Dev budget for two seaports may bloat

Interim government's focus on developing Matarbari deep-sea port and Mongla seaport as shipping hubs necessitates huge funds as the Ministry of Shipping has sought nearly 50-percent higher allocations in the upcoming budget.

Officials say the Matarbari port development is likely to involve almost doubling of funds and the struggling Mongla port may get over 45-time higher funds in the fiscal year (FY) 2025-26 development budget.

Bangladesh government has taken initiative to construct the Matarbari seaport as the country's first deep-sea port since drafts of two other older ports-Chittagong and Mongla-are far lower to host oceangoing vessels.

The interim government has also taken steps to revive the Mongla port, now severely underutilised for its poor connectivity and logistics, aiming to boost regional connectivity and foreign trade.

Currently, nearly 80 per cent of Bangladesh's foreign trade is conducted through the largest seaport -the port of Chittagong.

Planning Commission (PC) officials have said the Shipping Ministry has sought a total sum of Tk 104.30 billion in the upcoming Annual Development Programme (ADP) that accounts for 48- percent higher than the current allocations.

In the current FY2025 revised ADP, the government allocated Tk 70.59 billion for the sector.

"The Shipping Ministry has sought a massive amount of fund allocations for the Matarbari and Mongla port-development works in the upcoming budget as both the ports have been getting higher priorities in our development agenda," says a senior ministry official.

"Since Mongla port has been struggling for decades, we want to revive it for expanding Bangladesh's foreign trade and regional connectivity, especially with South Asian nations that include India, Nepal and Bhutan," he adds about the ambitious shipping plans.

And the Matarbari port would be one of the biggest economic lifelines for Bangladesh as it is expected that it will become one of the international transport hubs for global freight carriers, the shipping ministry official says.

"We have already signed agreement with a Chinese firm to develop the Mongla port, the second- largest port of Bangladesh," he adds.

He says the Bangladesh government agrees to allow Nepal and Bhutan for using the Mongla seaport for conducting their foreign trade.

"We have already developed the connectivity with this port through constructing a fresh train line, and widening the existing roads and bridges. Now we are working to facilitate the port logistics," the ministry official adds.

According to the ministry, it has sought Tk 22.68 billion for Matarbari port-development works in the upcoming ADP for FY2026.

In the outgoing ADP for FY2025, the government allocated Tk 19.86 billion for Matarbari port works.

Besides, the ministry has also sought Tk 18 billion in the next ADP for the ongoing Matarbari road-construction project for connection of the port with Cox's Bazar city.

For the Mongla port-uplift works, the Shipping Ministry has sought Tk 6.15 billion worth of allocation in the next ADP coming in sync with the new national budget slated for rollout early next month.

In the current FY2025 ADP, the government allocated Tk 135.5 million worth of funds.

Besides, the Shipping Ministry has sought higher funds for the Pyra port-development works.

For the Pyra port infrastructure-facility-development project, the ministry has sought Tk 2.60 billion. In the current ADP, the government allocated Tk 856.7 million for the project.

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