CTG Port Authority entering into concession agreement for 30 years with APMT
CHITTAGONG : The Chittagong Port Authority (CPA) is entering into a concession agreement for 30 years of operations plus an extension tied to KPIs with APM Terminals B.V., a wholly owned subsidiary of A.P. Møller – Maersk one of the world’s leading integrated logistics companies, majority-controlled by the A.P. Møller Foundation of Denmark, to design, finance, build and operate the Laldia Container Terminal (LCT) under a Public-Private Partnership (PPP) framework.
The ownership of the port will continue with Chittagong Port Authority (CPA), while APM Terminals & a local JV partner will only be responsible for construction, operations, and management. This will reduce the capital expenditure burden for Bangladesh government.
APM Terminals B.V. is wholly owned by A.P. Moller Maersk, headquartered in Denmark, the #1 country globally for anticorruption. It 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). With extensive global experience across the world including East and South Asia (example: China, Singapore, Sri Lanka, Vietnam, and Malaysia), 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. Developed under a revenue-sharing concession model, the project will generate a stable foreign-currency income stream for Bangladesh while minimising 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.
Key benefits:
Foreign direct investment (FDI): Under the Concession agreement, 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 greenfield port terminal in Ladia, Chittagong. 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.
New container-handling capacity: The terminal is expected to add over 800,000+ TEUs per year (+44% vs current capacity). The terminal is expected to be commissioned by 2030. 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.
Enhanced revenues for CPA & GOB: 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.
Large-scale job creation: Construction and operations from this Laldia Container Terminal (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
Global operating and safety standards: APM Terminals will apply internationally benchmarked health, safety, security, environment protocols, lowering accident rates and improving workforce wellbeing.
Latest technology transfer: Deployment of APM Terminals’ advanced technology in the construction of the port will modernise 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.
Lower Trade Costs & Faster Delivery for businesses: 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.
Workforce upskilling and knowledge transfer: APM Terminals’ in-house training programmes 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).
Catalyst for hinterland development: 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.
Greener, more climate-resilient port infrastructure: 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, 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.
Demonstration effect for Bangladesh’s broader PPP agenda: 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. 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.