Bangladesh is preparing to enter a new phase in port management, as the government plans to hand over the operation of three key terminals at Chittagong Port to foreign companies. The move, expected to be formalized by December 2025, marks a major policy shift aimed at improving efficiency, attracting investment, and reducing logistics costs.
However, the decision has sparked significant political and business debate, reflecting the delicate balance between economic modernization and national control over strategic assets.
Key Data Overview
| Parameter | Details |
|---|---|
| Port Name | Chittagong Port |
| Foreign Operation Start (Expected) | December 2025 |
| Terminals Involved | Laldia Terminal, New Mooring Container Terminal, Pangaon Terminal |
| Lease Duration (Laldia) | 30 years |
| Lease Duration (New Mooring & Pangaon) | 25 years each |
| Port’s Share of National Trade | 92% of Bangladesh’s total import-export trade |
| Tariff Increase | 40% hike to ensure operational profitability |
| Target Capacity by 2035 | 5.36 million TEUs |
| Key Opposition Groups | BNP, Jamaat-e-Islami, BGMEA, BKMEA |
| Government Rationale | To enhance efficiency and reduce high logistics costs |
| Transparency Measure | Contracts to be published online |
The Strategic Importance of Chittagong Port
Chittagong Port serves as the primary maritime gateway for Bangladesh, handling nearly 92% of the country’s trade volume. Its operations directly influence national logistics costs, manufacturing competitiveness, and overall trade efficiency. With the port’s container handling capacity projected to reach 5.36 million TEUs by 2035, the government argues that foreign expertise is essential to meet future demand.
The Terminals Under Foreign Operation
- Laldia Terminal – To be leased for 30 years, this facility will play a pivotal role in handling increased cargo traffic.
- New Mooring Container Terminal (NCT) – A 25-year lease agreement is proposed for this busy terminal, which manages a significant share of container throughput.
- Pangaon Terminal – Also on a 25-year lease, it supports inland waterway container movement between Dhaka and Chittagong.
Together, these terminals form the operational backbone of Bangladesh’s maritime infrastructure.
Political and Business Opposition
The announcement has drawn criticism from opposition parties such as the Bangladesh Nationalist Party (BNP) and Jamaat-e-Islami, as well as key business associations like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Critics argue that foreign control over national infrastructure could undermine sovereignty and limit local industry participation. They emphasize that Bangladesh should retain management authority over critical economic assets like Chittagong Port.
Government’s Justification
According to the Shipping Secretary, the government’s objective is to improve operational efficiency and reduce logistics costs, which are currently significantly higher than the global average.
The administration believes that involving international port operators with advanced technology and expertise will help modernize operations, boost productivity, and make Bangladesh more competitive as a regional logistics hub.
Tariff Revisions and Economic Logic
To attract and sustain foreign operators, the government has approved a 40% tariff increase at the port. While this has raised concerns among local businesses, the Shipping Secretary assured that enhanced service quality and faster turnaround times will offset the additional costs.
Security and Transparency Concerns
Some maritime and policy experts have voiced concerns over the security implications of foreign companies managing strategic port assets, particularly given the absence of a fully transparent bidding process.
In response, the government has pledged to publish all contracts online, ensuring transparency and public accountability throughout the process.
Looking Ahead: Balancing Growth and Sovereignty
The operation of Chittagong Port by foreign entities reflects Bangladesh’s pragmatic approach to bridging infrastructure gaps and enhancing logistics performance. However, it also brings forward sensitive questions regarding national control, security, and economic autonomy.
As Bangladesh aims to position itself as a South Asian logistics hub, the success of this policy will depend on how effectively it balances foreign partnership with national interests.
Conclusion
The foreign operation of Chittagong Port terminals signifies a turning point for Bangladesh’s maritime economy. With rising trade volumes and increasing pressure on logistics infrastructure, strategic partnerships may indeed provide the technical and operational edge needed for growth.
Yet, the ultimate test lies in ensuring transparency, efficiency, and equitable benefits—so that modernization does not come at the cost of sovereignty.
Glottis Limited 
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