If interim govt lacks authority, country's dev will be hindered

The interim government's initiative to hand over the management of one of Chattogram Port’s nine terminals to a foreign company is drawing heavy criticism. During a recent visit to Chattogram, Chief Adviser Professor Dr Muhammad Yunus remarked that since Chattogram Port lags behind global standards, its management should be entrusted to one of the world’s top companies—and the public must be made to understand the necessity of this move. The government has already selected a foreign firm: DP World, a state-owned company from the UAE. Dr Yunus has met its CEO twice, both at home and abroad. The company’s proposed responsibilities include easing port congestion, reducing carbon emissions, and increasing efficiency at Bangladesh’s primary maritime gateway.

Dr Yunus invited the executive head of DP World to Bangladesh, saying, “Come to Bangladesh, let’s implement this together.” If plans proceed accordingly, a concession agreement may be signed with DP World by November this year, after which the terminal will be handed over to them. According to the Chief Adviser’s Press Secretary, the main focus of this initiative is job creation. Dr. Yunus is optimistic that working under a foreign company will open up job opportunities for Bangladeshis in ports around the world due to the experience gained. However, if the government had provided assurance that the 1,000 people currently working at the terminal would keep their jobs, resistance to the plan might have lessened. Typically, when ownership or operational control of a company changes, existing employees are not retained or are reassigned.

DP World’s responsibilities would include loading and unloading containers, collecting service charges, and making one-time, annual, and per-container payments to the government.

In response, Tarique Rahman, acting chairman of the BNP, stated that the interim government has no authority to hand over container handling responsibilities to a foreign company. According to the BNP, such decisions should be left to an elected government. However, the interim government’s Press Secretary has clearly stated that the interim administration has a mandate to carry out all reform-related activities. Yet, Article 106 of the Constitution, which governs the formation of an interim government, only mentions the authority to perform executive functions—what precisely falls within the scope of those functions is widely debated. The caretaker government was also mandated only to carry out daily routine tasks. This arrangement is both strange and unrealistic. Although the caretaker government was given only 90 days to complete elections, the army-backed caretaker administration under Dr Fakhruddin stayed in power for two years—and Dr Yunus’s interim government is expected to do the same.

If an interim or caretaker government is restricted to only routine functions, national development and progress will undoubtedly suffer. Even a single day of governmental paralysis is unacceptable in the national interest. The rules must be reformed urgently—caretaker or interim governments must have the full mandate, just like elected governments, to carry out all necessary functions in the interest of the nation.

There are four container terminals at Chattogram Port. The largest and most profitable among them is the New Mooring Container Terminal, which has long been equipped with modern machinery. Currently, a domestic company—awarded the contract through tender—handles container operations at this terminal. About 44 percent of all containers at the port are processed through it. Whether it is reasonable to hand over such a modern and profitable terminal to a foreign company needs thorough scrutiny, especially as there’s limited scope for further investment at this terminal.

It is said that during the Awami League government, there were also talks about handing this terminal to DP World. However, opposition from port workers and employees forced the government to retreat. On the other hand, the Patenga Terminal was handed over to the Saudi Arabian company Red Sea Gateway Terminal Company Limited, whose performance has been unsatisfactory. They have not made any investments, added equipment, or utilised the terminal’s full container-handling capacity. Their slow operations have been extremely frustrating. Why the Patenga terminal—built with Chattogram Port’s own funds—was handed over to a foreign company remains a mystery.

People are imaginative—some are linking the concepts of a "humanitarian corridor," Starlink internet services, and the port handover to DP World. Some argue that handing over port management to a foreign company poses a threat to national security. Others warn that giving foreign entities control over corridors and ports would endanger the country’s independence and sovereignty. Whether poor countries even possess true independence or sovereignty is debatable. If one aims to protect sovereignty, one may lose power; if one clings to power, sovereignty is often compromised. General Manuel Noriega of Panama tried to assert sovereignty over the Panama Canal and provoked US wrath. American troops invaded and captured him from his own country. The world witnessed the tragic fates of Muammar Gaddafi of Libya and Saddam Hussein of Iraq—both known for their independence. Even King Faisal of Saudi Arabia was killed by his US-educated nephew after trying to assert oil policy sovereignty.

Even a superpower like the US is deeply concerned about its own security—so much so that it refused to let DP World manage its ports. Nevertheless, DP World is a globally renowned company in port and logistics development, operating 82 marine and inland terminals in over 40 countries. Despite concerns about national security, many business leaders fear that engaging DP World will increase port charges. However, it is true that if a few terminals are managed by foreign firms, the quality of port operations could improve.

The issue of customs duty collection being handled by foreigners is also worth considering. At Chattogram Port, there is growing discontent: honest traders are frustrated with customs officers, and the officers are annoyed with certain unscrupulous traders. Dishonest traders prefer corrupt and bribe-taking officers. When such traders hold more influence, it becomes difficult for honest officials to continue working. Demoralized and cornered, these honest officers lose motivation. Due to customs non-cooperation, many traders face delays in clearing goods and must pay substantial demurrage charges.

With widespread irregularities, laziness, bribery, and corruption across sectors, one might argue that everything should be handed over to foreigners. But undertaking such reforms would cost any government its grip on power. For now, instead of handing over the already-built New Mooring Terminal, perhaps it would be wiser to assign DP World the task of constructing and managing a brand-new, state-of-the-art terminal.

Ziauddin Ahmed: former Executive Director of Bangladesh Bank