Foreign Control of Chittagong Port: Opportunity or Challenge for Bangladesh’s Economy?

Chittagong Port handles the biggest and busiest commercial traffic in Bangladesh. Over 90% of import and export commodities pass through it. Because this port is so important for Bangladesh’s economy, its management is treated as a national priority. But what if someone outside the country began running the port? What effect will this have on the economy and business world in Bangladesh? The effects discussed here are backed up by facts, figures and the insights of experts.

The Importance of Chittagong Port
Chittagong Port in Chattogram makes up the economic doorway for Bangladesh. During 2023, the port managed the movement of around 41 million tons of cargo which included all types of containers, bulk goods and oil supplies. The Bangladesh Ports Authority reports that over 90% of the country’s foreign trade is done through this port. Heavy reliance on the export market in Bangladesh means Chittagong Port is vital for trade. Leather goods, frozen foods, textiles and garments are among the country’s exports. The better the port operates, the more competitive these industries become.

Why Control of the Port Matters
In Bangladesh, the one controlling the port generally controls the business too. When a government controls a port, it determines how goods will enter or leave, decides on fees to be paid, looks after the upkeep of the facilities and ensures there is a secure environment. The speed and cost of getting goods into or out of the country depend on the actions of the port operator. Not only do shipping businesses feel the effects, but so do local firms, industries and people. If a foreign company is in charge of Chittagong Port, it might transfer global experience, advanced technology and fresh investments. Yet, it might result in higher bills, no longer having full say over important assets and increased threats to national safety.

Pros of Foreign Operation of Chittagong Port
Port efficiency is being enhanced by foreign port companies because they have advanced technology and skills. For instance, Singapore’s port run by PSA International is known to be among the most efficient anywhere. Having this knowledge in Chittagong may help cut ship waiting, speed up cargo management and bring down expenses. Often, foreign companies put a lot of money into improving port quays, machinery and information technology. Thanks to this change, more and larger ships can be handled easily. Because trade with other countries is growing, Bangladesh’s current infrastructure is overloaded, so foreign investment could help solve this problem. Connecting globally, foreign operators introduce worldwide links and the highest standards.  So, more overseas shipping companies could visit Bangladesh which would boost both local export and import activities. More jobs in logistics, transport and related sectors could be created if port operation is improved. Although a small number of jobs may go away, there will be new opportunities thanks to automation. By using modern port software, automation and training tools, Foreign companies improve the skills and future advantages of workers in the country’s ports. Following stricter overseas safety and environmental rules, multinational companies make sure to control both risks and pollution. With efficient port operations, exports from Bangladesh will take less time and cost less which makes them more attractive abroad. Better Customer Service, A foreign operator can offer better customer service which improves the experiences of importers, exporters and shipping companies.

Cons of Foreign Operation of Chittagong Port
The main reason operators from different nations want to enter this industry is to make money. Shipping companies may introduce or raise costs for docking vessels, transporting containers and basic storage of goods. According to the World Bank, port fees have a big impact on the price of goods. Should ULTRAS prove much too expensive to build, Bangladesh may import more products and struggle with global sales. A country needs its ports to thrive. Once the Chittagong Port is run by a foreign company, Bangladesh might not be in charge of traffic and security. Local challenges not being a top priority for foreign firms may even reduce trading. New technology is often used by foreign businesses to decrease the number of local employees. Without support, numerous port workers might wind up out of work or in poor conditions. The profits made by foreign operators often go to their home countries, not to Bangladesh. Risks and dangers for Bangladesh might also be brought by foreigners taking control. Foreign companies usually prefer making international agreements instead of considering local requirements. If the government sells the port’s main sections for less, it could lose future benefits. Participating in a country’s culture and understanding its language can be tricky for foreign managers. Due to reliance on international firms, Bangladesh is not in a strong position to solve its port difficulties.

Case Studies: What Other Countries Experienced
Sri Lanka’s Hambantota Port, Because of its debt, Sri Lanka gave the Hambantota Port to a Chinese firm on a 99-year lease in 2017. The deal caused debate because critics thought Sri Lanka had given away its control over an important asset. While the port’s activities with foreign countries have started, there have not been the economic benefits predicted and new issues about security have come up in the area. Djibouti’s Port, Most of Djibouti’s port operations are entrusted to foreign organizations led by DP World (based in Dubai). Although the country has adopted investments and new technologies, it still depends on operators from other nations for its main infrastructure. This makes us wonder about national independence and future positive effects. Greece’s Piraeus Port, China’s COSCO Shipping owns most of Piraeus Port in Greece. After the takeover, the port has grown into a main center for trade between Europe and Asia. COSCO poured billions into the expansion of the port to see higher throughput. Yet, a number of Greeks are concerned that foreign interests might have control over their country’s key infrastructure and politics.

What Experts Say About Bangladesh’s Situation
There is a strong recommendation from experts to use a balanced strategy. In the view of Dr. Mustafizur Rahman, expert economist, outside funding and experience can lift up Chittagong Port, as long as the country keeps authority and prioritizes benefits for its own people. Professor Mashiur Rahman, who is an expert in ports and trade, notes that when the government oversees partnerships between businesses and governments, the result can be both good leadership and efficiency. Dr. Anisul Islam believes that studying examples from other countries is important. If outsiders take charge of everything, a country can become independent, yet being excluded can result in lost efficiency. It works best when you are not too conservative or too liberal.

How Bangladesh Can Protect Its Interests
Strong control by the government, oversight of regulations should be maintained even for ports run by foreign organizations. Among the things addressed are setting fees, securing safety and protecting labor rights. Combining efforts in partnerships or owning a portion of a business with international operators is preferable for Bangladesh because it will use their knowledge while managing their own affairs. Helping port workers increase their skills by introducing new technologies helps ensure their jobs and lets them work more efficiently. Building up Payra and Mongla, along with more ports in the future, can give us alternatives and cause Chittagong’s position to weaken.

The Economic Impact on Bangladesh’s Business
There are presently almost $50 billion a year of exports affected by the port’s efficiency, primarily garments. If there are delays or extra costs at the port, this may lower Bangladesh’s position in the global market. If shipments are delayed by just a few days, it can result in factory failures and no more orders for companies operating in the fast-fashion market of Europe and the USA. In 2031, the government hopes that Bangladesh will become a middle-income nation. To achieve this, having efficient trade ports is very important. According to the World Bank Logistics Performance Index, Bangladesh is in 88th position, under both India (44th) and Sri Lanka (71st). Getting a higher position requires better ways to manage our ports.

Conclusion

The Chittagong Port not only brings goods to Bangladesh—it is the main engine behind the nation’s economic health and future development. Although foreign operators may contribute with the latest technology, knowledge and large funds, giving up power can lead to higher charges, a loss of national control and risks for both employment and safety. The major difficulty for Bangladesh is to earn from working with outside partners without giving up control of its economic future. Having agreements people can trust, strong government supervision and a focus on worker safety and Bangladesh’s interests will ensure Chittagong Port rises to world standards and helps every Bangladeshi. Eventually, whoever is in charge of the port will call the shots for the business, so Bangladesh must place its own people above all else.


Dr. Rubel Amin is the Head of
Supply Chain Management at
Standard MH Group, Bangladesh.