Chattogram Port Expansion Project Reaches Milestone Amid Regional Trade Growth

2026-05-28

The development of the Bay Terminal in Chattogram port has reached a significant milestone, with the completion of its first deep-sea berth, according to officials from the Chittagong Port Authority (CPA). The new facility, capable of handling vessels with a draft of up to 12 meters, is expected to double the port's co

CPA Chairman Rear Admiral Mohammad Sohail stated that the berth, built at a cost of approximately $2.5 billion, will primarily serve Bangladesh's growing ready-made garment (RMG) sector, which accounts for over 80% of the country's exports. The expansion is part of a broader government initiative to modernize Chattogram port, which handles about 90% of Bangladesh's international trade. "This berth will reduce vessel turnaround time from the current average of 72 hours to under 48 hours, improving efficiency and lowering costs for exporters," Sohail said during a press briefing on Wednesday.

The Bay Terminal project, funded by the Asian Development Bank (ADB) and the Bangladesh government, also includes the construction of a 1.2-kilometer breakwater and a 15-kilometer road link to the Dhaka-Chattogram highway. The road link, expected to be completed by December 2024, aims to ease congestion at the port's entrance, which currently sees over 4,000 trucks daily.

Local business leaders have welcomed the development. "Chattogram port has long been a bottleneck for our exports, especially during peak seasons. This expansion will provide much-needed relief and help us compete globally," said Syed Nazrul Islam, president of the Chattogram Chamber of Commerce and Industry. However, some environmental groups have raised concerns about the impact of dredging and construction on the Karnaphuli River ecosystem. CPA officials have assured that environmental mitigation measures, including the creation of artificial wetlands, are being implemented.

In a related development, the Bangladesh government has signed a memorandum of understanding with a Chinese consortium to develop a special economic zone near the port. The zone, spanning 500 acres, is expected to attract foreign direct investment in sectors such as electronics, pharmaceuticals, and logistics. The initiative aligns with Bangladesh's goal of achieving upper-middle-income status by 2031.

Internationally, the expansion of Chattogram port is seen as a key component of the broader regional connectivity agenda under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Analysts note that improved port infrastructure could enhance Bangladesh's role as a transit hub for trade between South Asia and Southeast Asia. "Chattogram is strategically positioned to serve not only Bangladesh but also landlocked neighbors like Nepal, Bhutan, and parts of India," said Dr. Ayesha Khanam, a trade economist at the University of Dhaka.

Despite the progress, challenges remain. Port officials acknowledge that the introduction of automated cargo handling systems has been delayed due to technical issues, and labor unions have expressed concerns about potential job losses. CPA has assured that retraining programs will be provided for affected workers. The overall project is on track to be fully operational by 2026, with the capacity to handle 100 million tons of cargo annually, up from the current 60 million tons.

As Chattogram continues to evolve, the city is also seeing a surge in real estate and infrastructure projects, including new hotels and commercial complexes, driven by increased trade activity. The local government has announced plans to upgrade the city's water supply and waste management systems to support the growing population and economic demands. With these developments, Chattogram is poised to strengthen its position as a vital economic gateway for Bangladesh and the broader region.