CPA signs 22-year deal with Swiss firm Medlog to operate Pangaon Terminal

The agreement on the management in of PICT, which is strategically located on the Buriganga River near Dhaka and just three kilometres from the high-speed Dhaka-Mawa-Bhanga Expressway, marks the start of a dynamic new chapter for both MEDLOG and the logistics and trade infrastructure in Bangladesh.

The terminal has a specific focus on efficient first and last-mile delivery into Bangladesh’s hinterland and will establish MEDLOG as a key player in Bangladesh’s inland transport network.

Commenting on the new concession, Anisul Millat said. “The Pangaon Inland Container Terminal holds immense potential to boost economic growth and set new standards in logistics efficiency. By applying MEDLOG’s global expertise and executing our strategic plan, we can deliver sustainable growth and position Bangladesh as a regional leader in inland logistics.”

By leveraging MEDLOG’s operational excellence, technology, and investment, the project will stimulate trade, enhance supply chain resilience and elevate the Bangladeshi logistics sector to a globally competitive level, he added.

On the volume of investment, Millat told The Business Standard, “There are some government procedures; we expect those to be completed within one to one-and-a-half months. After that, we will be able to begin terminal operations.”

He said the company will make an initial investment of $40 million over the first four to five years, which could increase to $400 million in the next 10–15 years.

“We will pay the Bangladesh government a total of $6 million as signing money, and today we have paid Tk18 crore. Each year, we will pay the government Tk1 crore 1 lakh. In addition, for every TEU we operate, we will pay the government Tk250, which will increase by 4% annually,” Millat added.

Encouraging regional trade volumes

Under the new concession, MEDLOG SA will oversee through its SPC MEDLOG Bangladesh Private Ltd the operations, supply and automation at PICT, bringing global expertise and advanced technology to optimise inland logistics and drive sustainable growth.

MEDLOG is poised to expand the terminal’s facilities to support growing trade volumes in the region and will offer an annual handling capacity of 160,000 TEUS.

To strengthen multimodal connectivity, MEDLOG will charter inland barges from PICT to connect Pangaon with other river terminals and seaports.

Barges will also serve oversized project cargo, while trucks, covered vans and reefer vehicles will offer additional distribution channels across the region. Enhanced intermodal transportation will minimise uncertainty associated with inland cargo logistics and guarantee lead time assurance, in a major advancement for local importers and exporters.

Enhancing capacity and facilities

Facilities at PICT will include two mobile harbour cranes, reefer connections and 24-hour power supply, an empty container storage, repair yard and an expanded Container Freight Station (CFS) with up to 10,000 sqm for stuffing and stripping.

Land adjacent to the terminal will be developed for cotton warehousing and dry storage distribution, creating additional value for importers and exporters.

Digital integration and trade facilitation

In a key move for trade facilitation, PICT will provide a Through Bill of Lading (BL) facility, allowing cargo to move seamlessly from international ports to Pangaon under a single document, to significantly streamline logistics and customs processing.

The terminal will also support the green channel initiative, designed to fast-track logistics by speeding up customs clearance.