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Dhaka, July 28, 2025 — The government is moving swiftly to finalize deals with prominent international port operators by October, aiming to attract long-awaited foreign direct investment (FDI) into the Chattogram seaport—Bangladesh’s maritime gateway.

Interim Shipping Adviser Brigadier General (retd) M Sakhawat Hussain confirmed that negotiations are in advanced stages with global port operators including DP World (UAE), PSA Singapore, and APM Terminals (a subsidiary of Denmark’s A.P. Moller–Maersk). The contracts are expected to be awarded through a transparent and competitive process.

The initiative comes amid a sustained decline in FDI into Bangladesh, with UNCTAD’s World Investment Report 2025 revealing a 13.2% year-on-year drop in FDI to $1.27 billion in 2024 from $1.47 billion in 2023—the fourth consecutive year of contraction.

“The government wants to reverse this trend and make a meaningful impact before the national election. Port infrastructure is our most strategic sector for attracting investment,” said the Shipping Adviser.

Port Efficiency Reforms Underway

Efforts are underway to modernize port operations and regulatory frameworks to accommodate international investors. A joint task force involving the Ministry of Shipping, the Chattogram Port Authority (CPA), the Bangladesh Investment Development Authority (BIDA), and the Chief Adviser’s Office is coordinating the process.

Chattogram port, situated along the Bay of Bengal, is being positioned as a future regional maritime hub. Officials say increased operational efficiency could transform the port’s status within the next three years.

The CPA is currently finalizing a long-awaited tariff adjustment, which has received initial approval from the Ministry of Finance and is awaiting vetting from the Ministry of Law. CPA Secretary Omar Faruk noted that the revised tariff structure—unchanged since 1886—will be published via gazette notification and serve as a benchmark for foreign investors.

While foreign operators will not have authority over base tariffs set by CPA, they may determine charges for additional services involving their own equipment and logistics investments.

Navy-Led Operations Show Early Promise

The recent transition in container handling at the New Mooring Container Terminal (NCT) is being seen as a positive case study. After Saif Powertec’s long-term contract expired on July 6, the Navy-led Dry Dock Limited took over operations for a six-month interim period.

“Despite initial concerns, daily container handling has increased by 7% under Dry Dock’s management,” said Sakhawat Hussain. “This proves our decisions are on the right track.”

Key Projects on the Horizon

Negotiations on several major projects are progressing quickly:

• Bay Terminal: Expected to sign a concession agreement by October, with construction slated to begin by January 2026. Investment is projected between $600 million and $800 million.
• Laldia Terminal: APM Terminals has expressed interest, but land constraints due to an air funnel are under review.
• Matarbari Port Terminal: A civil construction contract has been signed with a Japanese firm, with operations expected to begin in 2026.

BIDA Chairman Ashik Chowdhury emphasized that all new terminals are unlikely to be fully operational before 2028, making short-term efficiency upgrades at Chattogram Port essential.

“No sector can attract investment without efficient port infrastructure,” he said. “Port operators with a strong international track record will be prioritized.”

Safeguards Against Policy Reversal

Concerns about the continuity of these deals under a future elected government were addressed by Chowdhury, who stated that the agreements will be legally binding and internationally backed.

“These deals are structured with geopolitical and diplomatic considerations. A sustainable framework is being created to ensure continuity,” he added.

The government is also working with the International Finance Corporation (IFC) and the Asian Development Bank (ADB) to appoint transaction advisers and complete necessary documentation within the interim administration’s tenure.

CPA officials recently met at the Shipping Ministry to finalize the Transaction Advisory Services Agreement (TASA), a key step toward commencing Bay Terminal construction.

Customs Overhaul in Progress

Recognizing customs bottlenecks as a critical issue, the National Board of Revenue (NBR) has launched field inspections at major ports including Chattogram, Mongla, Benapole, and Pangoan. These efforts aim to cut clearance times and increase the port’s turnaround speed.

According to CPA projections, the Bay Terminal alone is expected to boost annual capacity to 5 million twenty-foot equivalent units (TEUs), a major leap toward transforming Chattogram into a regional shipping hub.