Chattogram Port Expansion Nears Completion Amid Regional Trade Boost

The expansion of Chattogram Port, Bangladesh’s primary maritime gateway, is on track to finish by early 2025, officials confirmed on Monday, marking a significant milestone for the country’s trade infrastructure. The $1.2 billion project, backed by the Asian Development Bank and the Bangladesh government, aims to increase the port’s annual container handling capacity from 3.2 million to 5 million twenty-foot equivalent units, addressing chronic congestion that has long hampered exports and imports.

Port Authority Chairman Rear Admiral Mohammad Sohail told reporters in Chattogram that the new terminal, equipped with modern gantry cranes and automated systems, will reduce vessel turnaround time from an average of 72 hours to under 48 hours. This improvement is critical for Bangladesh, which relies on Chattogram for over 90% of its international trade, including garments, jute, and leather goods. The expansion also includes a 300-meter deep-water berth capable of accommodating larger ships, a key requirement for tapping into global shipping routes.

Local businesses have welcomed the development. “Delays at the port have cost us millions in lost orders and demurrage fees,” said Kamal Hossain, a textile exporter based in the city. “Faster turnaround means we can meet deadlines more reliably, which is essential for retaining buyers in Europe and North America.” The port’s congestion has been a persistent issue, with ships sometimes waiting up to a week to dock during peak seasons.

The project is part of a broader government strategy to modernize Bangladesh’s logistics sector, which the World Bank estimates could add 1.5% to annual GDP growth if fully optimized. Alongside the port expansion, authorities are upgrading road and rail links connecting Chattogram to Dhaka and other industrial hubs, including the construction of a new four-lane highway and a dedicated freight corridor.

International observers have noted the regional implications. Chattogram’s enhanced capacity could attract transshipment traffic from landlocked neighbors like Nepal, Bhutan, and northeastern India, which currently rely on ports in India and Myanmar. A recent study by the Bangladesh Institute of Development Studies suggested that Chattogram could handle up to 1 million TEUs of transshipment cargo annually by 2030, generating additional revenue and fostering economic integration in South Asia.

However, challenges remain. Environmental groups have raised concerns about dredging activities and increased vessel emissions, urging the port to adopt green technologies. In response, the Port Authority has announced plans to install shore-to-ship power supply systems and solar panels on terminal roofs, aiming to cut carbon emissions by 20% within five years. Labor unions have also called for better safety measures and fair wages for dockworkers, who have faced accidents and exploitation in the past.

As the expansion enters its final phase, Chattogram is positioning itself as a competitive player in the Bay of Bengal region. With the global shipping industry shifting toward larger vessels and more efficient hubs, the port’s modernization is timely. For Bangladesh, which aspires to become a middle-income country by 2031, the success of this project could be a linchpin for sustained economic growth.