Bangladesh retracts from port deal amid threats of intensified protests

The announcement came as dockers called a fresh indefinite shutdown after two days of pause following previous six days of stop work protest against the interim government's plan to lease out the port to the foreign private entity.

Dhaka: Bangladesh on Sunday retracted from its plan to lease out a major container terminal at the strategic sea port town Chattogram to a foreign operator amid intensified protests ahead of the February 12 election.

The announcement by a key functionary of Yunus' administration came as dockers called a fresh indefinite shutdown after two days of pause following previous six days of stop work protest against the interim government's plan to lease out the port to the foreign private entity.

"In practical terms, the discussion (over leasing out) may move beyond this government's tenure and after the upcoming election, will continue under the next government," Bangladesh Investment Development Authority (BIDA) chairman Ashik Bin Harun told a media briefing in the capital.

Officials said discussion to lease out the New Mooring Container Terminal (NCT) to Dubai-based DP World had reached its final stage. The BIDA chief, however, said DP World recently sent a letter to Bangladesh praising the progress of the ongoing negotiations but requested more time to review the draft concession agreement.

Earlier, Shipping Adviser retired Brig Gen Sakhawat Hussain said the interim government decided to take a "hard line" in the matter.

"The port strike cannot be allowed to continue," Hussain told reporters at his office in Dhaka, adding that several people were detained and further detentions might follow as a "handful of people are trying to hold the entire port hostage."

Harun said the negotiations would not stop even if the agreement was not signed during the interim government's term, adding, "most likely, the next government will take it forward after the election."

Workers at Chattogram seaport last week called an indefinite strike against the government move to lease out the key container terminal to the foreign operator.

"This is a suicidal decision," Chattogram Bandar Rokkha Sangram Parishad coordinator Humayun Kabir said last week.

The strike badly disrupted vessel movements, local reports said.

Bangladesh's High Court earlier ruled the contract between the Chittagong Port Authority (CPA) and the DP World was legal, removing legal barriers to the 25-year lease agreement for the NCT, which was launched in 2007.

According to officials, 95 per cent of Bangladesh's international trade is handled through four terminals with NCT accounting for 40 per cent.