Cargo handling rises after Saudi Red Sea installs scanner at Patenga Terminal

Highlights:

• Import scanner installation triggered major growth in terminal activity
• Monthly throughput rose sharply, hitting a record in October
• Terminal still operates below capacity but improving steadily
• New cranes arriving; full-capacity operations expected by mid-2026
• Import delays caused by slow customs release after scanning
• Operator aims to exceed capacity and ease Chattogram Port congestion

After months of underperformance, the Patenga Container Terminal is seeing steady growth in container handling and vessel calls, with full-capacity operations expected by June next year.

A long-pending import scanner, installed by foreign operator Red Sea Gateway Terminal International (RSGTI) in May at its own cost of $3 million after the National Board of Revenue (NBR) failed to provide one, has proven a turning point for the container terminal, while other port equipment, such as gantry cranes, is still on the way.

Until May this year, the terminal was restricted to handling only export containers. Between May and October, Patenga Container Terminal handled 108,228 TEUs, representing nearly two-thirds of all cargo moved during its first 16 months of operation.

Monthly volumes rose steadily – from 13,314 TEUs in May to 14,527 in June and 15,396 in July – before surging to 22,636 TEUs in August, the terminal's highest monthly throughput. Activity dipped to 17,337 TEUs in September but rebounded to a new record of 25,018 TEUs in October.

Operated by Saudi firm RSGTI under a 22-year concession from June 2024, the terminal is still being developed to handle large containers efficiently and reduce congestion at Chattogram Port, Bangladesh's main seaport.

The growth also reflects a rise in vessel calls at the terminal and a more predictable flow of export cargo. August alone saw seven ship calls, while overall exports for the six-month period reached 53,332 TEUs, slightly outpacing imports at 54,896 TEUs.

Infograph: TBS

Despite recent growth, Patenga Container Terminal is still operating well below its designed capacity. At its August peak, the terminal utilised about 54% of its theoretical monthly capacity of 41,700 TEUs, dropping to roughly 42% in September and 49% in October.

Port officials said this shortfall is expected at this early stage as many shipping lines have yet to schedule regular calls to the new terminal.

The RSGTI says the gradual ramp-up reflects ongoing equipment installations and the two-year development phase included in its 22-year concession.

Fourteen rubber-tyred gantry (RTG) cranes have arrived and are being commissioned, while four ship-to-shore (STS) gantry cranes are expected to be operational by June 2026. The operator anticipates the terminal will reach full capacity by mid-2026.

Explaining why cargo volumes remain below capacity, Sayed Aref Sarwar, head of Commercial and Public Affairs at RSGT Chittagong, told TBS, "The first nine months of our operation, we handled only export containers. Due to the lack of a scanner, we could not handle import cargo, which kept our numbers low.

"As the NBR didn't install a scanner despite repeated requests, we installed one with our own funds in May and launched import operations. Since then, our handling has gained momentum."

Sarwar said, "Fourteen RTGs arrived in October, and four have already been commissioned. We will receive the STS gantry cranes in April next year, and they will be operational by June.

"We are running ahead of schedule. By June 2026, we will go into full operation and plan to tap full capacity. We hope to handle 4.5 lakh TEUs in 2026 if everything goes according to plan."

Highlighting bottlenecks, Aref Sarwar said, "A trailer with a delivery order takes only about 15 minutes to load a container and reach the scanner. But after scanning, customs officials take hours to release the trailer, which increases lead time."

He noted that Patenga Container Terminal is already faster than CPA-run terminals, handling 47 moves per hour compared with CPA's 27. "But delays in releasing vehicles are hampering overall performance," he added.

Sarwar also explained that the terminal initially struggled with LCL (Less than Container Load) containers due to limited storage. "We had only a 100-TEU shed, which we recently expanded to 300 TEUs. We've added facilities for customs agents and transport workers, but people often complain about our strict compliance procedures.

"We are here to do business, and our business depends on handling containers. The more containers we handle, the more we grow. Our aim is to exceed capacity next year."

Economist Moinul Islam told TBS that once all equipment is in place, the Saudi operator will have the opportunity to fully utilise the terminal. "If they can do that, it will ease pressure on the CPA. It's a promising project, but we need to watch how it performs in the coming years," he added.

TBS tried to reach NBR Chairman Abdur Rahman Khan by phone for comments on the delay in import scanner installation, but he did not respond.

Asked about the matter, HM Kabir, deputy commissioner and spokesperson for Chattogram Custom House, said it was not within his knowledge. "Let me look into it and get back to you," he said.