May 26, 2024

BSS, DHAKA:In a groundbreaking development, upon completion of detailed feasibility through transaction advisory services, the Chittagong Port Authority (CPA) and the APM Terminals, a subsidiary of the Maersk Group, are set to negotiate a transformative Public-Private Partnership (PPP) for the development of the Laldia Container Terminal in Bangladesh.

This historic collaboration is based on the signed Government-to-Government (G2G) Memorandum of Understanding (MoU) between Bangladesh and Denmark following the “Policy for Implementing PPP Projects through Government to Government (G2G) Partnership, 2017”.

The announcement was made today during the first G2G PPP Platform meeting between Bangladesh and Denmark at Prime Minister’s Office (PMO) in the city, said a press release.

This meeting marks a significant milestone in the strategic partnership between the two nations, leveraging the strengths of both public and private sectors for the development of crucial infrastructure.

Md Tofazzel Hossain Miah, Principal Secretary to the Prime Minister and the Chairman of the PPP Authority, joined the meeting as the chief guest.

In his opening speech, the Principal Secretary to the Prime Minister expressed enthusiasm about the collaboration, citing the shared vision for a progressive and resilient port infrastructure.

He highlighted the significance of this G2G PPP model, emphasizing the critical role it plays in realizing Bangladesh’s Vision 2041 and creating a Smart Bangladesh.

The proposed Laldia Container Terminal, with a quay length of 450 meters, a berth depth of 10.5 meters, and a vessel draft of 9.5 meters, is set to address the increasing demand for efficient and sustainable container handling services. The estimated investment of US$ 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 TEU promise sustained revenue streams for the CPA.

The expected benefits of the project include the generation of approximately 1000 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.

In a meeting held between the Prime Minister Sheikh Hasina, and the Chairman of the Maersk Group Robert Uggla on 27 August 2023, the commitment to the project was initially discussed.

This collaboration between the Chittagong Port Authority and APM Terminals is poised to bring about transformative changes, setting new benchmarks for efficiency, sustainability, and technological innovation.

The Laldia Container Terminal project was officially placed in the first G2G PPP Platform meeting, where APM Terminals accepted the project under the G2G PPP model. This monumental step will pave the way for a collaborative journey towards realizing a more prosperous and sustainable future for Bangladesh’s port operations.

Dr. Md. Mushfiqur Rahman, Secretary, and CEO of the PPP Authority, Prime Minister’s Office, led the delegation of the Government of the People’s Republic of Bangladesh. The delegation from Denmark was led by Christian Brix Moller, Ambassador, Embassy of Denmark, Bangladesh.

From Bangladesh side, the meeting was attended by Md Mostafa Kamal, Senior Secretary of the Ministry of Shipping and Chairmen of both the Chittagong Port Authority and the Pyra Port Authority.

From Denmark side, Lina Gandlose Hansen, State Secretary for Trade and Investment at the Ministry of Foreign Affairs of the Kingdom of Denmark, participated virtually. Representatives from Denmark and senior officials from the Prime Minister’s office and PPP Authority also attended.

During the platform meeting, the Chittagong Port Authority and the Pyra Port Authority presented some potential projects.

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