During a visit to Chattogram Port in May, Bangladesh’s interim leader Muhammad Yunus announced plans to hand over operations of the New Mooring Container Terminal to foreign companies. Despite being the “heart of Bangladesh’s economy,” the port has long been neglected, he said.
Yunus serves as the “chief adviser” — the head of the Bangladeshi administration appointed after veteran leader Sheikh Hasina was ousted in the August 2024 mass uprising. The interim government has pledged to focus on reforming the institutions, ensuring justice for past abuses,and organizing free and fair elections that would see it replaced with a democratically elected Cabinet. The polls are set to be held in February 2026.
The temporary administration has also sought to attract new investments and signal economic stability. However, the decision to hand over a key port to foreign operators took many by surprise.
Foreign partners still unknown
Located on the Bay of Bengal, the Chattogram Port — previously known as Chittagong — handles over 90% of Bangladesh’s maritime trade and nearly all of its container traffic.
With political turmoil ongoing in Bangladesh and the media attention shifting to the upcoming national elections, the port issue faded from public focus. However, on October 12, Shipping Secretary Mohammad Yusuf announced that two more terminals — Laldia, also in Chattogram, and the river port of Pangaon in Dhaka — would also be leased to foreign companies for 25 to 30 years.
Yusuf confirmed the transfers would be completed by December. He did not specify which companies and which foreign nations would be involved in the project.
Security analyst and retired general A. N. M. Muniruzzaman, president of the Bangladesh Institute of Peace and Security Studies, criticized the move.
“An unelected, interim government nearing the end of its term should not make decisions with long-term national consequences,” he said.
Trade profits pouring in from Chattogram
Shipping Secretary Yusuf defended the lease decision at a recent seminar in Dhaka, stating that Bangladesh’s ports suffer from inefficiencies that make them less competitive.
“We are doing something that doesn’t exist anywhere else in the world — releasing goods by opening containers inside the port,” he said.
The interim government also claims that foreign management has worked in India, Sri Lanka and Myanmar, and that Bangladesh would benefit from following suit.
There are, however, some points that seem to contradict the government’s narrative. For one, Chattogram Port remained profitable in the fiscal year of 2024–25, posting net earnings of €242.75 million ($284 million). Critics also argue that the New Mooring Terminal already meets international standards, operates at full capacity and lacks room for expansion — making further investment unjustified.
Rumors of DP World eyeing Chattogram lease
There are also rumors that the interim government is planning to lease the New Mooring Container Terminal (NCT) to DP World, a state-owned company from the United Arab Emirates.
If this turns out to be true, the company’s track record could pose another headache for Bangladesh, which is already working hard to balance interests of regional rivals India and China.
In 2006, despite the close alliance between the US and the United Arab Emirates, DP World was forced to pull out of managing six US ports after bipartisan backlash over national security concerns.
In 2018, Djibouti unilaterally ended DP World’s 50-year port concession, citing “sovereignty concerns.” The government later partnered with a Chinese firm to run a competing terminal, sparking a legal and geopolitical dispute over contract enforcement and foreign influence.
DP World’s port operations have also faced scrutiny in Senegal, Angola and Peru over issues of political interference and transparency.
“This entity works closely with the US, especially with the US Navy,” said security analyst Muniruzzaman. “They have operated jointly in different countries.”
Bangladeshi military affected by lease plans
The Chattogram Port connects South Asia to global maritime routes and serves as a key transit hub for India’s northeastern states, making it crucial for regional trade. China also sees the port as a strategic link in its Maritime Silk Road, aiming to expand both commercial influence and naval presence in the Bay of Bengal.
The presence of major Bangladeshi naval bases near Chattogram Port adds yet another layer of complexity. The NCT itself is currently operated by the Navy, making the military a significant stakeholder in the decision.
“As a dual-use port, it serves both commercial and military purposes, making security concerns especially relevant,” Muniruzzaman told DW.
“Such a major decision that involves national security should not be made without extreme caution and a clear political mandate,” he added.
Bangladesh Army Chief General Waker-Uz-Zaman has also voiced concern over the planned handover of the NCT. According to local media reports, while addressing army officers in May, he emphasized that such decisions should involve local communities in addition to the political leadership, and be made by a politically elected government.
Lease plans made behind closed doors
In an interview with DW, Bangladeshi economist and rights activist Anu Muhammad accused the government of bypassing transparent procedures.
“Ignoring all advice, the government is moving to lease out the port to a foreign company — without any consultation or competitive bidding,” he said.
Many critics point out that the interim government was willing to hold monthslong talks with political parties to build consensus on political and institutional reforms. In contrast, the leasing plan was never discussed with any party leaders.
“We don’t understand why the interim government is making such an agreement without informing anyone,” Rumeen Farhana, a politician from the Bangladesh Nationalist Party focusing on international affairs, told DW.
Farhana argued that the interim government’s authority is limited to routine administrative tasks and does not extend to making long-term agreements like leasing out strategic ports.
“It involves complex issues like geopolitics and national security. That’s why the government cannot make such moves without transparency and public consultation,” she added.
Turning Bay of Bengal into a battleground
Ruhin Hossain Prince, general secretary of the Communist Party of Bangladesh, claims the port deal reflects “the influence of a hidden power structure within the government, serving vested interests.”
Meanwhile, retired general Muniruzzaman warned that the decision could trigger a domino effect, turning the Bay of Bengal into a battleground for competing global and regional powers. “If one state’s influence grows, others may push back to protect their strategic interests,” he said.
When contacted by DW for comment on the lease plan controversy, the press wing of the Chief Adviser’s Office declined to respond.
Edited by: Darko Janjevic