The Chattogram Port Authority (CPA) signed historical agreements on Monday with global shipping giants APM Terminals and Medlog in a move to boost container handling efficiency and expand operational capacity at the country’s largest seaport.
The signing ceremony took place at Dhaka’s Hotel Intercontinental, marking one of the most significant foreign collaborations in the port’s recent history.
Under the agreement, APM Terminals will invest $550 million (about Tk 6,700 crore) to build and operate a state-of-the-art container terminal at Laldia Char in Patenga.
Meanwhile, Medlog—an affiliate of Mediterranean Shipping Company (MSC)—has been awarded the operational responsibility for the existing Pangaon Inland Container Terminal (ICT) in Keraniganj, Dhaka.
Business leaders directly involved in import–export activities have welcomed the move, describing it as a timely step to address the port’s growing inefficiency.
Many noted that with current capacity limitations, Chattogram Port is struggling to keep pace with the rising volume of trade. Compared to global standards, the port’s service quality has been declining, causing delays and increased costs for businesses.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem told The Times of Bangladesh the Pangaon terminal had never been able to operate at full commercial potential.
Despite several discussions and decisions, many initiatives remained unimplemented. He expressed hope that Medlog’s entry would finally activate the terminal effectively.
“Dhaka-based businesses will now be able to bring imported goods by river instead of road,” Hatem said. “This can significantly reduce transportation costs if managed efficiently.”
Hatem also welcomed the introduction of APM Terminals at Laldia Char. With the port struggling to manage import and export volume, he said the involvement of a world-class operator could substantially improve service quality. “Faster unloading of import cargo will reduce business costs. We expect maximum service from this new terminal.”
Several other traders echoed similar sentiments, telling The Times of Bangladesh that the identity of the operator—foreign or local—is irrelevant to them. What matters most is speed, efficiency and lower cost of service.
According to them, more terminals and more operators will naturally bring competition and diversification, ultimately improving overall port performance.
MDM Mohiuddin Chowdhury, CEO of Chattogram-based Clifton Group and a BGMEA Director, also emphasized the need for improved services. “For timely shipment of export cargo and faster release of import goods, port efficiency must increase,” he said. “It doesn’t matter who operates the Laldia terminal; efficiency should be the primary goal.”
Despite widespread support from the business community, several political parties and labour groups have strongly opposed the agreements. Organizations such as the Bangladesh Sramik Federation, Sramik Dal, left political parties and the Sramik Karmachari Oikya Parishad (SKOP) have long criticized foreign involvement in port operations.
They argue that handing over key port terminals to foreign companies is part of a “conspiracy” that undermines national interest.
Tapan Dutta, President of the Trade Union Center (TUC) Chattogram District Committee and a member of the Labour Reform Commission, said they have been protesting for years against what they call the “foreign takeover” of national assets.
“The government has ignored the opinions of workers, the public and businesspeople,” he said. “Today (17 November) it has signed agreements with foreign companies for both Laldia and Pangaon terminals. They are also planning to hand over the NCT to DP World. We strongly protest this.”
He added that further protest programmes would be announced at the 22 November convention organized by SKOP.
Medlog Bangladesh Managing Director ATM Anisul Millat said the company plans to invest a total of $40 million for the expansion of Pangaon ICT, construction of warehouses and purchase of barges.
A total of 25 barges will be gradually added to transport containers between Chittagong Port and Pangaon. Initially, locally acquired barges will be used.
After completing formalities following the agreement, Medlog expects to begin operations within a month. “We will ensure timely delivery of goods to customers,” Millat said.
According to CPA, the upcoming 49-acre Laldia Char Terminal on the Karnaphuli River will feature a 600-metre jetty capable of handling three medium-sized vessels or two large vessels at the same time. The terminal will also accommodate next-generation container ships, which are much larger than those currently served by the port.
If construction begins in early 2026, operations are expected to commence between late 2029 and early 2030. CPA officials estimate that the port will earn $21 per TEU from terminal operations.
