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Construction of the country’s first greenfield container terminal officially began at Laldia Char in Chattogram on Sunday.
Speaking at the foundation-laying ceremony, Shipping Minister Sheikh Rabiul Alam said the project marks a “new chapter” as Bangladesh enters a new era of investment, technology and terminal handling.
The terminal, being developed under a public-private partnership (PPP), will have the capacity to handle 800,000 TEUs of containers annually, along with modern facilities, he said.
“This marks the beginning of establishing international confidence in investment in Bangladesh,” the minister said.
Referring to the first Chattogram Port terminal to be developed with foreign investment, he said the project would mark the beginning of a drive to modernise the port.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury said the port is at the heart of Chattogram’s economy and expressed hope that the terminal would be completed within the stipulated timeframe.
He said the government aims to transform Chattogram into a logistics hub not only for Bangladesh but also for the wider region.
“We have a target of a $1 trillion economy by 2034. It may be somewhat ambitious, but we must be ambitious in the long term,” he said.
The terminal is being developed by APM Terminals, a company of Denmark-based Maersk Group, under an agreement signed with the Chattogram Port Authority on November 17 during the interim government’s tenure.
Under the concession agreement, construction is expected to take three years. APM Terminals will operate the facility for 30 years after its completion, with the possibility of extending the concession by another 15 years if the terms are fulfilled.
Danish Ambassador to Bangladesh Christian Briks Møller said Denmark is a close economic partner of Bangladesh and is always keen to work with the country on its development.
“Through the Laldia terminal, Bangladesh is sending a message that it is open to investment and trade,” he said.
APM Terminals CEO Ramesh David described the project as one of several firsts for Bangladesh, calling it the country’s first PPP, first direct foreign investment and first greenfield terminal.
Chattogram Port Chairman Rear Admiral SM Moniruzzaman said around 95% of Bangladesh’s imports and exports pass through Chattogram Port and stressed the need to adopt modern and green technologies.
He said APM Terminals has extensive international experience in port management and that the benefits of the project would become visible within three years. The terminal is also expected to operate 24/7.
Once completed, the terminal will be able to accommodate vessels with a draft of 10.5 metres and a capacity of up to 6,000 TEUs.
Businesspeople and port users have welcomed the project, saying it will increase port capacity, enable faster and cheaper cargo handling and facilitate the movement of larger container vessels.
However, groups campaigning to protect the port have expressed concerns that handing over more terminals to foreign operators could reduce government control over port management in the future. They have called for such agreements to be reviewed in the public interest, warning of potential long-term economic and strategic consequences.
What the New Terminal Will Look Like
Laldia Char is located about 9 kilometres downstream from Chattogram Port’s existing terminals, near the mouth of the Karnaphuli River and before the Guptabank bend.
The terminal will be closer to the sea than the port’s other container terminals, allowing larger vessels to reach it without navigating the river bend.
The main terminal area will cover 32 acres, while the container yard will occupy 7.15 acres and the truck parking and pre-gate facilities another 10 acres. The entire facility will cover 49.15 acres.
Unlike previous terminals, which were constructed by the port authority before being handed over to local or foreign operators, the Laldia project is being developed as a greenfield facility. The foreign investor will build the infrastructure from vacant land through to the completed terminal.
The terminal will feature a 616-metre-long jetty and is expected to handle 800,000 TEUs annually, according to the Chattogram Port Authority.
The authority said the project represents one of the largest PPP investments in Bangladesh, with total investment exceeding $550 million.
A memorandum of understanding on environmentally friendly and sustainable infrastructure development under the PPP model was signed between the governments of Bangladesh and Denmark in June 2001.
APM Terminals submitted its proposal to develop the Laldia terminal on May 21, 2023. The Economic Affairs Cabinet Committee gave in-principle approval for implementing the project under the PPP model on November 29 that year.
The project was subsequently presented at the Bangladesh-Denmark PPP Joint Platform meeting on January 3, 2024, after which the Danish government accepted APM Terminals’ proposal for implementation.
Settlers at Laldia Char were evicted during the previous Awami League government. The interim government later advanced the project, with the agreement signed toward the end of its tenure.
The construction of the country’s first fully foreign-invested greenfield container terminal is now officially underway.