Bangladesh and Denmark are set to start negotiations soon to construct the Laldia Container Terminal at Chattogram port under a public-private partnership (PPP) model.
This follows a successful first platform meeting between the two governments.
Officials confirmed that the Chittagong Port Authority and APM Terminals, a subsidiary of the Maersk Group, will soon begin talks for a transformative PPP based on a memorandum of understanding signed between the two nations.
The Bangladesh-Denmark G2G MoU was signed in 2017, following the policy framework for PPP projects through G2G partnerships.
According to the Bangladeshi Public Private Partnership (PPP) Authority, the project's initial commitment was discussed during a meeting between Prime Minister Sheikh Hasina and Maersk Group Chairman Robert Uggla on August 27, 2023.
Officials also said that during the first platform meeting, both the Chittagong Port Authority and the Pyra Port Authority presented some potential projects.
However, APM Terminals expressed interest in the Laldia project after its official presentation.
For Denmark's interest in the project, they credited the successful completion of a detailed feasibility study conducted through a transaction advisory service recently.
This collaboration between the Chittagong Port Authority and APM Terminals is expected to bring about transformative changes, setting new benchmarks for efficiency, sustainability and technological innovation in the country's maritime sector.
With a quay length of 450 metres, a berth depth of 10.5 metres and a vessel draft of 9.5 metres, the proposed Laldia Container Terminal is designed to address the increasing demand for efficient and sustainable container handling services.
The estimated investment of $300-400 million, coupled with foreign direct investment (FDI), positions this project as a key contributor to Bangladesh's economic growth.
The annual concession fee and revenue sharing per TEU (twenty-foot equivalent unit) promise sustained revenue streams for the Chittagong Port Authority.
The project is expected to generate around 1,000 jobs, facilitate technology transfer initiatives, introduce smart port practices, control net carbon emissions, reduce turnaround times for ships, achieve economies of scale and foster healthy port competition.
The PPP Authority organised the first joint platform meeting in Dhaka, where its chairman and Principal Secretary to the Prime Minister Tofazzel Hossain Miah was present as the chief guest.
Secretary and CEO of the PPP Authority Mohammad Mushfiqur Rahman and Denmark's Ambassador Christian Brix Møller led their respective delegations at the platform meeting.
Senior officials from the Bangladeshi Ministry of Shipping, the Chittagong Port Authority and the Pyra Port Authority were also present.
Denmark's State Secretary for Trade and Investment at the Ministry of Foreign Affairs Lina Gandløse Hansen joined the meeting virtually.
Representatives from Denmark and senior officials from the Bangladeshi Prime Minister's office and PPP Authority also participated in the meeting.
smunima@yahoo.com