AD Ports Reaches Agreement with Chittagong, Bangladesh

Shipping containers in a port terminal
Ports & Logistics Asia
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Updated Published

AD Ports Group has entered into a nonbinding agreement to explore the development and operation of a multipurpose port in Chittagong, located on the southeastern coast of Bangladesh.

A memorandum of understanding was signed between the Abu Dhabi-based ports and logistics giant and the Chittagong Port Authority. The signing ceremony was attended by Abdulla Al-Hmoudi, head of the UAE mission to Bangladesh, and Khalid Mahmud Chowdhury, Bangladesh's minister for shipping.

The volume of non-oil trade exchanges between the two countries exceeds $2 billion, and the UAE is Bangladesh’s second-largest source of remittances. In March this year, the countries marked 50 years of bilateral ties and pledged to explore new avenues for trade and investment.

More than 90% of Bangladesh’s international trade passes through the ports of Chittagong, which are part of a multimodal network linking the republic to the hinterland. The ports also provide sea access for the landlocked Himalayan countries of Nepal, Bhutan, and India’s Northeast region.

“The multipurpose port in Chittagong is a priority for the government of Bangladesh. It will be a game changer for the regional economy in general and Bangladesh economy in particular,” said Rear Admiral Mohammad Sohail, chairman of Chittagong Port Authority. He added that the port hopes the deal will pave the way for further cooperation and attract more foreign direct investments to Bangladesh.

Further details were not disclosed, but local media reports suggest that AD Ports has offered to invest approximately $1 billion in the construction of the terminal, which will handle both containerized and bulk cargo.

The Bay Terminal project includes a total of four terminals. In addition to the AD Ports multipurpose terminal, the project will feature two box terminals built by PSA International and DP World with investments of $1.5 billion each, and one $3.5 billion liquid cargo terminal developed by the local East Coast Group and its subsidiaries.