The government has signed a contract with local private firm PowerPac Ports Limited (PPPL) to develop and operate two jetties at the Mongla port.
The public-private partnership (PPP) was signed with the aim to enhance facilities at the Mongla port, which is the country’s second-largest sea port located its southern part.
As per the deal signed on Sunday with the Mongla Port Authority (MPA), PPPL, a concern of local Sikder Group, will construct the jetties in the next 2 years investing a cool $52.75 million.
The company will operate the jetties for 30 years, including the two years needed for the construction, and share profits from the operation with MPA.
PPPL managing director Ron Hoque Sikder and MPA chairman Rear Admiral Riazuddin Ahmed signed the contract on behalf of their respective sides.
Shipping Minister Shahjahan Khan was present at the signing ceremony at Sonargaon Hotel in the city.
Addressing the function, the minister said once the two new jetties come into operation, they would enhance service facilities and boost the income of the Mongla port.
“We hope, Mongla port’s container handling facilities will go up to 100,000 TEUs (more than double the current capacity) annually while income gradually rise by upto Tk 60 crore a year,” he said.
He mentioned the project will not only benefit Bangladesh, but also play a vital role in the region’s trade with neighboring nations like India, Nepal and Bhutan also getting the chance to avail its services.
Minister Shahjahan said the government has already implemented 7 projects from 2008-2016 for gradual development of Mongla port at a cost of Tk 310 crore.
The port has recently turned profitable, Shahjahan said, from being regarded as a losing concern.
At present, Mongla port has 5 jetties in operation which handled 41,953 TUEs in 2015-16 fiscal year. The jetty No-4 and 5 will be developed under the PPP project.
The function was also addressed by shipping secretary Ashoke Madhab Roy, MPA chairman Rear Admiral Riazuddin Ahmed, and PPPL chairman Rick Haque Sikder.
According to the agreement, the first two years will be for construction. Of the rest 28 years, the PPPL -run two jetties will get nearly 39 percent of the total shipping arriving at the port, while the Mongla Port’s own jetties will get the remaining 60.80 percent in the first five years of operation.
In the second five years, it will be 29.40 percent and 70.60 percent respectively for PPPL and MPA. For the remaining 18 years, the PPPL-run two jetties will get 24.50 percent and the Mongla Port 75.50 percent of the income.
The Mongla Port Authority will get $200,000 in the first year as fixed royalty which will gradually rise by 2 percent every year. In the variable royalty, the Mongla Port Authority will get $2 per container and $0.20 per cargo handling.
Of the country’s three sea ports, Chittagong Port handles around 94 percent of incoming ships and their cargo, while Mongla Port the remaining 6 percent.
Mongla Port, located about 131 km inland off the Bay of Bengal on the Pussur River at its confluence with the Mongla River in the country’s southern part, was designed to cater to 11 concrete jetties.
Source: Ittefaq
