Chittagong Port: New Consortium Linked to Two MPs Seeks NCT Operating Contract

 

Chittagong Port: New Consortium Linked to Two MPs Seeks NCT Operating Contract

A new consortium of three Bangladeshi companies has submitted a proposal to operate Chittagong Port’s New Mooring Container Terminal (NCT), following similar bids from the UAE-based DP World and local conglomerate MGH Group. Notably, two of the consortium’s member companies are linked to members of the current parliament.

The consortium, named Saif-Cosmos-Everest Port Services Consortium, formally submitted its proposal to the Ministry of Shipping on April 28, seeking a 15-year contract to operate the terminal. Although the proposal was filed more than a month ago, details have only recently become public.

The bid comes as efforts to award a long-term operating contract for NCT to DP World have regained momentum. Coincidentally, MGH Group also submitted its own proposal on the same day.

NCT is the largest of Chittagong Port’s four operational container terminals and handled approximately 44 percent of the port’s total container traffic last year.

Consortium Members

The consortium is led by Saif Powertec Limited, the current operator of the Chittagong Container Terminal (CCT). Its partners are Cosmos Enterprise and Everest Port Services Limited, both long-established operators in cargo and container handling.

Cosmos Enterprise is chaired by ABM Ashraf Uddin Nizan, a ruling-party lawmaker from Lakshmipur-4 and a parliamentary whip. Everest Port Services is led by Shahadat Hossain Selim, a BNP lawmaker representing Lakshmipur-1.

Industry stakeholders note that while the previous Awami League government actively pursued plans to hand NCT over to a foreign operator, no domestic consortium formally presented an alternative proposal. Similar proposals also failed to emerge during the interim administration. Such initiatives have surfaced only after the current government took office.

Representatives of the consortium argue that previous administrations left little room for local competitors because negotiations with foreign operators were already underway. They say the current government has created an opportunity for domestic companies to compete.

Key Features of the Proposal

Under the proposal, the consortium would operate NCT for 15 years while ownership and overall control would remain with the Chattogram Port Authority.

The consortium would cover all operational expenses, including staffing, maintenance, fuel, and day-to-day management costs. However, the port authority would continue collecting all vessel and container-related fees.

In exchange, the consortium is seeking an operating fee of $69 per container.

Citing port audit reports, the proposal states that the port currently earns $161.82 per container, spends $56.15, and retains a net income of $105.67.

According to the consortium, its model would allow the port to retain around $92 per container in revenue without making additional investments, while also eliminating operational costs related to staffing, maintenance, and fuel over the next 15 years.

The proposal further highlights that although German consultancy Hamburg Port Consulting estimated the terminal’s annual capacity at 1.1 million containers, local operators are currently handling approximately 1.33 million containers each year.

How It Differs from DP World and MGH

Three separate proposals have now been submitted for NCT operations.

DP World’s proposal seeks a 15-year lease under a public-private partnership (PPP) and government-to-government (G2G) arrangement. Under this model, the operator would run the terminal, collect revenues, and manage commercial activities while sharing an agreed portion of earnings with the port authority.

MGH Group has proposed a similar PPP structure and reportedly offered the port authority $5 more per container than DP World.

The Saif-Cosmos-Everest consortium, however, proposes a fundamentally different model. Rather than leasing the terminal, it seeks to act solely as an operations and maintenance service provider. Control of the terminal and all revenue collection would remain with the port authority, while the consortium would receive a service fee for each container handled.

What the Consortium Says

The proposal was jointly signed by Tarfdar Md Ruhul Amin, Managing Director of Saif Powertec; Hasin Bin Ashraf, Managing Partner of Cosmos Enterprise; and Shahadat Hossain, Managing Director of Everest Port Services.

Saif Powertec currently operates CCT and managed NCT from 2007 until July 6, 2024. The company says it handled roughly 23 million containers and 15,156 container vessels during that period.

Speaking to Prothom Alo, Saif Powertec Managing Director Tarfdar Md Ruhul Amin said the three partners collectively possess decades of operational experience at the port. He argued that keeping the terminal under local management would ensure revenues remain within Bangladesh and strengthen domestic expertise. He also claimed that NCT has the capacity to handle up to 1.7 million containers annually.

Cosmos Enterprise has been engaged in berth operations since 1989 and says it has handled nearly 20 million tonnes of cargo and 47,806 containers. The proposal was signed on its behalf by Hasin Bin Ashraf, son of ruling-party MP and parliamentary whip ABM Ashraf Uddin.

Everest Port Services, established in 1988, currently manages a container jetty at the General Cargo Berth (GCB) and says it has handled approximately 5.5 million containers.

Shahadat Hossain told Prothom Alo that existing port regulations and procurement laws do not provide a basis for transferring an operational terminal to a foreign company. He argued that a domestic operator would help conserve foreign currency and added that NCT’s strategic location makes national security considerations an important factor favoring local management.

What Happens Next?

Despite the submission of new proposals, they have not yet entered the evaluation process because negotiations between the government and DP World are still ongoing.

The process, initiated during the Awami League administration, advanced to the negotiation stage under the interim government. However, discussions were suspended on February 9 amid labor unrest, political controversy, and objections from members of the negotiating committee.

The government has since resumed talks with DP World through a newly formed evaluation committee.

A senior Ministry of Shipping official told Prothom Alo that the new proposals cannot currently be considered while negotiations with DP World remain active. However, if those discussions fail, the government is expected to launch a fresh tender process in which both domestic and foreign bidders may participate.