Chattogram Port Expansion Set to Boost Bangladesh s Trade Capacity

The Chattogram Port Authority has announced a major expansion project aimed at increasing the capacity of Bangladesh's primary seaport by 40 percent over the next three years. The initiative, unveiled during a press conference in the port city on Tuesday, is expected to significantly enhance the country's trade competitiveness in South Asia.

Port Commissioner Rear Admiral Mohammad Sohail stated that the expansion will include the construction of six new berths, deepening of the main channel to accommodate larger vessels, and installation of modern cargo handling equipment. The project, valued at approximately $1.2 billion, is partially funded by the Asian Development Bank and the Japanese International Cooperation Agency.

"Chattogram handles over 90 percent of Bangladesh's sea-borne trade, and this expansion is critical for our economic growth," Sohail said. "The current infrastructure is straining under increasing volumes, with container traffic growing by 8 percent annually. These upgrades will reduce ship turnaround time from the current 72 hours to under 48 hours."

The announcement comes as Bangladesh's garment exports, which account for 80 percent of the country's export earnings, continue to rise. Industry leaders have long urged for port modernization to reduce logistics costs and delivery delays. According to the Bangladesh Garment Manufacturers and Exporters Association, inefficiencies at Chattogram cost the sector an estimated $500 million annually in lost orders and demurrage charges.

Local business owners in Chattogram expressed cautious optimism. "We've seen many promises before, but this time the funding seems secured," said Kamal Hossain, a shipping agent who has worked at the port for 25 years. "If completed on schedule, it will transform our operations."

However, environmental groups have raised concerns about the dredging and construction impact on the Karnaphuli River ecosystem. The Bangladesh Environmental Lawyers Association has called for a comprehensive environmental impact assessment before work begins. "The river supports fisheries and local communities," said activist Farida Akhter. "We need guarantees that mitigation measures will be enforced."

Port officials responded by noting that the project includes a $50 million environmental management plan, including mangrove reforestation and fish passage construction. The first phase is scheduled to begin in March 2025, with completion targeted for 2028.

On the international front, the expansion aligns with broader regional connectivity initiatives. Analysts suggest that a more efficient Chattogram could attract transshipment traffic from neighboring countries like Nepal and Bhutan, which currently rely on Indian ports. "This could position Bangladesh as a logistics hub for the Bay of Bengal region," said Dr. Ayesha Rahman, a trade economist at the University of Dhaka.

The announcement also drew attention from global shipping lines. Maersk Line has already expressed interest in establishing a dedicated terminal at the expanded port, according to industry sources. Such investment could further reduce freight costs for Bangladeshi exporters.

As construction plans move forward, the Chattogram City Corporation is also preparing for increased traffic and housing demands. Mayor Rezaul Karim announced a parallel urban development project to improve roads and utilities in port-adjacent areas. "We must ensure that the port's growth benefits the city, not just burdens it," he said.

The expansion of Chattogram port represents a pivotal moment for Bangladesh's economy. With the country aiming to achieve upper-middle-income status by 2031, efficient trade infrastructure will be crucial. The next few years will determine whether this ambitious plan can deliver on its promises.