Bangladesh Targets April Concession Deal With PSA Singapore for Bay Terminal Project

The Bangladesh government plans to finalize a concession agreement with PSA Singapore by next April to build and operate a container terminal within Chattogram’s Bay Terminal project.

The timeline was reaffirmed during a recent meeting between Shipping Minister Shaikh Rabiul Alam and Derek Low, Singapore’s non-resident high commissioner to Bangladesh, with representatives from the Port Authority of Singapore also in attendance. The Singaporean envoy and PSA representatives pledged comprehensive cooperation for the project, which is designed to handle up to 5.0 million twenty-foot equivalent units (TEUs) of cargo annually once commissioned.

Chittagong Port Authority Chairman M Moniruzzaman stated that the port body is actively working to meet the April deadline. Shipping Secretary Ataur Rahman Khan noted that finalizing the concession by April 30 would represent a key milestone, enabling PSA Singapore to move forward with constructing one box terminal, while choices concerning the remaining terminals will be finalized at a later date.

Several other investors have shown interest in the broader Bay Terminal development, including Dubai-based DP World, AD Port Group, local firm East Coast Group, and the Chittagong Port Authority. In June 2024, the World Bank approved $650 million to finance the construction of the terminal’s breakwater.

Covering approximately 2,500 acres near the mouth of the Karnaphuli River on the Bay of Bengal, the facility is designed to host two box terminals, one multipurpose terminal, and one liquid bulk and oil terminal. With a water draft of 12 to 14 metres, the deep-water site will allow vessels with capacities between 5,000 and 6,000 TEUs to berth.

Source: thefinancialexpress.com.bd