Shasha Denims-led JV awarded contract to build Ghorashal Inland Container Depot

Shasha Denims, a listed textile firm, has been awarded a tender for the development of the Ghorashal Inland Container Depot (ICD) in Ghorashal, Narsingdi, under a joint venture agreement.

The container depot will be developed under the Design, Build, Finance, Operate, Maintain and Transfer model and will operate as a Public-Private Partnership (PPP) with Bangladesh Railway.

Bangladesh Railway will provide the land, while the joint venture will invest in the development of the depot.

Aslam Ahmed Khan, company secretary of Shasha Denims, told The Business Standard, "The container depot will be built on 20 acres of land owned by Bangladesh Railway. The project will require an investment of over Tk300, which will be financed by the shareholders of the joint venture."

He said Bangladesh Railway will only provide the land on a rental basis for 30 years, and in return, the railway will receive 15% of the total revenue.

He added that the company expects to complete the project by 2028, after which the container depot will begin operations.

In a disclosure, Shasha Denims said that a new company will be established specifically for the Ghorashal Inland Container Depot. The shareholding structure of Shasha Denims PLC, along with other sponsors and joint venture partners, will be determined at the time of the company's formation."

Upon fulfilling the terms of the letter of award (LoA), the new entity will enter into a formal agreement with the Container Company of Bangladesh Ltd (CCBL), under the Ministry of Railways, the disclosure said.

In January 2024, Container Company of Bangladesh Limited (CCBL), a government-owned company under the Ministry of Railways, floated a tender for the construction of a multimodal inland container depot, seeking applications from interested bidders.

According to The Business Standard's earlier reports, despite two rounds of tender invitations, the proposed multimodal inland container depot (ICD) in Ghorashal failed to attract any local or foreign investors.

Following repeated setbacks, CCBL is now preparing to invite bids for a third time this month in an effort to attract investors willing to develop and operate the ICD.

The project, aimed at easing the movement of export-import cargo to and from Chattogram and Mongla ports, is being implemented by Container Company of Bangladesh Limited (CCBL), a subsidiary of Bangladesh Railways.

Md Rakibul Hasan Komol, company secretary of Container Company of Bangladesh Limited, told TBS that Shasha Denims and Incontrade Limited — an inland container depot (ICD) and container freight station (CFS) operator located at Laldiar Char — have primarily been selected. The joint venture will invest in the development of the depot and also operate it."

In FY25, Shasha Denims witnessed a slight decline by 0.91% in its revenue to Tk1,128 crore while its profit declined by 12.54% to Tk21.68 crore with an earnings per share (EPS) of Tk1.57. 

It recommended a 5% cash dividend for its shareholders. 

On Thursday, Shasha Denims' shares price closed at Tk15.70 each, a 1.88% down from the previous trading sessions.