Abu Dhabi Ports to invest $1b in multipurpose bay terminal at Ctg port

Abu Dhabi Ports Group (AD Ports) has committed to invest $1 billion for the much-anticipated multipurpose bay terminal with a capacity of 1.5 million TEU (twenty-foot equivalent units) containers and handling 7 million tonnes of cargo annually.

This is one of the four bay terminals for the Chattogram Port to be built under an estimated $10 billion mega project, targeting increased cargo handling alongside accommodating bigger ships.

Starting construction works by October-November this year, the first of the four bay terminals of the Chattogram Port is expected to start operations by 2027-28, said Chittagong Port Authority (CPA) Chairman Rear Admiral Mohammad Sohail.

The last terminal of the project would take 7-8 years from now, he told journalists following the signing of a non-binding memorandum of understanding (MoU) between the CPA and Abu Dhabi Ports for "Cooperation related to Bay Terminal Project including Multipurpose Terminal" at a city hotel today (16 May).

The CPA was in talks to award the works for building and operating the four terminals – two container terminals, the multipurpose terminal, and a bulk liquid terminal – with different international marine and port players and yet no final deal has been inked, he added.

"We are negotiating with the interested partners about the ins and outs of the needed final agreements."

For instance, he said, for the two container terminals at the new part of the Chittagong Port, talks with Singapore-based PSA International and UAE-based DP World have progressed a lot for public-private partnerships (PPP). Both the projects are estimated to be of $1.5 billion each.

Local East Coast Group is also in talks to build, operate and hand over later a bulk liquid terminal at around $3.5 billion, eying efficiency in importing fuel.

Besides, Danish Maersk Group's arm APM Terminals also expressed their interest to build the planned Laldia Container Terminal in Chattogram port, the CPA chairman said.

Representatives of AD Ports, the CPA, the Ministry of Shipping, and AD Ports' Bangladesh agent, Saif Powertech gathered at the MoU signing event on Thursday where Khalid Mahmud Chowdhury, state minister for Shipping spoke as the chief guest.

The MoU marks a significant step towards enhancing the country's import and export efficiency while reducing transportation costs and time, said Khalid Mahmud.

Tarafdar Ruhul Amin, managing director of Saif Powertech, said the half a trillion dollar economy of Bangladesh would surge to a trillion dollar and that would require a huge cargo handling. The terminals would make exports and imports easier and cost effective.

Khairul Alam Sujan, vice president of the Bangladesh Freight Forwarders Association, said, "The Bay Terminal project is our long-awaited dream. Its implementation is definitely positive news. Once operational, import and export trade will speed up significantly. Large ships will be able to anchor here, reducing time and cost."

The Chittagong Port currently handles 3-3.2 million TEU Containers annually that contain 120 million metric ton cargo.

Besides, Chittagong Port currently can only accommodate ships up to 10 meters in depth and 200 meters in length. The new bay terminal will be able to accommodate vessels up to 12 meters in depth and 280 meters in length.

"Once completed, ships will no longer depend on the tides for berthing and avoidance of a 12 hour waiting for the tidal waves would help save a cost of $10-15 thousand in each trip. The terminal will handle ships with a carrying capacity of 6,000 containers, compared to the current port jetty's capacity of about 2,000 containers," Khairul added.

The bay terminal will be constructed on 2,500 acres of land along the Patenga Halishahar coastline, approximately six kilometers from the current Chittagong port.

As part of the land acquisition process, Chittagong Port has already acquired 66.85 acres of privately owned land and has been allotted 500.7 acres of government land at a nominal cost of Tk3 crore.

Recently, the port paid Tk3 crore to the Chittagong district administration for this allotment.

Additionally, the settlement of 124 acres from the Forest Department is in the final stages through the Ministry of Lands. The district administration is also in the process of acquiring 188 acres of disputed land with various individual ownership claims.

The remaining 1,620 acres required for the project will be reclaimed from the sea.

Earlier this year CPA Chairman Mohammad Sohail outlined ambitious plans for the region's ports. He envisioned that by 2030, with the completion of ongoing projects such as the Bay Terminal and Matarbari Deep Sea Port, ports in the area would collectively handle 11 to 12 million TEU containers – nearly four times the current capacity.

Also, Saudi company The Red Sea Gateway Terminal is waiting to start operating the newly built Patenga Container Terminal for the next 22 years