Laldia terminal construction begins

APM Terminals, a subsidiary of Danish shipping group AP Møller-Maersk, yesterday began construction of Laldia Container Terminal in Chattogram, a project expected to increase the capacity of Chattogram port and improve its efficiency of cargo handling.

The $550 million terminal, being built at Laldia Char near the mouth of the Karnaphuli river, is expected to open in 2030 and handle one million twenty-foot equivalent units (TEUs) a year.

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That would add nearly one-third to the country’s current container-handling capacity.

“This would open a new horizon in logistics and trade facilities and support the country’s development,” Finance and Planning Minister Amir Khosru Mahmud Chowdhury said at the inauguration of the construction.

The minister said the project would be a significant milestone in the country’s journey towards a trillion-dollar economy by 2034.

Khosru said the government is also taking steps to develop other modern terminals, export processing zones and logistics facilities, including free trade zones, as part of efforts to turn Chattogram into a regional logistics hub.

Under a public-private partnership (PPP), APM Terminals will develop and operate the terminal under a design, build, finance, operate and transfer model.

It will run the facility for 30 years, with an option to extend the concession by a further 15 years.

The terminal will occupy 49.15 acres along the Karnaphuli river, APM Terminals Chief Executive Officer Romesh David said.

It will have a 616-metre jetty, seven ship-to-shore cranes, 32 electric rubber-tyred gantry cranes and 41 electric terminal tractors, he said.

Romesh said the terminal would be a carbon-neutral, zero-emission port. It would also employ female crane operators for the first time in Bangladesh. “Young women from the Chittagong area will operate huge cranes remotely to move containers while sitting in an air-conditioned office.”

The project has been in the pipeline for several years. Bangladesh and Denmark signed a memorandum of understanding in June 2021 to facilitate co-operation on the project under the PPP framework.

The Chittagong Port Authority (CPA) and APM Terminals BV signed the final agreement on November 17 last year, paving the way for the terminal to be developed with 100 percent foreign investment.

The new facility will be able to handle vessels carrying up to 6,000 TEUs, roughly twice the capacity of ships that currently berth directly at Chattogram port, CPA Chairman Rear Admiral SM Moniruzzaman said.

He said the port’s existing capacity had already been exceeded. Container handling in Bangladesh roughly doubles every 10 years, underscoring the need for terminals closer to the sea.

The Laldia terminal will operate around the clock, making it the first terminal of its kind at the port, the CPA chairman said. It will be able to handle vessels up to 230 metres long with a draft of 10.5 metres.

Electric equipment and modern cargo-handling technology will support greener port operations. The ability to handle larger vessels directly is also expected to reduce waiting times for ships and speed up cargo movement at Bangladesh’s main seaport, he said.

Road Transport and Bridges, Railways, and Shipping Minister Sheikh Rabiul Alam said the project would usher Bangladesh into a new era of investment, technology and modern terminal operations.

The terminal would also help Bangladesh develop expertise in modern container-terminal operations and advanced port technologies, Rabiul said.

Local company QNS Container Services Ltd is the local partner of APM Terminals in Laldia project.

Jack Craig, global head (Business Administration) of APM Terminals BV, Danish Ambassador to Bangladesh Christian Brix Moller and Shipping Secretary Zakaria also spoke at the event.