The newly-built Patenga Container Terminal (PCT) of the Chattogram port officially started running yesterday with Saudi operator Red Sea Gateway Terminal (RSGT) Bangladesh at the helm.

The operations kicked off with the berthing of container vessel "Maersk Davao" at one of the PCT's four jetties.

This marks a significant milestone as it is the first time a foreign firm has been entrusted with managing operations of a port terminal of the country.

RSGT Bangladesh is a subsidiary of Red Sea Gateway Terminal International (RSGTI), a sister concern of Red Sea Gateway Terminal which operates Saudi Arabia's largest terminal facility at Jeddah Port.

A landlord model has been adopted for the PCT where the CPA will act as the regulatory body and as landlord while the Saudi firm will run the PCT's operations for the next 22 years.

The Chattogram port serves as a gateway for 90 percent of Bangladesh's import and export activities.

Built on 32 acres of land and containing three 200-metre jetties and one 220-metre dolphin jetty, the PCT will allow berthing of vessels at the shortest possible time given its close proximity to the estuary of the Karnaphuli river.

Three vessels with 10 to 11-metre draft will be able to berth at a time in the terminal, having an annual capacity to handle 5 lakh TEUs (twenty-foot equivalent unit) of containers.

The operator will invest approximately $170 million to install equipment, read a press release last year from the Sustained Infrastructure Holding Company, one of the operator's investors.

The terminal will therefore target the fast-growing import and export market that has an expected annual gateway volume growth rate of 7 percent per annum, underscoring the potential for higher revenues and margins over time, said the company.

The National Board of Revenue (NBR) on June 4 granted the approval for commencing the operations on condition that all import-laden containers are physically examined under a customs risk management system until scanners are installed.

A brief inauguration ceremony was held at the PCT in the afternoon, when Rear Admiral Mohammad Sohail, chairman of the CPA, and Erwin Haaze, chief executive officer of RSGT Bangladesh, were present.

"This marks a significant day for the Chattogram port as a well-known foreign terminal operator has entered the country for the first time," said Sohail.

"We look forward to collaborating with our international partner, which will greatly boost the country's economic growth," he said.

"The initiative will also create more employment while modern equipment has been brought and more are in the pipeline for the terminal," he added.

"Our current position is advantageous for all parties involved. Revenue generation has commenced as of today (Monday) and we anticipate substantial earnings through profit-sharing as per the agreement," said Sohail.

Renowned companies of this sector will arrive in the coming days seeking to run other terminals and competition among the operators will increase revenue, said the CPA chairman.

"PCT stands as a symbol of collective vision to progress and prosperity. It is a gateway to open a new avenue for trade," said Haaze.

"With the state-of-the-art facility and extended capacity, the terminal will significantly improve vessels' turnaround time, enhance handling capacity and optimise the logistic chain," he said.

"As we embark on the new chapter in maritime history, this is just a beginning. We will navigate together toward a brighter and prosperous tomorrow for all," he added.