Danish company wants to invest $400m to develop Laldia container terminal
The PPP project is expected to create 1,000 jobs
Danish port giant APM Terminals, a subsidiary of Maersk Group, plans to invest $300-400 million to develop the Laldia Container Terminal in Chattogram through a public-private partnership (PPP) agreement with the Chittagong Port Authority.
The announcement was made when Bangladesh and Denmark governments held their first Government-to-Government PPP Platform meeting in this regard on Wednesday, reads a press release issued by the PPP Authority.
Dr Md Mushfiqur Rahman, secretary and CEO of the PPP Authority, led the Bangladesh delegation while Christian Brix Møller, ambassador at the Embassy of Denmark, led the Danish delegation.
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Citing the shared vision for a progressive and resilient port infrastructure, Md Tofazzel Hossain Miah, principal secretary to the Prime Minister's Office, said the G2G PPP model will play a critical role in realising Bangladesh's Vision 2041 and creating a Smart Bangladesh.
The PPP Authority said the proposed Laldia Container Terminal, with a quay length of 450 metres, a berth depth of 10.5 metres, and a vessel draught of 9.5 metres, is set to address the increasing demand for efficient and sustainable container handling services.
The estimated investment of $300-400 million, coupled with Foreign Direct Investment (FDI), positions this project as a significant contributor to economic growth. The annual concession fee and revenue sharing per twenty-foot equivalent unit (TEU) promise sustained revenue streams for the Chattogram Port Authority.
The expected benefits of the project include the generation of approximately 1,000 employment opportunities, technology transfer initiatives, the introduction of smart port practices, control of net carbon emissions, reduced turnaround times for ships, achieving economies of scale, and fostering healthy port competition.
From the Bangladesh side, the meeting was attended by Md Mostafa Kamal, senior secretary of the Ministry of Shipping and chairman of both the Chittagong Port Authority and the Pyra Port Authority.
From the Denmark side, Lina Gandløse Hansen, state secretary for Trade and Investment at the Ministry of Foreign Affairs of the Kingdom of Denmark, participated virtually.
Earlier on 27 August 2023, Prime Minister Sheikh Hasina and the chairman of the Maersk Group held a meeting to discuss the project.
