The main objective of the terminal is to handle export-import containers coming to Chittagong port through river routes.

The terminal will be set up by BIWTA with the financial support from CPA. The construction cost for the project was estimated to be Tk 154.11 crore. The Chittagong port will provide interest-free loan for the project according to the agreement.

The terminal will be operated through private operators for smooth functioning.

"This is for the first time that a government organisation has come up to provide financial support to another government organisation for implementing a development project," said Shipping Minister Akbar Hossain. Akbar was the chief guest at the agreement signing ceremony.

This will be an example of utilising idle money at different government bodies for development activities, he said. The foundation stone for the terminal was laid by Prime Minister Khaleda Zia in 1995.

The project remained unimplemented since then due to lack of money. The government expects to implement the project by June 2006.

Akbar said the Inland Container Terminal (ICT) will not only reduce the cargo congestion at Chittagong port, it will also bring a lot of economic benefits to the people. Containers coming from neighouring India through river routes will also be released at the terminal, he said.

After commissioning of the terminal, the government hopes handling of 30,000 TUs containers in the first 2006-07 financial year. The invested money will be recovered within 12 years. Shipping Secretary Rafiqul Islam and CPA Chairman AMM Shahadat Hossain were present.