Maersk's APM Terminals to build and operate Ctg Port's Laldia terminal for 30yrs, deal next week
As part of the deal, the Maersk subsidiary will pay approximately Tk250 crore to Bangladesh as signing money.
Highlights:
- Maersk's APM Terminals to run Laldia Port for 30 years
- Tk250cr signing money to Bangladesh
- About $550m FDI — largest European investment in Bangladesh
- Terminal to add 800,000+ TEU annual handling capacity
- Project to create over 500-700 direct local jobs
- Project will embed energy-efficient equipment
- Will generate stable foreign-currency income stream for Bangladesh
The interim government has decided to strike a deal with Netherlands-based APM Terminals BV, a unit of Danish shipping giant Maersk's Transport and Logistics division, which will design, finance, build, and operate the Laldia Container Terminal at Chattogram Port for 30 years under a public-private partnership (PPP) framework.
The final agreement will be signed next week, said Public Private Partnership Authority Chief Executive Officer Chowdhury Ashik Mahmud Bin Harun today (12 November).
Keep updated, follow The Business Standard's Google news channel
As part of the deal, the company will pay approximately Tk250 crore to Bangladesh as signing money, he said at a press conference held at the Foreign Service Academy in the capital this afternoon.
Under the agreement, the Maersk subsidiary will work solely as the terminal operator, while all other responsibilities will remain with the Bangladesh authorities, said Ashik.
Addressing the briefing, Ashik said, "I am speaking today as the chief executive officer of the PPP Authority. The Laldia Container Terminal project will elevate Bangladesh's port sector to global standards.
"This is not just an infrastructure investment, but a step toward making Bangladesh's logistics sector 'future-ready', ushering in a new era for our exports, employment, and foreign investment."
Ashik Chowdhury said, "Today we presented the Laldia Container Terminal project to the Cabinet Committee on Economic Affairs. They have approved it. Our next task is to sign the concession agreement, which will take place next week."
"After that, they can begin work. Next week, the chairman of APM Terminals' global headquarters and a minister from Denmark will come to celebrate the signing," he added.
He said this is a government-to-government (G2G) based PPP project. A 30-year agreement will be signed between the Chittagong Port Authority and APM Terminals and the construction will take three years.
"We expect that if construction starts in December, the terminal will be operational by 2029," he said.
Referring to the development of the Laldia Container Terminal the PPP chief said, the land they are providing is currently like an open green field and APM Terminals will build the terminal from the baseline — first constructing the jetty and then operating the port.
Mentioning that the ownership will remain with the Chittagong Port Authority, Ashik said they (APM Terminals) will build the terminal and after 30 years, there will be an option to extend the term.
"If not extended, they will hand over the entire asset to us after 30 years. This will be a pure foreign direct investment (FDI) for us," said Asik, who is also the chief of Bangladesh Investment Development Authority (Bida).
"The initial investment of $550 million — around Tk6,700 crore — will be made over the next three years. The amount will cover construction, equipment installation, and other expenses. As signing money, they will pay Tk250 crore," he added.
"For every TEU, they will pay us $21," he said, adding that if the annual volume exceeds 900,000 TEUs, it will be $23 per TEU.
"As the number goes even higher, the rate will gradually decrease. Our focus was to ensure that the Chittagong Port Authority does not incur any losses," he said.
Ashik added that ships twice the size of those docking at the New Mooring Container Terminal (NCT) will be able to berth here.
In response to a question, he said the main objective behind engaging a foreign operator is to enhance the capacity and establish a corruption-free, highly efficient logistics system.
"We expect that in 15–20 years, we ourselves will be able to operate ports of this standard," he said.
Ashik Chowdhury added, "We have discussed the Laldia Container Terminal issue with political parties, and their feedback has been positive."
According to a statement with the project summary provided at the press briefing, the Chittagong Port Authority (CPA) is set to enter a concession agreement for 30 years of operations plus an extension tied to KPIs with APM Terminals, a wholly owned subsidiary of AP Møller – Maersk A/S (Maersk Group), one of the world's leading integrated logistics companies, to design, finance, build, and operate the Laldia Container Terminal.
The ownership of the port will continue with CPA, while APM Terminals and a local joint venture partner will only be responsible for construction, operations, and management. This will reduce the capital expenditure burden for the Bangladesh government.
APM Terminals, which handles more than 60 terminals in 33 countries, is one of the world's leading terminal operators. It currently operates terminals in 10 of the world's Top 20 best-performing container ports (World Bank, 2024).
With extensive global experience across the world, including in East and South Asian countries such as China, Singapore, Sri Lanka, Vietnam, and Malaysia, the company will introduce world-class technology and operational excellence to Bangladesh through the Laldia project -- helping make the country's logistics sector future-ready in the post-LDC era, according to the statement.
The newest green port will accommodate large container vessels (2x vs current size), reduce per-unit freight cost, and enable direct shipping connectivity worldwide, it said.
Developed under a revenue-sharing concession model, the project will generate a stable foreign-currency income stream for Bangladesh while minimising public capital expenditure.
Along with that, 24/7 port operations with night navigation capabilities for ships with permissible length and draught will be enabled for the first time in Bangladesh.
Key benefits according to the statement
Foreign direct investment (FDI): Under the concession agreement, APM Terminals BV is expected to bring in an expected amount of about $550 million in FDI via the Ladia terminal's construction -- making it the single largest European equity investment in Bangladesh to date.
A marquee global investor such as APM Terminals entering the port sector also signals confidence to other international financiers, crowding in additional FDI to logistics, manufacturing, and ancillary services.
New container-handling capacity: The terminal is expected to add over 800,000+ TEUs per year (+44% vs current capacity). The terminal is expected to be commissioned by 2030. This will help relieve the current level of congestion at existing container terminals of Chattogram and provide headroom for Bangladesh's fast-growing trade volumes.
Enhanced revenues for CPA and govt: Higher throughput and efficiency gains from the Laldia project will boost CPA's annual revenues by receiving revenue in USD/TEU for every container handled by APM Terminals. In addition, there will be contributions from tax payments by APM Terminals and additional revenue from ancillary marine services.
Large-scale job creation: Construction and operations from the Laldia terminal project are expected to generate over 500-700 direct and formal jobs plus several thousand indirect jobs in construction, trucking, warehousing, freight forwarding, and local SMEs.
Global operating and safety standards: APM Terminals will apply internationally benchmarked health, safety, security, and environmental protocols, lowering accident rates and improving workforce wellbeing.
Latest technology transfer: Deployment of APM Terminals' advanced technology in the construction of the port will modernise Bangladesh's port infrastructure and build local technical expertise. The Laldia terminal is expected to be a state-of-the-art, modern operational terminal at the end of its construction period.
Lower trade costs and faster delivery for businesses: Global port operators such as APM Terminals bring efficiency in port operations through faster vessel turnaround, improved container dwell times via their operations, which will result in a cut in the logistics costs for exporters and importers.
Lower cost of shipping through reduced waiting time will help Bangladeshi exporters, especially in time-sensitive sectors such as ready-made garments, agro-processing, and light engineering, meet just-in-time delivery requirements, retain buyers, and compete more effectively in regional and global markets.
Workforce upskilling and knowledge transfer: APM Terminals' in-house training programmes covering equipment maintenance, digital terminal-operating systems, and international climate and Environmental standards will upskill Bangladeshi engineers, technicians, and managers. The creation of a locally trained talent pool raises productivity across the broader logistics sector and improves employability for Bangladeshi seafarers and port professionals abroad.
APM Terminals is expected to deploy experienced personnel from other terminals to aid technology and process transfer (e.g.- Integration of LEAN methodology and FLOW operational process framework).
Catalyst for hinterland development: Throughput of over 8,00,000+ TEUs per annum will encourage private investment in inland container depots, cold chains, and industrial parks along Dhaka-Chattogram and other corridors, spreading economic activity beyond port cities. The Laldia project is expected to contribute towards the same.
Greener, more climate-resilient port infrastructure: The project will embed energy-efficient equipment and adopt other global climate practices, cutting carbon emissions and enhancing resilience to issues related to climate change.
By aligning with global sustainability standards, the terminal supports Bangladesh's Nationally Determined Contributions (NDC) under the Paris Agreement and positions the country to attract climate-smart investment in other infrastructure sectors.
Demonstration effect for Bangladesh's broader PPP agenda: A successful long-term concession with a global operator such as APM Terminals signals that Bangladesh can structure, tender, and oversee complex public-private partnerships in line with international best practice.
This track record is expected to lower perceived risk, broaden the pool of prospective investors, and catalyse additional PPPs in energy, transport, and social infrastructure, helping close Bangladesh's overall infrastructure financing gap.
