Bangladesh government has started talks with Danish shipping and logistic giant Maersk Group on its proposal to set up a container terminal in Laldiar Char in Chittagong spending some US$400 million.
APM Terminals, Maersk’s port operating company, wants to set up an environment-friendly and automated terminal in 215,000m² of char land that will significantly raise the box handling capacity of Bangladesh’s prime seaport.
Maersk Group chairman Robert Maersk Uggla and Danish Charges D’ Affaires in Bangladesh Andres B Karlsen met Prime Minister Sheikh Hasina on 28 August where she assured of considering the proposal.
“Bangladesh concerned authorities will consider Maersk Group’s proposal on constructing and operating new container terminal at Laldia,” the Prime Minister was quoted by state-run news agency, Bangladesh Sangbad Sangstha, as saying.
Over 50 Danish companies are working in Bangladesh, and Maersk Group is now showing interest in constructing and operating box terminals here, the prime minister said.
Maersk Group CEO at the meeting expressed keen interest in investing in the development of port and logistic support in Bangladesh saying that there are many opportunities in these sectors.
In this context, he mentioned that major apparel retailers are interested in importing more readymade garments from Bangladesh.
During the last two years, Maersk Group had been insisting that it wanted to operate a newly built Patenga Container Terminal in Chittagong. Top apparel retailers like H&M and Marks & Spencer have been supporting the proposal.
However, the government has awarded the task of running the Patenga Container Terminal to Saudi-based Red Sea Gateway Terminal and a final deal in this regard will be signed shortly.
After that, last April, Maersk Group submitted a proposal to the Ministry of Shipping that it wanted to construct a container terminal at Laldiar Char on a build-own-and-operate basis.
Maersk Group subsidiaries carry over 30% of Bangladesh’s external trade.
Chittagong Port Authority (CPA) chairman Rear Admiral Mohammad Sohail at a recent press conference said in the next three to five years some US$3 billion can be invested in the port sector.
He said Denmark has shown interest in investing in the Laldia terminal.
Allowing Maersk Group and Red Sea Gateway Terminal in port operation and construction is part of the government’s vision to bring in competition in Bangladesh’s port sector to provide better services to port users, which the shipping sector stakeholders have highly applauded.
Especially, the Bangladeshi apparel makers, the second largest garment exporters worldwide, have praised the government’s opening of the port sector to global operators as they expect improved and faster services in handling cargo.
“It’s a very welcome move for the betterment of export-import trade of the country,” stated Rafayet Russel, a director of a garment factory who looks after international affairs.
Sharar Nayel
Asia Correspondent
