The Chittagong Port Authority on Monday signed two agreements for appointing overseas operators to its Laldia Container Terminal in Chattogram and Pangaon Inland Container Terminal in Dhaka amid allegations of carrying out the procedures hurriedly.
The CPA under the shipping ministry signed an agreement with Netherlands-based APM Terminals BV, a unit of Danish shipping giant AP Moller 鈥� Maersk鈥檚 Transport and Logistics division, for the development and operation of the Laldia Container Terminal at an event held at a hotel in the capital Dhaka in the morning.
The agreement will allow the APM Terminals BV, a leading global port operator, to run the Laldia Container Terminal for 30 years with a projected investment about $550 million.
In the afternoon at the same hotel, the CPA signed an agreement with Medlog Bangladesh Private Limited under Switzerland-based logistics firm Medlog SA to give operational lease to the Pangaon Terminal for 22 years, which is expected to bring in about $40 million foreign direct investment.
With the two agreements, the CPA, responsible for about 90 per cent of the country鈥檚 seaborne exports and imports worth over $110 billion in 2024, has leased out operation of its three terminals to overseas operators.
With the aim of increasing efficiency of the century-old Chattogram port on the estuary of the River Karnaphuli, the CPA appointed Saudi-based port operator Red Sea Gateway Terminal in December 2023 to operate the Patenga Container Terminal.
Since 2020, the authority has also been consulting with the United Arab Emirates-based Dubai Port World to lease out operation of the New Mooring Container Terminal.
The interim government, which assumed power in August 8, 2004, three days after the ouster of the Awami League regime in the wake of a mass uprising, is likely to hand over the operation of the New Mooring Container Terminal that handles bulk of the country鈥檚 containerised trade to the foreign operator by December.
Addressing the agreement signing ceremony between the CPA and Medlog Bangladesh Private Limited, shipping adviser M Shakahwat Hossain came down heavily on those who are criticising the leasing of operation of the terminals to overseas operators.
The shipping adviser observed that the foreign direct investments linked with the agreements were for the younger generations.
CPA chairman Rear Admiral SM Moniruzzaman who signed both the agreements on behalf of the Chattogram port told 抖阴精品 that the allegations of hurried procedures were baseless.
鈥楳ost of the people in the country are busy giving allegations and doing no work,鈥� he said.
Medlog Bangladesh Private Limited managing director ATM Anisul Millat said that this was a great day for his company as it won the operational lease of the Pangaon Termainal after completing the bidding process over the past 14 months.
The potential of the terminal for serving as a key hub of the multi-modal transport between the port city and the capital has remained unrealised over the past one and a half decade.
The shipping adviser assessed that the CPA incurred losses of Tk聽165 crore in the past 12 years to operate the Pangaon terminal after building it at Tk聽157 crore on the bank of River Buriganga at Keraniganj, on the outskirts of the capital.
In 2019, the Chittagong Port Authority evicted illegal occupants on the char to construct the Laldia Multi-purpose Terminal under public-private partnership on 52 acres of land at about Tk聽3,000 crore funded by the five members of a consortium with the help of Asian Development Bank.
Since 2023, Maersk Group has been showing interest in constructing and operating container terminals at the Chattogram port because of interest by major apparel retailers for importing more readymade garments from Bangladesh.
The signing ceremony between the CPA and APM Terminals BV came five days after the advisory council committee on economic affairs at a meeting approved a proposal for an agreement to design, finance, build and operate the Laldia Container Terminal on public private partnership.
During the deal signing ceremony, Public Private Partnership Authority and chief executive officer of Bangladesh Investment Development聽 Authority鈥� executive chairman Chowdhury Ashik Mahmud Bin Harun hoped that the terminal was expected to add over eight lakh twenty-foot-equivalent containers annually, helping relieve the current level of congestion at the country鈥檚 main sea port.
Besides increasing incomes for the CPA, the construction and operation of the Laldia Container Terminal project are expected to generate over 500-700 direct and formal jobs along with several thousand indirect jobs in different areas of services, they said.
Special envoy to the chief adviser Lutfey Siddiqi said this was a milestone for the country.
Praising the Danish investment, he said that it reflected the interim government鈥檚 strong commitment to attracting foreign direct investment.
Chief adviser Professor Muhammad Yunus said that Danish company APM Terminals鈥� investment in the Laldia Terminal marked the beginning of a new era for Bangladesh鈥檚 trade and foreign direct investment.
鈥楾his is a new beginning for the country. It opens a new door for larger and more diversified investment from Denmark and Europe,鈥� Yunus said.
