Future of Chattogram Port expansion hangs in balance as Bay Terminal Project faces uncertainty

Mintu Chowdhury

bdnews24.com

The Bay Terminal project, envisioned to expand Chattogram Port’s capacity and transform it into an international-standard facility, has come to a standstill following the fall of the Awami League government.

Already delayed by bureaucratic hurdles, the project, initiated a decade ago, had only been finalised last November after years of feasibility studies and master planning.

However, the change in government has left the project inactive for the past four and a half months.

On condition of anonymity, a senior official involved in the project told bdnews24.com that the shipping ministry recently held a review meeting where it was decided that the Bay Terminal Marine Infrastructure Development Project must continue due to its economic significance.

Muhammad Yunus-led interim government has criticised several large-scale development initiatives the previous administration took, labelling some as extravagant. Among these, questions have arisen about the Bay Terminal’s future.

Despite the scepticism, Shipping Advisor M Sakhawat Hussain told bdnews24.com: “We have discussed this, and the project will remain ongoing.”

The Bay Terminal was conceived a decade ago to meet the growing demands of the country’s trade and ensure seamless port operations.

Although feasibility studies were completed within three years, bureaucratic red tape delayed the finalisation of the master plan until late 2023.

This latest delay threatens the timely execution of a project crucial for positioning Chattogram Port as a hub for international trade in the region.

The Bay Terminal project spans approximately 6.25 kilometres, from the back of Chattogram EPZ at Patenga Beach to Rani Rashmoni Ghat. Most of the necessary land has been allocated, and the World Bank has approved a loan for constructing the breakwater, yet there has been no visible progress.

A senior official said, “In the past four months, there has been no noticeable advancement on this project. Even though the World Bank finalised the loan, the agreement has not been signed yet.”

The official added that while the main land for the terminal has been acquired, there are unresolved issues concerning 51 acres, or 20.64 hectares of land belonging to the forest department.

In previous years, Chattogram Port faced ship congestion and long waiting times for several reasons. Existing port terminals could not accommodate vessels with drafts exceeding 10 metres, the depth of the ship’s submerged part.

To address this, and to facilitate larger vessels or mother vessels while expanding the port to meet growing trade demands, the Bay Terminal project was initiated in 2014 by the port authority, focusing on the Patenga Beach area.

In 2017, a foreign company conducted technical, economic, and environmental studies for the project and developed a master plan, which was finalised and unveiled in November last year.

The plan includes constructing two container terminals measuring 1,225 metres each and a multipurpose terminal 1,500 metres long, for a total of three terminals. It also proposes 11 jetties across 4.95 kilometres of terminal length, capable of accommodating vessels with 12-metre drafts and 300-metre lengths.

Under the public-private partnership, or PPP, model, agreements have already been signed with two foreign firms for the construction of two terminals.

Although the project is envisioned to span 870 acres, the port has so far received only 568 acres, with allocations made this May.

In June, the World Bank approved a $650 million loan for constructing the breakwater and dredging to protect the Bay Terminal from tidal currents.

Chattogram Port Secretary Md Omar Faruk told bdnews24.com, “Much of the work remains confined to paperwork, which can make progress difficult to discern.”

He added that a mid-November meeting at the Ministry of Shipping discussed the Bay Terminal’s progress, during which the maritime affairs advisor highlighted its necessity and addressed the current challenges.

Referring to a special meeting held in Dhaka last Thursday, chaired by the economic affairs advisor, Omar Faruk said, “The meeting reviewed the latest developments of the project, including the construction of the breakwater. The port chairman was present at the session.”

Shipping Advisor Sakhawat told bdnews24.com: “We have discussed this matter, and the project will remain active.”

WHAT BENEFITS WILL THE BAY TERMINAL OFFER?

Chattogram Port currently accommodates ships with a maximum draft of 10 metres, carrying 1,500 to 1,800 TEUs (twenty-foot equivalent units) of containers. However, once the Bay Terminal is operational, it will enable larger vessels, carrying up to 4,000 TEUs, to dock directly.

Khairul Alam Sujon, director of the Bangladesh Shipping Agents Association, told bdnews24.com: “This project is crucial for future trade growth and enhancing the port’s capacity. Construction work must begin without delay.”

Explaining the current challenges, Sujon added: “At present, larger ships anchor at the outer harbour, and cargo is transferred to smaller vessels, known as lighters, for transportation. Export containers must also be sent from Chattogram to ports like Singapore or Colombo via smaller ships before being loaded onto larger vessels.

“With the Bay Terminal, vessels with deeper drafts will be able to dock directly, eliminating the need for intermediary ports. This will benefit businesses economically and bring efficiency to import-export operations.”

Nazrul Islam Bhuiyan, proprietor of C&F firm JF Enterprise, echoed these sentiments, saying: “The terminal will allow large ships to directly call at the port, benefiting all stakeholders and boosting the port’s capacity.”

He also suggested re-evaluating the project costs, sayin: “A thorough review and revised expenditure plan could reduce costs, benefitting the country.”

[Writing in English by Arshi Fatiha Quazi]