CPA to ink 30-yr PPP deal for Laldia Container Terminal with APM Terminals

BSS
Published On: 12 Nov 2025, 17:59 Updated On:12 Nov 2025, 18:47
Chowdhury Ashik Mahmud Bin Harun spoke today at a press briefing held at the Foreign Service Academy in Dhaka. Photo : PID

DHAKA, Nov 12, 2025 (BSS) – The Chittagong Port Authority (CPA) is set to sign a concession agreement for 30 years of operations plus an extension tied to KPIs with APM Terminals BV, a wholly owned subsidiary of Maersk A/S (Maersk Group)-one of the world’s leading integrated logistics companies, majority-controlled by the AP Møller Foundation of Denmark.

The authority will ink the agreement to design, finance, build and operate the Laldia Container Terminal (LCT) under a Public-Private Partnership (PPP) framework.

Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), Maheshkhali Integrated Development Authority (MIDA), and the Chief Executive Officer of the Public-Private Partnership Authority (PPPA), today made the announcement at a press briefing held at the Foreign Service Academy in the city. 

In his speech, Ashik Chowdhury said following a proposal from the Ministry of Shipping, the Advisers Council Committee on Economic Affairs (CCEA) meeting at the Cabinet Division gave approval in principle to the concession agreement between CPA and Denmark’s APM Terminals BV for implementing the “Establishment and Operation of Laldia Container Terminal at Chittagong Port through the PPP model.” 

“This groundbreaking move is anticipated to bring about a revolutionary change in Bangladesh’s port sector. This will reduce the capital expenditure burden for Bangladesh government,” he noted.

Regarding the agreement, the BIDA chief said, the ownership of the port will continue with CPA, while APM Terminals and a local JV partner will only be responsible for construction, operations, and management. 

“APM Terminals BV is one of the world’s leading terminal operators (more than 60 terminals in 33 countries), operating terminals in 10 of the world’s ‘Top 20’ best-performing container ports (World Bank, 2024),” he added. 

With extensive global experience across the world including East and South Asia (example: China, Singapore, Sri Lanka, Vietnam, and Malaysia), he explained that the Laldia project will introduce world class technology and operational excellence to Bangladesh, helping make the country’s logistics sector future-ready in the post-LDC era.

The newest green port will accommodate large container vessels (2x vs current size), reduce per-unit freight cost and enable direct shipping connectivity worldwide, he added. 

He said, “Developed under a revenue-sharing concession model, the project will generate a stable foreign-currency income stream for Bangladesh while minimizing public capital expenditure. Along with that 24/7 port operations with night navigation capabilities for ships with permissible length and draught will be enabled for the first time in Bangladesh.”

Under the concession agreement, the BIDA chief stated, APM Terminals B.V. is expected to bring in Foreign Direct Investments (FDI)’s for an expected amount of about US $550 million via construction of a green field port terminal in Ladia, Chattogram. This will be the single largest European equity investment in Bangladesh to date.

A marquee global investor such as APM Terminals entering the port sector also signals confidence to other international financers, crowding-in additional FDI to logistics, manufacturing, and ancillary services, he added.

He said the terminal is expected to add over 800,000+ TEUs per year (+44% vs current capacity). 

Ashik Chowdhury, however, said that the terminal is expected to be commissioned by 2030 and this will help relieve the current level of congestion at existing container terminals of Chattogram and providing headroom for Bangladesh’s fast-growing trade volumes.

“Higher throughput and efficiency gains from this LCT project will boost CPA’s annual revenues by receiving a revenue in USD/TEU for every container handled by APMT. In addition, there will be contribution from tax payments by APMT and additional revenue from ancillary marine services,” he added.

He informed that construction and operations from this LCT project are expected to generate over 500-700 direct and formal jobs plus several thousand indirect jobs in construction, trucking, warehousing, freight forwarding, and local SMEs.

“APM Terminals will apply internationally benchmarked health, safety, security, environment protocols, lowering accident rates and improving workforce wellbeing,” he added.

He said that deployment of APM Terminals’ advanced technology in the construction of the port will modernize Bangladesh’s port infrastructure and build local technical expertise. The LCT terminal is expected to be a state-of-the-art modern operational terminal at the end of its construction period, he added. 

“Global port operators such as APMT bring efficiency in port operations through - faster vessel turnaround, improved container dwell times via their operations which will result in a cut in the logistics costs for exporters and importers. Lower cost of shipping through reduced waiting time will help Bangladeshi exporters—especially in time-sensitive sectors such as ready-made garments, agro-processing, and light engineering—meet just-in-time delivery requirements, retain buyers, and compete more effectively in regional and global markets,” he mentioned.

He said APM Terminals’ in-house training programs—covering equipment maintenance, digital terminal-operating systems, and international climate and Environmental standards will upskill Bangladeshi engineers, technicians, and managers. The creation of a locally trained talent pool raises productivity across the broader logistics sector and improves employability for Bangladeshi seafarers and port professionals abroad. 

“APM Terminals is expected to deploy experienced personnel from other terminals to aid technology and process transfer (e.g.- Integration of LEAN methodology and FLOW operational process framework),” he added.

He said that throughput of over 800,000+ TEUs per annum will encourage private investment in inland container depots, cold chains, and industrial parks along Dhaka-Chattogram and other corridors—spreading economic activity beyond port cities. The LCT project is expected to contribute towards the same.

Regarding greener, more climate-resilient port infrastructure, Ashik Chowdhury said the project will embed energy-efficient equipment and adopt other global climate practices, cutting carbon emissions and enhancing resilience to issues related to climate change. 

By aligning with global sustainability standards, he said, the terminal supports Bangladesh’s Nationally Determined Contributions (NDC) under the Paris Agreement and positions the country to attract climate-smart investment in other infrastructure sectors.

Responding to a question on demonstration effect for Bangladesh’s broader PPP agenda, he mentioned that a successful long-term concession with a global operator such as APM Terminal signals that Bangladesh can structure, tender, and oversee complex public-private partnerships in line with international best practice. 

The BIDA chief concluded his speech saying that this track record is expected to lower perceived risk, broaden the pool of prospective investors, and catalyze additional PPPs in energy, transport, and social infrastructure—helping close Bangladesh’s overall infrastructure financing gap.

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