News / MSC eyes multi-million investment in Bangladesh's Pangaon Inland Container Terminal

© Woravit Vijitpanya

MSC looks set to pump some millions into Bangladesh’s logistics scene before the end of the year, pending government approval of its proposal to take over operational responsibility for Dhaka’s Pangaon Inland Container Terminal (PICT) from the Chittagong Port Authority.

Country head for the world’s largest container line, Harun Rashid, told The Loadstar that if approved, the investment will be used to develop a series of new services, including logistics, consolidation and an end-to-end offering.

Mr Rashid said provision of this new suite of services is “our ultimate goal”, expressing hope that the deal will be signed “soon” as MSC’s logistics division, Medlog, prepares to launch a barge service between Pangaon and Chittagong to avoid worsening congestion at the latter. “Medlog is trying to make the investment and is in talks with the government on this,” he said.

He continued: “After getting possession of the terminal, we will initially use the local barges, nearly a dozen, which presently carry cargoes to and from Pangaon and Chittagong port. Later, MSC will bring barges from abroad to use on the route.”

It is understood that containers will be loaded directly between feeder vessels and barges to avoid taking up space at the terminal in Chittagong, with shipments either transported by barge to Dhaka or by feeders to regional gateways in Malaysia, Singapore, and Sri Lanka.

Officials told The Loadstar that they were assessing the request to lease out the terminal which, if approved, would be given to MSC on a 20-year basis, offering it some 116,000 teu of handling capacity – although plans are in place to up this to 160,000 teu.

Ministry of Shipping senior secretary Mohammed Yousuf told The Loadstar: “We have plans to lease out the PICT to enhance its use and raise carrying cargo using the river route. We are negotiating with the MSC on leasing out the terminal.”

Despite the port’s capacity, poor management has seen it massively under-utilised at a time when Chittagong has been struggling with volumes, with poor management having left it unattractive to prospective traders.

Indeed, having handled a little over a quarter of its total capacity in 2023 (35,771 teu), last year saw volumes plummet to just 10,240 teu, with sources having told The Loadstar that Bangladesh is crying out for all the capacity it can get.