Govt to lease out all Ctg port terminals to foreign firms thru PPP system 

CHATTOGRAM, Nov 19: The government is going to hand over the operations of all Container terminals of the Chattogram Port Authority (CPA) to foreign companies during the current year through Public Private Partnership (PPP) system.

The potential terminals are: Laldiar Char Terminal to Danish giant AP Moller Maersk; New Mooring Container Terminal (NCT) to DP World, and two terminals of Bay Terminal to Singapore Port Authotrity (SPA) and DP World and Matarbari Deep Sea Port.

A memorandum of understanding (MoU) for Terminal 1 of  Bay terminal was signed in March 2018 between the PPP Authority and Enterprise of Singapore. Another MoU was signed in July 2019 with DP World of the UAE for Terminal 2.

Meanwhile, Patenga Container Terminal, (PCT) has already been handed over to Saudi-based Red Sea Gateway Terminal International (RSGTI).

Currently, Laldiarchar Container terminal (LCT) and Pangaon Inland Container Depot (PICD) have been handed over to foreign operators.

CPA signed two agreements recently, one with APM Terminals, a concern of Denmark's Maersk Group, for building and operating the Laldia Terminal under a 33-year concession and another with Switzerland-based Medlog SA to operate the Pangaon Inland Container Terminal for 22 years.

Meanwhile, the government had appointed an international consultancy firm in 2020 to provide recommendations regarding the Chattogram Port's operations.

The government received the consultant's report in the first quarter of the current year and based on their recommendations, the port tariff has already been revised upward.

The government, determined to lease out all upcoming terminals - from Bay Terminal's two container berths to the Matarbari Deep Seaport to foreign operators.

The container terminals are: Newmooring Container Terminal (NCT). The largest terminal of the port, the NCT was completed in 2007 at a construction cost of BDT 5 billion, with a further BDT 25 billion invested in equipment to enhance capacity and operational efficiency.

Chattogram Container Terminal (CCT): Spanning 450 metres, this contemporary terminal features three jetties and plays a critical role in handling container traffic.

Patenga Container Terminal (PCT): Added to operational activities in 2024, this facility was built at a cost of approximately BDT 12.5 billion, further strengthening the port's container handling capacity.

Matarbari Deep Sea Port: Construction of the country's principal seaport is underway. Matarbari was brought under Chittagong Port's operational responsibility in 2023, carrying an initial liability of BDT 95 billion. The overall project cost is estimated at around BDT 240 billion. The Matarbari Port Channel is strategically vital for national energy security, with the Port Authority tasked with its maintenance and security. Ensuring this requires major financial resources, and without tariff adjustments, costs will become increasingly unsustainable.

Bay Terminal: Located near the main port, this major expansion project involves foreign investment for the construction of two terminals, while the Port Authority will finance a third.

Meanwhile, preparations are underway to finalise an agreement with UAE-based DP World by December, for operation of the NCT.

Constructed in 2007 at a cost of Tk 2,712 crore for civil works and equipment, NCT is one of the largest terminals at Chattogram port and now handles a major share of the country's import and export containers. It is currently operated by Chittagong Dry Dock Limited, an entity of the Bangladesh Navy, which will continue managing the terminal until a foreign operator takes over.

Bangladesh has taken a major step toward strengthening its maritime and trade infrastructure with the signing of a concession agreement for the development of the Laldia Container Terminal in Chattogram.  The project represents an investment exceeding USD 550 million, making it one of the largest Public Private Partnership (PPP) investment ventures in the country's history.

The agreement was signed between the Chittagong Port Authority (CPA) and APM Terminals - part of A P Moller-Maersk - together with local partner QNS Container Services Ltd. The concession agreement will allow APM Terminals to operate the terminal for a period of 30 years, which can be extended based on KPIs (key performance indicators). The Laldia Container Terminal will be fully designed, financed, built and operated by the investors - a first-of-its-kind model for Bangladesh's port infrastructure.

Once operational in 2030, the terminal will expand Bangladesh's annual port handling capacity by over 800,000 TEUs (twenty-feet equivalent units), improving the country's global trade efficiency and connectivity - helping the key engines of Bangladesh's export economy such as textiles, apparel and manufacturing reach their import markets around the world.

The new deep-water facility will, over time, allow the Port of Chattogram to handle vessels potentially up to 6,000 TEU, compared to the current limit of 2,800 TEU. This advancement will reduce congestion, lower logistics costs for supply chain actors and support the continued growth of the export sector.

The project marks a pivotal leap in Bangladesh's future port performance, positioning the nation as a competitive maritime hub in South Asia.

The CPA has signed another 22-year concession agreement with Switzerland-based Medlog, a prominent global institution in internal logistics, for the operation and management of the Pangaon Internal Container Terminal (PITC).

The Pangaon Internal Container Terminal is situated on the banks of the Buriganga River near Dhaka in Keraniganj, just three kilometers from the Dhaka-Mawa-Bhanga Expressway.  Medlog SA, operating through its local entity, Medlog Bangladesh Private Limited, will supervise the operations, supply chain, and automation of the terminal.

The objective is to utilize Medlog's global expertise and implement strategic plans to achieve sustainable growth, aiming to position Bangladesh as the top country in the region for internal logistics. To support increasing regional trade, Medlog is set to enhance the terminal's facilities and increase its annual handling capacity to 160,000 TEUs.

A key focus of the agreement is strengthening multimodal connectivity.

Medlog will charter internal barges to link Pangaon with other river ports and seaports.

While barges will handle large-scale cargo, trucks, covered vans, and reefer vehicles will establish additional supply channels throughout the region.

This improved intermodal transport system is expected to reduce uncertainties related to internal cargo movement and ensure reliable lead times.