Bay Terminal to expand with new oil terminal

The Bay Terminal, the flagship project of Chittagong seaport, will expand to include an oil terminal alongside the three terminals already designated in the master plan.

This new addition will enable Bay Terminal to accommodate oil tankers at its fourth terminal, utilising its own jetties.

Sources said the Master Plan for the construction of Bay Terminal at Chittagong seaport has incorporated a new terminal for gas and oil, marking it as the fourth terminal. Initially, the Chittagong Port Authority (CPA) had planned to construct three terminals, but now the authority has included another terminal in the project.

According to the Master Plan, the construction of Bay Terminal is scheduled to begin in the middle of the current year, aiming to start partial operation by 2026. Prime Minister Sheikh Hasina unveiled the Master Plan for Bay Terminal construction, along with the detailed area plan, on November 14 last year.

The Master Plan for Bay Terminal has been prepared by two appointed consulting firms: Kun Hwa Engineering and Consulting Company Limited, and Daeyoung Engineering Company Limited from South Korea. These firms were engaged as consultants for Bay Terminal since April 2022.

On June 28, the World Bank's Board of Executive Directors approved USD 650 million to assist Bangladesh in investing in critical infrastructure for the development of the Bay Terminal deep seaport. This initiative aims to significantly enhance Bangladesh's global trade competitiveness and reduce import and export costs by improving port operational efficiency and attracting private investment.

Earlier, on May 16, Abu Dhabi Ports Group (AD Ports) committed to investing $1 billion in the multipurpose Bay Terminal. This commitment was formalised through a non-binding Memorandum of Understanding (MoU) signed between the CPA and AD Ports for 'Cooperation related to Bay Terminal Project including Multipurpose Terminal'.

Chairman of Chittagong Port Authority (CPA) Rear Admiral Mohammad Sohail said, "To ensure the country's energy security, a plan has been initiated to construct a gas and oil terminal as the fourth terminal of Bay Terminal. A private company has proposed an investment of 3.4 billion dollars for this terminal. Thus, Bay Terminal will have a total of four terminals instead of three."

The 'Bay Terminal' to be built on an area of 900 acres would allow big ships, which now cannot berth at the jetties of Chittagong Port to carry out shipment activities. It is expected to increase the container handling capacity of the port by up to 5 million Twenty-foot Equivalent Units (TEUs) yearly from the existing 3.1 million TEUs. The Bay Terminal is also expected to contribute 2 to 3 percent to the growth of the national economy.

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