Govt to sit with stakeholders Sunday to reassess Bay Terminal project

The interim government will reassess the highly anticipated Chattogram Bay Terminal project, an $8 billion foreign investment venture scheduled to commence construction in mid-2024.

The Ministry of Shipping will hold a meeting with investors, the Chittagong Port Authority, the Public Private Partnership (PPP) Authority, and other relevant stakeholders on Sunday (10 November).

Brigadier General (Retd) M Shakhawat Hossain, adviser to the shipping ministry, will also attend the meeting.

Delwara Begum, additional secretary (administration) of the shipping ministry, told TBS that a meeting with the project stakeholders will be held on 10 November. Officials from the World Bank, PPP Authority, Bangladesh Investment Development Authority, the shipping ministry, and other relevant stakeholders will be present. The meeting will discuss ways to move the project forward and determine the next steps.

Last month, a meeting was held with the PPP Authority, the shipping ministry, and the Port Authority. According to port officials, the PPP Authority urged the shipping ministry and the Port Authority to expedite the project's progress.

Investors have expressed frustration over the slow progress of the project, although the World Bank approved $650 million in loan support last June for the construction of the channel and breakwater. "If the government adopts a positive stance, there is a strong possibility that agreements with investors can be finalised and work on the project can begin," an executive from an investing company, speaking to TBS on condition of anonymity, said.

He added, "We are still uncertain about the interim government's stance on the project. Given the progress, the process was supposed to be completed with an agreement signed within this year. We hope that this project will remain on the government's priority project list."

Seacom Group Chairman Amirul Haque told TBS, "Aside from putting up signboards and the former government's propaganda, there has been no real progress on the Bay Terminal project. For the past 10 years, there has been endless stalling on this project, with false promises made every year about starting work." 

Due to the excessive pressure of containers compared to the port's capacity, the government initiated the Bay Terminal project in 2014.

Amirul Haque further said, "Instead of focusing on the Bay Terminal, an unnecessary Karnaphuli Tunnel was constructed. Despite being a priority project in the country's maritime sector, Bay Terminal has seen no advancement. Swift progress on this project is essential."

Haque emphasised that a public hearing involving port users and other stakeholders is necessary for the project. "Rather than creating any further complications, it is crucial that work on this project begins without delay."

Currently, ships larger than 10 metres in depth and 200 metres in length cannot enter Chittagong Port. However, the Bay Terminal will be able to accommodate vessels with a depth of 12 metres and up to 280 metres in length. 

Additionally, there will be no need to rely on tides for docking. Once the project is completed, it will be possible to berth ships with a carrying capacity of up to 6,000 containers. At present, the jetty at the port can accommodate ships with a capacity of around 2,000 individual containers.

According to the project plan, four terminals will be constructed. Among them, the multipurpose terminal will be built by the Chittagong Port Authority. The Abu Dhabi Port Group (AD Port) will invest $1 billion in the construction of this terminal in partnership with Chittagong Port. A memorandum of understanding has already been signed between AD Port Group and Chittagong Port.

Torfadar Ruhul Amin, managing director of Saif Powertec, local agent of AD Port, told TBS, "Considering the country's economic growth, it is essential to expedite the progress of the Bay Terminal project. We hope that the transaction adviser's report and the subsequent processes will advance swiftly. Our expectation from the interim government is that it will take effective measures to ensure the rapid implementation of the project."

Additionally, under the Bay Terminal project, PSA Singapore Container Terminal-1 will be constructed with an investment of $1.5 billion, and DP World Container Terminal-2 will also be built with an investment of $1.5 billion. The Liquid Cargo Terminal will see an investment of $3.5 billion from East Coast Group and their foreign partner companies.

East Coast Group, in addition to constructing terminals for oil, LPG, and LNG handling, aims to develop reserve capacities for 100,000 tonnes of LPG, 750 MMcf/d of LNG, 50,000 tonnes of diesel, and 25,000 tonnes of jet fuel.