The long-neglected Pangaon Inland Container Terminal (ICT), located on the banks of the Buriganga in Keraniganj, may soon witness a turnaround. Global shipping giant Mediterranean Shipping Company (MSC), through its logistics subsidiary Medlog, has expressed keen interest in operating the terminal under the Chittagong Port Authority (CPA).
If finalised, the move is expected to bring around $40 million in foreign investment, reduce the cost of transporting goods from Chattogram to Dhaka by 30–40%, and significantly ease pressure on the congested Dhaka–Chattogram Highway.
The CPA is preparing to hand over operational responsibilities of Pangaon ICT to a new operator for a 22-year term, with the process expected to be finalized by November this year.
Officials said that the tender process has already advanced, with seven companies initially participating. After a technical evaluation, three companies made the shortlist—Medlog along with local firms HR Line and Saif Powertech.
Approval from the Ministry of Shipping for the Request for Proposal (RFP) is awaited, after which the CPA will issue the RFP to select the final operator.
Currently, the CPA itself is managing the terminal on an interim basis following the expiration of Saif Powertech’s contract earlier this year.
Why Pangaon matters
CPA officials highlight that nearly 80% of containerized imports arriving at Chattogram Port are destined for Dhaka and surrounding industrial hubs.
However, about 95% of these goods are transported by road, creating unsustainable pressure on the Dhaka–Chattogram Highway while inflating logistics costs.
“Appointing a new international operator at Pangaon ICT will change the game. MSC has shown strong interest in bringing customized barges capable of carrying 350 TEUs at a time. Their global logistics chain and dedicated shipping line will ensure regular container movement from Chattogram to Dhaka via river,” CPA Chairman Rear Admiral SM Moniruzzaman told TIMES of Bangladesh.
He added that shifting Dhaka-bound cargo to waterways would not only cut transport costs but also reduce road accidents, traffic congestion, and environmental pollution.
MSC plans dedicated barges, lower freight costs
According to MSC officials in Bangladesh, Medlog is ready to deploy a fleet of dedicated barges and feeder vessels on the Chattogram–Pangaon route once the deal is finalized. They estimate that using the river route will save importers 30 to 40% compared to road freight.
Currently, transporting a 20-foot container by road to Dhaka costs between Tk 36,000 and Tk 40,000 in two covered vans. In contrast, the river route would cost between Tk 20,000 and Tk 24,000. For a 40-foot container, the cost of transport by road is much higher than the river route’s freight.
An MSC Bangladesh senior official told Times of Bangladesh, “The business case is strong. With rising fuel prices and road congestion, waterway transport is a sustainable solution. If Medlog is appointed, we will ensure reliable and cost-effective cargo movement.”
A significant portion of the road cargo traffic would switch to the inland waterway, he expected.
Business community welcomes the move
Bangladesh’s apparel exporters, among the largest users of Chattogram Port, have welcomed the initiative.
“The Pangaon terminal has remained underutilized due to policy bottlenecks and lack of efficient management. If MSC takes over, it can transform the system,” Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem told Times of Bangladesh.
However, customs and port regulations must also be streamlined to make the terminal business-friendly, he added.
Local operators also see potential if conditions improve.
Zahiruddin Jewel, Managing Director of Sea Glory Shipping, which previously operated eight vessels on the route, said, “We stopped due to dwindling cargo volumes. But with a new operator and smoother customs clearance, businessmen will again find river transport attractive.”
Meanwhile, Saif Powertech Managing Director Tarafdar Ruhul Amin, whose company operated Pangaon ICT since its inauguration in 2013, said, “We too have bid in the tender. To truly popularize Pangaon, Dhaka-bound import cargo must be ensured at the terminal, and customs processes must be simplified.”
A troubled past for Pangaon
The Pangaon ICT, inaugurated in 2013, was designed to revolutionize containerized transport from Chattogram to Dhaka by river.
Built on 48.24 acres of land leased from BIWTA, it was planned to handle 116,000 TEUs annually. However, official data reveals a drastic decline in container handling at Pangaon ICT, from 35,771 TEUs in FY 2022–23 to just 10,240 TEUs in FY 2023–24.
To revive the terminal, the CPA and BIWTA signed a Memorandum of Understanding (MoU) on 10th September 2025.
Under the MoU, the port authority will manage the terminal and adjacent land on lease.
Additionally, a free trade zone is planned at Pangaon, which is expected to boost trade activities in the Dhaka region.
