Port Protection Committee Demands Review of Profit, Loss and Contract Terms for Chittagong Port NCT Lease

The Port Protection Committee Chittagong has strongly condemned a decision to lease the New Mooring Container Terminal (NCT) and the overflow yards for 15 years under a long term concession deal. The issue was not on the main agenda of the Cabinet Committee on Economic Affairs meeting. It was raised under the “miscellaneous” agenda. Convener Engineer Delwar Mazumder and Member Secretary Mr. Fazlul Kabir Mintu expressed their anger over the move.

In a joint statement on Thursday (October 1), the leaders asked how the government’s slogan “Bangladesh First” is reflected in this decision. They said the NCT is one of the country’s most important port facilities. It is an established, active and profitable main container terminal. The leaders said Chittagong Port is a main gateway for the economy, foreign trade, imports and exports. They said any decision on its key facilities cannot be seen as only a business or administrative matter. It directly affects the country’s economic interest, revenue, jobs, port management capacity, strategic security and long term national interest.

The leaders said such a sensitive national issue needs the highest level of openness, accountability and long term economic study. They said raising the matter under the “miscellaneous” agenda has naturally raised questions among the public. The people expect a satisfactory answer from the government on why it was not presented and discussed in detail on the main agenda. The leaders explained that a concession deal is a long term management framework. It does not only hand over the running of one terminal. Depending on its terms, a private or foreign operator may gain influence over operations, revenue, investment, infrastructure management and business decisions for many years. So every clause of the deal should be made public and checked properly. This includes the financial structure, revenue sharing, investment promises, risk sharing, jobs, security, and the terms for cancelling or reviewing the deal.

The leaders said the NCT is already a key part of the country’s port system. It was built and run with state money. They said the government must clarify whether it first checked its own ability to run the terminal and raise its income before offering a long term concession. They also said the government should publish a comparison of the money the state would earn from the concession and the income it could earn by running the terminal itself. The leaders said no one can call Chittagong Port’s capacity, technology, skilled workforce and local management weak and then present a foreign operator as the only option. They said the country can strengthen its own institutions and workers through modern technology, skill building, automation, training and management reform.

The leaders said they do not oppose foreign investment or foreign technology. But they said the state’s interest must come first when running strategic national infrastructure and when foreign firms take part for a long time. They said the people will never accept a deal that may limit the state’s revenue, future investment chances, jobs or freedom to make decisions. They said leasing the NCT for 15 years does not match the interest of the people and the country. They added that it has already caused wide concern and debate. The leaders said Chittagong Port is not only Chittagong’s asset but a national asset of Bangladesh. Almost all of the country’s foreign trade moves through it. A decision to hand over any key facility under a long term concession will not be limited to the current government’s term. Its effects will last through several future governments. So the leaders said decision makers should look at national interest over the long term, instead of acting in political and administrative haste.

The leaders said the country’s assets, infrastructure and economic strength must not be handed to others. They said the main goal of state policy should be to make Bangladesh stronger through its own ability. They said the state can raise its income and capacity over time by building local skills, training workers and using modern technology to run key port facilities built with state money. They said that giving a long term lease for the NCT means handing operational control of an important state built economic asset to another party for a long period. So they said every term of the deal must be made public first. There must also be an independent economic and technical review, a study of possible revenue gains and losses, and an assessment of the effect on national security and strategy. They said that if a deal may create long term financial burden, revenue loss or limits on future policy choices, it should not be rushed. They said that, if needed, open national discussion and parliamentary review should be held before signing.

The leaders placed several demands before the government. The full draft of the deal and its financial structure must be made public. An independent economic and technical review must be carried out. The jobs and rights of workers and employees must be protected. Clear safeguards must be set for national security and strategic interest. They also called on the government to consider the country’s own ability to run the NCT and other possible management models.

The leaders said the Port Protection Committee has not taken a stand against any person, institution or country. Its position favors the national interest of Bangladesh, state assets, port users, workers and employees, and the country’s future economic interest. So the government must give full information to the public before any decision on the NCT. It must ensure the highest level of openness and accountability on the national interest. They said any decision forced on the people, ignoring them, will not be acceptable. The Port Protection Committee will keep up its stand with the people through peaceful and democratic programs. The leaders urged the government to cancel the NCT concession decision at once, publish all terms of the deal, and avoid any final deal without a full assessment of the national interest.

Notably, the Port Protection Committee, many workers’ and employees’ groups and a political alliance have kept up a steady movement. They demand that the decision be cancelled to lease the NCT, the always profitable and sensitive main facility of Chittagong Port, to the foreign company DP World under a long term lease. As part of this, a daylong sit-in has been called at the Chittagong Port main gate on October 5. Preparatory meetings are continuing to make the program a success.