A Saudi company will operate Bangladesh's maiden private seaport terminal at Patenga seashore under a deal government high-ups hail as harbinger of the oil-rich Arab country's bigger business footprints ahead.
"It is 'beacon of hope' for the country's economy," Prime Minister Sheikh Hasina said on an upbeat note as she witnessed the deal-signing ceremony at the PM office in Dhaka on Wednesday.
Chittagong Port Authority (CPA) signed the US$ 170-million contract under public-private partnership (PPP) paradigm with Red Sea Gateway Terminal International (RSGTI) of Saudi Arabia, nearly one and a half years after completion of the port infrastructures.
The container terminal of Chattogram Port at Patenga is expected to go into full operation within a year as gamut over its management ends with the signing of the 22-year contract with the world-famous Saudi firm.
Under the concessionaire agreement under government-to-government modality, RSGTI will equip the PCT with modern equipment and build necessary superstructures in next one year to operate and maintain it in the concessionaire period.
Terming the deal a landmark one, the Prime Minister also said the Patenga Container Terminal with shipping facility for deeper-draft vessels would work as a gateway in global trade and open up new avenues for trade expansion of the country.
The PCT project exemplifies a "strong and sustainable partnership" between Bangladesh and the Gulf kingdom, and the agreement has set an example of the two countries' joint vision for economic cooperation and prosperity, she said.
Bilateral relations, especially trade relations, will be further strengthened through it, the prime minister said, adding that the "self-reliant" terminal will also enhance the capacity of the seaport, and bolster regional trade.
CPA Chairman Mohammad Sohail and Chief Executive Officer of RSGTI Jens Floe signed the agreement on behalf of respective side.
Investment Minister of Saudi Arabia Khalid A Al Falah, Adviser to the PM on Private Industry and Investment Salman Fazlur Rahman, State Minister for Shipping Khaled Mahmud Chowdhury and Saudi Ambassador in Bangladesh Essa bin Yousef Al Duhailan were among others present on the occasion.
Representatives of the International Finance Corporation and the CPA also attended the function.
Officials said the PCT operation, which will be carried out as the first PPP under port sector, will increase efficiency and growth of the port services, which is vital for bolstering international trade and economic activities.
The CPA took the project in 2017 as a standalone terminal located nine nautical miles away from the shore of the Bay of Bengal at Patenga and completed it in July 2022.
It later tried to operate the port on experimental basis on own arrangement through berthing a ship with rice from Myanmar on November 19 last year.
CPA Secretary Golam Farukh told the FE over phone that the port authority since then had used the terminal on a limited scale as the PCT has yet to be furnished with necessary superstructures and equipment.
Asked when the PCT will start full operation, he said, "The RSGTI will be given time for few months to submit the financial closure and bring international- standard equipment as well as necessary manpower."
Claimed as a green-field project under government fund, PCT is said to be able to handle 500,000TEU cargos annually, handling three vessels simultaneously in its 600-metre quay.
Ships of over 9.5-metre draft can take berth at the PCT jetty. It has also a 16-acre space on the backyard of the jetty with capacity of storing 4,500 TEUs of containers.
Since the project was included in the PPP, the International Finance Corporation (IFC) has been providing transaction advisory services to CPA and PPP Authority for this project. The World Bank's private-sector financing wing has appointed PwC as the E&S consultant to conduct an E&S scoping study for the PCT project concerning national E&S regulations.
Earlier, the Ministry of Shipping had signed a memorandum of understanding in July 2019 with RSGT to work in the country's port development. Another MoU was also signed between PPP Authority and the Ministry of Investment of Saudi Arabia on October 28, 2021.
As a follow-up to the MoU, the first joint-platform meeting was held on February 23, 2022 in the process of deal-making.
smunima@yahoo.com