Majority of container handling business controlled by 5 private depots

The container-handling business surrounding the Chittagong Port is expanding rapidly, with private inland container depots (ICDs) playing a dominant role. Though 19 private depots are currently in operation, five of them account for nearly 60 per cent of all container management. With the recent hike in service charges, their revenues are expected to increase significantly.

According to the Container Depot Association, the 19 depots handled about 830,000 TEUs (twenty-foot equivalent units) of import and export containers in the first nine months of 2025 — up from 708,000 TEUs during the same period last year, marking a 17 per cent growth in the sector.

These depots operate under a regulated service model. Export goods are brought from factories to the depots, loaded into containers, cleared by customs, and then transported to the port for shipment. Nearly 90 per cent of export containers pass through these depots, which charge service fees for handling.

Similarly, 65 categories of import goods are unloaded at the depots instead of directly at the port, generating additional service revenue. Depots also earn rent by storing empty containers.

On 1 September, the association raised fees for seven categories of export-related services, including a 60 per cent increase in the container loading charge—the primary segment of export logistics. The depots also raised rent for empty containers. According to industry insiders, these hikes could raise the sector’s annual income by around Tk 3 billion.

The association’s data show that KDS Logistics, a subsidiary of KDS Group in Sitakunda, leads the market, managing 126,000 containers—about 15 per cent of the total handled by all depots.

Next comes Portlink Logistics Center, jointly owned by MGH Group and ABC Group, which handled 116,000 containers, accounting for 14 per cent of the market.

When asked, Syed Iqbal Ali, Managing Director of the Liner Shipping Division of MGH Group, told Prothom Alo that as exports and imports rise, the rate of container handling at depots is also increasing. However, even though the depot charges have been raised, there is no scope to increase fees for regular clients before their contracts expire. Therefore, the impact of the increased charges will not be felt immediately. Still, as the operational costs of depots continue to rise, this adjustment will help offset the growing expenses, he said.

In third position was Summit Alliance Port Limited (SAPL – East–West), jointly owned by Summit Group and Alliance Holdings. In the first nine months of this year, the company handled 92,670 containers, holding an 11 per cent market share. The two groups also jointly own another depot — SAPL (North) — which handled 33,701 containers during the same period. Meanwhile, the Ispahani–Summit Alliance Terminal, located in Kattali, Chattogram, ranked fourth, managing 80,129 containers in the first nine months of the year. This terminal was also established under joint investment by Ispahani Group, Summit Group, and Alliance Holdings.

Asked about the business situation, Kamrul Islam Majumdar, Director of SAPL, told Prothom Alo that exports are increasing, and the port authority has begun transferring the handling of imported containers from the port to private depots in phases, which is raising the volume of container handling there.

Regarding the rise in fees, he said that since 2016, depot charges for handling export containers had not been increased. Only in 2022 were minor adjustments made to offset the rising cost of fuel. On the contrary, depots have had to make large investments to ensure compliance standards (worker-friendly environments) for international clients such as shipping agents and foreign buyers.

Alongside the appreciation of the US dollar and other factors, operating costs have gone up significantly. Under these circumstances, there was no alternative to increasing the charges, he said.

Business-wise, Incontrade, located in Patenga, ranked fifth, handling 78,000 containers. Altogether, these five depots accounted for 59 per cent of the total container depot business.

According to the Container Depot Association, the country’s first private depot, Sea Fairers Limited, was established in 1985, followed by Ocean Container in 1988. Until 1998, depots mainly handled empty containers. In 1999, the National Board of Revenue (NBR) granted them permission to handle export containers for the first time. From 2007, selected import containers were also allowed to be delivered at depots instead of directly at the port. These depots are located within 1 to 26 kilometres of Chattogram Port.

The Ispahani–Summit Alliance Terminal has been the fastest-growing depot business in recent years. Established in 2018 on the premises of the former Victory Jute Mills in Kattali, Chattogram, the depot began full-scale operations in October 2019. Since its launch, its business has seen double-digit growth every year. In the first nine months of this year, container handling grew by 34 per cent compared to the same period last year.

In terms of growth rate, Eastern Logistics Depot in Patenga ranked second, recording 31 per cent growth, while BM Container Depot in Sitakunda ranked third with 29 per cent growth.

When asked about the growing depot business, Ruhul Amin Sikder, General Secretary of the Container Depot Association, told Prothom Alo that container handling has increased in the first nine months of this year due to higher exports. In addition, the NBR has allowed more import goods to be unloaded at depots, which has also increased the handling of imported containers.

When asked how the fee hike will affect revenue, he said, “The increase in export-related charges will help depots reduce their losses, as previous rates were too low compared to operating costs. By adjusting the charges, depots are trying to offset those losses.”

However, the export sector is now under pressure due to the rise in depot charges. Exporters say that the fee hike will increase their costs, making the sector less competitive globally.