The government has prioritised the completion of the breakwater design for the Bay Terminal project at the Chittagong Port as the first step towards attracting private investors and making at least one terminal operational by 2030.
The construction of the terminals cannot begin until the breakwater - a protective structure designed to shield the harbour from waves and extreme weather - and site preparation works are completed.
A technical assessment of the breakwater design is now underway.
The project requires two specialised simulations before the design can be finalised.
While the first simulation has already been completed, the authorities are exploring the possibility of conducting the second simulation in Singapore instead of South Africa to expedite the process.
Shipping Secretary Md Zakaria has told The Financial Express that breakwater construction is the most critical component of the Bay Terminal project.
"The breakwater has to be constructed first. Dredging and land acquisition are routine processes, but the major technical challenge is completing the breakwater design through two simulations," he says.
A government team recently visited PSA Singapore and successfully completed the two-dimensional (2D) simulation for the breakwater's technical assessment, he adds.
"The next phase was scheduled to take place in South Africa, but we are exploring whether it can be conducted in Singapore instead to shorten the timeline," Zakaria says.
Land acquisition for the Bay Terminal project is progressing simultaneously, he adds.
Global port operators PSA International of Singapore and DP World have expressed interest in developing Container Terminal-1 and Container Terminal-2 under public-private partnership arrangements and are currently in talks with the Bangladesh government.
The World Bank is financing the core marine infrastructure, including the construction of the breakwater and channel dredging, while private investors will develop and operate the terminal facilities.
The government is also considering the construction of a multipurpose terminal and an LNG regasification terminal as part of the broader Bay Terminal complex, although no final decision has been made on the LNG facility.
"The breakwater is the foundation of the entire project. Once it is completed, terminal operators will be able to design and develop their own facilities," Zakaria says.
The Bay Terminal project, aimed at accommodating large vessels that currently cannot berth at the existing Chittagong Port facilities, will comprise two container terminals and a multipurpose terminal.
Prime Minister Tarique Rahman on Wednesday told parliament that the Chittagong Port's capacity had continued to grow despite global economic challenges, and the planned Bay Terminal would reduce import and export costs while boosting the country's economy.
The Bay Terminal would allow large mother vessels to berth directly at the Chittagong Port. At present, navigational limitations prevent such vessels from entering the port. Once they could berth directly, transshipment costs would reduce, he said.
He also said the project would accelerate import and export activities, expand trade, and have a positive impact on the economy.
Officials say the completion of the breakwater design is crucial for prospective investors to assess the project's technical specifications and move towards finalising concession agreements.
Chittagong Port Authority (CPA) Secretary Syed Refayet Hamim says construction work on the terminals is scheduled to begin by June of the current fiscal year, with operations expected to commence in 2030.
"The 2D simulation was successfully completed in May 2026. CPA is planning to conduct the three-dimensional (3D) simulation in August or September this year," he says.
The Bay Terminal Marine Infrastructure Development Project received approval from the Executive Committee of the National Economic Council (ECNEC) in April this year, along with the Development Project Proposal (DPP) covering breakwater construction and channel dredging.
CPA has already engaged potential contractors for breakwater construction, channel dredging, and suppliers of navigational equipment through a General Market Engagement conference.
With the World Bank loan agreement signed in 2025, procurement activities are expected to begin soon in line with the lender's Investment Project Financing regulations.
Backed by $650 million in World Bank financing, the project is expected to significantly enhance the country's port capacity, reduce vessel turnaround time, and strengthen Bangladesh's competitiveness in global trade.
The terminal complex will feature a 1,500-metre multipurpose terminal, a 1,225-metre container terminal, and an 830-metre container terminal, offering a combined berth length of 3,500 metres that will enable four to five large vessels to dock simultaneously.
A six-kilometre climate-resilient breakwater will protect the harbour from strong waves and extreme weather, while channel dredging will allow larger vessels, including Panamax ships, to operate efficiently.
Officials estimate that faster vessel turnaround times could save the economy around $1 million per day.
The Bay Terminal will be developed over approximately 900 acres along the Patenga coastline and is expected to increase the Chittagong Port's container handling capacity by up to 5 million Twenty-foot Equivalent Units (TEUs) annually, compared with the current capacity of around 3.1 million TEUs.
According to project documents, the terminal is projected to contribute between 2.0 and 3.0 per cent to national economic growth by improving logistics efficiency, reducing transport costs, and strengthening regional connectivity.
Former president of the American Chamber of Commerce (AmCham) in Bangladesh Syed Ershad Ahmed says the Bay Terminal could be a game changer for Bangladesh as it would significantly enhance regional connectivity and expedite cargo handling at the Chittagong Port.
"We need to become more competitive by improving our logistics efficiency," Ershad, country manager and managing director at Expeditors (Bangladesh), says.
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