17 months after construction, Patenga Container Terminal set for inauguration today

Nearly 17 months after its construction was completed, the much-awaited Patenga Container Terminal (PCT)  of the Chittagong Port is slated for inauguration today.

Prime Minister Sheikh Hasina will inaugurate the terminal, which will be the first to be operated by a foreign company, virtually.

The terminal is expected to ease the backlogs at the port and speed up ship handling.

The Chittagong Port Authority (CPA) started construction of the PCA on 32 acres of land in the Patenga area for Tk1,229 crore in 2019. The construction was completed in June 2022 and the CPA completed its first trial run in November 2022. However, the terminal was not made operational due to a delay in operator recruitment.

A foreign operator, Saudi Arabia's Red Sea Gateway Terminal International (RSGTI) a sister concern of Red Sea Gateway Terminal ( RSGT), is poised to operate the terminal for 22 years.

This development marks a milestone for Bangladesh, as it is the first time in the country's history that a foreign company will be engaged to operate a port, which reflects the growing confidence of foreign firms in the country's future growth prospects.

The CPA has forwarded RSGTI's financial and technical proposal to the Ministry of Shipping for final approval, with the contract expected to be signed shortly after that. RSGTI will be responsible for procuring the necessary equipment to operate the terminal. Operational activities, including ship loading and unloading, are scheduled to begin in early 2024.

The PCT has three container jetties and one dolphin oil jetty, allowing for the simultaneous berthing of three container ships and one oil tanker. It is anticipated to handle 450,000 TEUs (Twenty Foot Equivalent Units) containers annually, enhancing Chittagong Port's ship handling and container holding capacity.

The Chittagong Port, the main gateway for about 92% of the nation's sea-based import-export trade, currently operates through 19 jetties across three terminals—General Cargo Berth (GCB), Chittagong Container Terminal (CCT), and Newmooring Container Terminal (NCT). With the imminent opening of the Patenga terminal, the total number of jetties will expand to 23.

To reach the main jetty of Chattogram Port, ships have to traverse a river route of approximately 14 kilometres from the mouth of the River Karnaphuli. However, the distance from the Patenga terminal to the Karnaphuli estuary is only six kilometres.

Mohammed Shafiqul Alam Jewel, vice-chairman of the Bangladesh Shipping Agents' Association, said the terminal's launch will streamline port operations, reduce waiting times for ships, and benefit shipping agents and mainline operators.

The increased efficiency is expected to contribute to a positive image for Bangladesh in the global maritime sector.

The country's apex trade body FBCCI's President Mahbubul Alam also emphasised the positive impacts of the PCT on the country's import and export trade, urging the prompt initiation of 100% operational activities of the terminal.

According to port officials, multiple foreign operators, including DP World, APM Terminal, PSA Singapore, and RSGT, showed interest in managing the terminal. Given Bangladesh's diplomatic ties with Saudi Arabia, the government opted for RSGT. The profit-sharing arrangement between Chittagong Port and RSGTI will be disclosed post-agreement.

Chittagong Port Authority Secretary Md Omar Faruk said the new terminal is fully prepared for operational activities, with the operator recruitment process nearing completion. The commencement of operations is imminent following the agreement with RSGTI. 

Originally slated for completion in December 2019, the project faced delays, extending its timeline to June 2022 in its third phase.

Trials for the Patenga Container Terminal began in November 2022, and since then, successful cargo discharges and imports, including rice shipments, have taken place.

The inauguration of the terminal will mark the first new container terminal at Chittagong Port since the completion of the New Mooring Container Terminal in 2007.