Bangladesh has signed a landmark $550 million deal with APM Terminals, a unit of Danish shipping giant Maersk, to build and operate the new Laldia Container Terminal at the Port of Chittagong. This project, structured as a Public-Private Partnership (PPP), aims to significantly enhance the port’s capacity and efficiency, supporting the country’s burgeoning trade demands and marking the largest European investment in Bangladesh to date.
$550 Million Investment for New Chittagong container terminal
In a major move to upgrade its trade infrastructure, Bangladesh has finalized a $550 million concession agreement with APM Terminals to construct the new Laldia Container Terminal (LCT). This strategic project is designed to substantially increase the port’s capacity and streamline its operations. Under the PPP framework, APM Terminals will partner with local firm QNS Container Services Ltd to design, build, and operate the facility.
The agreement was signed by Rear Admiral Mohammad Musa, Chairman of the Chittagong Port Authority (CPA), and Ditlev Blicher, CEO of APM Terminals for the Asia-Pacific region, during a ceremony in Dhaka. The event was attended by key government officials who hailed the deal as a new era for foreign investment in Bangladesh.
“This new terminal will play a crucial role in meeting the growing trade demands of Bangladesh,” said State Minister for Shipping Khalid Mahmud Chowdhury. “It will help us handle larger volumes of cargo and facilitate smoother trade operations.”
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Boosting Port Capacity at Chittagong container terminal
The Laldia Container Terminal is expected to handle an additional 1.5 million twenty-foot equivalent units (TEUs) annually, bringing the total capacity of the Port of Chittagong to 5.5 million TEUs. A key strategic advantage of the new terminal will be its ability to accommodate larger vessels, a critical upgrade for modern global trade. The terminal will be equipped with state-of-the-art facilities, including modern cranes and advanced cargo handling equipment, to ensure efficient and fast processing of shipments.
Construction is expected to be completed within three years, with the terminal projected to be fully operational by 2030. Once operational, the terminal will be managed by APM Terminals under a 30-year concession agreement, which can be extended based on performance indicators. Importantly, the Chittagong Port Authority will retain full ownership of the terminal, safeguarding national interests.
“This partnership with APM Terminals is a testament to Bangladesh’s commitment to modernizing its port infrastructure,” said Finance Minister AHM Mustafa Kamal. “The Laldia Container Terminal will not only improve trade efficiency but also create new job opportunities for the local community.”
Economic Impact of Chittagong container terminal
The new terminal is poised to have a significant positive impact on Bangladesh’s economy. The increased capacity will enable the country to handle more imports and exports, reducing chronic congestion at the port and cutting down on shipping delays. This, in turn, will make Bangladeshi goods more competitive in international markets.
Moreover, the project is anticipated to create thousands of jobs during the construction phase and over the long term. The terminal’s development is part of a broader government strategy to enhance maritime infrastructure and position the country as a key player in regional trade. This strategy includes various large-scale projects, such as the ADB-funded solar plant in Mymensingh, which collectively aim to build a robust economic foundation.
Efficient ports are the backbone for advanced industrial sectors, including the growing Bangladeshi solar panel export market. A modern port simplifies the complex logistics behind the basics of solar panel manufacturing, from importing essential raw materials to shipping finished products globally.
“With the Laldia Container Terminal, we are looking at a future where Bangladesh can handle larger ships and bigger trade volumes,” said Rear Admiral Mohammad Musa, Chairman of the CPA. “This project is a game-changer for our port and our economy.”
Environmental Considerations for Chittagong container terminal
The construction and operation of the terminal will be carried out with careful consideration of environmental and social impacts. APM Terminals has committed to implementing sustainable practices throughout the project’s lifecycle. This commitment aligns with the company’s previous initiatives, such as the solar power boost APM Terminals provided for healthcare centers in Nigeria, showcasing a track record of integrating renewable energy into its operations.
Key focus areas will include minimizing emissions, reducing energy consumption through efficient technologies, and ensuring the protection of the surrounding marine and terrestrial ecosystems.
The Port of Chittagong is the largest seaport in Bangladesh and serves as the primary gateway for the country’s trade. The addition of the Laldia Container Terminal will not only enhance its capacity but also significantly improve its competitiveness in the global shipping industry, setting a new benchmark for infrastructure in the region.
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