Bangladesh, APM Terminals sign landmark US$550M investment agreement

The project represents an investment exceeding US$550M, making it one of the largest public private partnership (PPP) investments in the country’s history.

The agreement was signed between the Chittagong Port Authority and APM Terminals – part of AP Moller-Maersk – together with local partner QNS Container Services. The concession agreement will allow APM Terminals to operate the terminal for 30 years, which can be extended based on key performance indicators. The Laldia Container Terminal will be fully designed, financed, built and operated by the investors – a first-of-its-kind model for Bangladesh’s port infrastructure.

The project is part of the Sustainable Green Framework Engagement between Denmark and Bangladesh, a bilateral initiative aimed at fostering green investment, job creation and sustainable economic relations.

Once operational in 2030, the terminal will expand Bangladesh’s annual port handling capacity by more than 800,000 TEU.

The new deepwater facility will, over time, allow the Port of Chattogram to handle vessels potentially up to 6,000 TEU, compared with the current limit of 2,800 TEU, reducing congestion, lowering logistics costs for supply chain actors and supporting the continued growth of the export sector.

The ambition is to build one of South Asia’s first energy-efficient, low-emission terminals – aligned with net-zero principles and designed to support Bangladesh’s long-term climate goals. 

Key features include electrified cargo handling equipment, solar power installations on terminal structures and shore power-ready systems enabling vessels to plug into the grid.

APM Terminals chief executive Keith Svendsen said, “This greenfield project enables us to play an active role in supporting the growth of the local manufacturers, exporters, importers and the broader Bangladeshi economy. We are strengthening our commitment to the country with an aim of creating a safe and efficient terminal as well as creating skilled jobs for the future prosperity of the region.”

Chief adviser of the government of Bangladesh, Professor Muhammad Yunus, said, “The Laldia Container Terminal demonstrates Bangladesh’s commitment to reform, transparency and investment-friendly growth. Laldia will be the country’s first green port and the single-largest European foreign direct investment in Bangladesh. This landmark collaboration with APM Terminals will unlock new capacity for our exporters, reduce logistics bottlenecks and enhance our competitiveness in global markets. We look forward to seeing this world-class terminal drive new opportunities for our people and our economy over the next decades.”

Minister of Foreign Affairs of Denmark Lars Løkke Rasmussen said, “The investment in Laldia container terminal by APM Terminals is a powerful symbol of enduring and real partnership, and shows strong confidence in Bangladesh’s future.”

QNS Container Services chairman Nurul Qayyum Khansaid: “…It will offer more robust and efficient supply chains for Bangladeshi exporters and importers and reduce the overall cost of doing business. Bangladesh is one of the fastest growing economies of the world, and with the graduation from LDC just around the corner, it’s an ideal time for Bangladesh to experience the reduced cost of trade from cutting-edge technology and best practices of an ‘international standard’ terminal operator.”