20.5 C
Monday, September 27, 2021
Home News DP World near deal to build Bangladesh's largest rail ICD

DP World near deal to build Bangladesh’s largest rail ICD

Talks between UAE-based DP World and the government of Bangladesh are advancing regarding the construction of Bangladesh’s largest rail container depot in Gazipur district, close to the capital city of Dhaka.

Last year DP World had expressed interest to invest US$1 billion in Bangladesh’s logistics sector including the Bay Terminal in Chittagong.

The new inland container depot (ICD) will be built on more than 240,000m² of land near Dhirashram railway station in Gazipur where around US$300 million will be needed for its construction.

The new rail ICD will help increase the container transportation capacity by train to and from Chittagong and Dhaka and elsewhere.

Presently there is a rail ICD in Dhaka’s Kamalapur railway station inside the capital city which has a handling capacity of 90,000TEU while the new one will have a capacity of 354,000TEU.

Once the new ICD is built in Dhirashram, the Kamalapur ICD will be shifted there. Gazipur is the country’s largest garment production hub from where mainly the cargoes are directly transported to the Chittagong sea port for making shipment.

For this transportation, shippers are mainly dependent on trucks and covered vans, and a portion is also carried by train from Kamalapur ICD. In Bangladesh, shippers are frequently forced to pay twice or thrice compared to the normal truck rent, especially ahead of any large events, for example, Eid-related holidays.

Once the new depot is built, trains will be the main mode of transportation of apparel goods and raw materials to and from the garment district.

Abul Kalam Azad, a garment factory owner at capital’s Tongi area said freight train is the prime mode of inland transports of containers worldwide. “The new depot will help us to carry cargoes to and from the Chittagong port and the factories at lower cost the trucks and covered vans,” he noted.

Officials said the Prime Minister’s office a few months back decided that the new ICD should be built on Public Private Partnership (PPP) method and DP World will be given the task.

Abul Bashar, director general of Bangladesh’s PPP Authority, said the Dubai-headquartered logistics company is interested to invest in Bangladesh’s logistics sector and when it was proposed to invest in ICD, the company sought some documents in this regard.

The authority is now preparing a request for proposal (RFP), a generic document which will be supplied to DP World and also other interested parties for making a decision on their parts, according to Bashar.

"A feasibility study has already been conducted on the proposed new ICD while the bid documents and PPP contracts are under preparation," said Bashar, who went on to add that a financial model for the project alongside the ‘value for money analysis’ is also under preparation.

Sharar Nayel
Bangladesh Correspondent

Latest Posts

Cosco Shipping Lines upgrades its reefer fleet

Cosco Shipping Lines has enhanced its refrigerated cargo fleet with active controlled-atmosphere (CA) systems, named EverFresh, which are provided by Carrier Transicold. The high-performing systems...

Red Sea Gateway Terminal eyes Bangladesh’s terminal operation

Saudi Arabian Red Sea Gateway Terminal (RSGT) has shown its interest to invest in Bangladesh’s under construction Patenga Container Terminal which is expected to...

THE Alliance leads the blank sailings race

Over the next 4 weeks, The Alliance has announced 20 cancellations, followed by 2M and Ocean Alliance with 14 and 6 cancellations, respectively, according...

MSC adds Oakland port call in its Sentosa service

The Swiss liner operator MSC will enhance its Sentosa service by adding a new weekly port call at the Port of Oakland in the...

Indian government announces measures to tackle container shortage

Huge relief comes in for Indian exporters as the Indian government has extended the deadline by three months for the re-export of imported vessels...