Govt to self-fund Paira seaport as foreign firms back out

FHM Humayun Kabir | Published: December 22, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The government will start building, the country's third seaport at Paira from its own coffers, officials said Saturday.
Ministry of Shipping officials said they have undertaken a Tk 8.59 billion project to develop necessary infrastructure and facilities of the newly- established Paira port.
"This is the preliminary initiative of the government to develop the country's third seaport. After getting instruction from the government high-ups, we are going to develop the seaport so that its operation can start on a smaller scale soon," said a senior Shipping Ministry official.
He said, firstly, 6,000 acres of land will be acquired at Paira in Patuakhali for developing the port. Some vessels and survey boats will be purchased, a five-storied administrative building will be constructed and a 5.60 kilometre four-lane road from Rojopara on the Patuakhali-Kuakata road to the Paira seaport will be built.
"All necessary work is expected to be completed by June 2017. Then the operation of the seaport will begin," said the official.
He said they have sent the project proposal to the Planning Commission for getting approval. "After getting endorsement, we want to start work immediately to develop the port facilities," he added.
Meanwhile, the Prime Minister's Office (PMO) had asked the Shipping Ministry to arrange funds immediately to construct the seaport to fulfil the present government's election pledge.
Prime Minister Sheikh Hasina on November 19 last year formally inaugurated the Paira seaport.
After inauguration, the government decided to start building it as an anchorage port. The Paira Port Authority (PPA) is carrying out necessary infrastructural development 4works.
Currently, Bangladesh has two seaports at Chittagong and Mongla. Chittagong is the busiest port as nearly 80 per cent foreign trade takes place through it.
However, the second largest Mongla port is under- utilised due to lack of adequate facilities at the port and absence of roads or railway connection for carrying goods to the capital city Dhaka and other parts of the country.
Low draft of the Pashur River channel at the Mongla Port area is another key obstacle to smooth operation of the port, officials said.
Earlier, the government had decided to seek foreign funds to build the Paira port on government-to-government (G-to-G) or Public-Private Partnership (PPP) basis.
The cabinet committee on economic affairs in September last approved the proposal of the Shipping Ministry for construction of the full-fledged port on G-to-G or PPP arrangement.
The Shipping Ministry official said they did not find any foreign investment for developing the port.
"We have therefore decided to go for building the port infrastructure and facility with internal resources."
Earlier Dubai-based DP World and Indian Adani Group had not shown interest in investing in the Paira Port construction considering its location and connectivity.
In several meetings with the government high-ups, they pointed out several disadvantages of setting up the seaport at the site.
Meanwhile, experts raised their reservation on setting up of the seaport without any proper feasibility study.
Hydrograph experts and mariners said Sonadia was selected as a site for deep-sea port after carrying out survey and considering comparative advantages with Patenga, Kutubdia, Moheskhali and Sandwip. But, while selecting the site for the Paira Port, no such survey was carried out, they added.
They said the government should improve the capacity of the Mongla port and make its efforts to set up the proposed deep-seaport in the Bay to make Bangladesh one of the best destinations for foreign businesses.
They also said the water draft on inland river route from Dhaka to the Paira Port through which goods will be carried to the capital and elsewhere, is very low.
According to the Bangladesh Inland Water Transport Authority (BIWTA), during the first week of November, the average water draft from Dhaka to Paira was between 2.25 metres and 2.40 metres while the average water draft between Narayanganj and Chittagong measures 3.65 metres.
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