Bangladesh Halts Foreign Port Lease Amid Rising Protests Before February Election

Bangladesh has decided to halt its plan to lease a significant container terminal at Chattogram port to a foreign company. This decision comes amid growing protests as the February 12 election approaches. Dockworkers have initiated an indefinite strike after a brief pause, following six days of protest against the interim government's proposal to lease the port to a foreign entity.

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Officials revealed that discussions about leasing the New Mooring Container Terminal (NCT) to Dubai-based DP World had reached an advanced stage. However, Bangladesh Investment Development Authority (BIDA) chairman Ashik Bin Harun stated that DP World requested additional time to review the draft concession agreement, despite acknowledging progress in negotiations.

Protests and Legal Developments

The Chattogram seaport workers' strike last week was a response to the government's move to lease out the terminal. Humayun Kabir, coordinator of Chattogram Bandar Rokkha Sangram Parishad, criticised the decision, calling it "suicidal." The strike severely affected vessel operations, according to local reports.

Bangladesh's High Court previously ruled that the contract between the Chittagong Port Authority (CPA) and DP World was legal. This ruling removed legal obstacles for the 25-year lease agreement for NCT, which began operations in 2007. The NCT handles 40% of Bangladesh's international trade through its four terminals.

Government's Stance and Future Prospects

Shipping Adviser retired Brig Gen Sakhawat Hussain expressed the interim government's firm stance on resolving the issue. "The port strike cannot be allowed to continue," Hussain stated in Dhaka, mentioning that some individuals were detained and more could follow if disruptions persisted.

BIDA chairman Harun indicated that negotiations would persist even if an agreement isn't signed during the interim government's term. He suggested that the next government would likely continue discussions post-election. "In practical terms, the discussion over leasing out may move beyond this government's tenure," Harun noted.

The strategic importance of Chattogram port is underscored by its handling of 95% of Bangladesh's international trade. The ongoing protests highlight tensions between economic development goals and local workforce concerns as Bangladesh navigates its political landscape ahead of elections.

With inputs from PTI