Red Sea Gateway Terminal International Signs 22-year Concession to Invest in and Operate Patenga Container Terminal in Bangladesh

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PCT is Bangladesh’s latest and most modern facility with 500,000 TEU capacity, and it is the first to be operated by an international operator in the busiest port on the Bay of Bengal.

Chittagong, Bangladesh- Red Sea Gateway Terminal International (RSGTI), through its subsidiary RSGT Bangladesh Ltd, and the Chittagong Port Authority (CPA) signed a 22-year concession agreement today for the operation of the Patenga Container Terminal on an Equip- Operate-Transfer basis. CPA Chairman Rear Admiral Mohammed Sohail and RSGTI CEO Jens O. Floe signed the concession agreement in Dhaka.

Expressing pride at being chosen as a significant investor, Mr. Floe remarked, “We eagerly anticipate leveraging our operational excellence to enhance the performance of Bangladesh’s primary gateway port. Collaborating with the CPA, we aim to expand Bangladesh’s trade network and foster economic growth for its citizens. This marks the initiation of what we hope will be an enduring strategic alliance, enabling RSGTI to further invest in the port infrastructure of this rapidly evolving economy.” RSGTI is the first international container terminal operator to establish a presence in Bangladesh.

Constructed by the Bangladeshi Government, Patenga Container Terminal (PCT) has 580 meters of quay, an area of over 200,000 square meters in conjunction with the South Container Yard, and a 9.5-meter draft offering a shorter sailing distance and guaranteed windows, a first for Chittagong Port. RSGTI plans to invest USD 170 million in equipment technology, including four advanced ship-to-shore (STS) cranes. PCT, with the ability to handle three vessels simultaneously, shall, at first, handle geared vessels with an initial annual capacity of 250,000 TEU, doubling its capacity with the delivery of major equipment, including STS Cranes and Rubber-Tired Gantry cranes with the capability of handling the largest gearless and geared vessels calling Chittagong Port.

RSGT Jeddah, RSGTI flagship terminal is the largest terminal in Saudi Arabia and the Red Sea and will handle over 3.3 million TEU in 2023 at the Port of Jeddah. “RSGTI, partly owned by the Public Investment Fund of Saudi Arabia, is very pleased to have Patenga Container Terminal represent its first international concession, strengthening its position as an emerging port operator with global investment ambitions and a strong emerging market focus,” said Gagan Seksaria, RSGTI’s Director of Global Investments.

The Port of Chittagong ranked 67th among the world’s Top 100 Container Ports in 2022, with a container volume of over 3 million TEU; Chittagong is Bangladesh’s primary port, through which over 90% of Bangladeshi trade passes and is the busiest container port on the Bay of Bengal. With a population of 167 million and an average GDP growth rate of over 6% over the last decade, Bangladesh is one of the world’s fastest-growing economies. Most import shipments are destined for Dhaka, Bangladesh’s capital and largest city, a distance of 265 km from Chittagong’s maritime center. The port also serves as the main gateway for Bangladesh’s fast-growing exports, including its apparel and textiles trade, one of the largest globally.