The Bangladesh government has reaffirmed that there are no plans to cancel or renegotiate the concession agreement signed with Denmark-based APM Terminals for the development and operation of the Laldiarchar Container Terminal at Chattogram Port.
Responding to a written question in Parliament on Monday, Shipping Minister Shaikh Robiul Alam said the concession agreement was awarded through a transparent government-to-government (G2G) process between Bangladesh and Denmark, in full compliance with the country’s Public-Private Partnership (PPP) Act and relevant regulations.
The minister outlined the project’s development timeline, noting that Bangladesh and Denmark signed a Memorandum of Understanding (MoU) on June 30, 2021, to promote environmentally sustainable infrastructure development. Subsequently, APM Terminals, a subsidiary of the Maersk Group, submitted a formal proposal on May 21, 2023, to develop a modern container terminal on the right bank of the Karnaphuli River at Laldiarchar.
The Cabinet Committee on Economic Affairs granted in-principle approval for the project on November 29, 2023, while the Danish government formally endorsed implementation through APM Terminals during the first Bangladesh-Denmark PPP Joint Platform meeting held on January 3, 2024.
Following due diligence and legal reviews conducted by the International Finance Corporation (IFC) as transaction adviser, the Chattogram Port Authority and APMT BV signed the concession agreement on November 17, 2025.
Under the agreement, APM Terminals will invest approximately US$550 million to develop a state-of-the-art container terminal within the Chattogram Port area. The minister said the project is expected to significantly increase container handling capacity, generate employment opportunities, and facilitate the transfer of advanced global port technologies to Bangladesh.
Matarbari Deep-Sea Port to Welcome Mother Vessels by 2029
The Shipping Minister also informed Parliament that the Matarbari Deep-Sea Port, being developed with Japanese assistance, remains on schedule to commence operations in 2029.
Once operational, the port will enable Bangladesh to receive container mother vessels of around 8,200 TEUs and cargo ships of up to 100,000 DWT for the first time, representing nearly four times the carrying capacity of vessels currently handled at Chattogram Port.
He noted that Bangladesh’s existing ports lack sufficient draft to accommodate large vessels, forcing cargo to be transshipped through regional hubs such as Singapore, Colombo and Malaysian ports before being carried to Bangladesh on smaller feeder vessels. This process increases both transportation costs and transit times.
The Matarbari project includes the development of a 16-metre-deep navigation channel and a modern container terminal. According to the minister, the deep-sea port will reduce Bangladesh’s dependence on foreign transshipment hubs, improve cargo movement efficiency, lower logistics costs, and enhance the competitiveness of the country’s international trade.
He added that, beyond supporting Bangladesh’s growing trade, Matarbari Deep-Sea Port is expected to emerge as a key regional maritime hub, facilitating international trade and transit for neighbouring countries.
