Bangladesh eyes faster exports, higher revenue under new terminal concessions

Bangladesh stands to gain major investment and efficiency improvements under a series of agreements to place several Chittagong Port terminals under foreign management, but the long-term concessions have also triggered debate among port users, workers, and political groups.

Under a planned 33-year concession with Denmark’s APM Terminals, the company will invest up to $800 million to design, finance, build, and operate the new Laldia Container Terminal, increasing national capacity by 800,000 TEUs per year. Officials say the deal relieves pressure on public finances, accelerates long-delayed construction, and links Bangladesh directly to global logistics networks. The government expects increased revenue from service fees, a one-time payment, and improved export competitiveness through faster ship turnaround times.

A similar agreement is nearing completion with Switzerland’s Medlog SA to operate the Pangaon Inland Container Terminal, while talks are underway with UAE-based DP World for the New Mooring Container Terminal.

Critics warn that long-term concessions risk diminishing operational sovereignty at the country’s most strategic port. Worker groups fear job losses from automation, and some exporters worry foreign operators may raise service charges. Political groups argue the interim government lacks a public mandate to sign decades-long agreements involving national infrastructure.

Supporters counter that ownership of all terminals will remain with the Chittagong Port Authority and that foreign investment is necessary to modernize facilities and handle rising trade volumes.

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