Chattogram Port Expansion Project Faces Delays Amid Global Supply Chain Pressure

Chattogram, Bangladesh — The ambitious expansion of Chattogram Port, the country’s primary maritime gateway, is encountering significant delays as global supply chain disruptions and local logistical challenges converge, according to officials and industry sources. The project, which aims to double the port’s container handling capacity to over six million twenty-foot equivalent units (TEUs) annually by 2030, has been a cornerstone of Bangladesh’s economic strategy to boost exports and attract foreign investment. However, recent reports indicate that construction of new terminals and dredging of the Karnaphuli River channel have fallen behind schedule, raising concerns among exporters and international trade partners.

The delays are attributed to a combination of factors, including rising costs of raw materials, shortage of skilled labor, and bureaucratic hurdles in land acquisition. The Chittagong Port Authority (CPA) acknowledged in a statement that the initial timeline for the Bay Terminal project, a key component of the expansion, has been extended by at least 18 months. “We are working to address these issues, but global price fluctuations and contractor availability have slowed progress,” said a CPA spokesperson, who requested anonymity due to lack of authorization to speak publicly. The Bay Terminal, designed to handle larger vessels and reduce congestion, is now expected to be operational by late 2026 instead of early 2025.

The implications are being felt across Bangladesh’s garment and textile sectors, which account for over 80% of the country’s exports. Exporters have long complained about high shipping costs and delays at Chattogram, which handles about 90% of Bangladesh’s maritime trade. “Every day of delay costs us millions in lost revenue and penalties from international buyers,” said Mohammad Hossain, a senior executive at a Dhaka-based garment manufacturer. “We need the port to modernize quickly to remain competitive against rivals like Vietnam and India.”

Internationally, the delays are drawing attention from shipping lines and global retailers that rely on Bangladesh for affordable apparel. The World Bank, which has provided financing for port improvements, warned in a recent report that infrastructure bottlenecks could undermine Bangladesh’s goal of becoming a middle-income country by 2041. “Efficient ports are vital for trade-led growth,” the report stated. “Chattogram’s expansion is not just a local issue; it affects global supply chains for fast fashion and other goods.”

Local residents and environmental groups have also raised concerns about the expansion’s impact on the Karnaphuli River ecosystem and nearby communities. Fishermen and farmers have protested against dredging activities, claiming they damage livelihoods and increase flooding risks. The CPA has pledged to conduct environmental impact assessments and provide compensation, but implementation has been slow.

Despite the setbacks, government officials remain optimistic. Shipping Minister Khalid Mahmud Chowdhury told reporters in Dhaka that the expansion is a top priority and that alternative funding sources, including public-private partnerships, are being explored. “We are committed to making Chattogram a world-class port,” he said. “The delays are temporary, but the benefits will be lasting.”

As global trade patterns shift and competition intensifies, the success of Chattogram’s expansion will be closely watched. For now, the port continues to operate at near capacity, with ships often waiting days to dock. The coming months will test whether Bangladesh can overcome its infrastructure challenges and secure its position as a key player in international commerce.