Swiss-based Medlog SA emerges as sole qualified bidder for 22-year Pangaon terminal deal

Amid growing debate over engaging foreign operators at the country's ports, global logistics firm Medlog SA has moved closer to securing the management contract for Pangaon Inland Container Terminal under a 22-year deal.

TBS Infograph

Chattogram Port Authority (CPA) has completed its technical evaluation and found Medlog SA, part of the Switzerland-based Mediterranean Shipping Company (MSC), to be the sole qualified bidder.

The other contender, HR Lines, failed to meet the technical requirements and was declared non-responsive, according to the evaluation report reviewed by The Business Standard.

The evaluation committee sent its report to the CPA chairman on 6 November, marking a significant step in a process that began three years ago to revive the country's first inland container terminal.

CPA Secretary Omar Faruk declined to confirm the development today (15 November). "It is the weekly holiday, so I cannot confirm today. Please contact us tomorrow," he said.

Earlier, Commodore Kawser Rashid, Member (Engineering) of CPA, told The Business Standard that Medlog SA proposed to invest $400 million in the Pangaon terminal.

The development comes as the government recently finalised plans to lease Chattogram Port's New Mooring Container Terminal to Dubai-based DP World and to sign a 30-year agreement with Danish firm AP Møller-Maersk to build and operate the Laldia Container Terminal in Patenga.

Looking for Pangaon operator

Pangaon was inaugurated in late 2013. Built at a cost of around Tk157 crore, the country's first river-based terminal was designed to handle 116,000 twenty-foot equivalent units (TEUs) a year.

However, the ICD on the banks of the Buriganga in Keraniganj remained grossly underutilised, running at less than 20% of its capacity – and at times as low as 5%. Officials have repeatedly blamed limited vessel frequency, inadequate private participation, and the absence of modern cargo-handling equipment.

Amid this situation, the shipping ministry instructed the port in 2022 to seek a long-term operator capable of offering reliable and cost-efficient services to Dhaka's industrial belt. 

The move aimed to improve Pangaon's low utilisation and ease pressure on Chattogram Port by shifting more cargo movement closer to the capital, according to the evaluation report.

The port issued its first call for Expressions of Interest on 28 April 2024. Six firms collected pre-qualification documents, but only three – Medlog SA, HR Lines Limited, and Saif Powertec Limited – submitted offers. 

A ministry-led committee reviewed the submissions and cleared all three in May 2025 for the final bidding stage.

Govt extends contract tenure

Originally, the port intended to award a 12-year management contract. By mid-2025, officials argued that Pangaon needed deeper, long-term investment in equipment and systems, which they said was unlikely under a shorter tenure.

The port board approved extending the contract period to 22 years on 31 July 2025.
However, the port's own regulations cap private terminal contracts at 15 years, meaning any longer term requires government approval. The shipping ministry granted that clearance on 22 September, allowing the port to proceed with the extended tenure.

A week later, the port board authorised the release of the final Request for Proposal (RFP) to pre-qualified bidders. The RFP package was issued on 4 October, followed by a pre-bid meeting on 7 October at the port's boardroom.

Only two firms submit RFPs

When the deadline arrived on 5 November, only two firms submitted full RFPs – Medlog SA and HR Lines Limited. Saif Powertec, despite being pre-qualified, opted not to participate in the final round.

The port's tender-opening committee opened the technical submissions the same afternoon in front of the bidders' representatives. Both firms submitted bid security and financial proposals in sealed envelopes. As required, the financial offers were kept unopened and stored in a Sonali Bank locker at the port branch to avoid influencing the technical scoring.

HR Lines Limited did not respond to requests for comment.

Technical evaluation shows a stark contrast

The evaluation committee was formed under a shipping ministry order issued on 30 October. It comprised senior port officials, an engineering professor, a ministry representative, and external engineering experts.
The committee reviewed the technical submissions on 6 November using the RFP's scoring system, which assessed the financial model, cargo-handling equipment plan and performance specifications, operations and maintenance strategy, emergency and hazardous cargo response plan, marketing plan, and financing strategy.

Each section carried set marks, and bidders needed a minimum score of 70 out of 100 to qualify.

Medlog received full marks in every category, securing 140 out of 140 points from seven evaluators, equivalent to a perfect score. The committee found no deviations, omissions, or missing documents.

HR Lines scored 60. Evaluators noted that the company failed to submit two critical components – the financial model and detailed equipment specifications. These omissions alone disqualified the bid, while the remaining sections also fell short of the required standard. The committee unanimously declared HR Lines non-responsive.

Committee recommends opening Medlog's financial offer

After completing the evaluation, the committee recommended that Medlog SA's technical proposal be accepted and that its financial offer be opened for further consideration. 

As the lone technically responsive bidder, the port board will now examine whether its financial terms are viable, competitive, and aligned with long-term operational goals for Pangaon.

The committee also submitted legally required declarations, certifying that the evaluation adhered to the Public Procurement Act 2006, Public Procurement Rules 2025, and all provisions of the RFP.

The opening of the financial offer is expected in the coming days. The port board will then decide whether to award the contract or call for a fresh round if the financial terms fail to meet expectations.