Swiss firm selected to operate Pangaon Container Terminal for 22 years

The government has finalised the appointment of Switzerland-based Medlog SA to manage and operate the Pangaon Inland Container Terminal in Keraniganj for the next 22 years, marking a major shift in efforts to revive the underutilised river port facility.

The agreement between Chittagong Port Authority (CPA) and Medlog SA — a logistics arm of global shipping giant Mediterranean Shipping Company (MSC) — is scheduled to be signed, CPA Secretary Md Omar Faruk confirmed.

On the same day, the CPA will also ink a 33-year concession agreement with APM Terminals BV, a Dutch subsidiary of A.P. Moller–Maersk Group, to develop and operate the upcoming Laldia Container Terminal at Chattogram port under a public-private partnership model.

These agreements come amid ongoing opposition from several groups who are against leasing port terminals to foreign operators.

The Pangaon terminal, built in 2013 on the Buriganga River by CPA and the Bangladesh Inland Water Transport Authority (BIWTA), was intended to ease cargo traffic on the Dhaka–Chattogram road and rail corridors. However, the terminal has historically seen limited container movement due to high inland water transport costs, slow customs procedures, and operational inefficiencies.

To address these challenges and ensure reliable, cost-effective services, the shipping ministry opted in 2023 to bring in a long-term professional terminal operator through an Expression of Interest (EOI) process.

The EOI, issued on April 28, 2024, originally sought a 12-year operator. Six companies bought the pre-qualification documents, and three — Medlog SA, HR Lines Limited, and Saif Powertec Ltd — submitted responsive proposals.

Later, in July 2025, to attract significant investment, the CPA board extended the concession period to 22 years with ministry approval.

RFPs were issued on October 4, and by the submission deadline of November 5, Medlog SA and HR Lines submitted final proposals.

A seven-member evaluation committee, led by the CPA Member (Harbour and Marine), assessed the technical bids on November 6. According to CPA sources, Medlog SA achieved a perfect score — 100 out of 100 — across six technical indicators, including:

• financial model
• cargo handling equipment and performance standards
• emergency and fire-safety readiness
• marketing strategy
• financing plan

HR Lines, which failed to submit two mandatory technical components, scored 60 and was marked unresponsive.

With no issues identified in Medlog SA’s offer, the committee recommended awarding the contract to the Swiss firm.

Under the separate concession agreement for the Laldia Container Terminal, APM Terminals BV will design, build, and commission the new greenfield facility within approximately three years, and operate it for 30 years, with an option for a 15-year extension.

The project is expected to bring in around USD 550 million (about Tk 6,700 crore) in foreign direct investment — one of the largest private investments in Bangladesh’s port infrastructure.