A new container terminal is being built in the port of Chittagong to be able to handle much larger ships. The investment by APM Terminals is unprecedented in Bangladesh’s history.
APM Terminals has signed a deal at the port of Chittagong in Bangladesh: The company, part of the A.P. Moller-Maersk Group, will build a new container terminal to expand the capacity of the country’s largest port. The concession agreement runs for 30 years and, with a value of $550 million, is one of the largest public-private partnerships in Bangladesh’s history. Maersk handles almost a third of all containers handled in the country.
The agreement was signed between the Chittagong Port Authority (CPA) and APM Terminals together with local partner QNS Container Services. The planned Laldia container terminal will be planned, financed, built and operated entirely by the investors – a unique model for port infrastructure in Bangladesh. In future, the terminal will be able to handle ships with capacities of up to 6,000 TEU; the current limit in Chattogram is 2,800 TEU. With its planned commissioning in 2030, the terminal will increase the port’s annual handling capacity by 800,000 TEU. According to a statement from APM Terminals, the project marks a “decisive step for the future performance” of Bangladesh’s ports. It will position the country as a competitive hub in South Asia.
According to APM, the Laldia Container Terminal will be operated in accordance with international safety and environmental standards. It will also be built “in line with net zero principles and in support of Bangladesh’s long-term goals”, it says. It will be one of the first energy-efficient and low-emission terminals in the South Asia region.
Largest private investment from Europe
“It is a great honor to enter into this agreement with Bangladesh, which underlines the enormous potential of this important market,” said Keith Svendsen, CEO of APM Terminals. “This greenfield project enables us to actively contribute to the growth of local manufacturers, exporters, importers and the Bangladeshi economy as a whole. We are strengthening our commitment to the country with the aim of building a safe and efficient terminal and creating skilled jobs for the future prosperity of the region.”
Muhammad Yunus, Chief Advisor to the Government of Bangladesh, emphasized the importance of the terminal as the largest European direct investment in the country. “This landmark collaboration with APM Terminals will open up new capacity for our exporters, reduce logistical bottlenecks and strengthen our competitiveness in global markets,” he said. “We look forward to seeing how this world-class terminal opens up new opportunities for our people and our economy in the decades to come.”
“Maersk is a long-standing partner of Bangladesh and an important driver of the close trade relations between our two countries,” said Danish Foreign Minister Lars Løkke Rasmussen. “The company today handles almost 30 percent of all containers going in and out of Bangladesh. APM Terminals’ investment in the Laldia container terminal is a strong sign of a lasting and genuine partnership and demonstrates great confidence in the future of Bangladesh.”
