Bay Terminal gets green light as govt approves Tk13,525cr support projects

Twelve years after it was first conceived, the long-awaited Bay Terminal project in Chattogram is set to move forward with formal approval of a support project, paving the way for the construction of essential facilities including breakwaters and a navigation access channel.

The Executive Committee of the National Economic Council (Ecnec), presided over by Chief Adviser Muhammad Yunus, approved the Tk13,525 crore project today, laying the groundwork for Bangladesh's first deep-sea container terminal.

Briefing reporters after the meeting, Planning Adviser Wahiduddin Mahmud said the project, which had remained stalled for years despite its economic importance, would finally see physical implementation through this support project.

He noted that the construction is scheduled for completion by June 2031, although the government hopes to expedite the timeline, as the development of four terminals at the site depends on this infrastructure.

The support project, largely funded by a Tk9,333 crore loan from the World Bank, will facilitate the construction of connecting roads, railway links, utility lines for power, gas, and water, internal roads, service jetties, and other infrastructures.

Two of the four planned terminals will be built under PPP deals – Terminal-1 by Singapore's PSA and Terminal-2 by UAE-based DP World.

The implementing authority, the Chattogram Port Authority (CPA), has yet to finalise plans for the remaining two terminals.

The government took a policy decision in 2013 to build the Bay Terminal as part of the Chattogram port expansion. That same year, Hamburg Port Consulting of Germany conducted a pre-feasibility study. In 2017, plans were approved for a full feasibility study and a master plan.

'First ocean-based container port'

Adviser Mahmud said the current Chattogram port is effectively a river port, while newer ports such as the one under development in Matarbari are designed primarily for specific commodities like coal.

In contrast, the Bay Terminal is envisioned as Bangladesh's first "true ocean-based container port", and its timely construction is essential given the country's rapidly expanding trade volume.

Based on the feasibility study, the Port Authority estimated the total cost of constructing the entire bay terminal, which includes the terminals, access channels, and breakwaters, at $2.8 billion. 

Of this amount, $609.44 million is allocated for each of Terminal 1 and Terminal 2, while the construction of Terminal 3 is expected to cost $755.11 million. Additionally, $831 million will be spent on other works, including the side project for the navigational access channel and breakwater.

The Bay Terminal, with a projected handling capacity of 3.6 million twenty-foot equivalent units (TEUs), is central to the government's long-term plans to expand container capacity.

Estimates indicate that by 2030, the country will require capacity for 6.3 million TEUs, which is expected to rise to 8.6 million by 2035 and to 11.5 million by 2040.

The terminal is also expected to create around 13,500 jobs and enhance connectivity between the Dhaka-Chattogram highway, inland waterways, and railway networks.

16 projects worth Tk24,247cr approved

The Ecnec meeting today also approved 16 projects with a total allocation of Tk24,247 crore. Twelve of these projects will be financed through foreign aid or loans, including nine backed by the World Bank. 

Other development partners involved include the governments of Japan and Germany (through GIZ), and the Bill & Melinda Gates Foundation.

Adviser Mahmud pointed out that one drawback of foreign loans is the mandatory hiring of international consultants, many of whom fail to deliver effective results. 

However, these requirements are often unavoidable when seeking large-scale concessional loans, as development partners tie them to disbursement, he said.

He also commented on the proposed Teesta Barrage project, saying its success depends on securing cooperation from India on water sharing.

"With no bilateral agreement in place, the government has not conducted a feasibility study, and only China has so far submitted a design proposal," he added.