Chattogram Port Expansion Project Nears Completion Boosting Regional Trade

The ambitious expansion of the Chattogram Port, Bangladesh's primary maritime gateway, is nearing its final phase, with officials projecting full operational capacity by mid-2025. The project, which began in 2021, aims to double the port's container handling capacity to over 6 million twenty-foot equivalent units annually, addressing long-standing congestion issues that have hampered trade in South Asia.

According to the Chattogram Port Authority, the new terminals at Patenga and the Bay Terminal are now 85 percent complete. The Patenga Container Terminal, built with a public-private partnership model, will add 500 meters of berth space and feature modern gantry cranes. The Bay Terminal, partially funded by the Asian Development Bank, will include deep-draft facilities capable of accommodating larger vessels, reducing reliance on transshipment hubs like Colombo and Singapore.

Local traders and shipping agents have welcomed the progress. Mohammad Rashed, a Dhaka-based importer of electronics, noted that the expansion could cut shipping costs by up to 15 percent. "Currently, we face delays of two to three days due to berth unavailability. The new terminals will streamline operations and lower our logistics expenses," he said. The port handles over 90 percent of Bangladesh's international trade, with exports including garments, jute, and leather goods.

Environmental concerns have been raised by residents near the construction sites. In the Sitakunda area, fishermen have reported a decline in catches due to dredging and land reclamation. The Chattogram Port Authority has pledged to implement mitigation measures, including artificial reefs and mangrove planting, to protect the coastal ecosystem. A spokesperson stated, "We are committed to sustainable development and are working with environmental agencies to minimize impact."

The expansion is expected to bolster Bangladesh's position in global supply chains, particularly as the garment industry seeks faster turnaround times. The country is the world's second-largest apparel exporter, and improved port efficiency could attract more foreign investment. International shipping lines, including Maersk and MSC, have already expressed interest in increasing calls to Chattogram once the new facilities are operational.

On the international front, the project aligns with broader regional connectivity initiatives. The Bay Terminal is designed to facilitate transshipment for landlocked neighbors like Nepal and Bhutan, as well as northeastern Indian states. This could reduce cargo transit times from these regions to global markets by up to 20 percent, according to a World Bank study.

However, challenges remain. The port's road and rail links to the hinterland need upgrading to handle increased container traffic. The government has announced plans for a dedicated freight corridor from Chattogram to Dhaka, but funding and land acquisition issues have delayed progress. Additionally, the global shipping industry faces volatility due to geopolitical tensions and fluctuating fuel prices, which could impact projected cost savings.

Despite these hurdles, the Chattogram Port expansion is a landmark project for Bangladesh. As the country prepares to graduate from least developed country status in 2026, modernizing infrastructure is critical for sustained economic growth. The port's completion will not only ease trade but also enhance Chattogram's role as a regional logistics hub, connecting South Asia to the global economy.