How modern are our ports, really?

A few months ago, I passed the Mongla Port jetties by boat in the evening twilight. I noticed an unsettling quietness—there were no ships at the terminal and hardly any people in the area. How can an international seaport be so deserted despite official statistics indicating increased maritime traffic?

Neighbouring countries such as Bhutan, India, and Nepal have shown interest in using Mongla to access maritime trade routes through Bangladesh's improved port infrastructure. Yet, in stark contrast, Chittagong Port—our naval trade hub, handling 90% of national cargo—was ranked 67th globally among the world's busiest ports (Lloyd's List, 2023). 

Despite this success, Chittagong faces pressing challenges, including congestion, limited infrastructure, poor hinterland connectivity, bureaucratic inefficiencies, and environmental concerns. These issues reflect growing dissatisfaction among stakeholders and underscore the urgent need for port transformation to attract investment, boost revenue, and ensure sustainable economic growth.

The evolution of ports: A global overview

The transformation of seaports has been comprehensively captured in the United Nations Conference on Trade and Development (UNCTAD, 1991) study on port generations. Building on UNCTAD's model of first- to third-generation ports, scholars and port development experts have since expanded the typology to include fourth-, fifth-, and sixth-generation ports. While the first three generations are operational worldwide, the sixth generation remains conceptual mainly.

Seaports play a vital role in the global supply chain. To remain competitive, they must align with global capacity, logistics, organisation, and governance benchmarks. While traditional ports functioned simply as cargo transfer points, modern ports have evolved into complex, integrated logistics hubs due to the forces of globalisation, technological progress, and new management paradigms.

First-generation ports (pre-1960s) served as cargo transfer points between land and sea. These ports operated in isolation from city development and local industries.

Second-generation ports emerged after the 1960s. They went beyond cargo handling to become industrial and commercial centres, integrated with municipalities and major port users, offering auxiliary services to boost revenue.

Third-generation ports began taking shape in the 1980s, driven by containerisation and intermodal transport. The landmark container shipment by Malcolm McLean in 1956 marked the dawn of a new era. Ports transformed into logistics platforms integrated with global trade networks. These ports provide a diverse range of services, including:

Traditional port functions such as loading/unloading, navigation, and cargo storage are now digitised and technology-driven. Industrial and environmental services include ship repair, pollution control, and technical support. Administrative and commercial services, including trade zones, digital documentation, and business facilities. Logistics and distribution services involve real-time tracking, electronic data interchange (EDI), and end-to-end logistics integration.

Even in developed ports such as Rotterdam or Singapore, traditional activities like cargo handling and navigation remain central, but they are now executed using advanced technologies—terminal operating systems, real-time data sharing, and digital logistics solutions.

In third-generation ports, storage gives way to integrated distribution. Rather than merely storing goods, these ports serve as distribution centres with direct links to inland logistics networks. They offer value-added logistics services, streamlined customs processes, and enhanced warehousing, enabling faster and more efficient trade flows.

Fourth-generation ports emphasise environmental sustainability, smart technologies, and urban integration. They focus on community and environmental well-being and align port activities with broader regional development.

Fifth-generation ports prioritise AI-driven decision-making, autonomous port operations, and digital twin simulations.

Sixth-generation ports, still conceptual, envision a green, intelligent, and hyper-connected ecosystem fully integrated with smart global supply chains.

This evolution has not occurred by chance. It has been driven by increasing demand for value-added services, environmental pressures, technological breakthroughs, digitalisation, and the need for closer alignment between ports and urban economies.

Where do Bangladesh's ports stand?

The UNCTAD framework provides a useful model for assessing the development of Bangladesh's principal seaports—Chittagong and Mongla. Historically, these ports functioned as first-generation facilities, focused on berthing, basic cargo handling, and ship-shore transfer. Limited logistical integration and hinterland connectivity led to congestion and inefficiencies.

Over time, both ports began incorporating elements of second-generation models, such as improved intermodal connections (road and rail) and container yards and warehousing development. 

For example, Mongla Port has invested in multimodal transport links, while Chittagong has expanded container yards. However, these improvements remain limited by chronic infrastructure deficits and underinvestment.

UNCTAD's third-generation model calls for the full integration of logistics systems, IT-driven port operations, and close cooperation with municipal authorities. Chittagong is inching towards this level, with efforts to digitise customs procedures and expand container capacity through major terminal projects and improved transport links. Nonetheless, these advances are hindered by sluggish governance, inadequate technological adoption, and bureaucratic fragmentation.

Mongla, though smaller, is also striving to evolve into a third-generation port. It has introduced some modern logistics services and improved hinterland access. However, progress remains slow, and both ports are still far from achieving fourth- or fifth-generation status.

Integrated urban-port development, smart technology adoption, and sustainability practices—hallmarks of advanced port generations—remain nascent in Bangladesh. The visible challenges of traffic congestion, pollution, and poor infrastructure stand in stark contrast to global ports, where digital ecosystems, environmental stewardship, and automation are becoming standard.

Conclusion

Bangladesh's seaports are slowly transitioning from first-generation to early third-generation models. While signs of modernisation are visible, serious challenges remain in terms of governance, technology, and infrastructure. To leap forward, the country must undertake a comprehensive transformation of its port sector.

This includes enhanced investment in both digital and physical infrastructure, better coordination among stakeholders, and alignment with regional development strategies. Only then can Bangladesh's ports become competitive, future-ready hubs capable of driving long-term economic growth.

Capt Sayeed Mahmud Hassan (retd) BN is an Adjunct Faculty at Bangladesh Maritime University. Mobile: 01769760808

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.