¶¶Òõ¾«Æ·

CHITTAGONG Port, officially the Port of Chattogram, is Bangladesh’s largest and most strategically important maritime gateway. Handling more than three million TEUs annually and facilitating more than 90 per cent of Bangladesh’s maritime trade, it serves as the nation’s primary hub for import and export. The port directly underpins roughly $75 billion in annual trade, linking industrial output, foreign exchange earnings and employment. Operational improvements could create hundreds of thousands of jobs, stimulate logistics, warehousing and transport industries and generate multiplier effects across multiple sectors. Yet, despite its central role, efficiency and management remain intensely debated, with controversies over infrastructure, labor practice, governance and the potential involvement of foreign operators.

Ìý

Historical context

THE port has been the economic lifeline for decades. Established during the colonial period and modernised post independence, it gradually expanded to accommodate rising trade volumes. However, the rapid growth of the economy, industrialisation and the ready-made garments sector has outpaced the port’s infrastructure. Congestion, bureaucratic inefficiencies and outdated equipment have become chronic challenges, leaving the port struggling to match regional competitors such as Kolkata, Singapore and Colombo. For comparison, Singapore and Colombo achieve average vessel turnaround times of less than two days, highlighting the urgency for Chittagong to modernise in order to remain competitive in South and Southeast Asian trade corridors.

Ìý

Operational challenges

IN 2024, the port recorded a 7.4 per cent increase in container handling, reaching 3.276 million TEUs. While indicative of growth, it also exposed severe operational bottlenecks. Container yard occupancy often peaks at 88 per cent and vessel berthing delays can extend up to six days. The shortage of quay gantry cranes, inadequate rail connectivity and inefficient cargo handling systems compound these delays.

These inefficiencies carry real economic costs. Each day of vessel delay can cost exporters between $1 million and $1.5 million in demurrage, storage and delayed shipments. Cumulatively, annual inefficiencies at Chittagong Port could cost Bangladesh $200–300 million in avoidable trade-related expenses. Exporters’ global competitiveness is directly affected, particularly in the ready-made garments sector, which accounts for more than 80 per cent of foreign exchange earnings. Delays ripple across supply chains, reducing foreign exchange inflows, constraining industrial expansion, and limiting the central bank’s capacity to support industrial investment and stabilize the taka.

Ìý

Economic, social implications

IMPROVING port efficiency is not merely a logistical concern. It also carries profound economic and social consequences. Operational modernisation could generate 150,000–200,000 direct and indirect jobs, from dockworkers to logistics managers, truck drivers and customs personnel. Increased employment translates into higher household incomes, consumption and growth in sectors linked to trade. Even a modest 10 per cent reduction in vessel turnaround times could boost exports by $500–600 million annually, raising GDP by 0.5–0.6 per cent. Conversely, persistent inefficiency perpetuates high costs, slows industrial growth and limits Bangladesh’s integration into global supply chains.

Ìý

Foreign management debate

A CENTRAL controversy is the government’s plan to lease the New Mooring container terminal to foreign operators, particularly Dubai-based DP World. Proponents argue that foreign management could bring global best practices, technology and efficiency improvements. Opponents, including political parties, labour unions and civil society organisations, cite genuine concerns: threats to national sovereignty, security risks and potential job displacement.

¶¶Òõ¾«Æ· has consistently urged caution. Its June 3, 2025, editorial warned that leasing to foreign companies risks creating a ‘back door’ for strategic dependency and emphasised that transparency around contract terms has been dangerously thin. Previous infrastructure concessions often favoured external actors over national interests. Muhammad Abdul Mazid, in a May 27 op-ed, questioned whether leasing alone would solve inefficiency, suggesting that governance reform, workforce training and digitalisation could deliver similar results without surrendering operational control. A June 16 piece highlighted labour concerns, warning that union resistance and social unrest could erupt if the deal is perceived as a threat to jobs or national pride.

The concerns, while valid, are manageable through precautionary measures. Parliamentary debate and approval of lease terms could ensure transparency while binding clauses could guarantee local employment, protect labour rights and prevent displacement. Oversight committees could monitor operational performance and security and governance reforms coupled with digital systems could complement foreign expertise. By addressing concerns upfront, Bangladesh can harness foreign know-how while maintaining social stability and national sovereignty.

Other daily newspapers provide a complementary perspective. The Financial Express on May 25 cited the chief adviser’s press secretary Shafiqul Alam, clarifying that the government was not ‘handing over’ the port but seeking global expertise and investment, around $3 billion, to renovate terminals and raise operational standards. Bdnews24, on July 25, quoted shipping adviser M Sakhawat Hussain emphasising that Bangladesh was falling behind global benchmarks and that international operators could inject technology, managerial efficiency and throughput capacity. Analyses show that delays in vessel turnaround and cargo clearance increase export costs by 10–15 per cent and leasing could alleviate these bottlenecks. Taken together, these arguments illuminate both the peril and promise of leasing. The warnings in ¶¶Òõ¾«Æ· remind policymakers that concerns about sovereignty, transparency and labour are real while analyses in the Financial Express and bdnews24 highlight the transformative potential of capital, technology and global best practices. With carefully designed lease agreements and governance safeguards, Bangladesh can harness efficiency gains without compromising national control, worker protections, or social stability.

Ìý

International examples of foreign management

GLOBALLY, operational leasing to experienced foreign companies can boost efficiency while retaining ownership. DP World manages Jebel Ali Port in the United Arab Emirates under government ownership, ensuring high efficiency and job creation. APM Terminals operates Maasvlakte II in Rotterdam, modernising technology and reducing vessel turnaround without transferring ownership. The Hamburg Port Authority in Germany and the Colombo International Container Terminals in Sri Lanka follow similar models, leveraging foreign expertise while maintaining ultimate control. Chittagong Port could adopt comparable frameworks to harness global know-how while preserving sovereignty.

Ìý

Modernisation and reform

EXPERTS widely agree that modernisation is essential. Infrastructure upgrades — expanded container yards, new quay cranes and improved rail and road connectivity — are critical. Automation and digital tracking systems could streamline cargo handling and customs procedures. Transparent governance and strengthened oversight are necessary to prevent corruption and inefficiency. Inclusive stakeholder engagement — labour unions, the private sector and civil society — would ensure sustainable reforms. Together, these measures could transform Chittagong Port into a modern regional hub, increasing throughput, creating jobs, reducing costs and enhancing competitiveness.

Ìý

Efficiency gains under leasing

MODELLING potential outcomes underscores the economic stakes. A well-structured lease reducing vessel turnaround by 25 per cent, increasing container handling by 500,000 TEUs annually and halving export delays could generate direct revenue gains of $350–400 million per year. Associated cost savings for importers and exporters might reach $200–250 million. The resulting GDP impact could be 0.8–1.0 per cent, with approximately 150,000–200,000 new jobs across port-related sectors. Even moderate efficiency improvements without a lease — through infrastructure investment and automation — could yield 0.4–0.5 per cent GDP gains, demonstrating that leasing is not the only solution but could amplify results if paired with governance reform.

Ìý

Balancing sovereignty, efficiency

THE controversy reflects a broader tension in Bangladesh’s development strategy: how to embrace modernisation without compromising sovereignty. Foreign expertise can improve operational performance, but reforms must safeguard national control, security and local employment. Leasing operational management should be seen as a tool for improvement, not a concession of ownership. Given political sensitivities, a well-vetted operational framework, public consultation and parliamentary approval are essential. Such steps would legitimise the process, build consensus and ensure that efficiency gains do not undermine long-term national interests.

Chittagong Port sits at a critical juncture. Its performance affects jobs, industrial growth and Bangladesh’s integration into global markets. Modernisation, transparent governance and judicious use of foreign expertise could unlock enormous economic potential. By following successful international examples and carefully designing lease arrangements, Bangladesh could generate hundreds of thousands of jobs, reduce congestion and boost exports while retaining ownership and sovereignty. Quantitative modelling underscores that the right lease framework could deliver nearly double the GDP impact compared with reforms alone, making the stakes of this decision profound. Forward-looking strategic planning could position Chittagong Port not only as a national asset but as a regional hub exemplifying modern maritime efficiency. Resolving the efficiency debate and implementing reforms is essential to transforming Chittagong Port into a model maritime hub that delivers sustainable growth for all Bangladeshis.

Ìý

Dr Abdullah A Dewan is a former physicist and nuclear engineer at BAEC and professor emeritus of economics at Eastern Michigan University, USA.