Khulna Port Expansion Nears Completion Aims to Boost Regional Trade

The Khulna Port Expansion Project, a cornerstone of Bangladesh’s infrastructure development strategy, has entered its final phase with construction nearing completion. The initiative, launched in 2022, seeks to double the port’s annual cargo handling capacity from 1.5 million to 3 million metric tons by 2025, aiming to alleviate congestion at the country’s primary port in Chittagong and bolster regional economic activity.

According to the Ministry of Shipping, the expansion includes new berths, modernized cargo handling equipment, and upgraded storage facilities. The project has already created over 2,500 direct jobs during construction, with an additional 1,200 permanent positions expected once fully operational. Officials estimate the expansion will increase trade volumes in southwestern Bangladesh by 35% within two years, supporting local industries such as jute, textiles, and agricultural exports.

Minister of Shipping Md. Nurul Islam Sujan stated in a recent press briefing, “This project is critical to our vision of a digitally connected and economically vibrant Bangladesh. Khulna Port’s development will strengthen supply chain efficiency and reduce transportation costs for businesses in the region, particularly for the Khulna Division, which accounts for nearly 15% of the nation’s agricultural output.”

Environmental considerations have been integrated into the project’s design. The Bangladesh Port Authority (BPA) has implemented measures to mitigate ecological impacts, including mangrove restoration efforts and stricter wastewater management protocols. These steps align with national commitments to sustainable development under the Paris Agreement. However, local environmental groups have called for continued monitoring to ensure long-term protection of the Sundarbans, a UNESCO World Heritage site adjacent to Khulna.

Local businesses have welcomed the upgrades. “The expansion will cut delivery times and reduce costs for our jute products,” said Rahman Ali, a Khulna-based exporter. “Previously, goods had to be transported hundreds of kilometers to Chittagong, but now we can ship directly from Khulna.” The port’s proximity to the Indian border also opens opportunities for cross-border trade with West Bengal, potentially positioning Khulna as a key node in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) corridor.

Critics, however, note that timely completion depends on resolving land acquisition issues and ensuring consistent funding. The project has faced delays due to unforeseen soil conditions during dredging, though authorities report these challenges are being addressed. The BPA has committed to completing all work by December 2024, with phased operations beginning as early as next month.

As part of broader efforts to modernize Bangladesh’s maritime infrastructure, the government has also announced plans for a new logistics park near Khulna Port, expected to attract foreign direct investment in manufacturing and warehousing. This follows similar initiatives in Chittagong and Mongla ports, reflecting the country’s strategic push to become a regional trade and logistics hub.

With global supply chains increasingly seeking alternatives to congested Asian ports, analysts suggest Khulna’s expansion could attract shipping lines looking for efficient routes. However, experts caution that success will hinge on seamless integration with road and rail networks, which remain under development in the region.

The project underscores Bangladesh’s ambition to diversify its trade infrastructure and reduce dependency on a single port. As construction wraps up, stakeholders across the region are cautiously optimistic about the economic ripple effects that could transform Khulna from a regional center into a national trade gateway.