Shipping minister says port remains under state control despite foreign terminal operators

He says the use of foreign operators is a tool for development, not a surrender of sovereignty

Shipping Minister Shaikh Rabiul Alam has clarified that while the government has no plans to hand over the entirety of Chittagong Port to foreign entities, both local and international firms are eligible to be appointed as terminal operators.

Responding to a query from BNP lawmaker Shahadat Hossain from Lakshmipur-1 in parliament on Wednesday, the minister explained that terminal management follows a structured framework where foreign expertise is considered under public-private partnership (PPP) or government-authorised models.

"There is a provision to appoint operators to run the port's terminals," Rabiul said.

"In that structure, both domestic and foreign operators can work."

In November, the Muhammad Yunus-led interim government finalised agreements with two major European firms.

Denmark’s APM Terminals (a subsidiary of the Maersk Group) was tasked with the Laldia Container Terminal, while Swiss firm Medlog signed for the Pangaon Inland Container Terminal.

Both firms will receive a 10-year tax exemption.

The minister noted that foreign operators are already successfully managing duties at the Patenga Container Terminal.

While the interim government recently paused a deal with Dubai-based DP World following worker protests, Rabiul confirmed the proposal is still under active analysis.

His clarification comes amid criticism from lawmaker Shahadat, who characterised the 48-year lease of 20.6 hectares of land to foreign firms as an "unequal agreement".

Shahadat argued that local entrepreneurs possess the capacity for the Tk 67 billion investment required for such projects.

In response, Rabiul maintained that the appointment of international operators is a strategic policy choice.

He emphasised that even with foreign terminal managers, the overarching administration remains under the Chittagong Port Authority (CPA), an autonomous body governed by the 2022 CPA Act.

The minister reaffirmed that while the government is open to international partnerships to enhance port efficiency, it remains cautious about the terms of engagement.

"The government is considering and will prioritise the interests of the state and the people," he told reporters.

He indicated that the use of foreign operators is a tool for development, not a surrender of sovereignty, as the port's board and chairman continue to lead the institution's primary governance.