Foreign Operator Revives Pangao Inland Container Terminal

Dhaka’s Pangao Inland Container Terminal (PICT) has resumed operations under the management of Swiss-based multinational logistics company Medlog, marking a significant shift in Bangladesh’s inland port operations. The terminal was formally reopened on Sunday, raising expectations that the long loss-making facility will finally move towards financial viability and play a stronger role in the country’s supply chain.

The Pangao terminal was originally constructed in 2013 at a cost of approximately Tk 155 crore through a joint initiative of the Chittagong Port Authority (CPA) and the Bangladesh Inland Water Transport Authority (BIWTA). Its primary objective was to reduce mounting pressure on road transport by promoting container movement through inland waterways, particularly between Chattogram Port and the capital. Strategically located near Dhaka, the terminal was designed to serve as a key logistics hub for importers and exporters operating in and around the city.

Despite its potential, the terminal struggled for nearly a decade under direct management by the Chittagong Port Authority. High handling charges, prolonged cargo clearance procedures, limited operational efficiency and insufficient logistics support discouraged widespread use by traders and shipping agents. As a result, a substantial portion of the terminal’s capacity remained unused, and the facility consistently incurred financial losses year after year.

In response to these persistent challenges, the government decided to hand over the terminal to private-sector management with international expertise. On 17 November, the Chittagong Port Authority signed a 22-year agreement with Medlog Bangladesh for the operation and maintenance of Pangao Inland Container Terminal. Under the agreement, Medlog is expected to introduce modern operational practices, improve service efficiency, invest in better equipment and integrate the terminal more effectively into global logistics networks.

Speaking at the reopening ceremony, Shipping Adviser Brigadier General (retd) M Sakhawat Hossain expressed optimism that the terminal’s upgrade to international operational standards would significantly boost container transportation via inland waterways. He noted that enhanced river-based cargo movement would help ease congestion on highways, reduce transportation costs and strengthen Bangladesh’s multimodal transport system by linking river, road and seaport infrastructure more efficiently.

Logistics experts believe that effective operation of Pangao could also relieve pressure on Chattogram Port by enabling faster evacuation of containers to Dhaka. This, in turn, may improve overall port turnaround times and support the country’s growing trade volume. For importers and exporters, a functional inland container terminal close to the capital promises savings in both time and cost, while also contributing to environmental benefits through reduced fuel consumption and emissions.

Key facts about the Pangao Inland Container Terminal are summarised below:

With foreign management now in place, Pangao Inland Container Terminal is widely seen as a test case for public–private collaboration in Bangladesh’s port and logistics sector. If successful, it could pave the way for similar models elsewhere, supporting more efficient, sustainable and internationally competitive trade infrastructure across the country.