Bay Terminal eyes $11.5b foreign investment in 2024

Infographic: TBS

Chattogram Port expects a substantial $11.5 billion in foreign investment in 2024 for the construction of the Bay Terminal, which will have a capacity six times the existing capacity.

The project – which will have four terminals – is set to start implementation next year, with a target to start partial operation in 2026, according to Rear Admiral Mohammad Sohail, chairman of the Chattogram Port Authority (CPA).

He said global port operators are scheduled to enter into investment contracts next year, adding that the PSA Singapore and Dubai-based DP World will invest in Bay Terminals 1 and 2, respectively. Both terminals are designated for container handling.

Simultaneously, Abu Dhabi Port Group has entered the scene, submitting an investment proposal of $1 billion. The proposal envisions a joint venture with Chattogram Port for the construction of the multipurpose Bay Terminal 3.

In a strategic move aimed at bolstering the country's energy security, the premier seaport plans to designate Bay Terminal 4 for gas and oil, the CPA chairman said as he outlined a promising trajectory for the port's future developments during a press conference on Wednesday.

A private company has already demonstrated keen interest, proposing a staggering investment of $3.5 billion for the terminal's construction. The final decision on this monumental endeavour is expected within the coming year, the CPA chairman added.

Embracing the landlord concept prevalent in developed ports worldwide, Chittagong Port is poised to transform through foreign investments in the Bay Terminal project, according to the CPA.

At present, ships of more than 10 metres draught and 200 metres long cannot enter the Chattogram Port. The Bay Terminal will be able to accommodate ships up to 12 metres draught and 260 metres long. There will be no need to depend on high tides to berth the ships.

In addition to the Bay Terminal, global terminal operator APM Terminals has submitted a proposal for the construction of the Laldia Container Terminal, which is currently under review as a PPP project. Scheduled for presentation at the Bangladesh-Denmark joint platform meeting on 3 January, the project aims to kick off construction next year, encompassing the development of port channels and breakwaters.

At the press conference convened to share the port's significant achievements with journalists, the CPA chairman said the Chattogram Port has once again achieved the milestone of handling 3 million twenty-foot equivalent unit (TEU) containers this year.

He said 3,044,505 TEU containers were handled by 25 December, and the figure is expected to reach 3.1 million by year-end.

During the same period, the country's premier gateway to seaborne international trade handled 11.83 million tonnes of cargo, with projections indicating that this figure will exceed 12 million tonnes by year-end.

If achieved, this will stand as the highest cargo-handling record in the history of the Chattogram port.

In 2022, the port handled 31,33,020 TEU containers and 11,92,76,262 tonnes of cargo.

Rear Admiral Mohammad Sohail outlined ambitious plans for the country's seaports.

He envisioned that by 2030, with the completion of ongoing projects such as the Bay Terminal and Matarbari Deep Seaport, all seaports in Bangladesh, including Mongla and Payra, are expected to handle 17 million TEU containers.