Chattogram Port Authority (CPA) has signed a landmark agreement with Red Sea Gateway Terminal International (RSGTI) to operate the newly built Patenga container terminal. This marks a significant development in increasing the capacity and efficiency of Bangladesh's maritime trade.

Change of operator:

Initially, the Saudi government nominated Red Sea Gateway Terminal (RSGT) to operate the terminal. However, due to the requirement of 100% Saudi ownership under the G2G (government to government) policy, a new company, RSGTI, was established with full Saudi ownership. RSGTI is considered a sister group of RSGT, founded in 2022.

Timeline and next steps:

The inauguration of the Patenga terminal took place last month, almost 17 months after the completion of construction. The signing of the agreement this week paves the way for further development. Loading of the equipment carriers is expected to begin in January 2024, followed by a two-year period to acquire additional equipment and reach full operational capacity.

Address the confusion:

Concerns were raised about the inclusion of RSGTI in the original proposal. In response, the Saudi Ministry of Investment contacted the Bangladesh government and proposed RSGTI instead of RSGT. This proposal was later accepted by the Ministry of Shipping of Bangladesh.

Collaboration and future perspectives:

Because the agreement involves both governments, all future contracts and activities will be carried out in close cooperation with RSGTI. The CPA secretary confirmed that the port authority will work directly with the company nominated by Saudi Arabia for this G2G project.

This agreement marks a positive step towards strengthening economic ties between Bangladesh and Saudi Arabia. The Patenga container terminal is expected to play a crucial role in facilitating trade and boosting economic growth of Bangladesh.