The World Bank has approved a major $650 million investment to support Bangladesh’s construction of a breakwater for the Bay Terminal, a transformative expansion project at Chattogram port. This move is set to bolster Bangladesh’s global trade position by enhancing port efficiency and drawing in private investment.
Plans for the Bay Terminal include the creation of two container terminals, a multipurpose terminal, and an oil and gas terminal. This project is poised to overhaul Bangladesh’s maritime infrastructure, which currently relies on the Chattogram port for over 90% of the nation’s international trade and 98% of its container traffic. The port faces limitations, accommodating only small feeder vessels during limited hours.
World Bank Country Director for Bangladesh and Bhutan, Abdoulaye Seck, described the Bay Terminal as a transformative project. “The Bay Terminal will be a game changer. It will improve Bangladesh’s export competitiveness through enhanced port capacity and reduced transportation cost and time, opening new opportunities to key global markets.”
The initiative includes constructing a 6-kilometer climate-resilient breakwater, designed to protect the harbor from waves, currents, and severe weather. Dredging the port basin, entrance, and access channels will also smooth operations.
Leading international terminal operators will run the modern Bay Terminal, which is expected to accommodate larger vessels like Panamax ships. This upgrade will reduce vessel turnaround time, potentially saving Bangladesh’s economy approximately $1 million daily.
The World Bank’s investment, along with government funding, is expected to increase investor confidence and mitigate risks associated with the Bay Terminal’s development. The International Finance Corporation (IFC), the World Bank Group’s private sector arm, is also considering investing in one of the proposed private sector-led terminals.
Hua Tan, Senior Transport Specialist and Team Leader for the project highlighted the broader impact: “The Bay Terminal will contribute to modernising the country’s seaport infrastructure and improving its connectivity to regional and international markets.”
Located in Anandangar, the Bay Terminal is projected to handle 36% of Bangladesh’s container volumes. This development forms part of a record $3.4 billion dedication by the World Bank to Bangladesh for the 2023-24 fiscal year.
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