To build a new container terminal in Chittagong’s Laldiar Char, the Bangladesh government appointed the International Finance Corporation (IFC) as transaction advisor to study, design and negotiate with foreign companies.
The terminal will have a quay length of 450 meters and a water depth of 10.5 meters where vessels up to 9.5 meters will be able to take berth.
The terminal will be built under government to government (G to G) arrangement and APM Terminals, a Maersk Group subsidiary, proposed investing US$400 million to build the terminal.
The Public-Private Partnership (PPP) Authority, under the Prime Minister’s Office, signed the agreement with the IFC for providing Transaction Advisory Services for the project titled “Establishment and Operation of Laldia Container Terminal at Chittagong Port through PPP Model”
This agreement aims to obtain assistance in detailed technical, legal, and financial due diligence, alongside a scoping study on the environmental and social impacts of the proposed terminal project, the PPP Authority said after signing the deal.
“The goal of the study is to develop a bankable transaction structure and select qualified private partners for the establishment and operation of the Laldia Container Terminal at Chittagong Port through the PPP model,” stated the authority.
The Laldia Container Terminal project is expected to strengthen the port logistics capacity of Bangladesh. The selected global private operator will design, build, finance, operate, and transfer the terminal on a PPP basis.
“The project will create numerous jobs during construction and operations. It will also boost economic growth, streamline supply chains, attract foreign investment, and enhance logistical capacity,” commented the PPP Authority.
At the initial stage, the Chittagong Port Authority (CPA) had decided to build a bulk cargo terminal at Laldiar Char. However, later the government decided that a multipurpose terminal would be built there to handle both container and bulk cargoes.
Early last year Maersk Group submitted a proposal to the Ministry of Shipping expressing interest to invest in construction and operation of Laldia Container Terminal.
Maersk Group chairman Robert Maersk Uggla and Danish Charges D’ Affaires in Bangladesh Andres B Karlsen met Prime Minister Sheikh Hasina on 28 August 2023 where she assured of considering the proposal. At the meeting, Maersk Group leadership mentioned that major apparel retailers are interested in importing more readymade garments from Bangladesh.
Later, top apparel retailers like H&M and Marks & Spencer wrote to the government of Bangladesh supporting Maersk’s proposal to build the Laldia Container Terminal.
Sharar Nayel
Asia Correspondent
