MoU with AD Ports today on Bay Terminal project

Chittagong Port Authority (CPA) will sign a memorandum of understanding (MoU) with AD Ports Group today regarding the latter's proposal to implement a portion of the Bay Terminal project.

The Abu Dhabi-based enabler of global trade, logistics and industry has offered to invest $1 billion to construct one of four terminals under the project, which is a mega initiative for the expansion of the Chattogram port.

The CPA has already accepted the proposal in principle after examining it.

CPA Chairman Rear Admiral Mohammad Sohail had said earlier this month that a primary agreement may be signed on the investment proposal when a delegation of AD Ports would visit in mid-May.

The three-member technical team of AD Ports completed their two-day visit to the Chattogram port and left yesterday morning, according to CPA Secretary Md Omar Faruk, who did not provide further details.

A port official said another two-member delegation of AD Ports was expected to arrive in Dhaka by yesterday evening to attend the MoU signing to be held at a hotel in the capital city.

State Minister for Shipping Khalid Mahmud Chowdhury, senior officials of the ministry and Public Private Partnership (PPP) Authority will also attend the event, he said.

Chowdhury informed that the CPA chairman will sign the MoU on behalf of the port authority.

He hoped that with the signing of the MoU, negotiations on the investment proposal of the global port operator would progress.

Meanwhile, during the two-day visit, the technical team visited the project site and other installations of the port, and sat in meetings with CPA officials, sources said.

The Bay Terminal project is being implemented on around 2,500 acres of land at Patenga on the coast of the Bay of Bengal.

Once the project is implemented, vessels with a draft of up to 12 metres and length of 280 metres will be able to berth here.

The government is already in an understanding with PSA Singapore and DP World of the United Arab Emirates to construct and operate two other container terminals on a government-to-government basis under a public-private partnership model.

Both PSA Singapore and DP World promised to invest US $1.5 billion each for the two container terminals.

Local firm East Coast Holdings Limited also proposed to invest US $3.5 billion jointly with a few global firms to build an oil and gas terminal under the project.