The interim government of Bangladesh has launched an ambitious initiative to overhaul the Chittagong Port, country’s principal seaport, by bringing in world-renowned foreign operators in an effort to address chronic inefficiencies that have long plagued its operations and stifled the national economy.
Once dubbed one of the least efficient ports in the world, Chittagong Port ranked 298th out of 351 global ports in a 2020 efficiency index. Plagued by lengthy turnaround times, logistical bottlenecks, and financial irregularities, the port’s performance has dragged down export competitiveness and caused significant economic losses, according to recent government audits.
Chief Adviser Muhammad Yunus, who is heading the transitional administration, has made reforming the port a top priority. During a visit to the New Mooring Container Terminal in Chattogram, Yunus underscored the urgency of the effort. “Chittagong Port is the heart of Bangladesh’s economy,” he said. “If this heart remains weak, no physician can make our economy healthy. We must modernize it.”
To do so, the government has initiated talks with three global port management giants: DP World of Dubai, APM Terminals of the Netherlands (a subsidiary of AP Moller-Maersk), and PSA International of Singapore. These firms collectively manage hundreds of terminals across the globe and bring decades of experience in high-volume, high-efficiency port operations.
“We are inviting the best in the world,” Yunus said. “They handle ports in Europe, Asia, and Africa. Their expertise will help us build capacity and learn how to manage efficiently.”
The move comes as the port continues to face serious operational and structural hurdles. A 2023 report from the Comptroller and Auditor General revealed financial losses of over Tk 258 crore due to mismanagement and procurement anomalies between 2017 and 2020. On the ground, container vessels often wait for days to offload due to a lack of modern handling equipment, inadequate berthing space, and poor digital coordination among departments.
Shipping Adviser Brig. Gen. (Retd.) M Sakhawat Hossain believes the changes will be evident quickly. “With the construction of additional terminals and better handling systems, I expect container congestion to ease within six months,” he said.
The decision to seek foreign expertise has not been without controversy. Political parties including the Bangladesh Nationalist Party (BNP) and several left-leaning groups have expressed concern that outsourcing management could threaten national sovereignty and local jobs. The army chief also commented that such a sensitive matter should be handled by a political government with broad public consultation.
Nevertheless, the interim government insists the arrangement will not jeopardize sovereignty. Rather, it sees foreign participation as a form of structured partnership to accelerate reform and lay the groundwork for long-term local control.
“By 2031, our people will learn how to manage ports like the best in the world,” Yunus said. “By 2036, Bangladeshis will be managing major international ports. This initiative is about acquiring skills, not giving up control.”
According to the World Bank, Chittagong Port handles over 90% of the country’s international trade. Delays and inefficiencies have increased logistics costs and hurt Bangladesh’s competitiveness in key export sectors such as ready-made garments.
Moreover, government officials argue that better port performance could have a spillover effect across the entire economy. The government is exploring ways to transform the coastal stretch from Kumira to Teknaf into an economic corridor, leveraging maritime proximity to promote industries such as seafood processing, light manufacturing, and logistics.
Rear Admiral SM Moniruzzaman, chairman of the Chittagong Port Authority, pointed out that due to natural limitations, ships longer than 200 meters cannot currently dock. Infrastructure upgrades, he said, are crucial. “There is no alternative. We must invest in modernization and deepen our access channels.”
To that end, the government is working with the World Bank on the $650 million Bay Terminal project, which aims to expand capacity with new breakwaters and deeper anchorage zones. Foreign operators are expected to complement, not replace, these investments.
The port initiative is also aligned with a broader regional vision. Yunus emphasized Chittagong’s potential to serve not just Bangladesh, but also landlocked neighbors like Nepal and Bhutan, and India’s northeastern states.
“If they are connected to our port, both sides will benefit,” Yunus said. “Chittagong can be the gateway for South Asia.”
Labor rights groups and civil society organizations have called for guarantees to protect existing jobs, ensure fair labor practices, and prioritize local hiring and training.
For Yunus and his advisers, the message is clear: the port cannot continue in its current state.
“The world has moved ahead. We cannot afford to be left behind,” Yunus said. “This is a historic opportunity to change course — we must seize it.”
To ensure that reforms benefit the Bangladeshi people, policy analysts suggest a structured public-private model that mandates transparency, accountability, and local empowerment. Any agreements with foreign operators should include enforceable performance benchmarks, such as improvements in vessel turnaround time and reductions in shipping costs. Contracts must also guarantee the protection of existing port workers’ rights and require firms to invest in local job training programs, ensuring that knowledge and skills are transferred to Bangladeshi staff from the outset.
Experts further recommend establishing an independent oversight body comprising government officials, port authorities, labor representatives, and civil society to monitor the implementation of reforms. This body would help ensure compliance with labor standards, environmental safeguards, and financial integrity. Provisions for phased localization—setting a timeline for Bangladeshis to assume increasing levels of operational control—should be embedded in all management contracts.
Community engagement is also critical to maximize local gains. Civil society organizations have advocated for inclusive development plans tied to the port’s expansion—such as local employment quotas, vocational schools near industrial zones, and infrastructure improvements in surrounding neighborhoods. These measures, they argue, will ensure that modernization of the Chittagong Port contributes not only to national economic goals but also to the social well-being of the region.
With high stakes and competing pressures, the coming months will be pivotal. The government hopes that strategic foreign partnerships, if carefully designed, can unlock the full potential of Chittagong Port — and with it, a new chapter in Bangladesh’s economic future.