New Mooring Terminal: The game-changer for Chattogram port
Waiting time for ships at anchorage has significantly improved from 10 to 12 days to 2-2.5 days
The New Mooring Container Terminal (NCT) at Chittagong Port has emerged as a game-changer as it continues to shine with limited equipment and infrastructure, reshaping the landscape of port services in Bangladesh.
Currently, Chattogram port is earning Tk1,000 crore annually from this terminal, which handles about 55% of Bangladesh's import and export cargo. The specialised terminal now handles 13 lakh TEUs (twenty-foot equivalent units) annually, however, its actual annual container handling capacity is 11 lakh TEUs.
Despite exceeding its capacity by 15.38%, operational activities at the terminal remain vigorous and port users attribute it to a series of strategic and effective decisions.
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In 2007, the port constructed the New Mooring Container Terminal and added equipment with its own funding of Tk4,000 crores. Since then, ship and container handling at the terminal has gradually increased due to the use of advanced machinery, modern technology, and skills development of manpower.
Bangladesh Freight Forwarders Association Vice President Khayrul Alam Sujon believes that the decision to hand over the New Mooring Container Terminal to the private sector in 2007 was a landmark move.
He said, "The transfer of the responsibility of operating the terminal to a domestic company has led to an increase in the skills of local workers. So far, more than four thousand workers in the port management sector have acquired the required skills.
"Currently, there is no congestion of ships or containers at the port. As port users, we are highly satisfied with this unprecedented success."
According to Chattogram port data, of the 20 jetties at the port, shipping operations are currently carried out at 19 jetties in the three terminals — General Cargo Berth, Chittagong Container Terminal, and New Mooring Container Terminal.
Port users told TBS that prior to 2007, ships had to wait an average of 10 to 12 days at anchorage outside the port before being able to berth at the jetties.
As they put it, for each day of delay, each ship had to pay demurrage charges ranging from $12,000 to $20,000 depending on its size, resulting in an increase in business expenses and transportation costs for goods.
The additional shipping costs also led to an increase in product prices, which ultimately hit consumers with additional costs, they added.
But over the past 16 years, the waiting time for ships at anchorage has significantly improved since the average waiting time has decreased to 2-2.5 days.
Port users added that ships can now sometimes enter Chattogram port's jetties directly from the anchorage and in some cases, ships can avail of arrival berthing at the port.
Chattogram Port currently generates a revenue of over Tk3,500 crore per year, according to the port's official data.
The data also show that revenue from Chattogram Port is being spent as a grant to the government treasury. It is also being given as grants for the development of other ports. The Payra Port Authority received Tk461.90 crore as a grant from the Chattogram Port Authority.
According to the data, Saif Powertec Limited, the country's first terminal operator, is managing the New Mooring terminal after winning the contract in 2007. The company is also managing Chattogram Container Terminal.
Besides, some 12 domestic berth operator companies are operating the port's general cargo berths and 32 domestic ship handling operators are involved in the unloading of goods at the port's outer anchorage.
Chatogram Port marked its 137th founding anniversary on 25 April, with significant developments underway to enhance its capacity. New jetties and terminals are being constructed as part of ongoing efforts to expand operations. In 2024, $10 billion is being invested in the Bay Terminal project alone. Additionally, at least six major projects are in progress in the vicinity of Chattogram Port along with other terminals.
Chittagong Port Authority Secretary Md Omar Faruk told TBS that the capacity of the port is being increased along with the rise in import and export volume.
He said, "As modern equipment, including gantry cranes, has been added to the NCT, it has enhanced the port capacity. Domestic terminals, berths, and ship handling operators are efficiently handling ships, containers, and cargo. As a result, both organisations and workers have become skilled. Currently, there is no crisis of machinery at the port.
He added, "The Patenga Container Terminal will be operational in May or June. Once the construction of the six times larger Bay Terminal project is completed, Chattogram Port will emerge as a hub port in this region within the next 4 to 5 years."
In 2007, a total of 436 commercial vessels reached the New Mooring Container Terminal. Over the past 16 years, the number of vessels reaching the terminal has increased by 63.57% with 1,197 vessels reaching in 2023. A total of 4,103 commercial vessels arrived at the Chattogram Port in 2023 combining the numbers of General Cargo Berth, Chittagong Container Terminal, and New Mooring Container Terminal.
At NCT, it takes two to three days at maximum for ships to unload containers for ships to berth, unload containers, and discharge goods.
Mahbubul Alam, president of the Port Users Forum and also the country's apex trade body FBCCI, believes that the Chattogram port has been able to build trust among recipients of domestic and foreign services by ensuring the most modern and fastest service.
An increase in the skills of local workers has reduced reliance on foreign workers, resulting in savings of foreign exchange, he said.
"Similarly, there is a growing demand for local workers in various international organisations. These skilled workers will have the opportunity to work for higher salaries in the Chattogram port's new projects," said Mahbubul.
Number of terminals to increase
Patenga Container Terminal, constructed at a cost of Tk1,229 crore with the port's own funds, is awaiting the commencement of operations. For the first time, the port has appointed a foreign operator — Red Sea Gateway Terminal International — to manage the terminal. Four ships can be berthed at the terminal simultaneously. It will be able to handle approximately 4.5 lakh TEUs of containers annually.
Despite the completion of construction work on the project in July 2022, it is now nearly two years overdue. Initially, the port was supposed to manage the terminal itself, but the government changed its mind and hired a foreign operator.
During a press conference with journalists on 24 April, Chittagong Port Authority Chairman Rear Admiral Mohammad Sohail said the Maersk Group is constructing the ST Container Terminal in the Laldia Char area. All surveys have been completed and a contract will be signed under the PPP Act this year, he said.
Matarbari Deep Seaport getting ready
A channel and two jetties have been constructed in Maheshkhali upazila of Cox's Bazar, for a coal-fired power plant. Large ships are now berthing there. The Chittagong Port Authority is building a full-fledged port — Matarbari Deep Seaport — there.
The Chittagong Port Authority says the deep sea port will start operating within the next 3 to 4 years. Ships with a draft of 16 metres will be able to berth there.
Slow progress in Bay Terminal project
The Bay Terminal project was undertaken by the government in 2014 to increase the capacity of the Chattogram port.
Prime Minister Sheikh Hasina inaugurated the Bay Terminal construction project on 1 November 2018. However, the port has not yet been able to start work due to land-related complications, investment, and repeated changes in project implementation decisions.
While the new port was planned to be operational in 2026, the Chittagong Port Authority says it will take another four to five years to complete the construction of the Bay Terminal.
