AP Moller Maersk, a Danish shipping and logistics company, is poised to invest between $300 million and $400 million in the construction of the Laldia container terminal at Chattogram Port, as per project officials.
With the official backing of the government, APM Terminals, a subsidiary of AP Moller Maersk, is set to develop Bangladesh’s first BOT (build-operate-transfer) port project under a public-private partnership (PPP) and on a government-to-government basis.
Preparatory work for the project has been in full swing since January this year, according to project sources.
The Laldia container terminal, featuring a quay length of 450 meters, berth depth of 10.5 meters, and vessel draft of 9.5 meters, aims to meet the growing demand for efficient and sustainable container handling services, as highlighted by the PPP Authority.
Commodore M Fazlar Rahman, member (harbour and marine) of the Chittagong Port Authority (CPA), has been appointed as project director, leading a seven-member project delivery team consisting of representatives from the shipping ministry, PPP Authority, and the CPA.
The PPP Authority has formed a project assessment committee (PAC) chaired by Md Mushfiqur Rahman, secretary and CEO of the autonomous government agency overseeing all public-private partnerships in Bangladesh.
CPA Secretary Md Omar Faruk disclosed that APM Terminals proposed a virtual meeting with the project team on March 12 to discuss navigability and depth issues concerning the Karnaphuli channel. The company also requested the presence of representatives from UK-based HR Wallingford, conducting a survey on the Karnaphuli channel.
The Cabinet Committee on Economic Affairs approved the Laldia terminal project on March 11, 2013, initially planned as a bulk cargo terminal before being transformed into a multipurpose terminal to handle both bulk cargo and containers.
Delays plagued the project due to illegal settlements on the project site, Laldia Char, home to approximately 2,000 families. However, the CPA eventually succeeded in evacuating the land in 2021 after facing resistance from locals.
Maersk Group proposed the establishment of the Laldia container terminal early last year, with Chairman Robert Uggla expressing interest during a meeting with Prime Minister Sheikh Hasina on August 27.
Progress on the project accelerated following the prime minister’s approval of Maersk’s proposal.
APM Terminals formally accepted Bangladesh’s offer for the project during the first joint platform meeting between Bangladesh and Denmark on January 3 this year.
CPA Chairman Rear Admiral Mohammad Sohail stated that committees and the CPA technical team are conducting regular meetings.
The PPP Authority is in the process of appointing a global firm as a transaction adviser for the project, while APM Terminals conducts a feasibility study.
Negotiations between the CPA and APM Terminals regarding the project will commence upon completion of a detailed feasibility study by the transaction adviser, with Chairman Sohail expressing hope that negotiations will proceed swiftly given the CPA’s experience in such matters.