15 months on, Saudi operator RSGTI fails to deliver at Patenga Container Terminal
Despite an initial pledge to invest Tk1,500 crore and supply modern scanners, gantry cranes and other essential machinery, the operator has yet to deliver on its promise
Highlights:
- Tk1,270 crore facility underused despite big capacity
- Congestion severe as containers pile up in the yard
- RSGTI blames extra vessel pressure, says more equipment due soon
- Project was meant to modernise port operations
- CPA says RSGTI instructed to accelerate operations, expects progress soon
Fifteen months after launching operations at the Patenga Container Terminal (PCT), Saudi operator Red Sea Gateway Terminal International (RSGTI) has yet to bring in the promised equipment or deliver the efficiency it was appointed to achieve.
The result has been widespread delays, mounting trade disruptions and growing frustration among importers, exporters and customs agents.
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The Chittagong Port Authority (CPA) built the terminal at a cost of Tk1,270 crore from its own funds, aiming to boost the country's main seaport with a handling capacity of 500,000 TEUs (twenty-foot equivalent units) annually.
However, since the facility was leased to RSGTI in December 2023 and launched in June 2024 under a 22-year "equip, operate and maintain" contract, much of its capacity has remained underutilised.
Despite an initial pledge to invest Tk1,500 crore and supply modern scanners, gantry cranes and other essential machinery, the operator has yet to deliver on its promise.
Expressing frustration, port users have urged the CPA to investigate why an internationally recognised operator has failed to honour its commitments under the concession agreement.
Admitting slow progress, the Saudi operator claimed that most issues have already been resolved, while work is ongoing to address others, including the installation of heavy equipment.
Congestion and delays
Frustrated by the operator's performance, the Chattogram Customs Agents Association (CCAA) wrote to the CPA chairman on 7 September, accusing RSGTI of inefficiency, mismanagement and failure to address infrastructural bottlenecks.
Containers are being stored far beyond the yard's designed capacity, creating severe congestion that delays both the unstuffing of less-than-container-load (LCL) cargo and the delivery of full-container-load (FCL) consignments.
What should take hours is now taking days, disrupting supply chains across industries.
Importers say raw materials are not reaching factories on time, forcing them to curtail production. Exporters, meanwhile, are struggling to meet shipment deadlines, risking penalties and strained ties with foreign buyers.
Equipment shortages and untrained staff
At the heart of the problem is the absence of modern handling equipment. Without gantry cranes, scanners or enough rubber-tyred gantry cranes (RTGs), cargo is being cleared at a fraction of the intended speed.
Customs agents also allege that goods are being damaged because unskilled staffers are operating the machinery currently in use.
Labour shortages have worsened the problem. Most of the workers at the terminal lack training, causing routine loading and unloading to take far longer than necessary.
Agents have demanded the appointment of sufficiently skilled labour, along with structured training and regular monitoring to raise standards.
"This terminal was meant to introduce modern technology and speed up trade, but 15 months later, we are still waiting for those promises to be met," said Mohammad Rezaul Karim Swapan, customs affairs secretary of the customs agents association. "Importers, exporters and C&F (clearing and forwarding) agents are suffering every day because of the inefficiency of this operator."
Ignored warnings, mounting losses
Port insiders say the CPA ignored early warnings when outsourcing the terminal. Trial operations in late 2022 had proved that the CPA itself could handle vessels efficiently, and officials had even drawn up plans to purchase Tk460 crore worth of equipment, which they then believed would be recovered within a year of commercial operations.
Instead, the port handed management rights to RSGTI under pressure from influential quarters, they note. To date, the Saudi firm has not invested the Tk1,500 crore it promised.
The result has been massive underutilisation of a terminal that was meant to ease pressure on the country's busiest seaport.
Officials estimate that the state has already lost thousands of crores in potential revenue.
RSGTI's response
The operator acknowledged receiving a letter from the CCAA complaining about delays in clearing containers and other issues. "We have already held meetings with stakeholders and the CPA to find a resolution," said Sayed Tarique, head of customer relations at PCT.
"The backlog at the terminal was caused by extra pressure from incoming vessels beyond our capacity. While we are equipped to handle four to five vessels, we had to handle eight to nine in the last two months," he explained.
On equipment installation, Tarique said four RTGs have already arrived and will be operational by the end of October, with 10 more on the way. "By January next year, four gantry cranes are expected to arrive and become operational by April."
"Currently, we handle 15,000–17,000 TEUs a month. Once all the equipment is installed, we will be able to handle over 30,000 TEUs a month," he added.
What the CPA says
CPA Secretary Mohammad Omar Faruk, spokesperson for the authority, confirmed that a meeting was held on 7 September where RSGTI was instructed to accelerate operations. "We expect progress soon. Apart from revenue, the partnership is also strengthening diplomatic ties between Bangladesh and Saudi Arabia," he said.
But officials admit that the required equipment may take another month or two to arrive, meaning there will be no immediate relief for traders.
A missed opportunity
The Patenga terminal was envisioned as a flagship example of a public-private partnership that would modernise Bangladesh's seaport operations. Instead, 15 months on, it has become a story of missed deadlines, broken promises and mounting losses, with the burden falling squarely on importers, exporters and the wider economy.
Mahfuzul Hoque Shah, former director of the Chittagong Chamber of Commerce and Industry, said they had welcomed the appointment of a globally reputed port operator with experience running terminals in several countries, expecting modern technology and international-standard efficiency at Patenga. "But now we are deeply disappointed with their performance," he said.
He suggested the CPA investigate why the operator has failed to meet expectations and review whether weaknesses in the concession agreement itself contributed to the outcome.
