzaman laid emphasis on modernisation of Chittagong Port, saying that it handles 92 percent of Bangladesh's foreign trade and 98 percent of this trade is handled by New Mooring Container Terminal.

There is no alternative available to it at the moment, he said, adding that due to natural reasons, ships above a length of 200 metres cannot anchor in Chittagong Port. Due to this, Bangladesh suffers a loss of around 1 million (Dollars or Taka ) a day, he said, quoting a World Bank study.

The Chief Adviser's Press Secretary, perhaps his most reliable political messenger, has also talked about the importance of Chittagong Port to the interim government's plans for the economy. Ahead of a visit to the port earlier this month alongside BIDA chief Ashik Chowdhury, Shafiqul Alam said reforming and modernising the port of Chattogram is not a technical footnote to the story of how Bangladesh will become a middle-income country but it is also the headline.

Explaining why Chattogram port must be modernised now, he said Chattogram is not just a city on the coast, it is the front door to the nation's economic future.

"If Bangladesh is to seize the opportunities of the Asian century - to trade more, produce more, and earn more - it must start by ensuring that this door is not jammed shut," said Alam.

As Bangladesh looks to consolidate its position as one of South Asia's fastest-growing economies, its continued ascent will increasingly depend not just on policy or population, but on logistics. In particular, the Port -- or the ports -- of Chittagong - which handles over 95 per cent of the country's seaborne trade - must be recognised as currently creating a critical bottleneck but also offering a transformative opportunity, said the Press Secretary.

For Bangladesh, he said, the only route to prosperity is export. "Pretty soon we have to confront with stark reality: can we manufacture and export goods worth hundreds of billions of dollars."

This year Bangladesh's exports may hit 50 billion dollars, Alam said, adding that "But to emerge as a giant manufacturing hub, as envisioned by Chief Adviser Professor Muhammad Yunus, we need to export goods worth at least 200 billion dollars a year."

And the ports in Chittagong region will have to handle sea-borne foreign trade worth 500 billion dollars annually.

Without significant investment and reform, Alam said, the port risks becoming an anchor that drags down the country's economic momentum.

"Poor logistics at the ports will also weigh heavily on Foreign Direct Investment. If your ports weren't efficient, who would want to invest billions of dollars in new manufacturing facilities in Bangladesh? But with foresight and action, it could instead be the launchpad for a new era of national prosperity," he said.