In the presence of His Excellency Mr. Salman F. Rahman, Member of Parliament and Private Industry and Investment Adviser to the Prime Minister of Bangladesh, and His Excellency Dr. Majid Bin Abdullah Alkassabi, Honorable Member of Commerce of the Kingdom of Saudi Arabia, a Framework of Mutual Cooperation was signed in the Bangladeshi Capital of Dhaka today between Red Sea Gateway Terminal (RSGT) and the Bangladeshi Ministry of Shipping on the sidelines of the FBCCI Bangladesh Business Summit attended by the Honourable Prime Minister Sheikh Hasina, covering the expected timeline to signing of the concession agreement for Patenga Container Terminal (PCT) being June 2023 and the broad transaction parameters of such a concession agreement.
Signing the Framework on behalf of RSGT was RSGT’s Executive Chairman Mr. Aamer Alireza, who stated “This is a very auspicious occasion for Red Sea Gateway Terminal as another milestone is completed in the process of concluding this partnership”, adding “We are honored to be able to serve the Bangladeshi Ministry of Shipping, the Chittagong Port Authority and the people of the great nation of Bangladesh in expanding their role in international commerce, and their presence in the Global Logistics Chain”.
Overseeing the signing on behalf of the Bangladesh Government, His Excellency Mr. Salman F. Rahman stated, “I am pleased to have been a witness to the signing of this framework related to a Saudi investment in one of Bangladesh’s most important infrastructure projects, a testimony to the ever-expanding economic relationship between the two brotherly nations. Mr. Rahman expressed satisfaction at the progress of the transaction process and added, “As agreed in the framework, both sides are committed to the execution of a concession agreement within mid2023”.
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In July 2022, RSGT, operator of the largest and busiest terminal facility in Saudi Arabia, was selected by the Bangladeshi Ministry of Shipping as the preferred operator for the new USD $240 million, 500,000 TEU capacity PCT facility at Chittagong, Bangladesh’s primary port. The Port of Chittagong (also known as Chattogram) is the busiest container port on the Bay of Bengal, with a 2021 container throughput of 3.2 million TEU. The new terminal facility was constructed by the Bangladeshi Government, and offers 600 meters of quay, and a depth of 9.5 meters. PCT will enhance Chittagong’s operational efficiency with the ability to handle three vessels simultaneously.
The Port of Chittagong ranked 64th globally in total container traffic in 2021, and handles 90% of Bangladesh’s import and export ocean cargo. Bangladeshi cargoes are generally transshipped at Colombo, Sri Lanka, and Singapore. The majority of import shipments are destined for Dhaka, Bangladesh’s Capital, and largest city, a distance of 265 km (165 miles) distance from Chittagong’s maritime center. The port also serves as the main gateway for Bangladesh’s fast-growing exports including its garments trade, one of the world’s largest. RSGT, located at Jeddah Islamic Port, handled approximately three million TEU in 2022, and has an annual throughput capacity of 6.2 million TEU.
RSGT was established in 2006 as Saudi Arabia’s first private sector Build-Operate-Transfer project. Head quartered at Jeddah Islamic Port, RSGT provides world-class integrated logistics solutions, which serve as an engine of growth for local and regional economies
Source: Red Sea Gateway Terminal (RSGT)
