MSC Cuts Dhaka–Chittagong Barge Rates 50% With Bangladesh Terminal Push

Global shipping major Mediterranean Shipping Company (MSC) has formally announced plans to significantly enhance Bangladesh's trade connectivity by investing in inland container terminal infrastructure, following a meeting between MSC Chief Executive Officer Søren Toft and Bangladesh's Shipping Affairs Adviser Hossain.

MSC said the move reflects its accelerated expansion of inland logistics networks across South Asia. Its logistics arm, MEDLOG, has signed a concession agreement to take over operations of the Pangaon Inland Container Terminal (PICT) near Dhaka, aiming to improve inland logistics efficiency and strengthen end-to-end supply chain connectivity.

Located along the Buriganga River near the capital and close to the Dhaka–Mawa–Bhanga Expressway, PICT is positioned to play a key role in shifting cargo flows from congested road networks to lower-emission inland waterways. The project is expected to ease traffic pressure while reducing carbon emissions through greater use of river transport.

Under the agreement, MEDLOG will be responsible for terminal operations, equipment deployment and automation upgrades, and plans to expand the facility to raise annual handling capacity to 160,000 TEU. The company will also deploy inland barges to reinforce multimodal connections between PICT, river ports and seaports, substantially lowering transport costs.

Barge Freight Rates Cut by 50%

MSC officially commenced operations at the Pangaon Inland Container Terminal on January 24. To encourage shippers and freight forwarders to shift cargo from road and rail to inland waterways, MEDLOG announced a sharp reduction—around 50%—in barge freight rates between Dhaka and Chittagong.

ATM Anisul Millat, Managing Director of MEDLOG Bangladesh, said the rate cuts are designed to significantly enhance the price competitiveness of inland water transport and divert more import and export cargo to waterways.

Under the new tariff structure, the cost of transporting a fully loaded 20-foot export container from Pangaon to Chittagong has fallen from USD 175 to USD 70, while the rate for a 40-foot container has been reduced from USD 220 to USD 140. Import rates have also dropped sharply: transporting a 40-foot high-cube container from Chittagong to Dhaka now costs USD 282, down from USD 445, while the rate for a 20-foot import container has declined from USD 324 to USD 190.

By comparison, current road transport costs between Chittagong and Dhaka are around USD 500 per trailer, regardless of whether the container is 20-foot or 40-foot.

Millat said MEDLOG has begun chartering local barges to operate container services between Chittagong Port and the Pangaon Inland Container Terminal. Industry stakeholders have widely welcomed the move, noting that lower inland transport costs could help relieve Bangladesh's already overstretched road transport system.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the initiative would encourage more companies to use the Pangaon terminal and called on MEDLOG to further increase barge service frequency on the Dhaka–Chittagong route to shorten transit times. 'A large number of factories are located around Pangaon. The rate cuts will bring immediate benefits to these businesses, while rising cargo volumes will also reduce pressure on roads,' he said.

Importers have also responded positively. Alamgir Hossain, an electronics importer based in Dhaka, said companies would consider using the inland terminal more extensively for shipments from China, provided service quality improves in line with the pricing advantage.

Industry observers widely view MEDLOG's entry into the Pangaon Inland Container Terminal as a pivotal step in shifting Bangladesh's container cargo toward inland water transport—helping ease congestion while lowering overall logistics costs along one of the country's fastest-growing trade corridors.