Medlog to take over Pangaon Inland Container Terminal, paving way for full-scale operations

GENEVA : After years of limited activity and financial losses, the Pangaon Inland Container Terminal (ICT) in Keraniganj is set to become fully operational, with Medlog, the logistics arm of Switzerland-based Mediterranean Shipping Company (MSC), scheduled to assume operations in the first week of January, according to the Chattogram Port Authority.

Built in 2013 by the Chattogram Port Authority at a cost of Taka 154 crore, the terminal spans 64 acres and has an annual handling capacity of around 200,000 containers. Despite its strategic location serving Dhaka and surrounding industrial zones, the facility has remained underutilised, largely due to a shortage of container vessels for inland waterways and complexities in operator management.

At present, around 94% of containers linked to Chattogram Port are transported between Dhaka and Chattogram by road, with rail accounting for 4%. Inland waterways, despite their cost advantages, handle only about 1% of container traffic.

Under the new arrangement, Medlog will operate the terminal for a 22-year period. The long-term concession, approved by the Ministry of Shipping on 22nd August, mirrors the model adopted for the Patenga Container Terminal and is intended to encourage large-scale investment in infrastructure and equipment. Officials noted that shorter contracts of 12 to 15 years had previously failed to attract sufficient investor interest.

Medlog has committed to investing approximately Taka 490 crore in the terminal. Planned upgrades include the installation of two mobile harbour cranes, modern cargo-handling equipment, the deployment of specialised vessels and barges, construction of a 10,000 sq metre container freight station, and the establishment of a dedicated cotton warehouse. The operator also plans to introduce full automation across handling systems to speed up import and export processes.

The government has already received Taka 18 crore as signing fees and will earn an annual fixed fee of Taka 1.01 crore, in addition to Taka 250 per container handled.

Port users have expressed cautious optimism over the development. Representatives from trade bodies said expectations would hinge on lower shipping costs and an increase in vessel frequency to ensure the terminal’s viability. Export-oriented industry leaders also noted that effective operations would depend on buyer confidence and reliable cargo movement.

The Chattogram Port Authority stated that the extended contract period was designed to enable sustained investment and modernisation. Officials added that the terminal’s direct connectivity to Dhaka’s commercial centres would help reduce pressure on road transport and lower logistics costs through inland waterways. They also pointed to major ongoing investments at Chattogram Port, including projects backed by the World Bank and Maersk Line, as catalysts for broader improvements in port management.

Medlog Bangladesh Private Limited’s management said the company viewed the Pangaon Inland Container Terminal as a high-potential asset and intended to apply global operational expertise to drive efficiency, profitability and long-term growth, contributing meaningfully to Bangladesh’s logistics and trade ecosystem.