The Chittagong Port Authority (CPA) built the Patenga Container Terminal Project with its own funding, with construction tenure ending in June 2022. The CPA then signed an operator agreement with Saudi developer firm Red Sea Gateway Terminal (RSGT) in December last year.
Operations were supposed to begin within four months of the CPA-RSGT agreement. But the initiative has been delayed due a number of complications, prompting the CPA to extend this deadline.
On the issue, Chittagong Port Authority Chairman Rear Admiral Mohammad Sohail said, “Bonded warehouse license from National Board of Revenue (NBR), clearance from various agencies, including from the Directorate of Explosives, are required to operate the terminal.
“Those processes are still pending. So the deadline has been extended for another two months. We are optimistic that the terminal operations would begin by the first week of June. But we need another year to go into full-fledged operations.”
To speed up ship berthing, the Patenga Container Terminal was built on the banks of River Karnaphuli on a 32-acre site between the Dry Dock and Chittagong Boat Club, a bit away from the Bay of Bengal’s Karnaphuli estuary.
The terminal, built at a cost of Tk 1,147.98 crore, was approved on June 13, 2017 and was supposed to be completed in December 2019. In the second phase, the port proposed to extend the project till June 2021.
As the work was not completed by June 2021, the third phase of the project tenure was extended by one year till July 2022. After that, the project was implemented on schedule, but the container terminal remained idle as an operator was not appointed at that time.
Finally, the government gave in-principle approval to the project “Equip, Operate and Maintenance of Patenga Container Terminal” under Public-Private Partnership (PPP).
At the same time, the Chittagong Port Authority decided to appoint foreign operators to manage four terminals of the port including Patenga Container Terminal.
On March 23, 2023, the Cabinet Committee on Economic Affairs approved the decision to appoint an international firm to operate the terminal. Following the approval in December last year, the CPA gave the work order to the Red Sea Gateway Terminal.
The institution was given responsibility for 22 years of operation of the Patenga Container Terminal.
A number of sources say 25 departmental clearances are required to operate a terminal, including fire service and environmental clearances. Besides, an online connection must be established with the custom house server, and the port’s product delivery system.
Terminal operations have to be interconnected with the port and customs house systems.
Of these, the Red Sea Gateway has brought in some equipment initially, but many institutions are yet to secure clearance. Therefore, the terminal will not be operational until the clearances are obtained.
A senior CPA official, on condition of anonymity, said, “The Red Sea Gateway has sent a letter asking for another three months. They have been given two months instead of three months. They have time till June 6.
“Hopefully, the Patenga Container Terminal will be operational by this time.”
The Red Sea Gateway will operate the terminal by purchasing equipment from their funds. For this purpose, they will pay three types of fees to the port authority. A one-time fee of a significant amount has to be paid, alongside an annual fee.
Besides, there will be a handling fee for each container. Even if the Red Sea Gateway operates the terminal, the port authority will look after the tariff, river charges, and security.
Prime Minister Sheikh Hasina had inaugurated the Patenga Container Terminal on November 14, 2023. Red Sea Gateway is set to operate this facility for the next 22 years.
Construction of this terminal began in 2007, and the facility has four jetties – three container jetties, and one Dolphin jetty. After this terminal begins operations, the total number of jetties in Chattogram port will increase to 21.
