Saudi Port Operator Expands With Container Terminal in Bangladesh

The Saudi port operator Red Sea Gateway Terminal (RSGT) has officially launched operations at the Patenga Container Terminal (PCT) in Bangladesh. The terminal is part of the port of Chattogram, the main gateway for Bangladeshi’s ocean cargo import and export. It is also the busiest port in Bay of Bengal.

RSGT signed a 22-year concession to develop and operate PCT back in 2023. During the launch event last week, RSGT said it had invested $170 million in the terminal, marking one of the most significant international expansion for the operator. The investment went into expanding the terminal’s container capacity, which has doubled from 250,000 TEUs in 2024 to the current 600,000 TEUs. Part of this milestone has been achieved through acquisition of four ship-to-shore (STS) cranes, resulting in a 30% productivity improvement over other regional terminals, according to RSGT.

The PCT launch represents a pivotal moment in Bangladeshi’s maritime development, with the terminal being the first private port concession under the Public-Private Partnership Policy. The Bangladeshi government adopted the policy in 2017 at a time the country was opening up its economy to foreign investors. In 2019, RSGT became the first port operator to sign Memorandum of Understanding with the government, offering to provide operational assistance and expertise to the Bangladeshi port sector.

With PCT fully operational, RSGT has pledged additional financing to a tune of $1 billion to Bangladesh’s port and logistics sector. The operator targets to handle about 400,000 TEUs at the terminal this year, which is equivalent to 12 percent of the total container operations in Chattogram port.

Meanwhile, as the Bangladesh continues to welcome private investors, a proposed shipbuilding facility near Chattogram port has been granted in-principle approval by the government. The Matarbari Dockyard will be located next to the upcoming Matarbari deep sea port, which is being developed 62 miles south of Chattogram.

The shipbuilding facility project is expected to be financed by the Australia-based AIS Marine, with China Harbor Engineering Company named as the technical partner. After the in-principle approval, the proposal has been forwarded to the Public-Private Partnership Authority for further review.

Last month, the Minister of Shipping Shaikh Rabiul Alam told parliament that his ministry is advancing plans to designate shipbuilding as a priority sector. This status will see local yards benefit from customs incentives and long-term tax holidays. With needed expansion, Alam said that local shipyards could seize the existing global demand for medium-sized vessels.