Framework signed with Saudi Arabia's RSGT for Patenga Container Terminal concession
A concession agreement means that RSGT has been granted the rights to operate and manage the PCT for a certain period of time, likely through a formal bidding process. The framework agreement would outline the terms and conditions of the concession, such as the duration of the agreement, the obligations of both parties, and the fees or revenue-sharing arrangements
The Ministry of Shipping and Red Sea Gateway Terminal (RSGT) signed a framework of mutual cooperation for Patenga Container Terminal (PCT) on the sidelines of the Bangladesh Business Summit on Saturday (11 March).
During the signing, the Prime Minister's Private Industry and Investment Adviser Salman F Rahman MP and Saudi Arabia's Commerce Minister Majid Bin Abdullah Alkassabi were present, said a media release.
A concession agreement means that RSGT has been granted the rights to operate and manage the PCT for a certain period of time, likely through a formal bidding process. The framework agreement would outline the terms and conditions of the concession, such as the duration of the agreement, the obligations of both parties, and the fees or revenue-sharing arrangements.
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"This is a very auspicious occasion for Red Sea Gateway Terminal as another milestone is completed in the process of concluding this partnership. We are honored to be able to serve the Bangladeshi Ministry of Shipping, the Chittagong Port Authority and the people of the great nation of Bangladesh in expanding their role in international commerce, and their presence in the Global Logistics Chain," said RSGT Executive Chairman Aamer Alireza while signing the agreement on behalf of his organisation.
"I am pleased to have been a witness to the signing of this framework related to a Saudi investment in one of Bangladesh's most important infrastructure projects, a testimony to the ever-expanding economic relationship between the two brotherly nations," Salman F Rahman said.
He expressed satisfaction at the progress of the transaction process and added, "As agreed in the framework, both sides are committed to the execution of a concession agreement within mid2023".
In July 2022, RSGT, operator of the largest and busiest terminal facility in Saudi Arabia, was selected by the Ministry of Shipping as the preferred operator for the new $240 million, 500,000 TEU capacity PCT facility at Chattogram.
Chattogram Port is the busiest container port on the Bay of Bengal, with a 2021 container throughput of 3.2 million TEU. The new terminal facility was constructed by the Bangladeshi government and offers 600 metres of quay, and a depth of 9.5 metres.
PCT will enhance Chattogram's operational efficiency with the ability to handle three vessels simultaneously.
Chattogram port ranked 64th globally in total container traffic in 2021 and handles 90% of Bangladesh's import and export ocean cargo.
Bangladeshi cargoes are generally transshipped to Colombo, Sri Lanka, and Singapore. The majority of import shipments are destined for Dhaka, a distance of 265 km (165 miles) distance from Chattogram's maritime centre.
The port also serves as the main gateway for Bangladesh's fast-growing exports including its garments trade, one of the world's largest.
RSGT, located at Jeddah Islamic Port, handled approximately three million TEU in 2022, and has an annual throughput capacity of 6.2 million TEU.
