The Chittagong Port, the lifeblood of Bangladesh's international trade, is set for a potential upgrade as AD Ports Group, a leading logistics and trade facilitator from Abu Dhabi, signed a Memorandum of Understanding (MoU) with the Chittagong Port Authority (CPA) on May 16, 2024. This agreement paves the way for exploring the development and operation of the port's Multi-Purpose Terminal, signifying a significant step towards increased capacity and efficiency for Bangladesh's maritime trade sector.
The MoU, signed in the presence of UAE dignitaries and Bangladeshi government officials, highlights the growing strategic partnership between the two nations. Bangladesh, with over 90% of its trade funneling through Chittagong Port, recognizes the need for expansion to accommodate its flourishing economy. AD Ports Group, boasting expertise in managing global trade hubs, brings a wealth of experience to the table.
"We are excited to explore the development and operation of the Multi-Purpose Terminal and other ancillary opportunities in Chittagong, " said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group. "Our experience and capabilities can significantly assist Bangladesh in addressing the rising trade volumes it experiences as one of Southeast Asia's fastest-growing economies. "
The Multi-Purpose Terminal presents a strategic focal point for this collaborative effort. This versatile terminal can handle a wider range of cargo compared to traditional facilities, catering to containerized goods, bulk cargo, and potentially even specialized or oversized items. The development of such a terminal would position Chittagong Port to become an even more attractive proposition for international shipping lines and trade partners.
The MoU extends beyond just the Multi-Purpose Terminal. The agreement includes exploring "ancillary opportunities" within the port and surrounding areas. This could encompass the development of warehousing facilities, improved transportation links, or even the creation of free trade zones to incentivize foreign investment.
The potential benefits of this partnership are multifaceted. Increased port capacity translates to smoother cargo movement, potentially reducing wait times and expediting trade activities. This efficiency boost could lead to lower logistics costs for businesses, making Bangladeshi exports more competitive in the global market. Additionally, the project has the potential to create new job opportunities within the port and its surrounding areas.
While the MoU signifies a promising step forward, it's important to acknowledge that this is the initial phase of a potentially long-term project. Further discussions and feasibility studies will be required to determine the exact scope and timeline for the development. However, the collaborative spirit between AD Ports Group and the CPA offers a positive outlook for the future of Chittagong Port and Bangladesh's trade potential.