Bangladesh is set to break new ground in port infrastructure on Sunday as construction begins on Chittagong Port’s first container terminal to be developed entirely with foreign investment, bringing more than $550 million into a project designed to substantially expand the country’s maritime trade capacity.
Danish port operator APM Terminals, part of the Maersk Group, will develop and operate the Laldia Container Terminal under a long-term public-private partnership, with commercial operations targeted for 2030.
The terminal will add capacity to handle around 800,000 twenty-foot equivalent units (TEUs) of containers annually, equivalent to nearly a quarter of the 3.5 million TEUs handled by Chittagong Port in the 2025-26 fiscal year.
The foundation stone for the project is scheduled to be laid at 11am on Sunday at Laldia Char on the right bank of the Karnaphuli River, around nine kilometres downstream from the existing port facilities.
Finance and Planning Minister Amir Khasru Mahmud Chowdhury will attend as chief guest, while Shipping, Road Transport and Bridges and Railways Minister Sheikh Rabiul Alam will be present as special guest.
The project represents a significant shift in the development of Bangladesh’s principal seaport, bringing a major international terminal operator directly into greenfield port infrastructure at a time when growing trade is putting increasing pressure on existing capacity.
Chittagong Port Authority Secretary Syed Refayat Hamim told Bangla Tribune that preparations had been completed for Sunday’s foundation-laying ceremony.
“The foundation stone for the construction of the new Laldia Container Terminal will be inaugurated at 11am on Sunday. This is the fifth container terminal of Chittagong Port,” he said.
$550m investment, 33-year deal
The Laldia terminal will be developed as a greenfield project under a Design, Build, Finance, Operate and Transfer (DBFOT) arrangement.
The agreement runs for 33 years, comprising three years for construction and 30 years of operation.
The operational term may be extended by another 15 years if APM Terminals fulfils the conditions stipulated in the contract.
According to project sources, the development covers 49.15 acres, although another figure of 59.15 acres appears in project information provided for the terminal and requires clarification.
Of the stated 49.15 acres, 32 acres in Block C will accommodate the main terminal, 7.15 acres in Block B will serve as a container yard, while around 10 acres in Block A will be used for truck parking and pre-gate facilities.
Plans include a continuous jetty of more than 600 metres capable of accommodating larger container vessels with drafts of up to 10.5 metres and capacities of around 6,000 TEUs.
The terminal is also designed to have seven ship-to-shore cranes, 32 electrically powered rubber-tyred gantry cranes and 41 electric terminal tractors.
The equipment and design are intended to increase efficiency while giving the terminal a lower-emission operating profile.
Port to earn per container
Under the financial arrangement, Chittagong Port Authority has received a one-time payment of $25 million from APM Terminals, according to project sources.
The authority is also expected to receive an annual concession fee of $250,000 as well as $23 for every container handled at the terminal.
The project traces its origins to a memorandum of understanding signed between Bangladesh and Denmark on June 30, 2021, covering environmentally friendly and sustainable infrastructure development through PPPs.
APM Terminals formally expressed interest in developing the Laldia facility in May 2023.
The Cabinet Committee on Economic Affairs gave in-principle approval in November that year, and the project was subsequently placed before the first Bangladesh-Denmark PPP Joint Platform meeting in January 2024.
Fifth container terminal
Laldia will become Chittagong Port’s fifth container terminal and is expected to provide additional capacity alongside the New Mooring Container Terminal (NCT), Chittagong Container Terminal (CCT), General Cargo Berth (GCB) and Patenga Container Terminal (PCT).
NCT, currently the port’s largest container terminal, has a designed annual capacity of around one million TEUs but is handling about 1.2 million TEUs. It is operated by the Navy-run Chittagong Dry Dock Limited.
PCT, inaugurated in November 2023, is operated by Saudi Arabia’s Red Sea Gateway Terminal.
Chittagong Chamber of Commerce and Industry President Mohammad Amirul Haque welcomed the latest foreign investment, saying the entry of an internationally established port operator into a greenfield project was significant for Bangladesh.
“It is a matter of pride for us that one of the best companies in the world is doing a greenfield project in Bangladesh,” he said.
“We also welcome foreign direct investment in Bangladesh.”