IFC to advise on foreign operator appointment for Patenga terminal
“We will hire Red Sea Gateway Terminal as the project operator if their proposal sounds good,” shipping ministry secretary says
The International Finance Corporation (IFC) has been made the transaction advisor to settle financial matters for the appointment of a foreign firm to operate the Patenga Container Terminal (PCT) of Chattogram port.
Last week, the IFC signed an agreement with the Chittagong Port Authority (CPA) in this regard.
"The Public Private Partnership (PPP) Authority recently nominated IFC to prepare a proposal and negotiate with Red Sea Gateway Terminal (RSGT) of Saudi Arabia for operating the PCT," Md Mustafa Kamal, secretary of the Ministry of Shipping, told The Business Standard.
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"The transaction advisor will give advice and prepare a proposal on the process of appointing a foreign operator for the Patenga container terminal," he added.
He said, "After receiving the proposal, we will negotiate with RSGT on the terms of operating the terminal. If the proposal sounds good for our country then we will hire the organisation as the project operator."
However, the Red Sea Gateway Terminal (RSGT) authority mentioned on their website and Twitter post, "The Red Sea's largest terminal operator has been nominated by the Bangladesh Ministry of Shipping to respond to an upcoming Request for Proposal to operate the new 500,000 TEU Patenga Container Terminal nearing completion at Chattogram. RSGT was officially advised of the decision of the Bangladeshi Ministry of Shipping on 28 July 2022."
Regarding the Red Sea's statement, Md Mostafa Kamal, secretary of the shipping ministry, said, "The matter of appointing a transaction advisor is a process similar to a feasibility study. The appointment of a foreign firm to operate the PCT is yet to be finalised."
Chairman of Chittagong Port Authority Rear Admiral M Shahjahan could not be reached for comments.
Port Authority Secretary Md Omar Farooq said, "I am not aware of any decision regarding the appointment of an operator for the PCT."
About 92% of the country's import and export goods pass through the Chattogram port. Currently, the port can accommodate ships with a maximum 9.5 metres of draught and 190 metres of length.
Once completed, the Patenga terminal will be able to accommodate ships with 10.5 metres of draught and 200 metres of length. With three container jetties and an oil unloading jetty, it will be able to load and unload containers from four cargo vessels simultaneously.
Currently, Chattogram port has 19 jetties at three terminals – General Cargo Berth, Chattogram Container Terminal and New Mooring Container Terminal. Once the Patenga terminal is opened – 15 years after the construction of the new mooring terminal– the number of jetties will increase to 23.
The port handles more than 30 lakh TEUs of containers per year. In 2021, the port handled 32.14 lakh TEUs of containers.
Five foreign companies had come forward with proposals for operating the Patenga terminal under a PPP. Those are RSGT of Saudi Arabia, AP Moller-Maersk of Denmark, Dubai Port World (DP World) of UAE, Adani Port and Special Economic Zone Ltd of India and PSA International Singapore.
The Patenga container terminal project was approved on 13 June 2017. The construction includes a 583-metre main jetty with three berths, a 204-metre-long dolphin jetty, 80,000 metres of roller-compacted concrete pavement, a 1.20 km four-lane road and other infrastructures.
