DP World’s investment bid in Bangladesh advancing
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Dubai-based terminal operator DP World’s bid to foray in Bangladesh’s port and logistics sectors is making progress.
The Public Private Partnership (PPP) Authority of Bangladesh has asked DP World to submit specific project proposals relating to its investment plans within a month.
Recently, DP World had submitted a concept paper to the PPP Authority where it expressed interest in investing USD1 billion in Bangladesh’s logistics corridor.
In the proposal, the business said it wants to invest USD700 million to equip, operate, and maintain Patenga Container Terminal; to modernise, operate, and keep maintaining Chittagong port’s New Mooring Container Terminal and Chittagong Container Terminal; and to the construction of Bay Terminal.
Additionally, it plans to get USD100 million in Kamalapur inland container depot (ICD) and construction of a fresh ICD near Dhirasram railway station, on the outskirts of the capital Dhaka.
The business also plans to get USD100 million to create a railway joint venture company and for rolling stocks, and another USD100 million in port/ICD-linked monetary zones.
Furthermore, DP World wants to transfer and co-create an electronic technology platform, that will bring efficiencies by integrating all logistics stakeholders into one platform and increase export-import trade.
DP World said its investment in Bangladesh’s hard logistics infrastructure increase exports, attract six-fold growth in foreign direct investments in a five-year period, add 10% more manufacturing sector’s share to GDP, and invite for rapid job creation and diversification of their export basket.
PPP Authority director general Abul Bashar said DP World’s investment proposal is under scrutiny by the federal government.
He said the ministry of shipping, Chittagong Port Authority, railway, roads, and highways division, and the ICT division have been asked to forward any specific projects where DP World can invest to the PPP office.
“Concurrently, we’ve asked DP World to submit specific project proposal to us,” Bashar said.
He also said the federal government may well not involve DP World in Bay Terminal construction because its feasibility study was conducted by another company.
According to shipping ministry officials, the government really wants to award the construction and operation task of Bay Terminal to PSA International, one of the world’s greatest port operators located in Singapore.
“We will handle DP World on its proposed project except the Bay Terminal,” Bashar said.
DP World and Bangladesh’s shipping ministry signed a memorandum of understanding in February 2019. In December 2019, DP World and the Dubai Chamber jointly organised a meeting in Dubai where in fact the participants decided to forward an idea note to Bangladesh on proposed investment.
Source: https://dredgingandports.com