RSGT’s flagship terminal is in Jeddah Islamic Port
Bangladesh’s shipping ministry has selected Red Sea Gateway Terminal (RSGT) to operate a new 500,000 teu-capacity container terminal at Chittagong Port.
Construction of the US$240m Patenga Container Terminal (PCT) is currently close to completion.
The new facility, being built by the Bangladeshi Government, will feature a 600 m quay and will be able to handle three vessels simultaneously.
At present, the government is in the advanced stages of appointing a transaction advisor, which will provide advice on the structuring of the PPP transaction, preparation, negotiations, and final implementation of the project.
The Saudi-based operator proposes to equip and operate this terminal on the basis of a long-term concession from the Chittagong Port Authority, subject to the completion of a formal procurement and negotiation process and approvals by the relevant authorities.
RSGT’s Director of Global Investments, Gagan Seksaria said: “We are extremely pleased to have been selected for this opportunity. The rapid growth of Chittagong Port’s cargo volumes necessitates further investment in modern equipment, advanced technology and building new human capacity.
“This project fits well with RSGT’s competencies and its expansion strategy for emerging markets. We are very confident that, through this investment, we will be able to contribute significantly to Bangladesh’s fast-growing trade and economy.”
The Port of Chittagong (recently renamed as Chattogram), handled a record 3.2m teu in FY 2021, with 4,209 vessel calls, making it the busiest port in the Bay of Bengal, serving as the gateway for 90% of Bangladesh’s import and export ocean cargo.
The majority of import shipments are destined for Dhaka, Bangladesh’s capital, and largest city, a distance of 265 km from Chittagong.
The port also serves as the main gateway for Bangladesh’s fast-growing exports including its garments trade, one of the largest globally.
Bangladesh has been increasingly willing to lean on Saudi expertise in recent years, with its shipping ministry signing a Memorandum of Understanding (MoU) with RSGT in 2019.
Under this agreement, RSGT will invest in and provide operational assistance and expertise to the Bangladeshi port sector.
A further MoU was signed between the Ministry of Investment of Saudi Arabia (MISA) and the PPP Authority (PPPA) of Bangladesh in October last year, followed by the First Joint Platform Meeting between the two parties, held in February 2022.
At the February meeting, Bangladesh’s shipping ministry proposed a plan for the equipping, operation and maintenance of PCT based on the PPP model to government of Saudi Arabia, which in turn nominated RSGT as the Saudi investor.
