Chattogram Port Expansion to Boost Bangladesh 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 five years. The initiative, which includes the construction of new container terminals and the dredging of deeper channels, is expected to alleviate chronic
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 five years. The initiative, which includes the construction of new container terminals and the dredging of deeper channels, is expected to alleviate chronic congestion and reduce shipping delays that have long hampered the country's export-driven economy.
Officials revealed that the project, valued at approximately $2.5 billion, will be funded through a combination of government allocations and international loans from development partners. The expansion will add 1.5 million twenty-foot equivalent units (TEUs) of annual container handling capacity, bringing the port's total to over 5 million TEUs. This is seen as critical for Bangladesh, which relies on Chattogram for more than 90 percent of its international trade.
Local business leaders have welcomed the news, noting that port inefficiencies have cost the economy billions in lost revenue. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) estimated that each day of delay at the port results in roughly $50 million in lost export earnings. The expansion is expected to cut average vessel turnaround time from the current 72 hours to under 48 hours.
Environmental groups, however, have raised concerns about the potential impact on the Karnaphuli River ecosystem. The port authority has pledged to implement mitigation measures, including the creation of artificial wetlands and strict monitoring of dredging operations. A spokesperson stated that the project will adhere to international environmental standards.
The expansion also includes the development of a new inland container depot in the Mirsharai Economic Zone, about 50 kilometers north of Chattogram, to ease road traffic and improve logistics. This depot will be connected to the port by a dedicated railway line, reducing reliance on trucks and cutting carbon emissions.
On the international front, the project is seen as part of a broader regional trend. Competing ports in Colombo, Sri Lanka, and Singapore have already undergone similar upgrades, and Bangladesh risks losing transshipment business if it fails to modernize. The expansion is also expected to attract more foreign direct investment, particularly in the shipbuilding and logistics sectors.
Chattogram, historically known as Chittagong, has been a vital maritime hub since the 16th century. Today, it handles goods ranging from ready-made garments and jute to electronics and pharmaceuticals. The port's current capacity constraints have forced many exporters to use alternative routes, such as the Mongla port in Khulna, which is less developed.
The government has also announced plans to digitize port operations, including the introduction of a single-window clearance system to reduce bureaucratic delays. This digital transformation is expected to be completed by 2026, further improving efficiency.
Despite the optimism, challenges remain. Land acquisition for the new terminals has faced delays due to local protests, and the global shipping industry is still recovering from pandemic-era disruptions. Experts caution that the project's timeline may be affected by rising construction costs and supply chain issues.
Nevertheless, the Chattogram Port Authority remains confident. A senior official said, 'This expansion is not just about capacity; it is about transforming Chattogram into a world-class logistics hub that can compete with the best in Asia.' The project is scheduled to break ground in early 2025, with the first new terminal expected to be operational by 2028.