Govt to sign deal with APM Terminals to develop, operate Laldia for 30 years
The government is set to sign a concession agreement next week with APM Terminals BV, a Dutch subsidiary of the AP Moller-Maersk Group, to develop and operate the Laldia Container Terminal (LCT) at the Chattogram Port under a public-private partnership (PPP) model for 30 years.
The Cabinet Committee on Economic Affairs (CCEA) today approved the final proposal titled "Establishment and Operation of LCT at Chittagong Port through PPP model," paving the way for the formal signing of the deal between APM Terminals BV and the Chattogram Port Authority.
For all latest news, follow The Daily Star's Google News channel. Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (BIDA) and CEO of the PPP Authority, shared the details during a press briefing held at the Foreign Service Academy today.
"The APM Terminals will construct the LCT and operate it for 30 years as per the agreement to be signed," Chowdhury said.
It would take around three years to complete the construction and commissioning of the terminal, and the LCT is expected to start operations by 2029, he said.
There will be an option to extend the agreement and hand over the terminal to the government after the expiry of the tenure.
The CCEA document states that under the agreement, APM Terminals will develop the project on a Design, Build, Finance, Operate and Transfer (DBFOT) basis for a period of 48 years — comprising an initial 33-year concession period with a possible extension of 15 years.
He described the project as a transformational step toward strengthening Bangladesh's global logistics capacity and investment ecosystem.
The project will be undertaken on a public-private partnership basis, where APM Terminals, a subsidiary of the AP Moller-Maersk Group, will fully fund the project without any capital expenditure from the government of Bangladesh.
The contract signing is expected to take place next week, in the presence of senior officials from Denmark and APM's global headquarters.
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