Local firm to build, operate two jetties at Mongla port

The government yesterday signed a contract with local private firm PowerPac Ports Ltd to develop and operate two jetties at the Mongla port.

PowerPac Ports, a concern of Sikder Group, will construct the jetties in the next two years at $52.75 million and share profits from the operation with the Mongla Port Authority (MPA).

PowerPac Ports' Managing Director Ron Hoque Sikder and MPA Chairman Rear Admiral Riazuddin Ahmed signed the contract at a programme at Sonargaon Hotel in Dhaka. Shipping Minister Shajahan Khan was also present.

The MPA 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 port authority will get $2 per container and $0.2 per cargo handling.

The two new jetties would enhance service facilities and boost the income of the Mongla port once they come into operation, the minister said at the event.

"We hope, the Mongla port's container handling capacity will rise to 100,000 TEUs (more than double the current capacity) annually while income will gradually rise by up to Tk 60 crore a year."

He said the project will not only benefit Bangladesh, but also play a vital role in the region's trade with the neighbouring nations like India, Nepal and Bhutan.

He said the government has already implemented seven projects during 2008-2016 for gradual development of Mongla port at a cost of Tk 310 crore.

At present, Mongla port has five jetties in operation which handled 41,953 TUEs in 2015-16. The jetty number 4 and 5 will be developed under the PPP project.

Shipping Secretary Ashoke Madhab Roy and PowerPac Ports' Chairman Rick Haque Sikder were also present at the event.