Chattogram Port Expansion Nears Completion Amid Trade Surge

Chattogram, Bangladesh — The expansion of Bangladesh’s primary seaport in Chattogram is approaching its final phase, officials announced this week, as the facility handles record-breaking cargo volumes driven by a post-pandemic trade rebound. The project, which began in 2020, aims to increase annual container handling capacity from 3.2 million to 4.5 million twenty-foot equivalent units (TEUs) by 2025, positioning Chattogram as a key logistics hub in South Asia.

According to the Chattogram Port Authority (CPA), the new Patenga Container Terminal, a major component of the expansion, is now 85% complete and is expected to begin operations by June 2024. The terminal will feature advanced ship-to-shore cranes and automated yard equipment, reducing vessel turnaround time by up to 30%. CPA Chairman Rear Admiral Mohammad Sohail said in a press briefing on Tuesday that the upgrades are crucial for accommodating larger ships and easing congestion that has long plagued the port.

“The expansion is a strategic priority for Bangladesh’s economic growth,” Sohail stated. “With exports rising and imports stabilizing, we must ensure our infrastructure keeps pace. This project will not only boost efficiency but also attract more transshipment traffic.”

The development comes as Chattogram handles over 90% of Bangladesh’s international trade, a figure that has surged in recent months. Data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) shows that ready-made garment exports from the port rose 12% year-on-year in the first quarter of 2024, reaching $9.8 billion. Meanwhile, imports of raw materials, including cotton and machinery, have also increased, straining existing facilities.

Industry experts have welcomed the progress but caution that challenges remain. Dr. Niaz Ahmed, a logistics professor at the University of Chittagong, noted that while the new terminal will help, broader issues like road connectivity and customs clearance times need addressing. “The port is only as efficient as its hinterland links,” he said. “If trucks still face delays on the Dhaka-Chattogram highway, the benefits of the expansion may be limited.”

The government has responded by accelerating work on the 200-kilometer Dhaka-Chattogram expressway, a four-lane project slated for completion in 2025. Additionally, a new railway bypass line near the port is under construction to streamline cargo movement.

On the international front, the Chattogram expansion aligns with global trends in port modernization, particularly in Asia. Analysts point to similar projects in Colombo, Sri Lanka, and Mundra, India, as regional competitors ramp up capacity. However, Chattogram’s strategic location near the Bay of Bengal gives it an edge for serving landlocked countries like Nepal and Bhutan, which increasingly use the port for transshipment.

Local businesses have expressed cautious optimism. Mohammad Rafiqul Islam, a garment exporter in Chattogram’s EPZ, said the expansion could reduce his shipping costs by 15% if delays are cut. “Every day saved at the port means lower demurrage charges and faster delivery to buyers in Europe,” he explained. “We are watching closely.”

The CPA has also announced plans to introduce a digital cargo tracking system by the end of the year, aiming to improve transparency and reduce paperwork. This move follows a pilot program that cut average clearance time from 7 days to 4 days for selected shipments.

As the expansion nears completion, Chattogram is poised to strengthen its role as Bangladesh’s economic lifeline. With trade volumes expected to grow further, the port’s modernization is seen as critical to sustaining the country’s 6% annual GDP growth. The final phase of construction is scheduled for a December 2024 deadline, barring any unforeseen delays.