Danish shipping giant Maersk outfit signing $550m deal

Danish shipping giant Maersk is set to take charge of developing and operating Bangladesh's Laldia Container Terminal (LCT) in Chattogram under a US$550-million deal through its one subsidiary, opening avenues for enhancing foreign investment, officials say.

An official announcement was made in Dhaka Wednesday that the public-private partnership (PPP) agreement between APM Terminals B.V., the outfit of A.P. Møller-Maersk, and the Chittagong Port Authority (CPA) will be signed next week.

The 30-year concession agreement, with possible extensions tied to performance benchmarks, will see the company design, finance, build and manage the new terminal -- one of Bangladesh's most ambitious port-infrastructure projects to date, said Chowdhury Ashik Bin Haroon, Chairman of the PPP Authority.

The project would require an investment of about US$550 million, which will be borne entirely by the company without any financial contribution from the Bangladesh government, says Mr Chowdhury, also executive chairman of Bangladesh Investment Development Authority.

"This entire amount will enter Bangladesh as foreign direct investment over the next three years," he notes, adding that this happens to be the biggest-ever European investment in Bangladesh.

Located on the banks of the Karnaphuli River in the estuary of the Bay of Bengal, the terminal aims to transform Bangladesh's maritime logistics landscape, easing years of congestion at the Chattogram seaport and enabling the handling of larger vessels for direct international trade routes.

"Ownership of the port will remain with CPA, while APM Terminals and its local joint-venture partner will oversee construction and operations -- reducing government's capital burden and accelerating implementation."

He also mentions that APM Terminals will provide Tk 250 crore (Tk 2.5 billion) as signing money to the Chittagong Port Authority under the agreement.

"They are taking on the task of building the Laldia Container Terminal with us," Chowdhury explains.

"We are providing them with open land where they will construct the terminal and jetty, and later operate the entire facility. The ownership will remain entirely with the port authority. They are building the terminal on our land, and after 30 years, the concession can be extended depending on their performance against key performance indicators (KPIs). If not, the entire facility will be handed back to us."

The project is expected to bring in US$550 million in foreign direct investment, making it the largest-ever European equity investment in Bangladesh. Officials say the entry of a global operator such as APM Terminals demonstrates growing investor confidence in Bangladesh's logistics sector and could attract additional foreign financing in manufacturing and related services.

"This partnership brings world-class port management to Bangladesh," says a senior CPA official involved with the negotiations. "It will make our trade gateway more efficient, competitive, and environmentally sustainable."

Once operational-expected by 2030-the terminal will add more than 800,000 twenty-foot equivalent units (TEUs) in annual handling capacity-a 44-percent increase over Chattogram's current throughput.

The expansion is expected to significantly reduce vessel-waiting times and freight bottlenecks that have long constrained export competitiveness, particularly in the ready-made garment sector, he adds.

"The new green port will accommodate container vessels twice the size of those currently handled in Bangladesh, enabling direct shipping connectivity with major global routes to Europe, the Middle East, and East Asia."

For the first time, the facility will operate 24 hours a day, with night navigation capabilities for larger ships.

Developed under a revenue-sharing concession model, the LCT project will provide the CPA with income in US dollar per TEU handled, ensuring a steady stream of foreign currency for Bangladesh. Additional revenues are expected from taxes, port dues, and ancillary marine services.

APM Terminals, a wholly owned Maersk subsidiary, operates over 60 terminals in 33 countries, including facilities in ten of the World Bank's top 20 best-performing ports. The company's presence brings extensive global experience and proven operational standards.

The Laldia terminal will deploy state-of-the-art digital-management systems, automated handling equipment, and advanced security protocols.

APM Terminals has also committed to applying globally benchmarked health, safety, and environmental standards, significantly improving workplace safety and sustainability.

According to officials, the project is expected to generate 500-700 direct jobs and thousands more indirect opportunities in trucking, freight forwarding, and warehousing.

Also, it will stimulate investment in inland-container depots, cold-storage chains, and industrial zones along the Dhaka-Chattogram corridor.

Through its in-house training programmes, the firm plans to upskill Bangladeshi engineers, technicians, and managers, enhancing local expertise in port operations, equipment maintenance, and digital logistics systems. These initiatives will help build a more competitive and globally employable maritime workforce.

Economists see the terminal as a cornerstone for Bangladesh's post-LDC transformation, reducing logistics costs and improving export reliability. Faster vessel turnaround and lower freight rates are expected to benefit time-sensitive industries, including garments, agro-processing, and light engineering, thus helping Bangladeshi exporters meet tight delivery schedules and strengthen their position in global markets.

mirmostafiz@yahoo.com