BD inks deal with Danish APM to build Laldia container terminal

The Chittagong Port Authority has signed a deal with Denmark's APM Terminals to build a container terminal at Laldia Char in Chattogram.

The deal was signed on Monday at Dhaka's InterContinental Hotel under a public-private partnership on a government-to-government (G2G) basis.

Denmark's State Secretary for Trade and Investment at the Ministry of Foreign Affairs Lina Gandløse Hansen attended the signing of the deal ceremony alongside Shipping Advisor M Sakhawat Hussain, Foreign Advisor Md Touhid Hossain, Bangladesh Investment Development Authority Executive Chairman Chowdhury Ashik Mahmud bin Harun, Chief Advisor's Special Envoy Lutfey Siddiqi and Christian Brix Møller, the ambassador of Denmark to Bangladesh. The CPA Chairman retired rear admiral SM Moniruzzaman and APM Terminals Vice-President Martijn van Dongen signed the deal on behalf of their parties.

Sakhawat described the deal as a big contribution from the interim government to the nation.

"Those who had doubts about it, I hope their doubts will be gone from today," he said.

Ashik said the deal manifests that PPP works not only in theory but in practice as well.

He said another four new seaports, including a deep-sea port and a free-trade zone, would be built in the near future.

The Danish delegation visited Chief Advisor Muhammad Yunus after the signing of the deal in the afternoon.

"This marks the beginning of a new era," said Yunus.

"The port will open new doors for large-scale investment and product diversification in Bangladesh," he said.
APM Terminals is a subsidiary of AP Moller-MAERSK.

KEY TERMS OF THE AGREEMENT

The entire investment in the container terminal will be made by APM Terminals. As signing money, the company will provide Tk 2.5 billion, investing an overall Tk 67 billion during the construction of the terminal. The Bangladesh government will not provide any guarantee or money for the project, said BIDA.

The port will operate for 30 years, and the tenure could be extended if all commercial, social and environmental conditions are met.
The government will receive a fixed fee for each container handled, said BIDA. Even if container handling stops, the government will still receive a minimum guaranteed amount.

The CPA will act as the regulatory body.