Pangaon ICT:  An untapped reefer gateway

Bangladesh’s Pangaon Inland Container Terminal (PICT) sits on the Buriganga River about 13-15 km southwest of central Dhaka. Opened in 2013, it was Bangladesh’s first riverport terminal and was designed to handle about 116,000 TEUs per annum. The facility includes two berths, a 180-meter quay, and a 3,500 TEU static capacity if install RTG as yard equipment in container yard. It was built to ease congestion at Chattogram Port but remains underutilized. With Dhaka’s growing metropolitan population of around 24 million, Pangaon’s proximity to the capital gives it unique potential to handle refrigerated imports and reduce logistics pressure on seaports.

Analysis

Strategically, Pangaon ICT’s location is ideal. The terminal lies 283 km upriver from Chattogram’s deep-sea anchorage, but just 15 km by road from Dhaka’s consumer market. Despite its design capacity, throughput remains far below expectations. Official figures suggest around 30,000 TEUs were handled in 2023—only about a quarter of its potential. By 2024, monthly volumes dropped below 4,000 TEUs, a utilization rate of less than five per cent. One of the biggest deterrents is cost: routing containers through Pangaon adds roughly $800–1,000 per TEU compared to direct movement through Chattogram, even though the river route is environmentally friendlier and less congested.

Bangladesh imports significant volumes of fresh fruit, sourcing more than 85 per cent of total consumption from abroad. Yet only about 30 per cent of local demand is met through domestic production, highlighting the growing dependence on imported perishables. Pangaon could serve as a refrigerated cargo hub for Dhaka’s wholesale markets—only a 15 km haul away. The terminal has basic reefer infrastructure with 48 plug points for refrigerated containers, but operational use is nearly zero. Carriers like Maersk currently not accepting any reefer deliveries to Dhaka or Pangaon. Without stable power, temperature-controlled storage, and reliable transport links, importers are forced to clear perishables through Chattogram, adding both distance and time.

Connectivity and access challenges

One of the most critical challenges for Pangaon ICT is road connectivity. The terminal’s potential is undermined by limited direct access to Bangladesh’s export-oriented industrial zones located in Savar, Tongi, Kaliakoir, Maona, Bhaluka, and the Mymensingh region. Although the government planned a ‘Middle Circular Road’ to connect these industrial belts around Dhaka, large portions of the route remain incomplete. The most crucial missing link is the 17+ kilometer stretch between Kalakandi and Hemayetpur. Once this segment becomes operational, it will directly connect Pangaon ICT with the country’s major manufacturing clusters, ensuring faster cargo movement, reducing transportation costs, and boosting export efficiency.

Freight and operational constraints

 Mainline operators have shown limited interest in promoting Pangaon ICT. Many continue to impose disproportionately high freight premiums on both dry and reefer containers, rather than offering competitive rates based on actual cost structures. This approach discourages exporters and importers from using Pangaon despite its strategic location. Additionally, local barge and small ship owners operating between Chattogram and Pangaon have formed syndicates that artificially inflate freight rates. Such practices reduce cost efficiency and hinder the competitiveness of Pangaon’s inland shipping services.

Recent developments

Momentum for Pangaon’s revival has gained attention in 2025 following a proposal by Mediterranean Shipping Company (MSC) to invest around $400 million to modernize and operate the facility. The project, under consideration as a public–private partnership with the Chattogram Port Authority, includes major upgrades such as automated cranes, yard expansion, digitalized operations, and channel dredging for larger barges. MSC plans to deploy small inland ships linking Pangaon with Chattogram, Mongla, Paira and Upcoming Matarbari maybe and even to build cotton storage facilities for Dhaka’s textile industry. Negotiations remain ongoing, and if approved, this could become a landmark investment transforming inland logistics connectivity for the capital region.

Challenges

• High costs and low traffic: Pangaon-bound shipments cost $800– 1,000 more per TEU than Chattogram, undermining competitiveness.

• Minimal vessel calls: The frequency of feeder vessels has dropped to roughly three per month, making planning unreliable for importers and exporters.

• Customs delays and inefficiency: Coordination between customs, port operators, and freight forwarders is still poor, adding up to three to four days to total transit time.

• Lack of cold-chain facilities: There is no dedicated cold storage or temperaturecontrolled warehousing to support reefer operations, despite available plug points.

• Absence of direct carrier incentive: Since MLOs prefer high-yield, high-volume seaport operations, they rarely extend service to Pangaon even though it offers greener logistics and reduced road congestion.

• Distance and syndicate issues: Pangaon’s upriver location and unregulated trucking syndicates around Keraniganj often inflate haulage costs, eroding any potential savings from waterway transport.