After years of limited activity and recurring financial losses, the Pangaon Inland Container Terminal (ICT) in Keraniganj is set for a turnaround, with Medlog—the logistics arm of Switzerland-based Mediterranean Shipping Company (MSC)—scheduled to assume operations in the first week of January, according to the Chattogram Port Authority (CPA).
Constructed in 2013 by the CPA at a cost of Tk 154 crore, the 64-acre terminal has an annual handling capacity of approximately 200,000 containers. Despite its strategic location near Dhaka and key industrial hubs, the facility has remained largely underutilised due to a shortage of container-capable inland vessels and challenges related to operator management.
Currently, nearly 94% of containers associated with Chattogram Port are transported between Dhaka and Chattogram by road, while rail accounts for about 4%. Inland waterways—despite offering significant cost advantages—handle only around 1% of containerised cargo.
Under the new arrangement, Medlog will operate the Pangaon ICT for a 22-year concession period. The long-term contract, approved by the Ministry of Shipping on 22 August, follows the concession model adopted for the Patenga Container Terminal and is aimed at attracting sustained private investment. Officials noted that earlier contracts spanning 12 to 15 years failed to generate sufficient investor interest.
Medlog has committed to investing around Tk 490 crore in the terminal. Planned upgrades include the installation of two mobile harbour cranes, modern cargo-handling equipment, deployment of specialised vessels and barges, construction of a 10,000-square-metre container freight station, and establishment of a dedicated cotton warehouse. The operator also plans to introduce full automation across terminal operations to accelerate import and export processes.
The government has already received Tk 18 crore in signing fees and will earn an annual fixed fee of Tk 1.01 crore, along with Tk 250 per container handled.
Port users have expressed cautious optimism about the development. Trade body representatives said the terminal’s success would depend on reduced shipping costs and increased vessel frequency. Export-oriented industry leaders added that buyer confidence and reliable cargo movement would be critical to ensuring sustained utilisation.
The CPA said the extended concession period was designed to support long-term investment and modernisation. Officials highlighted that the terminal’s direct connectivity to Dhaka’s commercial centres could ease pressure on road transport and lower logistics costs by shifting cargo to inland waterways. They also pointed to ongoing capacity expansion and efficiency-enhancing projects at Chattogram Port—supported by the World Bank and Maersk Line—as catalysts for broader improvements in port and logistics management.
Medlog Bangladesh Private Limited said it views the Pangaon Inland Container Terminal as a high-potential asset and plans to leverage its global operational expertise to drive efficiency, profitability and long-term growth, strengthening Bangladesh’s logistics and trade ecosystem.
