Two major Bangladeshi business groups-Saif Powertec and MGH Group-had been competing for the long-term operating rights for the New Mooring Container Terminal (NCT) at Chattogram Port.
However, due to lobbying by two advisers of the Muhammad Yunus-led interim government, negotiations had reportedly neared completion for a deal with DP World, the UAE-based global port operator.
The MGH Group, owned by Anis Ahmed, was reportedly confident that the former interim government would finalise a long-term agreement with DP World. Consequently, MGH had already begun positioning itself as DP World's local partner.
The group had also reportedly reached an informal understanding with Shafaq Hossain, son of former Shipping Adviser Brigadier (retd) Shakhawat Hossain.
However, then National Security Adviser and current Foreign Minister Khalilur Rahman was reportedly dissatisfied with the arrangement, resulting in delays in the agreement. Shafaq has since left the country after purchasing a home in London and obtaining British citizenship.
While MGH actively supported DP World's bid to operate NCMT, Saif Powertec was simultaneously trying to retain control of the terminal.
Following the change in government, Saif formed a new consortium. This local consortium includes companies owned by two Members of Parliament of the ruling BNP, and has formally proposed taking over operations of the New Mooring Container Terminal.
On April 28, Saif-Cosmos-Everest Port Services Consortium submitted its proposal to the Ministry of Shipping. Two of its partner companies have direct links to BNP lawmakers.
ABM Ashraf Uddin Nizan, MP for Lakshmipur-4 and the government chief whip, is chairman of Cosmos Enterprise. Meanwhile, Shahadat Hossain Selim, MP for Lakshmipur-1, serves as managing director of Everest Port Services.
The proposal became public more than a month later. Notably, MGH Group submitted its own proposal to operate NCT on the same day.
However, sources within the Ministry of Shipping say that priority is currently being given to discussions with DP World.
"Since negotiations with DP World are ongoing, there is no scope at this stage to consider new proposals. If the discussions fail, fresh tenders may be invited and proposals from both local and foreign operators will be evaluated," a ministry source said.
The local consortium's proposal has added a new dimension to the debate surrounding the future management of NCT, even as negotiations with DP World continue.
NCT is the largest of Chattogram Port's four operational container terminals. Last year, it handled approximately 44 percent of the port's total container traffic.
The newly formed consortium comprises: Saif Powertec Ltd., the current operator of Chattogram Container Terminal (CCT), Cosmos Enterprise and Everest Port Services Ltd.
The three companies have decades of experience in cargo and container handling operations.
The proposal argues that local operators have already exceeded international performance benchmarks. While German consultancy Hamburg Port Consulting assessed NCT's annual capacity at 1.1 million TEUs, local operators are currently handling approximately 1.33 million TEUs per year.
DP World and MGH Group have proposed operating NCT under a Public-Private Partnership (PPP) framework. In contrast, the BNP-linked local consortium has proposed a service-based operating model.
Under the proposal:
The consortium claims this arrangement would eliminate CPA's personnel and maintenance costs, allowing the port authority to retain most of its earnings.
According to figures cited from a CPA audit report, the current revenue per container is $161.82, the cost per container is $56.15 and net income is $105.67.
Under the consortium's model, CPA's net income would remain at approximately $92 per container without requiring additional investment.
The consortium argues that its member companies have between 20 and 35 years of experience at Chattogram Port and that retaining terminal management in local hands would keep profits within Bangladesh and strengthen domestic capabilities.
It also claims that NCT's annual handling capacity could be increased to 1.7 million TEUs.
Saif Powertec operated NCT from 2007 until July 2024 and currently manages CCT. According to the company, it handled 23 million containers and more than 15,000 vessels during its tenure at NCT.
Cosmos Enterprise has been involved in stevedoring operations since 1989, while Everest Port Services has been active in stevedoring and berth operations since 1988.
Attempts to obtain comments from Everest Port Services Managing Director Shahadat Hossain Selim and Cosmos Enterprise Chairman ABM Ashraf Uddin Nizan were unsuccessful.
Despite receiving proposals from multiple local companies, ministry sources say that only DP World's proposal is currently under consideration.
The NCT leasing process began during the previous Awami League government and reached an advanced stage of negotiations with DP World under the interim administration. However, the process was suspended on February 9 amid labor protests and political opposition.
The government has recently formed a new evaluation committee and resumed discussions regarding the terminal's future management.