APM Terminals subsidiary of AP Moller – Maersk will develop and operate the Laldia Container Terminal of the Chattogram Port for 30 years under a public-private partnership arrangement, said Public Private Partnership Authority CEO Chowdhury Ashik Mahmud Bin Harun on Wednesday.
He revealed the decision at a press conference held at the Foreign Service Academy in the capital, following the cabinet committee on economic affairs’ approval to develop the terminal.
The ownership of the port would remain with the Chittagong Port Authority, while APM Terminals and a local JV partner would be responsible only for construction, operations, and management.
APM Terminals - a Danish company, one of the world’s leading logistics companies, majority-controlled by the AP Moller Foundation, which operates 60 terminals in 33 countries across the world.
Ashik Chowdhury, also the executive chairman of the Bangladesh Investment Development Authority, said that this would also reduce the capital expenditure burden for the Bangladesh government as the APM Terminal would invest $550 million for the construction of a greenfield port terminal, which would be the single largest European equity investment in Bangladesh to date.
The final agreement between Bangladesh and the AP Moller Foundation will be signed next week, and as part of the deal, the investor will provide a signing amount of Tk 250 crore.
The APM would construct the terminal, jetties, and other facilities, which would take about 3 years to complete.Â
The LCT is expected to add over 800,000 TEUs per year (44 per cent above current capacity) and be commissioned by 2029-2030. The investor is expected to start construction in 2026.
‘The investor would also share a bonus based on the container handling, like $21 per container while they handle 800,000 TEUS, $23 when it exceeds 900,000, though the amount would be lower when they handle more containers to encourage them,’ he added.
The International Finance Corporation has worked as a transaction adviser in the agreement, which would comply with global environmental, health, safety, and security standards.
About 500-700 people would work here, along with several thousand indirect jobs in construction, trucking, warehousing, freight forwarding, and local SMEs.
With the possibility of sending Bangladeshis to other ports operated by the same operator.
‘The Laldia project would introduce world-class technology and operational excellence to Bangladesh, helping make the country’s logistics sector future-ready in the post-LDC era,’ he added.
He also said that the newest green port would accommodate large container vessels, reduce per-unit freight cost, and enable direct shipping connectivity worldwide.
Developed under a revenue-sharing concession model, the project would generate a stable foreign-currency income stream for Bangladesh while minimising public capital expenditure.
‘Along with that, 24/7 port operations with night navigation capabilities for ships with permissible length and draught would be enabled for the first time in Bangladesh,’ he added.
Responding a question, he said that the situation of the LCT would at the middle of the sea and Chattogram port, which would be 5 kilometre from the Bay of Bengal to main port and 9 kilometre from the main port to the Bay.
Replying to another question, he said they had already sent a roadmap to the National Board of Revenue to enhance customs capacity to handle 40 per cent more containers.
‘There are challenges, and we would work to mitigate them. We would also work to reduce the traffic congestion with Roads and Highway, Bangladesh Railway,’ he added.
They would also work to activate the naval ways through activating Pangaon Inland Container, and a formal agreement might be signed by this week, he added, saying that they would work to reduce pressure on the highway by at least 10 per cent.
Responding to a question, he said the government has a projection for the next 10-15 years regarding volume handling.
‘If we could provide the right policy supports and our businesses could attract more orders, we could forecast volume targets for the coming years,’ he added.
Bangladesh has the potential to increase handling capacity across various terminals by 6 times by removing corruption and improving efficiency, he added.
‘We should focus on positive competition among terminals to attract more foreign operators like APM,’ he added.
Responding to another question, Ashik Chowdhury said they had discussed the Laldia Container Terminal with political parties, and their views were positive.
CPA chairman SM Moniruzzaman said the LCT would add enormous efficiency to the country’s port sector, making it a green port that could position Bangladesh as a green pioneer.Â
‘In terms of speed and lead time, we could be advanced by at least 10-15 days, which might attract more foreign investment in high-end products,’ he added, saying that such capacity would accelerate the possibility of becoming a regional port.
