Danish AP Moller to invest $550m in Laldia Terminal, Swiss MEDLOG $40m in Pangaon

The interim government inked two agreements today (17 November), handing over two key container terminals – Laldia in Chattogram and Pangaon near Dhaka – to foreign operators, marking the first long-term lease of key port infrastructure to overseas companies in Bangladesh's history.

One of the deals involved the Chittagong Port Authority (CPA) issuing a Letter of Award (LOA) to APM Terminals and its local equity partner QNS Container Services Ltd. Under the concession, APM, a unit of Danish shipping giant AP Moller–Maersk, will design, build and operate the Laldia Container Terminal for the next 30 years. The company says it will invest $550 million over the first three years to bring the terminal into operation.

But even before the signatures dried at the InterContinental Dhaka, questions began swirling over the deal's transparency. 

The interim government had vowed to avoid unsolicited arrangements – like those the previous regime pushed through in the power sector and during the FSRU setup – but this agreement followed the same opaque path. 

Key agencies involved – the Public Private Partnership Authority, the CPA and BIDA – did not disclose even a single clause of the concession, triggering alarm among procurement experts and port users alike. They said the Laldia project bypassed competitive bidding, violating the Public Procurement Act 2006 and Rules 2008, which bar unsolicited government contracts.

'An unsolicited contract' 

"This is an unsolicited contract, plain and simple," said economist Anu Muhammad.

He argued that the interim government's mandate was to restore institutions and rebuild democratic norms – not to sign long-term commercial deals that will shape the economy for decades. 

Instead of reforms, he said, the government appears more focused on pushing through contracts with foreign companies, raising suspicion that powerful vested interests stand to benefit.

"Only three months remain before the general election. This decision should have been left to an elected government," he added.

Public has the right to know deal terms: TIB

Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman said the government can enter G2G agreements, but must maintain certain standards. If existing laws prevent disclosure, they should be amended. 

He added that the government cannot make or cancel such agreements at will, and the public has the right to know the terms, especially for strategic assets like Chattogram port.

"Many past G2G deals compromised the country's interests. The current government has questioned such agreements, so similar deals are not expected," he said, citing the previous government's G2G deal with India's Adani. 

Even if the full agreement is not disclosed, he stressed that the government must clarify the selection process for foreign operators, explain why a specific company was chosen, and inform the public of the terms under which the terminals are handed over.

'Elected govt should've made the decision'

Amir Humayun Chowdhury, president of Chattogram Port Users Forum and former president of Chattogram Chamber of Commerce and Industry (CCCI), said it would have been better if the government had floated an international open tender to lease out the Laldia terminal.

Echoing Anu Muhammad, he said that major decisions like leasing out a port terminal should have been left to an elected government, especially with the election only three months away.

Khairul Alam Sujan, vice president of the Bangladesh Freight Forwarders Association and director of the Shipping Agents Association, told TBS, "The government did not consult stakeholders before signing the deal. If they had, we could have shared our insights. We are not even sure whether the agreement ensures employment for local experts and workers," he said.

"We do not know whether national interests have been protected in the deal. Even a small mistake in the agreement can lead to major complications in the future," he said, alleging that the deal was signed at "bullet speed," calling the move unusual and likely to raise suspicion.

Govt's rationale behind hiring foreign operators

Bangladesh has secured $550 million investment by Denmark's APM Terminals, part of AP Moller-Maersk, for implementing the Laldia Container Terminal, making it the largest European FDI and one of the largest PPP projects in the country's history.

A delegation from the Maersk Group and the Danish government called on Chief Adviser Yunus at his official residence, Jamuna, today, where CA said that APM's investment in the Laldia Terminal marks the beginning of a new era for Bangladesh's trade and foreign direct investment.

At the singing ceremony at The Intercontinental Dhaka today, Rear Admiral SM Moniruzzaman, chairman of the Chittagong Port Authority, said, "If we want to be competitive, if we want to be relevant, then we need to compete with our real competitors. That's why speed to market is our goal. And if we want to attain that goal, we need facilities like those of APM Terminals."

Shipping Adviser M Sakhawat Hossain said, "We welcome AP Moller-Maersk's global operational experience, which will help us solve the day-to-day bottlenecks our port users face."

Ashik Chowdhury, CEO, PPP Authority, said, "We are on the way to getting a world-class operator without adding any government debt. The terminal is expected to increase Chattogram Port's handling capacity by 44%."

Minister of Foreign Affairs of Denmark Lars Løkke Rasmussen, while delivering a virtual message, said, "Mærsk has been a long-standing partner to Bangladesh and an important driver of the strong commercial ties between our two countries. Today, the company handles almost 30% of all containers in and out of Bangladesh. The investment in Laldia container terminal by Mærsk-APMT is a powerful symbol of enduring and real partnership."

Keith Svendsen, CEO, APM Terminals, said, "We are strengthening our commitment to the country to create a safe and efficient terminal as well as create skilled jobs for the future prosperity of the region."
 
Pangaon inland container terminal deal with MEDLOG 

Switzerland-based MEDLOG, a global leader in inland logistics, will manage and operate the Pangaon Inland Container Terminal (PICT) near Dhaka for 22 years. The company won the contract through an open bidding process involving three candidates.

CPA Chairman Rear Admiral SM Moniruzzaman and MEDLOG Bangladesh Private Ltd Managing Director ATM Anisul Millat signed the agreement at the InterContinental Dhaka.

The PICT management agreement, for a terminal strategically located on the Buriganga River near Dhaka and just three kilometres from the Dhaka-Mawa-Bhanga Expressway, marks a new chapter for MEDLOG and Bangladesh's trade infrastructure. 

Facilities will include two mobile harbour cranes, reefer connections, 24-hour power, empty container storage, a repair yard, and an expanded Container Freight Station (up to 10,000 sqm). Adjacent land will be developed for cotton warehousing and dry storage. 

PICT will also offer a Through Bill of Lading facility, enabling seamless cargo movement from international ports to Pangaon and streamlining logistics and customs processing.

Shipping Adviser Brig Gen (retd) M Sakhawat Hossain and Swiss Ambassador to Bangladesh Reto Rengg attended the event.

Shipping Adviser said that the cost of the terminal was about Tk155 crore, and in the last 12 years, the accumulated operational loss reached Tk165 crore. "The partnership with MEDLOG has changed that reality. MEDLOG is bringing a new beginning to this terminal," he added.

He said, "We had tried to ensure that a Bangladeshi company could take it, and for that, we floated an open tender. But seeing the potential losses, no Bangladeshi company showed interest."

MEDLOG Bangladesh MD ATM Anisul Millat told TBS, "There are some government procedures pending, which we hope will be completed within one to one and a half months. After that, we will be able to start terminal operations. An initial investment of $40 million will be made over the first 4–5 years. Over the next 10–15 years, this could increase to $400 million."

"We will pay the Bangladesh government a total of $6 million as signing money; today, we have given Tk18 crore. Every year, we will pay the government Tk1.01 crore. Additionally, for each TEU operated, we will pay the government Tk250, which will increase by 4% annually."