CPA signs landmark PPP agreement with APM Terminals for Laldia Container Terminal
The Chittagong Port Authority (CPA) signed a historic concession agreement for 30 years of operations plus an extension tied to KPIs with APM Terminals BV, a wholly owned subsidiary of Maersk A/S (Maersk Group)-one of the world's leading integrated logistics companies, majority-controlled by the AP Moller Foundation of Denmark. The authority inked the agreement to design, finance, build and operate the Laldia Container Terminal (LCT) under a Public-Private Partnership (PPP) framework. Shipping Adviser Brigadier General (Retd) Dr. M. Sakhawat Hussain attended the signing ceremony as the chief guest held at the Intercontinental Hotel in the city today.
State Secretary of the Trade and Investment of the Ministry of Foreign Affairs of Denmark Lina Gandlose Hansen and Ambassador of the Embassy of Denmark Christian Brix Moller were present as special guests. Chief Executive Officers of the PPP Authority Chowdhury Ashik Mahmud Bin Harun presided over the signing ceremony. In his speech, Sakhawat Hussain said the investment is expected to significantly boost employment, particularly for the youth. "Once the project is complete, many young generations, particularly the educated youth of Bangladesh, will get jobs," he added.
He highlighted the presence of a skilled workforce domestically, noting that the hardworking people of Bangladesh often work outside the country in Europe and America. He stressed the desire to use this skilled workforce within Bangladesh. Acknowledging that investment has historically been low in Bangladesh, Sakawat described the agreement as a new journey. He used the platform to extend an invitation to other nations, stating "I'm inviting other countries as well to invest in Bangladesh". He further asserted that Bangladesh is the most reliable investment area, attributing this reliability to the country's hardworking populace.
Sakawat concluded with the hope that this major inter-governmental contribution would eliminate any existing doubts about the project's benefit to the nation and the country. Brix Moller highlighted the nation's efforts to rebuild and strengthen, positioning it as a key focus for future investment and sustainable collaboration. He extended congratulations to Bangladesh and to all businesses involved in the historic agreement. "The investment commitment, described as being by Danish investment, is intended to play a critical role in Bangladesh's development by sharing knowledge, expertise, and know-how, leveraging Denmark's status as a global leader in efficiency," he added.
The envoy emphasized that this specific project serves as conclusive proof that Bangladesh and Denmark are now strong partners in sustainable growth. Historically, Denmark has been deeply committed to working with Bangladesh, unlocking immense potential, he added. In fact, he said, over the past 50 years, Bangladesh has been Denmark's second largest development partner globally. He concluded his speech on an optimistic note, confirming that there are more projects in the pipeline and expressing enthusiasm for continuing the excellent collaboration and partnership. The event served as a celebration of commitment, deep friendship, and strong partnership between the two nations, he added.
Lina Gandlose Hansen emphasized that the success of this project is a testament to the unwavering dedication and commitment of all stakeholders involved. She painted a vision of the future where ports are not merely infrastructures but ecosystems of people and purpose, imagining a facility where ships dock smoothly, goods move quickly, and workers operate in safer and smarter conditions. She noted that this partnership, connecting Denmark to Japan and Copenhagen to Chittagong, is linked by trade, water, and an aligned vision. The State Secretary underscored Bangladesh's remarkable development over the last 54 years.
"The nation is projected to become among the largest 30 economies globally by 2030. Furthermore, Bangladesh's RMG (Ready-Made Garments) export is already the second largest in the world, with enormous potential visible in other sectors," she added. According to the CPA, the ownership of the port will continue with CPA, while APM Terminals & a local JV partner will only be responsible for construction, operations, and management. This will reduce the capital expenditure burden for Bangladesh government.
APM Terminals B.V. is wholly owned by A.P. Moller - Maersk, headquartered in Denmark. It is one of the world's leading terminal operators (more than 60 terminals in 33 countries), operating terminals in 10 of the world's Top 20 best-performing container ports (World Bank, 2024). With extensive global experience across the world including East and South Asia (example: China, Singapore, Sri Lanka, Vietnam, and Malaysia), the Laldia project will introduce world class technology and operational excellence to Bangladesh, helping make the country's logistics sector futureready in the post-LDC era.
The newest green port will accommodate large container vessels (2x vs current size), reduce per-unit freight cost and enable direct shipping connectivity worldwide. Developed under a revenue-sharing concession model, the project will generate a stable foreign-currency income stream for Bangladesh while minimizing public capital expenditure.
Along with that 24/7 port operations with night navigation capabilities for ships with permissible length and draught will be enabled for the first time in Bangladesh. Under the Concession agreement, APM Terminals B.V. will bring in Foreign Direct Investments (FDI)'s for an expected amount of about US $550 million via construction of a greenfield port terminal in Laldia, Chittagong. This will be the single largest European equity investment in Bangladesh to date. A marquee global investor such as APM Terminals entering the port sector also signals confidence to other international financers, crowding-in additional FDI to logistics, manufacturing, and ancillary services.
