Chittagong Port Authority to Lease Container Terminal to Foreign Operators

Following a government decision to bring in competition among terminal operators at the country’s prime seaport, the CPA has made the initiative to lease the terminals out to foreign operators.

The government has opted to appoint foreigners for several key terminals, including the Patenga Container Terminal (PCT), New Mooring Container Terminal (NCT) and Chattogram Container Terminal (CCT).

Additionally, one multi-purpose terminal and two others within the four-terminal Bay project, along with Laldia Container Terminal, will also be managed by foreigners under a public-private partnership (PPP) model.

On 06 December 2023, the CPA and Saudi-based Red Sea Gateway Terminal (RSGT) signed a deal at the Prime Minister’s Office for operating the PCT for next 22 years. CPA chairman Rear Admiral Mohammad Sohail and RSGT CEO Jeans O Foley signed the concession agreement on behalf of their respective organisations. Prime Minister Sheikh Hasina and Saudi Investment Minister Khalid Al Falih witnessed the signing ceremony.

Meanwhile, in 2013, the CPA undertook the Bay Terminal project to construct four terminals: a 1,500-metre multi-purpose terminal, a 1,225-metre container terminal, and an 830-metre container terminal.

Shipping ministry decided to build one terminal of the four-terminal jetty itself, while the remaining two will be constructed under PPP by foreign companies. The PPP Authority also appointed a transaction adviser for these two terminals.

Meanwhile, Abu Dhabi Ports Group presented a substantial investment proposal of $1 billion for establishing a multi-purpose terminal within the Bay Terminal project. This project, developed in collaboration with the CPA, aims to construct four terminals under the Bay Terminal umbrella, with the multi-purpose terminal being a key component.

A deal is expected by this June to begin construction under PPP. Besides, two more agreements are expected soon with PSA Singapore and DP World for constructing and operating Bay Container Terminals 01 and 02.

Construction of the terminal having five jetties was completed in 2007, while Saif Powertec has been operating jetties 02 and 03 since May 2007 on an ad-hoc basis.

The CPA through two separate tenders appointed Saif Powertec Limited as an operator for NCT jetties 02 and 03 and Saif Powertec’s joint venture with two other firms, A&J Traders and M/s MH Chowdhury Limited, as operators for jetties 04 and 05. CPA Rear Admiral Mohammad Sohail said, “Singapore has shown interest to invest for Chittagong sea port for building a new terminal. The negotiation with Singapore is continuing now.” He said Copenhagen-based port and cargo operator Maersk Group came up with the proposal to build and operate a new container terminal in Laldia area of Chattogram which is near to the port facility. “If the proposal of Maersk Group will be approved by the ministry, it will be the fourth container terminal of Chittagong port,” he added.