Pangaon to be handed over to foreign operator in January

After years of losses, the Pangaon Inland Container Terminal (ICT) in Keraniganj, under the Chattogram Port Authority, is finally set to become fully operational.

Medlog, the logistics arm of Switzerland-based MSC; the world’s second-largest shipping company is scheduled to take over the operation of the terminal in the first week of January, according to the Chattogram Port Authority.

The Pangaon Container Terminal was built in 2013 by the Chattogram Port Authority. Constructed on 64 acres of land in Keraniganj, Dhaka, the terminal was built at a cost of Tk154 crore and has the capacity to handle at least 200,000 containers annually.

Currently, 94 percent of containers linked to Chattogram Port are transported between Dhaka and Chattogram by road, while 4 percent move by rail.

Despite its vast potential, inland waterways have remained largely underutilized, accounting for only 1 percent of container movement. Although the terminal is crucial for the capital and surrounding industrial zones, it could not be activated as expected for a long time due to a shortage of vessels for container transport and complexities in operator management, keeping operations at a limited level.

Medlog will operate the terminal for 22 years. During this period, the company will make significant investments, including the installation of state-of-the-art equipment and the introduction of specialized vessels for cargo transport.

Initially, the government had considered appointing an operator for 12 to 15 years, but to attract investors and ensure modern infrastructure, a 22-year contract, similar to the model used for the Patenga Container Terminal, was finalized.

The Ministry of Shipping gave final approval for this long-term appointment on 22 August. Officials believe the extended tenure will encourage the foreign operator to invest in large-scale infrastructure development and maintenance.

Medlog plans to invest around Tk490 crore in the terminal. As part of this investment, the terminal will be equipped with two mobile harbor cranes and modern handling equipment.

Medlog will deploy its own specialized vessels and barges on this route, build a 10,000-square-meter container freight station and establish a specialized cotton warehouse.

To speed up import and export processes, the entire handling system will be brought under automation.

Bangladesh has already received Tk18 crore as signing money. In addition, the government will receive an annual fixed fee of Tk1.01 crore, along with Tk 250 per container handled. While the initiative has raised hopes among port users, it has also come with certain expectations.

Amir Hossain Noorani, Senior Vice President of the Bangladesh Iron and Steel Importers Association, said, “We are hopeful that change will come with a new foreign operator. Unless shipping costs come down and the number of vessels increases, the port will not become fully functional.”

BKMEA President Mohammad Hatem also expressed optimism, saying, “Our cargo movement depends on buyers, and I believe they (Medlog) will be able to make it operational.”

The Chattogram Port Authority stated that under short-term contracts, large companies are generally reluctant to invest in equipment purchases or infrastructure development. That is why a 22-year contract, similar to the Patenga Container Terminal, has been signed for Pangaon as well.

Chattogram Port Secretary Md Omar Faruk said the Pangaon Terminal is directly connected to Dhaka’s commercial hubs. Once fully operational, it will reduce pressure on road transport and enable lower-cost import and export through inland waterways.

Investments of USD 680 million by the World Bank at the Bay Terminal and USD 500 million by Maersk Line would bring revolutionary changes to overall port management in Chattogram, he added.

“We were taking initiatives to make the Pangaon Terminal vibrant. Through international bidding, we appointed a global terminal operator. If these initiatives are implemented, Pangaon Terminal will see substantial profits and play a major role in the national economy,” he said.

Medlog Bangladesh Private Limited Managing Director ATM Anisul Millat said, “The Pangaon Inland Container Terminal holds immense potential to accelerate economic growth and set new standards in logistics efficiency. By leveraging Medlog’s global expertise and implementing our strategic plans, we aim to achieve sustainable growth.”