CPA, APM Terminals ink PPP deal for Laldia Container Terminal

The Chittagong Port Authority (CPA) is entering into a long-term concession agreement with APM Terminals B.V., a wholly owned subsidiary of the A.P. Møller–Maersk Group, to design, finance, build, and operate the upcoming Laldia Container Terminal (LCT) in Chattogram under a Public–Private Partnership (PPP) framework.

The 30-year agreement, with a possible extension based on performance, will see APM Terminals and a local joint-venture partner handle construction, operations, and management, while ownership of the port will remain with CPA. The arrangement is expected to significantly reduce the government's capital expenditure burden.

APM Terminals, one of the world's leading port operators with over 60 terminals across 33 countries, operates in 10 of the world's top 20 container ports (World Bank, 2024). The company will introduce advanced operational technologies and global best practices to enhance the efficiency and competitiveness of Bangladesh's port logistics.

The US$550 million investment marks the largest single European equity investment in Bangladesh to date. The greenfield terminal will double current vessel capacity, add over 800,000 TEUs annually (+44% versus existing capacity), and enable 24/7 operations with night navigation—a first for Bangladesh.

The project is expected to generate 500–700 direct jobs and several thousand indirect jobs across logistics, construction, warehousing, and related sectors. It will also create a steady foreign currency revenue stream for Bangladesh under a revenue-sharing model.

CPA's annual income is projected to increase through higher throughput, revenue per container handled in USD, tax contributions from APM Terminals, and ancillary marine services.

Beyond operational gains, the partnership will deliver significant technology transfer, workforce upskilling, and environmental benefits, embedding energy-efficient and climate-resilient infrastructure aligned with Bangladesh's Nationally Determined Contributions (NDCs) under the Paris Agreement.

Once operational, the Laldia Container Terminal will enhance Bangladesh's export competitiveness by reducing freight costs, improving vessel turnaround times, and enabling direct global shipping connectivity. It is expected to be commissioned by 2030.

The project also strengthens Bangladesh's credentials as a viable PPP destination, setting a benchmark for future large-scale collaborations in energy, transport, and infrastructure development.