"From today we have ceased to engage dock labourers. The traders will handle their own cargo through private stevedoring firms," a senior official of the port said.
The number of ships calling at the Chittagong, which handles 80 percent of Bangladesh's external trade, has fallen because of political unrest that has also affected the port, officials said.
Bangladesh declared a state of emergency in earlier this year following weeks of violence over election disputes. Trade union leaders, fearing job losses, have resisted privatisation moves with strikes and stoppages.
The army-backed interim government has deployed troops at the port to tackle any trade union resistance.
In March the port leased out its container terminal to Saif Power Tech, a local private firm, in a two-year agreement.
Saif Power Tech and state-owned Chittagong Port Authority share 66.50 percent and 33.50 percent of the earnings from container handling respectively under the agreement.
Cargo, including containers going through the port, rose 7 percent to 26.10 million tonnes in 2005/06 from the previous fiscal year, port officials said.
But the number of ships calling at the port fell by 1.88 percent to 1,880 in the fiscal year, against 1,916 the previous year.