Maersk proposes $400m new container terminal in Ctg

Highlights: 

• The new container terminal will be constructed on 53 acres of land at Laldia, owned by the Chattogram port
• Around 30-32 lakh containers are transported through Chattogram port annually and one-third of these containers are transported by Maersk
• AP Moller-Maersk operates container terminals in 65 countries around the world

Danish shipping and logistics giant Maersk Group has proposed building a container terminal at Laldia in Chattogram with an investment of around $400 million as part of its initiative to develop green ports worldwide.

Maersk Group Chief Executive Officer Robert Maersk Uggla and Danish Charges D'Affaires in Bangladesh Andres B Karlsen met Prime Minister Sheikh Hasina at her office on Monday.

On hearing of the proposal, the premier told them, "Bangladesh's relevant authorities will consider the proposal on constructing and operating a new container terminal."

The Maersk representatives and the Danish charges d'affaires also held meetings with State Minister of Shipping Khalid Mahmud Chowdhury and other stakeholder organisations related to the port regarding the investment proposal.

According to the proposal, Maersk will invest the entire amount in building the terminal on 53 acres of land at Laldia – a char created from river sediment. More than 95% of the workforce in terminal management will be Bangladeshis.

The Ministry of Shipping, the Chattogram Port Authority and other stakeholders welcomed the investment proposal, saying the more foreign giant companies join Chattogram port, the better the service quality of the port will be. New foreign investment is very positive for the country's economy, especially at this time of dollar crisis, they said.

Shipping Secretary Mustafa Kamal told The Business Standard that any foreign investment is beneficial for the country. Maersk Line is welcome to invest here.

Traders concerned with the port said with the new terminal in operation, goods transportation will expand and the export of goods, including ready-made garments, will be boosted. It will also accelerate trade by reducing vessels' berthing and lead times, and freight costs.

Newly elected President of the Chittagong Chamber of Commerce and Industry Omar Hajjaj said companies like Maersk bringing new investments in port facilities is a positive sign for the country's economy.

"This will undoubtedly pave the way for more new investment in Chattogram port. We applaud the new investment proposal of Maersk Line on behalf of the businessmen of Chattogram," he said.

Mohammed Shamsul Azam, director of BKMEA, said the involvement of a global giant in the management of the port means that the operational activities will become dynamic.

"At present, we are faced with various problems in the delivery of import goods and shipping of export goods. If there is a new terminal, it will be beneficial for the country's import and export trade," Shamsul Azam said.

The char area of Laldia on the banks of the River Karnaphuli in Patenga, owned by Chattogram port, was illegally occupied. In March 2021, the port conducted eviction drives to free the area from occupation. The area has been vacant for more than two years.

Chittagong Port Authority Secretary Md Omar Faruk told TBS, "The port authority has 53 acres of land at Laldia. Maersk has offered to invest in a terminal there. We welcome foreign investment if it protects the country's interests."

Around 98% of goods transported by containers in Bangladesh go through Chattogram port. Stuffing (filling of containers) is done at 19 private inland container depots (ICDs) in Chattogram before the export products are loaded on ships. 

Around 30% of the products shipped from these ICDs are transported by Maersk Line Shipping Company. Besides, Maersk Line ships are also involved in container transportation at the port.

Around 30-32 lakh import and export containers are transported through Chattogram port annually and about one-third of the containers are transported by Maersk, according to the Chittagong Port Authority.

On 22 August, Chittagong Port Authority Chairman Rear Admiral Mohammad Sohail said, "Investors from various countries, including from Asia and Europe, are interested in investing in Chattogram port. Foreign investment worth $5-7 billion will come to the port in the next three years."

According to the Maersk Line website, its subsidiary AP Moller-Maersk operates container terminals in 65 countries around the world.

According to Chattogram port users, Maersk is gradually increasing investment in the maritime sector of Bangladesh. It is building joint-venture warehouses in various ICDs. These warehouses are staffing the products transported by their own shipping companies.

Maersk Line has already constructed two warehouses at Chattogram's Ispahani Summit Alliance Terminal Limited (ISATL) and Vertex Off-Dock Logistic Services Ltd. 

In April 2024, two more warehouses will be opened at Summit Alliance Port Limited (SAPL). Once these two warehouses become operational, Maersk Line will have five-lakh square feet of warehouse facilities at three ICDS in Chittagong.