IFC appointed as transaction advisor for Patenga container terminal management

The Public Private Partnership (PPP) Authority has appointed International Finance Corporation (IFC) as a transaction advisor to negotiate with Saudi Arabia's Red Sea Gateway Terminal (RSGT) for developing a proposal for the management of the Patenga Container Terminal (PCT).

Confirming the matter, the Secretary of the Ministry of Shipping Md Mustafa Kamal told TBS that the PPP Authority has designated IFC as the transaction advisor.

Last week, IFC signed an agreement with the Chittagong Port Authority (CPA) in this regard.

The transaction advisor will give advice and form proposals on the process of appointing an operator to manage the PCT.

He said, "We have asked them to prepare the proposal as soon as possible. After that, we will negotiate with RSGT on the terms of operating the terminal. If their proposal sounds good for our country then we will hire the organisation as the project operator."

Although the Red Sea Gateway 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."

However, regarding the information given by the Red Sea, Secretary of the Ministry of Shipping, Md Mostafa Kamal said, "The matter of appointing a transaction advisor is a process similar to a feasibility study. The appointment of a foreign operator to run the PCT is yet to be finalised."

Chairman of CPA Rear Admiral M Shahjahan could not be reached for comment.

Port Authority Secretary Md Omar Farooq said that he is not aware of any decision regarding the appointment of the PCT operator.

About 92% of the country's import and export goods pass through Chattogram port. Currently, the port has 19 jetties at three terminals: General Cargo Berth, Chattogram Container Terminal, and New Mooring Container Terminal.

After the opening of the Patenga terminal – 15 years after the new mooring terminal was constructed in 2007 – the number of jetties will increase to 23.

The port can currently accommodate ships with a maximum of 9.5 meters of draft and 190 meters of length. The Patenga terminal will be able to accommodate ships with 10.5 meters of draft and 200 meters of length.

The terminal, with three container jetties and an oil unloading (dolphin) jetty, will be able to load and unload containers from four cargo vessels simultaneously.

Initially, it was decided that the CPA will manage the Patenga terminal, but the authorities decided that foreign operators will operate it under a public-private partnership.

Five foreign companies had come forward with proposals for investing in and managing the Patenga terminal. The companies are Red Sea Gateway Terminal (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.

Chattogram port handles more than 30 lakh TEUs of containers per year. In 2021, the port handled 32.14 lakh TEUs of containers.

The Bangladesh Army was attached to the "delegated procurement" of the project located near the estuary of River Karnaphuli. The construction includes a 583-metre main jetty with three berths, a 204-metre-long dolphin jetty, 80,000 meters of roller-compacted concrete pavement, a 1.20 km four-lane road and other infrastructures.

The Patenga container terminal project was approved on 13 June 2017.