Matarbari deep-sea port construction deal with Japanese firms likely this month
The Tk24,300cr project, approved in 2020, was delayed for years due to land acquisition and other issues
Bangladesh's dream of becoming a regional transshipment hub is edging closer to reality, as the final agreement for the construction of the country's first deep-sea port in Matarbari, Cox's Bazar, is scheduled to be signed this month.
Five years after its approval, the Chattogram Port Authority (CPA) is set to sign a contract with two renowned Japanese construction and engineering firms—Penta-Ocean Ltd and TOA Corporation—on 22 April in Dhaka, according to CPA Secretary Mohammad Omar Faruk.
The project, funded by the Japan International Cooperation Agency (Jica), carries a total estimated cost of Tk24,300 crore. The first phase, valued at Tk6,197 crore, is slated for completion by 2029.
Once operational, the port will significantly enhance Bangladesh's maritime capabilities by allowing large vessels to dock directly—a function that Chattogram Port, the nation's primary seaport, currently lacks. This advancement is expected to drastically cut shipping time and costs, according to port officials.
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"This marks a major step forward. The project is progressing with Jica's supervision and approval. Construction work will commence immediately after the agreement is signed, and we anticipate the port to be operational by 2029," Omar Faruk told TBS.
Expanding port capacity
Currently, Chattogram Port accommodates ships with a maximum draught of 10 metres, up to 200 metres in length, carrying 30,000 to 35,000 tonnes. In contrast, Matarbari Port's first phase will accommodate much larger vessels with a 16-metre draught.
Officials anticipate that the deep-sea port will reduce shipping costs by 57% and cut delivery times by 60% compared to Chattogram Port.
Feasibility studies and land acquisition for the second phase are already underway. Additionally, two Japanese firms have secured contracts to supply equipment, while procurement of essential vessels, such as tugboats and pilot boats, will be undertaken in the third phase.
To facilitate cargo transportation, the Roads and Highways Department plans to construct a 28-kilometer road linking the deep-sea port.
Integration with Matarbari power project
The development of the Matarbari Ultra Super Critical Coal-Fired Power Project (1,200 MW capacity) has also played a key role in supporting the deep-sea port's infrastructure. A 14.3-kilometre navigational channel was constructed to transport coal and other materials for the power plant, which is now being repurposed for port operations.
The Chattogram Port Authority reports that 161 ships have so far docked at the power plant jetty, transporting a total of 3.29 million tonnes of cargo.
Currently, transporting one Twenty-foot Equivalent Unit (TEU) container costs $3,000, with shipments to Europe taking 40-42 days. However, once the deep-sea port becomes operational, large container ships with a capacity of over 8,200 TEUs will be able to dock directly, slashing delivery times to 16-17 days and cutting costs to below $1,300.
"The port will also support feeder vessel services from Kolkata and Haldia ports in India. This transshipment framework will enable goods from India, Nepal, and Bhutan to be transported efficiently while generating significant foreign currency earnings for Bangladesh," explained Khairul Alam Sujon, Vice President of the Bangladesh Freight Forwarders Association.
A regional transshipment hub
Syed Mohammad Arif, Chairman of the Bangladesh Shipping Agents Association, stated that once the deep-sea port is operational, it will not only accommodate larger vessels but also serve as a key transshipment hub.
"Neighboring countries will be able to use the port to transport their goods. Additionally, Bangladeshi cargo bound for Europe or America will no longer require feeder vessels to transit through Singapore, Colombo, or Malaysia," he said.
Rising project costs
The Matarbari Port Project was approved by the previous Awami League government in 2020 but faced delays due to land acquisition challenges and other hurdles.
In October 2024, the Executive Committee of the National Economic Council (Ecnec) revised the project cost, increasing it from Tk17,777 crore to Tk24,381 crore — an upward adjustment of over Tk6,500 crore, attributed to the rising value of the US dollar and other financial factors.
