The Laldia container terminal is planned for construction near the mouth of the Karnaphuli River. Port specialists say that location alone could make Laldia the busiest terminal in Chattogram. The government expects it to handle 1 million TEUs a year, though several analysts believe actual volumes will be higher once operations begin.
The project has been presented as a 33-year public-private partnership. However, APM Terminals, a subsidiary of Denmark’s A.P. Moller - Maersk Group, will effectively enjoy 48 years of construction and operational control. Maersk already dominates global sea freight, and industry officials expect Laldia to capture a large share of Chattogram’s total container traffic once it comes online. Considering everything, the financial structure appears unusually favourable to APM Terminals.
After annual throughput crosses 900,000 TEUs, the port’s revenue on each additional container drops to only $10 per TEU. Analysts say that would allow APM Terminals to recover its investment within a decade. Despite these generous assurances, the Chattogram Port Authority (CPA) struggled to secure comparable financial or strategic terms during negotiations.
A review of key provisions in the non-disclosure agreement indicates that APM Terminals gains the greatest advantage from its shipping line-driven business model. The company brings its shipping line and containers to Chattogram and already commands the largest share of traffic there.
The deal effectively gives APM Terminals a guaranteed customer base, a benefit other operators in Bangladesh are unlikely to obtain. With operations scheduled to start by 2030, this assurance turns Laldia into a low-risk, high-return venture for the operator. Revenues for APM Terminals will rise as volumes grow. But the port authority will receive only limited formula-based earnings.
APM Terminals will become the second foreign company to run a terminal at a Bangladeshi seaport. Saudi Arabia’s Red Sea Gateway Terminals International (RSGTI) took over operations at the Patenga Container Terminal (PCT) in Chattogram in June 2024. The government has also signed an agreement for a foreign operator at Pangaon near Dhaka. That facility, however, functions primarily as a river terminal.
Bonik Barta’s review of these contracts shows a clear contrast in CPA’s negotiation outcomes between PCT and Laldia. At PCT, CPA maintained a strong position and established a win-win framework with RSGTI. But at Laldia, the Danish operator secured the more advantageous terms, both financially and strategically. Factoring in financial structure, payback timelines, market impact, and location, APM Terminals has ensured a dominant future market, leaving CPA comparatively weaker.
Currently, CPA earns $18 per TEU at Patenga. Government communications on Laldia projected $21 per TEU for up to 800,000 TEUs in the first slab, and $22 for 800,000–900,000 TEUs in the second. NDA analysis, however, reveals a third slab omitted from public campaign: once throughput exceeds 900,000 TEUs, CPA receives only $10 per additional TEU. Experts warn that given Laldia’s strategic location, growing ship traffic, and APM Terminals’ market control, this third slab is highly likely to come into effect, limiting the port authority’s long-term revenue.
APM Terminals also stands to gain indirectly. If it can operate direct container services to Europe and the U.S., terminal revenue will multiply. Ships under the Maersk line are expected to get priority berths at Laldia terminal, reducing idle time and avoiding daily compensation costs of $10,000–$15,000. Having a terminal of their own further consolidates Maersk’s operational advantage.
The government has repeatedly claimed that APM Terminals will build the Laldia terminal and operate it for 30 years, with the possibility of extending for another 15 years before handing full ownership to the state. The contract documents, however, tell a different story.
They specify a 48-year term for the Laldia Container Terminal, including three years for construction, 30 years for operation, and an additional 15-year extension. The contract explicitly states, “Fifteen years must be extendable.” By global standards, agreements with foreign operators usually run for 20–25 years. For comparison, CPA signed a 22-year contract with RSGTI for the Patenga terminal, allocating two years for construction and 20 years for operations.
According to consultants for both APM Terminals and CPA, the Laldia terminal’s 48-year term projects that the operator will recoup its investment just 11 years after commercial operations begin in 2030. By contrast, PCT’s 22-year contract had a projected payback period of 13 years. The payback period indicates how long an operator will take to recover its initial investment and start generating net profit.
Documents from the Ministry of Shipping show that CPA received an upfront fee of $20 million the same day it signed the PCT contract with RSGTI for the 32-acre site. The port administration even delayed the contract by four days to ensure receipt of the payment. In the 49-acre Greenfield project at Laldia, the PPP concession agreement with APM Terminals, signed on November 17, also sets an upfront fee of $20 million.
However, the fee has not yet been deposited into the port’s accounts. CPA states that although the contract was signed on November 17, it will take effect 90 days later. At that point, the port will receive 50 percent of the upfront fee, with the remaining 50 percent payable once operations begin. For comparison, MEDLOG SA paid BDT 180 million on the same day it signed its 22-year contract for the Pangaon river terminal.
The upfront fee functions as a concession payment, a one-time advance the investor provides at the start of the agreement in exchange for the right to operate the terminal.
Zafar Alam, a former CPA board member, told
Bonik Barta, “Bringing an internationally recognised operator into Bangladesh’s port management is undoubtedly a positive and timely move. At the same time, it’s essential to ensure that every step, from the contract’s initiation to its activation, has been properly followed.
This prevents major legal complications from arising in the future. Negotiation is the most critical aspect of contract management. An experienced team first identifies risks, then develops strategies to mitigate them. A contract is signed only when both parties reach a genuine win-win position.”
Alam added, “One of the primary sources of financial gain for the port under this structure is the upfront money. This fee is a standard and highly important benchmark in concession models worldwide. It prevents delays or backtracking after signing and provides financial protection for the state from the outset.
There is no acceptable argument for not collecting it at the start. In the case of PCT, Saudi Arabia’s Red Sea Gateway Terminal paid a $20 million upfront fee on the day the contract was signed. The port immediately placed that money in a fixed deposit. The daily interest it earns form the deposit represents a significant financial benefit.”
While RSGTI’s concession included a fixed annual fee, this provision was bypassed in the case of APM Terminals. Port insiders consider the absence of an annual fee in this long-term contract unacceptable.
Both RSGTI and MEDLOG, two international operators, have assigned full responsibility to their local agents—RSGT Bangladesh and MEDLOG SA Bangladesh Limited, respectively—for all operations. Their parent companies guarantee any liabilities or compensation arising in Bangladesh. In contrast, APM Terminals has appointed QNS Limited as its local agent. APM Terminals will now form a company with local partner QNS.
But the allocation of liability and compensation within this joint framework remains unclear. Nurul Qayyum Khan, the owner of QNS Limited, is widely known in business circles for his close family ties to former Prime Minister Sheikh Hasina. He also reportedly maintains close familial links with one of the chief adviser’s special envoys.
Dr. Mustafizur Rahman, economist and distinguished fellow at the Centre for Policy Dialogue, told
Bonik Barta, “We have demanded clarity on the clauses in the Laldia contract. It was essential to involve experts in such matters before signing. First, there are the financial terms of the agreement. Second, there is the question of when control would return to us. Excessive secrecy around these conditions raises doubts and concerns. Negotiations could have determined how long the terminal would remain under the operator’s control after construction.
But in reality, Laldia will stay with the operator for a prolonged period. We understand that APM Terminals will manage operations for 30 years. Now adding a 15-year extension effectively makes this a long-term contract. The process was rushed from the outset. The critical issues are ensuring the country receives a fair share of revenue and that national interests are safeguarded. Had domestic experts been involved from the beginning, the nation’s interests could have been protected while addressing the questions now emerging.”
Zonayed Saki, chief coordinator of the Ganosamhati Andolon, told
Bonik Barta, “These contracts were concluded without proper consultation with political parties or other stakeholders. Entering into such agreements without discussion is unjustifiable. The secrecy surrounding them has raised public doubts about whether national interests were truly protected. Moreover, this process shows little accountability to the people of Bangladesh.”
CPA Secretary Mohammad Omar Faruk, however, said the port remains in a strong position under the APM Terminals agreement. Speaking to
Bonik Barta, he said, “Laldia Container Terminal is a greenfield project. APM Terminals will manage every aspect from the start. That’s why I say negotiations and contract terms put us in a favourable position.
This is Bangladesh’s largest foreign direct investment from Europe, $550 million, and the government does not need to invest any capital. APM Terminals will handle all operations. The funds will arrive in phases. Once Laldia becomes operational, larger vessels can dock, turnaround times will shorten, and the international operator could even establish direct links to Europe.”
The project has been presented as a 33-year public-private partnership. However, APM Terminals, a subsidiary of Denmark’s A.P. Moller - Maersk Group, will effectively enjoy 48 years of construction and operational control.
en.bonikbarta.com
Launched in 2018 with big expectations but years of red ink, the country's first satellite, Bangladesh Satellite-1, posted its maiden profit in FY2024–25, and it did so by using only half of its capacity.
State-owned Bangladesh Satellite Company Limited (BSCL), which operates the satellite, reported a net profit of Tk38.35 crore for the just-ended fiscal year, reversing losses in every previous year. The board approved the audited accounts on 1 December.
The numbers show a company that is slowly finding its market. Revenue rose 9.24% year-on-year to Tk187.07 crore, driven mostly by bandwidth sales to television channels, radio stations, DTH operators, the armed forces, and both public and private agencies. Of the satellite's 40 transponders, 26 are now commercially active.
"We have taken several initiatives to sell the unused capacity at home and abroad," BSCL Managing Director and CEO Imadur Rahman told TBS.
Dedicated commercial teams have been formed, and investments made to improve service quality, he said, adding that cost management, skills upgrading and tighter operational discipline have also helped steady the company.
Even so, BSCL is utilising only 50% of its satellite capacity. "A satellite is considered successful when 80% of its capacity is used globally. Our target now is to raise utilisation to that level," Rahman said.
One potential boost is the company's new role as an authorised reseller of Starlink. If managed well, Rahman believes the partnership could strengthen BSCL's overall business.
The turnaround this year has come from multiple fronts. BSCL posted an operating profit of Tk2.61 crore for the first time, while income from FDRs and bank deposits pushed non-operating profit up 58% to Tk58.06 crore — a major driver of the bottom line. The company charges monthly fees for transponder and bandwidth usage, with prices varying by band and service type.
Beyond broadcasting, BSCL has been expanding into satellite-based data connectivity, maritime and aviation services, emergency communication, and customised solutions for government and private clients. Officials say this diversification is key to building a sustainable revenue base.
To strengthen long-term capacity, BSCL has stepped up collaboration with universities, research bodies and technology companies to develop skilled satellite engineers and space technologists.
Formed in 2017 under the Ministry of Posts and Telecommunications, BSCL began full-scale commercial operations after the launch of the satellite in 2018.
Its next ambition is already on the horizon: the government is assessing the feasibility of Bangladesh Satellite-2, which could support advanced applications in weather forecasting, agriculture, disaster management, remote sensing and national security.
Of the satellite’s 40 transponders, 26 are now commercially active
www.tbsnews.net
