We are firm in our stand, as no feasibility study was carried out by the government to allow installation of a container port at the Karnaphuly river mouth

Mahfuzur Rahman Khan CBA

The Chittagong port would be "destroyed", with thousands of jobs threatened, if the Stevedoring Services of America (SSA) were allowed to build the $550m (�377.4m) container terminal, the port's Combined Bargaining Agent (CBA) union said.

SSA has been trying to secure government approval for Bangladesh's largest foreign investment project for several years.

If the strike completely shutdown the port, it would cripple Bangladesh's export sector which has already suffered from weak international demand.

Union claims

"We will enforce a total indefinite shutdown at the Chittagong Port if any agreement is signed by the government with the Stevedoring Services of America," said Mahfuzur Rahman Khan, president of the CBA which represents 22 trade unions and 6,000 port workers.

"We are firm in our stand, as no feasibility study was carried out by the government to allow installation of a container port at the Karnaphuly river mouth," said Mr Khan.

But SSA official Asfaq Jamil said the new dock would not take away work.

He added that it would create a further 4,000 jobs and generate about one billion taka (�11.9m) a year in royalties.

Political trouble

The port issue has plagued successive Bangladeshi governments, including that of Prime Minister Khaleda Zia, who took office last October.

"Without proper study we will not allow anybody to set up the container terminal port," Shipping Minister Akber Hossain told AFP.

SSA had hoped to open its port in 1999 and has already acquired 162 of the 200 acres it needs for the facility.

"Now we are expecting to start the construction of the port by 2007," Mr Jamil said.