Red Sea Gateway Terminal (RSGT) that operates the Jeddah Islamic Port, Saudi Arabia’s largest terminal facility, is one of at least five global firms which have expressed interest in investing and operating the PCT.
The Bangladesh government is already in talks with RSGT for running the newly built Patenga Container Terminal (PCT), further the Bangladesh government has recently signed an agreement with International Finance Corporation (IFC) to advise on the modus operandi.
The others are AP Moller-Maersk of Denmark, Dubai Port World (DP World) of United Arab Emirates, PSA International of Singapore, and Adani Ports and Special Economic Zone of India.
Currently, some 98 per cent of Bangladesh’s containerised cargo is handled at the Chattogram port. In other words, its annual capacity is 3.2 million TEUs (twenty-foot equivalent units).
The PCT is an extension of the Chattogram port, having an annual container handling capacity of 500,000 TEUs.
Though the RSGT in its website media release on Thursday claimed that the Bangladesh government had selected it to operate the PCT, both the Public Private Partnership (PPP) Authority and Chittagong Port Authority (CPA) denied it.
The government is currently in discussion with the RSGT, said CPA Chairman Mohammad Shahjahan.
“But at first, we need a report from a global transaction advisor which has just been appointed last week for formulating terms and conditions and only after getting that report, negotiations to nominate any firm may start,” he said.
The PPP Authority on Wednesday signed a “Transaction Advisory Services Agreement” with the IFC of World Bank Group on equipping, operating and maintaining the PCT.
PPP Authority Chief Executive Officer (CEO) Muhammad Ibrahim and IFC Acting Country Manager Nuzhat Anwar signed the agreement.
Ibrahim told The Daily Star that the IFC, as an advisor of the Bangladesh government, would conduct a feasibility study to formulate a business model and determine the terms and conditions for running the PCT.
The government will use that advice to hold negotiations with firms interested in running the PCT, he said.
Regarding the RSGT’s web statement, Ibrahim said the government was yet to nominate any firm.
“If we agree with the IFC’s business model and if the RSGT gives consent to that model, only then they would get the work,” he said.
It is actually Saudi Arabia’s Ministry of Investment that nominated the RSGT to be the investor for the PCT during a government-to-government meeting, he informed.
According to sources, a memorandum of understanding was signed between the Ministry of Investment of Saudi Arabia and the PPP Authority of Bangladesh on October 28 last year.
At a meeting later on February 23 this year, the shipping ministry of Bangladesh proposed a PPP model for equipping, operating and maintaining the PCT to the Saudi government, which nominated the RSGT, they said.
The other firms had submitted their proposals earlier.
A senior official of shipper Maersk Bangladesh told The Daily Star yesterday that they were still awaiting a reply from the government on their proposal.
In June 2017, the government approved the project for the CPA to construct the PCT with Tk 1,868.28 crore from its own funds.
The cost was later revised to Tk 1,229 crore as the government decided to implement the project through an equip, operate and maintain model under a PPP appointing a global operator.
The operational equipment is to be supplied by the global operator.
“The IFC…would formulate the business model and determine the operational requirement, amount of profit sharing and other aspects and based on those terms and conditions we would start negotiations with the RSGT,” said CPA Chairman Shahjahan.
If the RSGT does not agree to those terms and conditions, negotiations with the other firms that submitted proposals will begin, he said.
The IFC may take two to five months to submit their report, he said. PPP Authority CEO Ibrahim, however, said they urged the IFC to submit their report in the quickest possible time. Port users also emphasise on appointing a global operator for the PCT as soon as possible.
4 Responses
Dear Sir, Salam.
Being a permanent inhabitant and residents near 100 years, inside 4 lane road constructed recently, and which is subsequently connected with Karnaphully tunnel, I have a question.
Is there any plan for acquisition of any land behind this sea port… (Muslimabad Area).
There are few informations among the dwellers, CPA will acquire lands inside the 4 lane.
It will be very helpful for us, who are dwelling here.
Muslimabad Housing Society
West Muslimabad, Katgor Madrasha Road,
Regards. My cell number +8801943681700.
I think railway track is also have to be installed with this port, which should be connected with the prevailing Dhaka Chittagong rail line at Kalushah bridge point.
That will facilitate carry of containers by cheaper locomotive.
So, a railway network is also required. Thanks.
Fresh water connection from Ctg wasa also needed. We recommend and request with a proposal here.
Wasa line is available at Katgor, port can easily get this connection by very negligible expenses by using Katgor Muslimabad inter connecting road.
Gas connection from Karnaphully Gas company are available in this road.
So, port can get gas connection very easily.