IMED flags gaps, missed targets at Saudi-run Patenga Terminal

Infographics: TBS

Three years after Saudi Red Sea Gateway Terminal (RSGT) took over the operation of the Patenga Container Terminal (PCT), the crucial port facility still cannot deliver as expected due largely to infrastructure shortfalls and operational weaknesses.

This comes out in a post-completion evaluation by the Implementation Monitoring and Evaluation Division (IMED).

The IMED said the Saudi firm has yet to install a full set of container-handling equipment at the terminal built by the Chattogram Port Authority (CPA), limiting its ability to handle the targeted number of containers. 

An insufficient number of gantry cranes, only one jetty being fully operational instead of three, and the absence of an integrated automated system linking customs, security and port management are blamed by the IMED for the terminal's underperformance.

The evaluation found that both the Cost-Benefit Ratio (CBR) and Internal Rate of Return (IRR) fell short of targets set in the original and revised project documents. 

Project documents projected a financial CBR of 1.18 and an economic CBR of 1.03, with financial and economic IRRs of 9.80% and 12.30% respectively. Actual outcomes, however, show a financial CBR of 1.02 and an economic CBR of 0.54, while financial and economic IRRs stand at 4.18% and 6.52%—well below expectations.

IMED noted that the terminal is currently handling around 2–2.4 lakh twenty-foot equivalent units (TEUs) annually, far below the original target of 4.5 lakh TEUs. The report said output could rise to as much as 8 lakh TEUs a year if backup areas were expanded, but warned that without rapid infrastructure upgrades, full automation and stronger operational coordination, the terminal is unlikely to achieve its potential.

While the master plan envisaged berthing three large container vessels simultaneously, only two jetties are functioning. One of these two jetties, built with a cantilever dolphin structure, cannot accommodate large container ships, further constraining capacity.

The report also said the main gate is not fully operational even three years after project completion, forcing container trucks to use an alternative gate beside the administration building, raising security concerns and causing traffic congestion.

Implemented by the CPA under the Ministry of Shipping, the project period was extended by 75%, from July 2017-December 2019 to December 2022, prompting IMED to question planning and execution capacity.

IMED found that several vehicles – including Pajero SUVs, motorcycles, pickup trucks, an ambulance, pilot boats and speedboats – were procured at higher costs than estimated in the revised project document, while firefighting vehicles included in the plan were not purchased. During physical inspection, the project director could not present any of the procured vehicles on site, raising concerns about transparency and oversight.

The report also highlighted foreign port visits by officials from the Ministry of Shipping, CPA and the Bangladesh Army's 24 Engineering Brigade to ports in Singapore, New Zealand and Australia. However, no individual or group "lessons learnt" reports were submitted, leaving unclear whether the knowledge gained was applied to the project. 

However, the overall project cost fell significantly. The original DPP estimated the cost at Tk1,868.28 crore, which was reduced to Tk1,229.58 crore in the revised DPP, and ultimately declined to Tk1,147.97 crore upon completion.

The IMED report further stated that although the estimated cost of the completed project was reduced by 34.18%, the implementation period was extended by 75%. In the feasibility study report, the estimated cost of constructing the physical infrastructure of the Patenga Container Terminal (PCT) was proposed at Tk759.33 crore without any draft or master layout plan. Based on the feasibility study, the project proposal (DPP) was prepared, and under the revised DPP the project was implemented at a cost Tk357.76 crore higher than the original estimate, amounting to Tk1,117.09 crore. IMED sought an explanation from the implementing agency, the CPA, regarding the justification for this increased cost.

IMED recommended preparing an urgent, comprehensive, internationally standard master plan to modernise Chattogram Port, urging the Ministry of Shipping to consider both banks of the Karnaphuli River—Patenga and Anwara—in an integrated manner.

Project director Mizanur Rahman Sarkar told TBS that the IMED report had not yet reached him but said all documents would be provided if explanations were sought. He said the Bangladesh Army's 24 Engineer Construction Brigade carried out the main works after ministerial approval, with the port authority overseeing implementation.

He added that the operator is currently running at about 50% capacity and is expected to reach full capacity around 2027. Responding to observations on the main gate and dolphin jetty, he said the main gate is operational and that the dolphin jetty is intended for lighter vessels and liquid cargo carriers, not large container ships. He also noted that gateway and operational components fall under separate projects with different project directors.