Saudi firm to operate Patenga Container Terminal, signing tomorrow
The Chattogram Port Authority (CPA) is set to enter into an agreement tomorrow with Red Sea Gateway Terminal International (RSGTI) – instead of the Saudi Arabia-based Red Sea Gateway Terminal (RSGT) – for operating the newly constructed Patenga Container Terminal.
According to the CPA and related parties, RSGTI is a sister concern of RSGT, which was set up in 2022. The change has sparked confusion among the port authorities and the port users.
Md Abul Bashar, director general (Programming and Investment Promotion) of the Public Private Partnership Authority, told TBS, "The company initially nominated by the Saudi government to the Bangladesh government was RSGT. Later, the Saudi government nominated RSGTI.
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"China holds a 35% stake in RSGT, while 100% of the shares of the newly formed RSGTI belong to Saudi Arabia. The G2G policy requires that the investment be 100% in the country where it is made. That's why they have formed a new company," he explained.
Nearly 17 months after its construction was completed, the much-awaited terminal of the Chattogram Port was inaugurated by Prime Minister Sheikh Hasina last month.
After signing the agreement this week, the loading of gear vessels (ships with cranes) will begin in January 2024. It will take another two years to be fully operational after adding equipment.
CPA sources said there appears to be confusion surrounding the inclusion of RSGTI in the technical and financial proposal for the Patenga terminal. In response to this confusion, the Ministry of Investment of Saudi Arabia reached out to the Government of Bangladesh, suggesting the nomination of RSGTI instead of the initially chosen RSGT.
Following this recommendation, the shipping ministry has reportedly accepted the proposal.
It is noteworthy that, as the agreement involves the governments of Bangladesh and Saudi Arabia, all forthcoming contracts and activities will be carried out in collaboration with RSGTI.
CPA Secretary Md Omar Farooq told TBS that since this contract is being done on a G2G basis, the port authority is contracting with the company that Saudi Arabia has nominated.
