The government has recommended appointing the Bangladesh Navy as the temporary operator of the New Mooring Container Terminal at Chattogram port.

The Chattogram Port Authority will now appoint the Bangladesh Navy as the terminal's operator and the necessary deal will be signed soon, said Shipping Adviser M Sakhawat Hussain yesterday.

It is a temporary solution as the existing contract with Saif Powertec will expire on July 7, he said in a briefing at the secretariat.

"It is the end of the company's six-month extension. We are not renewing it as they got the contract in a direct purchase method during the previous government's tenure," he said, adding that the port authority will now operate the terminal for six months or longer within a defined budget.

The navy, which already operates dockyard facilities within the port area, is regarded as experienced in port operations and has its own operator capabilities, he said.

Saif Powertec, which has 16-17 years' experience in port operations, will also cooperate with them.

"No jobs will be lost. Everyone will retain their positions regardless of who runs the terminal."

On whether DP World would be taking over the operations, Sakhawat said a foreign operator is likely after six months.

"It is too early to confirm details but the process is ongoing."

If an international firm is interested, they are studying whether it benefits Bangladesh.

"Appointing an external operator does not mean handing over the port to them. If today it is the Navy, tomorrow it could be someone else. But before any appointment, we will examine whether it is good for us or not."

Addressing concerns about employment and recruitment under DP World, Sakhawat said the company was told that if it requires additional staff, it cannot recruit personnel from the sub-continent.

"They must recruit from Bangladesh and provide necessary training," he said, adding that DP World plans to make significant investment, including the rental of existing equipment and the procurement of modern replacements.

DP World operates 85 ports globally, including in Europe and the US.

"Have they ever taken over a country's port? Some local actors have vested interests. DP World's arrival might jeopardise those interests."

A deal with DP World would improve Bangladesh's trade relationship with the UAE, he said.

"We have 1.4 million Bangladeshis in Dubai. They have said they will hire another 400 engineers from here."