Bangladesh Faces Sovereignty Concerns Over Chittagong Port Contract with DP World Dhaka – A recent contract that will place the Newmuring Container Terminal (NCT) at Chittagong Port under the management of Dubai‑based DP World has sparked debate about Bangladesh’s policy sovereignty and national security. The agreement, signed under the current government, will see the foreign company take over operations of the country’s largest container terminal, which handles about 92 % of Bangladesh’s maritime trade. Mosahida Sultana, an associate professor in the Accounting and Information Systems Department at the University of Dhaka, the publisher of the quarterly journal Sarbojon Kotha, and a member of the University Teachers’ Network, spoke with The Daily’s Masud Rana about the implications of the deal. She warned that handing the terminal to a foreign operator could erode Bangladesh’s strategic autonomy. > “If we hand over the terminal to a foreign operator without improving our own customs efficiency or expanding port infrastructure, the problem will not be solved,” Sultana said. “Instead, we risk losing long‑term policy independence.” Sultana cited the government’s justification that foreign investment would modernise the terminal, reduce corruption, and cut container handling times. She argued that without addressing systemic issues such as customs delays and infrastructure deficits, the promised benefits may not materialise. The NCT is currently operating above its designed capacity, generating significant profits. However, the terminal’s owners have limited opportunities for further infrastructure investment. The government’s decision to award the contract to DP World was made through a public‑private partnership (PPP) process that bypassed an open tender, raising questions about transparency and national interest. Sultana also highlighted the tariff hike that accompanied the contract. The government increased port usage fees by 41 % in a single step, a move she said was aimed at securing DP World’s profitability. The hike has affected importers and exporters, adding to the cost of doing business in Bangladesh. International examples were used to illustrate potential risks. In 2018, Djibouti’s government cancelled a contract that had transferred control of the Doraleh Terminal to DP World, leading to a dispute that was ultimately settled by the London Court of International Arbitration. The ruling was seen as a challenge to Djibouti’s sovereignty. Similarly, the Democratic Republic of Congo’s ports and mineral resources have been largely controlled by foreign companies, creating a “resource curse” that has hampered national economic development. Sultana warned that in a conflict scenario, a foreign‑controlled port could be coerced into supporting hostile actors, compromising Bangladesh’s security. She noted that the country’s institutional capacity is already weak, citing recent diplomatic missteps such as the U.S. trade dispute and the handling of overseas labour issues. The political opposition has largely remained silent on the issue. Sultana observed that major opposition parties, including Jamaat-e-Islami and the Nationalist Party, have avoided taking a firm stance, focusing instead on short‑term populist politics. She suggested that this reluctance reflects a broader dependence on external powers and a reluctance to confront national sovereignty concerns. Sultana concluded that the government should invest in domestic capacity building rather than outsourcing critical infrastructure. She argued that foreign operators may bring technical expertise, but without systemic reforms, corruption and inefficiency could persist. The DP World contract, which will see the company manage the NCT for a period of 30 years, remains a contentious issue as Bangladesh navigates its economic development strategy and national security priorities.
Article source: Ajker Patrika | Image credit: Ajker Patrika