During my recent business trip to Singapore in last December, I had a chance to converse with Alfred Sim, the Head of Cargo Solutions of PSA International Private Limited, at the terminal office of the Singapore Port. I was somewhat curious as to why they felt the need to invest in the development and operation of a terminal at the Chittagong Port in Bangladesh when Singapore Port is at the top of the world by operating 66 terminals in 44 countries.

Alfred Sim began his response by pointing out that Bangladesh is located in a strategically significant position. Especially, the location of Chittagong is very promising. Surrounding regions can benefit from using the Chittagong Port.

And they want to invest because there is potential. In the meantime, we were interested in exploring the Singapore Port. Looking at the operation at the port, I was wondering how they handled 100,000 TEUS containers in Singapore every day with such a sophisticated system. Alfred Sim informed us that 85 per cent of those containers in Singapore were transhipment containers.

However, it is learned that most of the containers of Bangladesh's Chittagong Port are taken through this Singapore Port. Singapore Port can accommodate the world's largest container ships which Chittagong Port cannot. So, containers from all over the world are brought and taken from Chittagong through Singapore, Colombo in Sri Lanka, and two ports in Malaysia. Among them, most containers are still transported through Singapore.

However, mega projects are going to be implemented in Bangladesh. If projects like Matarbari, Bay Terminal are implemented, the dependency on transhipment of ports will be reduced to some extent. The new route of container transport will be launched directly from Chittagong to Europe and America. It will not, however, hurt PSA’s operations, because a new terminal is supposed to be built and operated by them. A concession agreement between Chittagong Port and the PSA to construct and operate a terminal at Bay Terminal in Chittagong will be signed by June 2024.

Foreign investment in the port sector is quite new for Bangladesh. The government, however, has already signed a concession agreement with Saudi Arabia's Red Sea Gateway International Terminal to operate Chittagong's Patenga Terminal.

For the first time, an agreement with a foreign operator has opened the door to the landlord model of port management. In the 1990s, this model of Public-Private Partnership (PPP) for port management started around the world.

The era of the popular model of world port management started in Bangladesh with delay. After Patenga, the two container terminals of Bay Terminal will be operated in this model. For this reason, the government is proceeding with an agreement to construct and operate a terminal with PSA International and one with DP World.

According to Lloyd's List, PSA was the number one port operator in the world in 2022 while DP World held the position of number five. According to PSA International's website, in 2022, they handled 90 million TEUS containers in various countries around the world, including Singapore.

They have handled 250,000 TUS containers per day at terminals under their management in these countries including Singapore. They are operating 66 terminals in 44 countries of the world. And they have offices at 176 places. Although they have not operated any terminal in Bangladesh yet, they have opened an office.

If a renowned operator like PSA invests in Bangladesh, it may create numerous advantages. They will invest here under public-private partnership. It can be expected that it will attract more foreign investments in the country.

The capacity of Chittagong Port will also be increased upholding the port’s image further. Competition in the sector will arise when multiple foreign operators will operate the port's terminals.
It will also benefit our export sector. Our main export product is readymade garments.

Foreign buyers also consider the port of Bangladesh when placing orders. They place orders considering whether there is congestion at the port or not, how long it may take to clear the goods, how long it will take for the import and export of raw materials at the port etc. When foreign operators will join the management of Bangladeshi ports, they will be able trust it more. It can give them hope for fast import-export of raw materials through the port as well.

It is seen that India welcomed foreign investment in the port sector 26 years ago. Now there are big operators in the country. Many of their institutions are now operating terminals efficiently. Till now, Chittagong Port has been the only container port in Bangladesh.

A very small quantity of containers is used to be transported through Mongla Port. However, during the third term of the ruling Awami League government, many port projects saw the light. In the meantime, Patenga Terminal has been constructed while the Matarbari deep sea port terminal is under construction. A terminal at Payra seaport is also nearing completion.

Again, three separate terminals will be constructed at the Bay Terminal. The government has decided to build these new projects or just invest in the machinery sector to manage them with world-renowned operators. We can hope that this development will enhance Bangladesh's global reputation and economic growth.
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The writer is the Vice President of Bangladesh Freight Forwarders Association