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Read MoreChittagong & Matarbari Ports Establish Bangladesh as the Next Singapore.
Bangladesh is building its future with its own hands by developing deep-sea ports. These strategic initiatives will position the country as a key maritime hub in Southeast Asia.
Chittagong & Matarbari Ports Establish Bangladesh as the Next Singapore.
Full-scale construction has resumed on the Matarbari Deep Sea Port after five long years.
Japan has taken on the infrastructure development of Package 1. Japanese companies TOA Corporation and Penta Ocean Limited recently signed an agreement with the Chattogram Port Authority to begin the work.
Meanwhile, a Bay Terminal is being constructed in Patenga, Chattogram at a cost of around 13,500 crore taka. This initiative has been taken by Dr. Yunus’s government to increase the capacity of the country’s seaports.
In today’s episode of Bangladesh 2.0, we’ll discuss how these two mega projects could transform the country’s trade and economy.
We’ll explore how Bangladesh is poised to become a key player in the maritime economy and trade of Southeast Asia.
The key insights shared here will help you make informed decisions about investing and establishing a business in Bangladesh.
Matarbari deep sea port project details
A few years ago, a 6.5 km long and 14.5 meter deep artificial channel was built in Matarbari, Maheshkhali, at a cost of 9,000 crore BDT.
Since a coal-based power plant already exists in Matarbari, a coal jetty was also constructed earlier.
In 2023, a Japanese vessel measuring 230 meters in length and with a 14-meter draft arrived here, carrying 80,000 metric tons of coal.
This was the largest ship in Bangladesh’s history to dock at any of its ports, marking the beginning of the deep sea port’s potential in Matarbari.
However, the country’s politics, previously dominated by a corrupt, plundering regime controlled by Delhi, repeatedly delayed the port’s development.
After Dr. Yunus’s public uprising and the formation of a new government, the economy began to revive, and progress resumed on the port’s construction.
According to the agreement, within the next four years, Japan will build a 460-meter-long container jetty and a 300-meter multipurpose jetty as part of the terminal development.
The initial phase includes a terminal combining these two jetties, costing 6,200 crore BDT — entirely funded by JICA (Japan International Cooperation Agency).
Strategic Importance of Matarbari Port
Oil tankers from the Middle East travel through the Malacca Strait to Japan, but China’s presence in the Bay of Bengal poses a threat to Japan’s energy security.
Matarbari Port will help Japan address this threat. Additionally, Japan views Bangladesh as a key development partner and sees the country as a future business hub, enabling it to play a stronger role in free trade in South Asia.
In the future, Matarbari Port is set to become a major hub for business in the Indo-Pacific region.
Matarbari Channel
The Matarbari Port is protected by an artificial harbor, safeguarded by a navigational channel and sea wall. The harbor has a water depth of 16 meters, and the maneuver basin within also has a depth of 16 meters.
The terminal being built here will accommodate mother vessels, which is not possible at any other port in the country. The harbor will feature a 460-meter-long quay on 20 hectares of land.
By 2029, it will be ready to handle multi-purpose container vessels, with the port’s capacity to handle 1.1 million containers. By 2041, it is projected to have a capacity of handling 2.6 million containers.
Chittagong Bay Terminal
Chittagong Port, known as the lifeline of the country’s economy, contributes to 75% of the country’s total exports and 80% of its imports. It also generates 60% of the total national revenue.
The port started operations in 1860 with just two jetties.
Over time, additional jetties and terminals were added, and in 1926, the British government declared Chittagong Port as the region’s primary port. Even during the Pakistan era, Chittagong Port held immense significance.
Since the country’s independence, it has been operated under the Chittagong Port Authority since 1976.
In the past 50 years, the country’s economy has grown fourfold, but Chittagong Port’s infrastructure has not been expanded accordingly.
However, a significant development is underway with the construction of the Bay Terminal, which is set to expand the port’s capacity.
The boundary of the Bay Terminal begins from the back of Chittagong EPZ in Patenga and stretches almost 6.5 kilometers to the Zohur Ahmed Stadium in Chittagong.
Currently, containers are handled at three terminals in Chittagong Port, with container handling also starting at the Patenga Terminal.
With the completion of the Bay Terminal, the port’s handling capacity will more than double, reaching 6 million twenty-foot equivalent units (TEUs).
What’s Inside the Chittagong Bay Terminal ?
In 2017, German company Shell Horn conducted a study on the technical, economic, and environmental feasibility of the Bay Terminal.
The report concluded that initially, ships up to 300 meters long and with a draft of 12 meters could dock at the terminal.
In 2024, the final design for the Bay Terminal was concluded, which includes four large terminals. Under a Public-Private Partnership (PPP) framework, two foreign companies will manage two of the terminals.
One of these will be operated by Dubai’s DP World. The terminals will be divided into four parts: two for containers, one for oil and gas, and one for bulk goods.
Port of Singapore Authority (PSA) is investing $150 million into their terminal, while the oil and gas terminal will be constructed by the domestic East Coast Group, who will invest $350 million.
Currently, the country’s oil and gas storage capacity is only 25 days. Once the oil and gas terminal is operational, the country’s storage capacity will increase to 60 days.
This project will see the largest foreign investment in the country’s history, with an estimated $800 million, or approximately 90,000 crore Taka.
What Are the Benefits of the Bay Terminal?
Currently, containers can only be loaded and unloaded at the Chittagong Port during high tide, with a capacity to handle ships carrying 1,500 containers.
However, once the Bay Terminal becomes operational, it will be able to accommodate ships with up to 4,000 containers, and loading/unloading will be possible 24/7.
The terminal area is well-connected to the Dhaka-Chittagong highway, and it is very close to a railway station. Additionally, goods can be transported via waterways across the country directly from the Bay Terminal.
Conclusions
Bangladesh’s Ports Set to Lead Southeast Asia’s Maritime Industry. When talking about modern, well-organized ports, names like Singapore, Hong Kong, China, and Japan come to mind.
However, in the coming years, Chittagong Port in Bangladesh will join this list. With the addition of the Matarbari and Payra deep-sea ports in Maheshkhali, Bangladesh is poised to become a leader in port services in Southeast Asia.
Surrounding these ports and terminals, numerous economic zones will be developed, creating employment opportunities for millions of unemployed youth.