Chattogram Port Expansion Project Faces Delays Amid Funding and Land Acquisition

Chattogram, Bangladesh – The ambitious expansion project aimed at significantly increasing the capacity of Chattogram Port, Bangladesh’s primary seaport, is facing mounting delays due to a combination of funding constraints and difficulties in land acquisition. The project, vital for Bangladesh’s continued economic growth, has seen timelines pushed back, raising concerns among businesses and trade officials.

Originally slated for completion in phases between 2026 and 2030, the expansion now appears likely to extend beyond these targets. The project encompasses several key components, including the construction of a new multipurpose terminal, a container terminal, and improvements to existing infrastructure. These upgrades are crucial to accommodate the increasing volume of cargo traffic, spurred by Bangladesh’s growing ready-made garment industry and overall economic development.

The primary obstacle currently is securing adequate funding. While the initial plan involved a substantial loan from the Asian Development Bank (ADB), disbursement has been slower than anticipated. Negotiations with other potential lenders, including the World Bank and Japan International Cooperation Agency (JICA), are ongoing, but no firm commitments have been secured. Government officials cite global economic uncertainty and rising interest rates as contributing factors to the reluctance of lenders.

“We are actively pursuing various avenues for funding,” stated a senior official from the Chattogram Port Authority (CPA) who requested anonymity. “The project’s strategic importance is understood by international financial institutions, but the current global financial climate presents challenges. We are confident that we will overcome these hurdles, but it will require patience and continued negotiation.”

Compounding the funding issues is the slow pace of land acquisition. The expansion requires the purchase of significant tracts of land adjacent to the port, which has proven difficult due to disputes over compensation and resettlement of affected communities. Local residents have expressed concerns about fair market value for their properties and adequate relocation assistance. Protests and legal challenges have further delayed the acquisition process.

The CPA has been working with local authorities to address these concerns, offering revised compensation packages and exploring alternative resettlement options. However, progress remains slow, and the lack of available land is hindering construction activities. Experts suggest a more transparent and inclusive approach to land acquisition, involving greater consultation with affected communities, could expedite the process.

The delays are already having a noticeable impact. Chattogram Port is currently operating at near full capacity, leading to congestion and increased turnaround times for vessels. This is driving up shipping costs and potentially impacting Bangladesh’s competitiveness in the global market. Business leaders have voiced their concerns, urging the government to prioritize the port expansion.

“The port is a critical gateway for our exports and imports,” said Mohammad Ali, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). “Any delay in the expansion project will have serious consequences for our industry and the overall economy. We need a fully functional, modern port to support our continued growth.”

The CPA acknowledges the urgency of the situation and has implemented short-term measures to alleviate congestion, such as optimizing port operations and improving cargo handling efficiency. However, these measures are only temporary solutions. The long-term solution lies in the timely completion of the expansion project. The government has reaffirmed its commitment to the project and is working to resolve the funding and land acquisition challenges. Whether those efforts will be enough to get the project back on track remains to be seen.