The cabinet committee on economic affairs yesterday approved in principle a $58 million project to increase the efficiency and logistical capacity of Chattogram port.

The project titled "Equip, Operate and Maintenance of Patenga Container Terminal" will be implemented under the public-private partnership (PPP) model, said the PPP Authority in a press release.

Mohammed Mezbah Uddin Chowdhury, secretary of the shipping ministry, provided an outline of the project to the meeting and sought approval.

Chattogram port is the largest port in Bangladesh and plays an important role in the economic development of the country. The under-construction Patenga Container Terminal project will increase the efficiency and the logistical capacity of the port.

According to a survey by the shipping ministry, the potential investment for the project is $58 million, and the annual operating cost is $8 million, the press release said.

Sultana Afroz, chief executive officer of the PPP Authority, said the output of the container terminal would be enhanced with the help of modern technology, equipment and skilled manpower if the project is managed and maintained by a private partner through PPP.

"At the same time, it will be possible to increase the capacity of the Chattogram Port Authority through knowledge-sharing and technology transfer."

She added that the implementation of the project would create jobs in the region and help alleviate poverty.

At present, seven PPP projects under the shipping ministry are at various stages of implementation.