No bids yet for Tk400cr Ghorashal ICD project despite two tender rounds

Highlights 

• Ghorashal ICD planned on 20 acres railway land
• Project aims to handle 1 lakh containers annually
• Two tender rounds fail to draw investor interest
• Political uncertainty, poor connectivity cited as key obstacles
• Firms seek clearer policies, better infrastructure, and security
• CCBL to float third tender by end of July

Despite two rounds of tender invitations, the proposed Tk400 crore multimodal inland container depot (ICD) in Ghorashal, Narsingdi, has failed to attract a single local or foreign investor.

Officials and industry insiders point to several reasons behind the lukewarm interest – ongoing political uncertainty, poor road connectivity in the project area, and what they describe as "investment-unfriendly" tender terms.

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

Facing repeated setbacks, CCBL is now preparing to invite bids for a third time this month in hopes of drawing investors willing to develop and operate the ICD.

According to CCBL, the first tender was issued on 10 January 2024, and while 12 local and foreign firms collected bid documents, none ultimately submitted a proposal.

In response to investor feedback, CCBL relaxed several conditions in the second round – extending the operational period from 25 to 30 years and lowering the signing fee from Tk10 crore to Tk6 crore.

The second tender, floated on 10 December 2024, initially set a bid submission deadline of 19 February 2025, which was later extended to May. Despite interest from 13 companies – including major players like PSA Singapore, DP World, Summit, QNS, and Vertex – no bids were received.

"Some initially expressed willingness to submit proposals but later backed out due to the prevailing political uncertainty and other unresolved issues," Mohammad Miajahan, managing director of CCBL, told TBS.

CCBL officials noted that although the tenders are not officially classified as international, several foreign firms have shown interest in participating through joint ventures with local partners.

While DP World prepares to begin operations at the New Mooring Container Terminal (NCT) in Chattogram and PSA Singapore gears up for the Bay Terminal project, stakeholders have raised questions about why the same global players – who purchased tender documents for the Ghorashal ICD – have shown little real interest in investing there.

A senior official of an international port management firm, which had bought tender documents, cited multiple "uncertainties" surrounding the project.

"For instance, the Ghorashal ICD is being considered as an alternative or extension to the Kamalapur ICD in Dhaka, where cargo movement is heavily restricted during the day due to traffic regulations. However, there has been no official decision on whether Kamalapur will shut down once Ghorashal becomes operational. This ambiguity is making investors hesitant," the official said, requesting anonymity.

Nurul Qayyum Khan, president of the Bangladesh Inland Container Depot Association (BICDA) and chairman of QNS Container Services Ltd, said his company had purchased the tender documents for the Ghorashal ICD project.

"Large-scale infrastructure projects like this are not viable without foreign investment. We had plans to form joint ventures with several international partners, but they are hesitant due to the current political uncertainty," he told TBS.

"If the national situation stabilises, investor interest could return," he added.

Echoing similar concerns, Imran Fahim Nur, managing director of Chattogram-based Vertex Logistics, said the current tender terms are discouraging for investors.

"Expecting an upfront commitment of nearly Tk400 crore, only to hand over the facility after 30 years, is a major deterrent," he said.

"To make the project viable, the Dhaka-Narsingdi highway must be upgraded to four lanes, security in the area must be ensured, and railway capacity – including wagons and engines – needs significant enhancement."

The project aims to develop a multimodal inland container depot (ICD) on 20 acres of Bangladesh Railway land near GhorashalRailway Station. Once operational, the facility is expected to handle up to 100,000 TEUs (twenty-foot equivalent units) of containers annually.

According to railway officials, Ghorashal is emerging as a key industrial hub, with growing demand for containerised cargo transport. The ICD is expected to streamline the movement of raw materials and finished goods to and from factories in nearby Mymensingh and Gazipur districts.

A meter-gauge railway connection to Chattogram is already in place, while a link to Mongla Port is expected to be established soon.

CCBL noted that construction has begun on another multimodal ICD project in Chattogram, with Saif Powertech investing Tk308 crore. However, progress has been delayed due to complications surrounding approval from the National Board of Revenue (NBR), though work is expected to resume soon.

Meanwhile, land acquisition is currently underway for the Dhirashram ICD, and a new ICD project in Sirajganj has re