Laldia APM Terminal: A Step Toward a Smarter Port Future

Laldia APM Terminal: A Step Toward a Smarter Port Future

Posted on: 22 Nov, 2025

In November 2025 the Chittagong Port Authority (CPA) signed a 30-year concession agreement with APM Terminals (part of A.P. Moller–Maersk) and a local partner (QNS Container Services Ltd.) to develop, finance, build and operate the new Laldia Container Terminal (LCT) — a greenfield project with reported investment of about US$550 million. This article examines the decision’s background, the terms announced, expected economic and operational impacts, major risks and critiques, and policy recommendations for Bangladesh to maximize benefits while managing social and environmental costs.

Bangladesh’s merchandise trade has been expanding rapidly for two decades, placing increasing strain on Chattogram — the country’s busiest seaport. The 2025 concession for Laldia represents a major public–private partnership (PPP) and the largest single European equity investment reported in Bangladesh to date. 

Contracting parties & term: APM Terminals B.V. (Maersk group) in partnership with QNS Container Services Ltd. signed a 30-year concession to develop and operate Laldia, with extensions linked to KPIs.

Investment & scope: The reported investment is ≈US$550 million for a greenfield container terminal at Laldia (upper Karnaphuli estuary). The terminal is expected to add more than ~800,000 TEU of annual capacity and enable night navigation and larger vessel calls. Construction was reported to begin in late 2025 with operations targeted around 2029–2030.

Why the government pursued this PPP

Capacity & congestion relief: Current Chattogram container facilities face congestion and vessel size limitations; a large new terminal offers headroom for projected trade growth.

FDI and technology transfer: The deal brings substantial foreign direct investment and international terminal operating standards (automation, digital systems). Officials highlighted this as Bangladesh’s largest European equity investment.

Operational improvements: Night navigation and deeper-draft operations are highlighted benefits; these can reduce transshipment dependence and logistical delays.

Stakeholders and interests

Chittagong Port Authority (CPA): Seeks capacity, revenue, and modernization.

APM Terminals / Maersk group: Wants regional hub capacity and direct control of gate-to-gate logistics.

Local partner (QNS) and domestic industry: Will be involved in operations and supply chains; local job creation cited but details on localization clauses are limited in public reports.

Civil society, environment groups, labor unions and adjacent communities: Likely to be concerned about land use, dredging impacts, displacement, and employment protections.

Economic and operational assessment

Potential benefits

Throughput & efficiency: +800k TEU capacity could raise national container handling by significant margins, reducing queuing, lowering freight cost per TEU, and shortening ship turnaround times.

Trade competitiveness: Deeper-draft, night-navigation capability and modern equipment can allow direct calls by bigger ships, reducing transshipment and associated costs.

FDI & tech spillovers: Large foreign investment may spur upgrades across port logistics, customs processing, and hinterland connectivity.

Improved Governance and Reduced Corruption: The involvement of APM Terminals introduces international compliance standards, digitalized processes, and transparent performance monitoring, which collectively reduce corruption, limit political interference, and improve overall efficiency and accountability in port operations.

Risks and caveats

Concentration and contestability: A 30-year concession to a major global terminal operator raises questions about market power, tariff-setting, and competition with existing terminal operators unless the concession includes strong regulatory safeguards.

Environmental & navigational impacts: Significant dredging and construction in the Karnaphuli estuary can affect fisheries, sediment dynamics, and communities — requiring robust Environmental & Social Impact Assessments (ESIA) and mitigation plans. Public reporting so far mentions modernization and sustainability but detailed ESIAs were not widely published at announcement.

Implementation/completion risk: Large infrastructure projects frequently face cost overruns and delays; PPP contract design and strong project management will be critical to meet 2029–2030 operational targets.

Governance, legal and policy implications

Contract transparency & KPIs: The deal reportedly links extensions to performance KPIs — a positive design feature — but full contract summary text and tariff-setting rules should be made public to ensure accountability and to assess fiscal contingent liabilities.

Local content & labour protections: The government should ensure clauses for local employment, training, and technology transfer; dispute resolution clauses must balance investor confidence with sovereign regulatory space.

Environmental governance: Mandatory, independently reviewed ESIAs and public consultations are a governance necessity given estuarine ecology and livelihoods.

Geopolitical and strategic considerations

Laldia’s development by a European operator adds diversification to port investors (compared with earlier projects with Chinese or other investors). This can have diplomatic and strategic ripple effects in regional infrastructure diplomacy and supply chain routing for Bangladesh’s exports. National policymakers will balance foreign partnerships to retain sovereign control over critical maritime infrastructure.

Recommendations for policymakers

1. Overall Transparency (summary concession terms, tariff regime, KPI metrics) to improve accountability and market predictability.

2. Make ESIAs public and enforceable with independent monitoring and community grievance redress mechanisms before major dredging starts.

3. Embed strong local content and workforce development clauses (apprenticeships, technician training) to maximize domestic benefits.

4. Design competition safeguards (non-discriminatory access, regulated pricing ceilings or review mechanisms) to avoid monopolistic outcomes in container handling.

5. Coordinate hinterland investments (roads, rail, customs digitization) in parallel to terminal construction to avoid bottlenecks shifting inland. 

The Laldia Container Terminal concession with APM Terminals is a landmark PPP for Bangladesh: large FDI, promise of modern terminal operations, and substantial capacity addition. The potential economic gains are real, but so are environmental, social, and governance risks. Delivering on the promise will depend on transparent contract management, enforceable environmental and social safeguards, and pro-active domestic policies to ensure the deal contributes broadly to Bangladesh’s industrial and trade goals.

Source: Newspaper, Social media, Blog and Report

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Shitav Trade International © 2025