Chattogram port: Foreign operator to run NCT for 15 years

The government has taken an initiative to operate the New Mooring Container Terminal (NCT) of Chattogram Port through an international terminal operating company for a 15-year term. A draft agreement for operating the terminal under public-private partnership (PPP) has received in-principle approval.

The proposal received in-principle approval at a meeting of the Cabinet Committee on Economic Affairs held at the Secretariat on Thursday, chaired by Finance Minister Amir Khasru Mahmud Chowdhury.

Following a proposal from the Ministry of Shipping, the meeting decided to proceed under the PPP project titled 'Operation and Maintenance of CPA's New Mooring Container Terminal, Including Overflow Yard' of the Chattogram Port Authority.

According to the proposal, the New Mooring Container Terminal of Chattogram Port and its associated overflow yard will be operated for a 15-year term through an international terminal operating company. The matter of final approval of the draft concession agreement to be signed was presented at the meeting. The committee reviewed the proposal and recommended in-principle approval.

It was learned that this initiative under PPP has been taken with the aim of operating the NCT by utilising international-standard experience.

The proposal was approved at a time when discussion and criticism have been ongoing over the operation of the NCT since UAE-based company DP World submitted a proposal. Although the government is advancing the process, various workers' and political organisations have opposed handing over the NCT to a foreign company from the beginning. Movements have also been continuing on the issue.

Approval to import 100,000 tonnes of urea fertiliser

At the same meeting, in-principle approval was given to import 100,000 metric tonnes of urea fertiliser to build a safety stock of urea fertiliser in the country.

Following a proposal from the Ministry of Industries, the Bangladesh Chemical Industries Corporation (BCIC) will import this fertiliser. BCIC will be the implementing agency.

According to the proposal approved at the meeting, 100,000 metric tonnes of urea fertiliser will be imported through the direct purchase method from UAE-based company JSC Delta Star Trading FZ-LLC and Russian manufacturer JSC Shchekinoazot.

In this case, the price determination formula used in BCIC's existing government-to-government agreement will be followed. Abedita Trading of Dhaka will act as the local representative of UAE's Delta Star Trading.

The proposal of the Ministry of Industries said that due to the war situation in the Middle East, the Strait of Hormuz, one of the world's most important shipping routes, has been closed, hampering fertiliser imports. As a result, uncertainty has been created in importing fertiliser from the international market.

On the other hand, as production has been disrupted at several fertiliser factories in the country recently, there is also a fear of a shortage in meeting domestic demand. In this situation, the need has arisen to tackle a possible crisis and maintain adequate urea fertiliser stock in the country.

In this situation, UAE's Delta Star Trading FZ-LLC voluntarily proposed to supply 100,000 metric tonnes of urea fertiliser to BCIC. After verification, BCIC considered the proposal acceptable.

Following this, an initiative was taken to import 100,000 metric tonnes of urea fertiliser through the direct purchase method from Delta Star Trading FZ-LLC and Russian manufacturer JSC Shchekinoazot to build a safety stock of urea fertiliser in the country.

The proposal mentioned that this fertiliser will be purchased following the price determination formula set in BCIC's existing government-to-government agreement.