Chattogram Port Expansion Nears Completion Boosting Bangladesh Trade Capacity

Chattogram, Bangladesh — The ambitious expansion project at Chattogram Port, the country’s primary maritime gateway, is on track to finish by early next year, officials confirmed this week, a development expected to significantly enhance Bangladesh’s trade capacity and reduce shipping delays that have long plagued exporters.

The project, which began in 2021, includes the construction of a new container terminal with a capacity to handle 1.5 million twenty-foot equivalent units (TEUs) annually, as well as deepening the port’s main channel to accommodate larger vessels. According to the Chattogram Port Authority (CPA), the new terminal will increase the port’s total annual capacity from 3.2 million TEUs to nearly 5 million TEUs, addressing a critical bottleneck in the country’s supply chain.

“This expansion is vital for Bangladesh’s economy, as over 90 percent of our international trade passes through Chattogram,” said CPA Chairman Rear Admiral M. Sakhawat Hossain in a statement. “Once completed, we expect turnaround times for ships to decrease by at least 30 percent, which will lower costs for businesses and improve our competitiveness globally.”

The expansion comes amid a surge in Bangladesh’s export volumes, particularly in the ready-made garment sector, which accounts for over 80 percent of the country’s exports. Industry leaders have long complained about congestion at the port, which often caused delays of up to a week for cargo clearance. The new facilities, which include modern gantry cranes and automated stacking systems, are designed to streamline operations and reduce dwell times.

Local businesses have welcomed the update. “Chattogram Port is the lifeline of our industry. Any improvement here directly impacts our bottom line,” said Mohammad Ali, a garment exporter from Dhaka. “We have been waiting for this for years, and it seems the government is finally delivering.”

The project has been financed through a combination of government funds and loans from international development partners, including the Asian Development Bank and Japan International Cooperation Agency. Environmental safeguards have been incorporated, including measures to prevent siltation and pollution, though some activists have raised concerns about the impact of dredging on nearby fisheries.

On the international front, the expansion aligns with broader trends in South Asian trade, where ports like Colombo and Singapore have been investing heavily in capacity. Analysts say Chattogram’s upgrade will help Bangladesh compete more effectively in global markets, particularly as supply chains diversify away from China. “A more efficient port in Chattogram could attract transshipment traffic from neighboring countries like Nepal and Bhutan, which currently rely on Indian ports,” said Dr. Farida Khan, an economist at the University of Chittagong. “This would further integrate Bangladesh into regional trade networks.”

The CPA has also announced plans to digitize customs procedures and introduce a single-window system for cargo clearance, expected to launch in phases starting next month. These reforms aim to reduce paperwork and corruption, which have been persistent issues at the port.

As the project nears completion, officials are confident that the expanded port will not only ease current pressures but also future-proof Bangladesh’s trade infrastructure for the next two decades. “This is a game-changer for our economy,” Hossain added. “We are building a port that can serve our nation for generations to come.”

The new terminal is slated to begin operations in January 2025, with full capacity expected by mid-year. Meanwhile, the CPA continues to monitor global shipping trends, including the impact of geopolitical tensions in the Red Sea, which have already caused some rerouting of vessels to South Asian ports.