Bangladesh Awards Port Contract to Denmarks Maersk Group, Undermining Chinas Plans

Dhaka, October 25 (Daily Kiran) : Bangladesh’s decision to award a key port contract to Denmark’s Maersk Group has dealt a blow to China’s ambitions in the region. This move aims to modernize Bangladesh’s ports and reduce reliance on Chinese investments, particularly in the Bay of Bengal.

The decision was influenced by Prime Minister Tarique Rahman’s visit to Beijing last June, during which China was expected to develop the Mongla Port. This project included the construction of two state-of-the-art container jetties at Mongla, funded by Chinese financial assistance to enhance cargo capacity.

However, the recent agreement with Maersk Group involves a 30-year partnership under a public-private framework for the design, financing, construction, and operation of the Laldia Container Terminal at Chittagong Port. Maersk Group is recognized as one of the world’s leading terminal operators.

In recent years, the Bangladeshi government has sought to diversify its port development partnerships, avoiding over-dependence on China. Agreements for the development of the Matarbari Port were signed with the Japan International Cooperation Agency (JICA) and Maersk in 2025, during a transitional government.

Former Prime Minister Sheikh Hasina acknowledged India’s concerns regarding China’s growing presence around Bangladesh’s maritime assets. To mitigate these concerns, she rejected proposals for a deep-sea port at Sonadia, which would have been developed with Chinese support.

The Patenga Container Terminal at Chittagong is the first terminal operated by a foreign company, with Saudi Arabia’s Red Sea Gateway Terminal managing operations since June 2025.

Chinese firms are currently focused on supplying port machinery at Chittagong, developing nearby industrial parks, and ensuring their involvement in upcoming terminal modernization projects. Furthermore, a China-backed economic and industrial zone is being established on 800 acres in Anwara, aimed at attracting investments in export-oriented industries.

Additionally, a five-year contract has been awarded to Indonesia’s state-owned company, PT Pertamina Trans Continental, for the operation and maintenance of a facility in Cox’s Bazar.

Bangladeshi officials are prioritizing international companies over Chinese firms for terminal leases and operations at Chittagong Port, the country’s primary hub for import and export trade. Reports suggest that while China’s presence in Chittagong is growing, particularly through initiatives like the Anwara project, the government seeks to bolster its economy without allowing China to exploit its ports for strategic gains.

Despite China’s efforts to expand its influence in the Indian Ocean region, controlling Mongla Port alone is insufficient for its broader strategy. Mongla, located about 100 kilometers from the sea, is not suitable as a naval base, while the presence of global companies backed by Western powers at Chittagong port complicates China’s naval ambitions.

The Dhaka government’s stance appears to encourage Chinese investment in Bangladesh’s export-driven economy while preventing China from using its ports to further its strategic interests.