Nazimuddin Shyamol
CHATTOGRAM, June 29: The World Bank's Board of Executive Directors has approved $650 million to help Bangladesh invest in infrastructure for developing the Bay Terminal of Chittagong Port.
The allocation will improve Bangladesh's global trade competitiveness and reduce import and export costs significantly, sources said.
The WB has announced that the Bay Terminal Marine Infrastructure Development Project would construct a six-km climate-resilient breakwater to protect the harbour from the force of waves, current and extreme weather.
The sources also said it would also carry out dredging of the port basin, entrance and access channels. The modern terminal to be operated by leading international terminal operators would accommodate larger-size vessels, such as panamax vessels, and substantially decrease vessel turnaround time, potentially saving the economy about $1 million daily.
They further said currently, Chattogram Port, the prime seaport of the country, which is also the maritime gateway for over 90 per cent of its international trade volume and 98 per cent of its container traffic, can only receive small feeder vessels during limited hours of the day.
Abdoulaye Seck, WB country director for Bangladesh and Bhutan, said, "Bangladesh's international trade heavily relies on Chittagong Port, which faces significant capacity constraints. The Bay terminal project will be a game changer. It will improve Bangladesh's export competitiveness through enhanced port capacity and reduced transportation costs and time, opening new opportunities to key global markets."
A WB press release said on Friday that the Bay terminal project would mobilise private investment for the development of container terminals. The WB investment along with the government funding will bolster investor confidence and contribute to mitigating risks associated with the overall Bay Terminal Development.
Hua Tan, WB senior transport specialist and team leader for the project, said, "The Bay Terminal will contribute to modernising the country's seaport infrastructure and improving its connectivity to regional and international markets."
Chittagong Port Authority (CPA) Chairman Rear Admiral Mohammad Sohail said, "The work on the Bay Terminal is going on in full swing now. The master plan for construction of the terminal has already been completed. It is expected to begin operation by 2027-28."
The WB was among the first development partners to support Bangladesh following the country's independence. Since then, the WB has committed about $42.3 billion in grants, interest-free and concessional credits to the country.
Earlier, on May 16 last, Abu Dhabi Ports Group (AD Ports) has committed to invest $1 billion for the much-anticipated multipurpose Bay Terminal by signing of a non-binding Memorandum of Understanding (MoU) between the CPA and AD Ports for 'Cooperation related to Bay Terminal Project, including Multipurpose Terminal'.
The sources further said the Bay Terminal is likely to be operated in 2026 and increase the container handling capacity of the port by up to 5 million TEUs yearly from existing 3.1 million TEUs.
It is also expected to contribute 2/3 per cent to the growth of the national economy.
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