The International Finance Corporation (IFC) is interested in investing in the construction of the proposed Bay Terminal in Chattogram.
The Singapore-based PSA International is now conducting a feasibility study on the project.
IFC officials have recently informed shipping ministry of its involvement with the PSA International regarding the building of the much sought-after terminal.
"The IFC at a meeting told us of its involvement with PSA International in constructing the proposed terminal," shipping secretary Mohammed Mezbah Uddin Chowdhury told the FE last week.
In late 2018, the government selected the Singaporean firm for carrying out capital dredging and building breakwater in the bay, and constructing two container terminals under the project.
The PSA is now doing the feasibility of the terminal while the government is in discussion with interested parties for funding the construction work.
"PSA International is conducting a feasibility study on Chattogram Port Authority's proposed 'Bay Terminal' project under the public-private partnership policy of Bangladesh," a corporate spokesperson for PSA told the FE.
"The project includes the construction of a multipurpose terminal and two container terminals at Anandabazar, North Halishohor."
IFC's communications official Savani Jayasooriya said the IFC, the private-sector financing arm of the World Bank, is working with the PSA to develop "a container terminal as part of a larger Bay Terminal project".
In an email communiqué, she said Chattogram port, the largest port in Bangladesh, is heavily constrained in its ability to handle additional capacity.
It now deals with 98 per cent of the country's export-import trade.
"As the largest global development organisation working in the developing countries, the IFC believes it's important to boost trade which helps create jobs and income for people," Ms Jayasooriya added.
She said IFC's InfraVentures, a $150-million global infrastructure project development fund, has been in discussion with the PSA and Bangladesh regarding the development of the container terminal.
"PSA and InfraVentures are acting as early project developers\with the project is being developed under a public-private partnership approach by the government."
Other strategic investors may invest later or during the development stage, Ms Jayasooriya added.
The terminal will be built in 12-13 metres water depth inside the bay to accommodate large vessels up to 280 metres long with carrying capacity of 5,000 TEU (twenty-foot equivalent unit) containers.
The existing terminals of Chattogram port can handle below 200 metres long vessels which can carry around 2,000-TEU containers up to 9.5 metres water depth.
The cost of building the terminal has been estimated at $2.5 billion.
It will have one 1,500-metre multipurpose terminal, one 1,225-metre container terminal, one 830-metre container terminals and a total of 13 jetties.
Once constructed, the terminal is expected to handle an estimated 3.0-million TEUs of containers, doubling Chattogram port's current capacity.
syful-islam@outlook.com