The adviser to the shipping, textile, and jute ministries, Brig Gen (retd) Sakhawat Hussain, announced recently at a press briefing that any foreign direct investment (FDI) in the Chittagong port that jeopardises national interests will not be approved by the interim administration. While acknowledging the significance of FDI, the advisor underlined that the port’s benefit to Bangladesh will be the main factor in selecting a foreign operator.
Hussain made these comments while visiting a Chattogram port jetty. Senior port officials and Rear Admiral SM Moniruzzaman, the Chairman of the Chittagong Port Authority (CPA), joined Hussain.
Hussain stated that the port authority still makes money even with a foreign operator operating the Patenga Container Terminal (PCT), which is leased to the Saudi company Red Sea Gateway Terminal International. He emphasised that the port is currently receiving $18 per cargo from the PCT, which has surpassed expectations. “If these foreign investments are questioned for the benefit of someone, foreign investors will be reluctant to come,” warned him.
Hussain was upbeat about the projected Bay Terminal project, saying he anticipates international participation, especially from organisations like the World Bank. He did, however, note that the port officials have been instructed to get ready to provide pertinent ministries and stakeholders a thorough presentation on the Bay Terminal project.
Hussain also talked about the idea of the previous government to assign the New Mooring Container Terminal (NCT) to a foreign operator. He promised that there would be no compromise on transparency and that a committee would be set up to handle any issues that arose. He asked for patience, saying that the choice to choose a foreign operator for NCT would only be chosen if it would increase port revenue and provide job security for current terminal employees.
Speaking about previous anomalies and claims of nepotism in the port’s licence issuance, Hussain pledged to follow an open bidding procedure for any upcoming contracts. He confirmed, “There will be no more tenders under the direct procurement method,” and clarified that this approach would only be applicable to government-to-government projects following extensive review.
In order to improve efficiency at the port, the advisor also recommended increasing automation in port operations, auctioning off year-old cars and cargo, and taking steps to reduce irregularities.
In response to a question, CPA Chairman Moniruzzaman confirmed erroneous information about the PCT investment, indicating that the real investment was roughly Taka 1,300 crore, with Taka 5,500 crore in expected returns over the following 22 years. He continued by saying that Taka 22,500 crore is anticipated from the foreign operator to install the required equipment.
