The High Court on Thursday delivered a split verdict on the legality of the ongoing contract process between Chittagong Port Authority (CPA) and a foreign company for operating the New Mooring Container Terminal (NCT). Senior Justice Fatema Najib declared the contract process illegal, while Justice Fatema Anwar upheld its legality.

The two judges announced their rulings separately today, December 4. Under procedure, the Chief Justice will now constitute a new bench to resolve the matter.

The petitioners were represented by Barrister Muhammad Jamiruuddin Sircar, Advocate Ahsanul Karim, Barrister Mahbub Uddin Khokan, and Barrister Kayser Kamal, along with Advocate Maksud Ullah and Barrister Md Anwar Hossain. The government was represented by Attorney General Md Asaduzzaman and Additional Attorney General Aneek R Haque.

“The matter will now be referred to the Chief Justice. The New Mooring Terminal case will go to a third bench for a full hearing, after which a final verdict will be issued. We will try to have the hearing conducted as quickly as possible.” — Lawyer Kayser Kamal after the December 4 split verdict

Earlier, when the port authority moved to advance an agreement with a foreign company, the legality of the process was challenged in the High Court through a writ petition filed by Mirza Walid Hossain, president of the Bangladesh Youth Economists Forum.

NCT’s rising revenue

Since its partial launch in 2007 and full operation in 2015, NCT has become the highest revenue-generating facility at Chittagong Port. Its earnings have risen steadily each year, establishing it as the country’s most profitable terminal built with state funding. This has raised questions regarding the decision to hand over the terminal to a foreign operator.

According to port data, NCT can berth four seagoing vessels simultaneously. Its annual container handling capacity is one million TEUs, although current handling exceeds 1.2 million TEUs. The 2023–24 financial report shows total container handling across the port reached 2.8 million TEUs, with NCT alone handling 1.23 million TEUs—accounting for 44 percent of the port’s total volume. In FY 2022–23, the terminal handled 1.14 million TEUs.

Since its launch, NCT was operated by private firm Saif Powertech Limited until July 6, 2025. Following the end of their contract, Chittagong Dry Dock Limited assumed management on July 7 and currently runs the terminal under the Bangladesh Navy’s oversight.

“Since Chittagong Dry Dock Limited took over, the terminal has been managed efficiently. Average vessel turnaround time has declined, and new records for container loading and unloading have been set. Top international terminal operators, however, employ advanced technology that delivers even greater efficiency across multiple stages.” —Md Omar Faruk, Secretary, Chittagong Port Authority (CPA)

Profitability figures underline high stakes

According to CPA, the terminal generated a total revenue of BDT 15.23 billion in FY 2023–24 from ships and containers combined. After deducting all expenses, net revenue stood at BDT 6.07 billion. The government received BDT 1.52 billion in taxes from this income. Calculated per TEU, the port’s net revenue from container handling at NCT comes to roughly $41. Several officials note that if this highly profitable state-financed terminal is handed to a foreign operator, the port’s future revenue will largely depend on negotiations with that operator.

An analysis of past five fiscal years shows that NCT’s revenue from ship and container handling has grown steadily. In FY 2019–20, revenue stood at BDT 9.7 billion, rising to BDT 10.49 billion in FY 2020–21. The following year, revenue reached BDT 12.43 billion, then BDT 13.75 billion in FY 2022–23, and BDT 15.23 billion in FY 2023–24.

Net profit has increased in line with revenue. NCT recorded BDT 4.63 billion in profit in FY 2019–20, dipping slightly to BDT 4.61 billion the next year. Profit then grew rapidly, reaching BDT 6.21 billion in FY 2021–22, BDT 6.77 billion in FY 2022–23, and BDT 7.96 billion in FY 2023–24.

Tax exemptions favour foreign operators

Data from the National Board of Revenue (NBR) indicates that foreign operators managing terminals in Bangladesh enjoy complete tax exemptions. The two foreign operators now overseeing Laldia and Pangaon container terminals are set to receive 100 percent tax-free benefits for the next decade. NBR officials cited a 2017 government order granting tax exemptions for infrastructure projects under public-private partnership arrangements. Under this framework, the incomes of foreign technical staff, royalties, technical knowledge fees, and dividends are all exempt from taxation.

Chittagong Port has so far signed concession agreements with foreign operators for two seagoing container terminals. One is Patenga Container Terminal (PCT), where the port earns $18 per twenty-foot equivalent unit (TEU) handled. Apart from jetty construction, the port has made no further investment in PCIT. Recently, the port authority signed a new concession agreement with Denmark-based APM Terminals to operate Laldia Container Terminal. Under this arrangement, the port will earn $21 per TEU for the first slab (0–800,000 TEUs), $22 per TEU for the second slab (800,001–900,000 TEUs), and $10 per TEU when volumes exceed 900,000 TEUs in the third slab. As a fully greenfield project, the foreign operator will make all investments in the terminal over the next three years.

In contrast, the government has already invested nearly BDT 30 billion in infrastructure and equipment at the New Mooring Container Terminal, which is now fully profitable, even as it prepares for transfer to a foreign operator.

Former board member Md Zafar Alam told Bonik Barta that all infrastructure at NCT is already in place. Under navy supervision, it continues to operate successfully as the country’s most profitable terminal, with revenue fully retained domestically. He argues that bringing in an international operator makes sense for greenfield projects where the government has no prior investment.

Government approval and PPP process

Documents indicate that the decision to hand over the New Mooring Container Terminal to a foreign operator was taken by ousted Awami League government. In March 2023, Cabinet Committee on Economic Affairs approved a public-private partnership model for terminal management. The International Finance Corporation was subsequently appointed as transaction adviser.

The current interim government has maintained the previous decision. The port authority has already formed a tender evaluation committee and sent it to the Ministry of Shipping for approval to facilitate the handover of the terminal to UAE-based DP World. The port’s finance member Md Mahbub Alam Talukder has been proposed as the committee chair.

Under regulations, a concession agreement is finalised between the two parties after negotiation. The private operator then pays the port a lump sum, an annual fee, and a per-container charge as specified in the contract.