The government is scheduled to finalize a 30-year contract next week with APM Terminals BV, a Dutch subsidiary of the AP Moller-Maersk Group. This agreement aims to develop and manage the Laldia Container Terminal at the Chattogram Port through a public-private partnership (PPP) arrangement.
This decision follows the approval of the PPP model by the cabinet committee on economic affairs, enabling the signing of a concession agreement between APM Terminals BV and the Chattogram Port Authority (CPA). A concession agreement permits a private entity to construct, operate, and maintain public infrastructure before returning it to the government after a specified period.
Despite resistance from various organizations against leasing different terminals of the Chattogram port to foreign companies, the CPA is moving forward with the deal. The government is also progressing towards appointing DP World, a UAE-based company, to manage the New Mooring Container Terminal (NCT), while agreements with PSA Singapore and DP World are being prepared to develop two terminals at the Bay Terminal.
Critics have raised concerns over the government’s decision to appoint foreign operators without competitive tenders, similar to practices of the previous administration. Recently, the Chattogram district unit of Sramik-Karmachari Oikya Parishad (SKOP) held a symbolic hunger strike opposing the construction of the LCT, citing potential negative impacts on existing port facilities.
Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority and CEO of the PPP Authority, emphasized that APM Terminals’ expertise in countries like China, Singapore, and Sri Lanka will enhance operations in Bangladesh. The new LCT is expected to boost the country’s logistics sector, making it more competitive post-LDC graduation and accommodating larger container vessels for improved shipping connectivity worldwide.
The project aims to generate foreign exchange earnings for Bangladesh while reducing public capital investment. It will introduce round-the-clock port operations with night navigation capabilities, a first in Bangladesh, for vessels meeting specific length and draught criteria.
Implemented on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis for an initial 33-year period with a possible 15-year extension, the LCT construction is estimated to take three years, with operations commencing by the end of 2029. APM Terminals is anticipated to bring in foreign investments of around $550 million, marking the largest European equity investment in Bangladesh so far.
Upon agreement finalization, APM Terminals has pledged a signing bonus of Tk 250 crore to Bangladesh. Positioned closer to the Bay of Bengal than the NCT, the LCT will handle larger vessels, reducing reliance on transshipment ports and expanding the country’s container handling capacity. It is projected to increase annual handling capacity by over 40%, easing congestion at existing terminals and accommodating the growing trade volumes of Bangladesh.
CPA Chairman SM Moniruzzaman highlighted the potential of the terminal to significantly reduce the transit time for Bangladeshi products. Under the revenue-sharing arrangement, APM Terminals will pay the CPA $21 per TEU for the first 800,000 containers handled annually, benefiting the economy and creating 500 to 700 direct jobs along with additional opportunities in the logistics sector.