Addleshaw Goddard advises APM Terminals on landmark USD 550m+ investment in Chittagong, Bangladesh

AG's leading ports and terminals team has advised APM Terminals (APMT), one of the largest port operators in the world, on the negotiation and execution of a concession agreement with the Chittagong Port Authority (the CPA), together with associated ancillary documentation (including a shareholders' agreement between APMT and its local Bangladesh partner, QNS Container Services Ltd). 

Under the concession agreement, an APMT subsidiary will design, finance, build and operate the Laldia Container Terminal in Chittagong, Bangladesh – with APMT investing in excess of USD 550 million in Bangladesh to construct the terminal.  This is the first greenfield port concession granted in Bangladesh, and represents a major step forward in the CPA's plans to expand capacity at Chittagong Port.

This first-of-a-kind project will be the single largest investment in Bangladesh by a European company ever, and will help to address bottlenecks at the Chittagong Port and unlock trade and growth in Bangladesh.  The project marks a pivotal leap in Bangladesh’s future port performance, positioning the nation as a competitive maritime hub in South Asia.  The terminal is expected to generate over 1,000 jobs during construction and more than 500 when in operation.

Keith Svendsen, CEO, APM Terminals, said: “It is with great honour that we enter this agreement with Bangladesh, which underscores the great potential that this important market has. This greenfield project enables us to play an active role in supporting the growth of the local manufacturers, exporters, importers and the broader Bangladeshi economy. We are strengthening our commitment to the country with an aim of creating a safe and efficient terminal as well as creating skilled jobs for the future prosperity of the region.”

The AG team advising APMT was led by Ian Le Pelley (Partner, Ports & Terminals), and included Tom Wheatley (Managing Associate, Ports & Terminals), Jordan Cleary (Associate, Ports & Terminals), Bruce Chen (Partner, Infrastructure Projects & Energy) and Kayode Adeniran (Associate, Infrastructure Projects & Energy).  The APMT legal team was led by Maarten Hepkema (General Counsel, IMEA), with assistance from Kimiyo Lee (Senior Legal Counsel, Investment and Projects) and Nkenglefac Yochembeng (Senior Legal Counsel, IMEA).

Ian Le Pelley, Partner, Addleshaw Goddard, said:  "We are delighted to have advised APMT on this first-of-a-kind project.  It has been an absolute pleasure assisting the APMT team in bringing this project to this significant juncture.  The dedicated focus of our ports and terminals team, our deep industry expertise, and our unmatched experience in Bangladesh, means that we were extremely well placed to provide the assistance that APMT needed to ensure that the negotiations reached a successful conclusion."

This is the second time that AG's ports and terminals team has advised a private operator on the negotiation of a concession agreement with the CPA – having previously advised Red Sea Gateway Terminational International on the successful concession of the Patenga Container Terminal at Chittagong Port.  To date, Addleshaw Goddard remains the only firm to have advised a private operator on the successful privatisation of a port terminal in Bangladesh.