Industry

$58 million Patenga Container Terminal approved in principle

Two days after the Chittagong Port Authority took possession of land in Laldiar Char to build it, the Cabinet Committee on Economic Affairs gave its approval in-principle to a project titled “Equip, Operate and Maintenance of Patenga Container Terminal” to be implemented under public-private partnership, or PPP, on Wednesday.

The Chittagong Port is the largest and busiest port in Bangladesh and plays an important role in the economic growth of the country.

The Patenga Container Terminal will increase the efficiency of the port and increase the logistical capacity of the port.

According to a pre-survey by the Ministry of Shipping, the potential investment for the project is $58 million and the annual operating cost would be $8 million.

Mohammed Mezbah Uddin Chowdhury, Secretary to the Ministry of Shipping, provided an outline of the project to the meeting and proposed to approve this project in PPP model.

Secretary and CEO of PPP Authority Sultana Afroz told the meeting, “The output of the container terminal would be enhanced with the help of modern technology, equipment and skilled manpower if the project is managed and maintained by a private partner through PPP. At the same time, it will be possible to increase the capacity of Chittagong Port Authority through knowledge sharing and technology transfer.”

She added that the implementation of the project through PPP modality would generate employment in that region and help to alleviate poverty and the project will contribute in economic development of the country.

She added that many similar PPP projects have been successfully implemented in various countries around the world including Southeast Asia such as China, India, Thailand, Indonesia, Sri Lanka and the Philippines.

If the project is structured in an attractive way for potential investors, there is a possibility of good competition, which will ensure value for money for the government of Bangladesh.

Many foreign investors interested in this project have already approached the PPP Authority.

At present, 7 PPP projects under the Ministry of Shipping are in various stages of implementation.

Source: United News of Bangladesh