15-Year Deal Signed with DP World to Operate New Mooring Terminal

Under the agreement, DP World will invest more than Tk 1,000 crore during the first 10 years to modernize the terminal. The project is expected to improve the capacity and efficiency of Bangladesh’s main seaport.

The agreement was signed at the Invest Bangladesh auditorium in Agargaon, Dhaka, on Thursday (October 8). Chattogram Port Authority Chairman Rear Admiral S. M. Moniruzzaman and DP World Chairman Essa Kazim signed the deal on behalf of their organizations.

Shipping Minister Sheikh Rabiul Alam, State Minister for Shipping Rajib Ahsan, UAE Ambassador to Bangladesh Abdullah Ali Al Hamoudi, Invest Bangladesh Chairman Ashik Chowdhury and other officials attended the ceremony.

DP World will initially operate and manage the terminal for 15 years. However, ownership of the land, main infrastructure and other assets will remain with the Chattogram Port Authority and the Bangladesh government.

DP World will make a one-time payment of about Tk 600 crore. It will pay 25 percent when the agreement is signed and the remaining 75 percent before starting operations.

The company will also install modern equipment, introduce new technology and improve the terminal’s management system. The port authority will receive between 40 and 67 percent of the average revenue from each container, along with a fixed annual fee of about Tk 10 crore.

The agreement guarantees the handling of at least 1.23 million TEUs of containers each year. This minimum may be reduced to one million TEUs if another terminal begins operations.

Performance targets have also been included in the agreement. DP World may face financial penalties if it fails to meet them. The port authority will monitor the agreement through inspections, audits and regular reports.

State control over security and national interests will remain unchanged. The Navy, Coast Guard, Customs, Immigration and other government agencies will continue performing their duties. DP World will only be responsible for operating and maintaining the terminal.