Bay Terminal: a future port of Bangladesh

A megaproject conceived for building a future port named "Bay Terminal of Chittagong Port" for harbouring big-hull ships will be completed by 2031. An agreement was signed for breakwater construction and access-channel dredging at the foreign-aided shipping terminal. So, the construction work will be started shortly, officials of the Chittagong Port Authority (CPA) have said.

Chairman of the CPA Rear Admiral SM Moniruzzaman says, "Backed by World Bank loan, the Bay Terminal project will be a game changer for Bangladesh which will be sharply reducing vessel turnaround and import-export costs while allowing bigger ships to be accommodated. Bay Terminal is expected to come into operation in 2031."

He also hopes the construction works would begin in the middle of next year. He was addressing the representatives of the local foreign stakeholders and of the World Bank who attended a consultation meeting held on November 3 last at the CPA auditorium. The CPA has invited the potential contractor for breakwater construction and channel dredging and suppliers of navigational equipment in the General Market Engagement (GME) conference.

He says, "The Bay Terminal marine Infrastructure Development Project was already reviewed and approved at the ECNEC on April 20 last. The ECNEC also approved the Development Project Proposal (DPP) for breakwater construction and access-channel dredging at the Bay Terminal of Chittagong Port in the said meeting."

He mentions that Chittagong Port is in the process of constructing Container Terminal-1 and Container Terminal-2 of the Bay Terminal with PPP partners PSA Singapore and DP World. An agreement was signed with the World Bank on April 23 last to construct a breakwater in the channel of the Bay Terminal. It is expected that the Bay Terminal project of the Chittagong Port will be completed by 2031.

Secretary of CPA Md. Omar Faruk also said that the Chittagong Port Authority was moving forward in line with the growing progress of the country's economy by addressing various challenges through good management, automation, efficiency and experience.

The Bay Terminal Marine Infrastructure Development Project of CPA will be implemented through a combination of CPA's own investment, a World Bank loan and private-sector participation. Under this initiative, the breakwater and access channel component will be implemented by CPA with World Bank financing while the terminal facilities will be developed and operated under a public- private partnership model. The World Bank -funded project aims to enhance maritime -port capacity

The infrastructure-development project, financially supported by the World Bank, is to enhance maritime-port capacity and operational efficiency at the Bay Terminal for the benefit of all stakeholders. Procurement activities under this project will be conducted in accordance with the World Bank procurement regulations for IPF borrowers. With the project and loan agreement now approved, procurement process is expected to commence in early 2026.

The Bay Terminal project, backed by $650 million from the World Bank, will be implemented under a combination of CPA-financed works and Public-Private Partnerships (PPP). CPA will handle the breakwater and access-channel components, financed through the World Bank, while private-sector operators will develop and manage the terminal facilities. The initiative is expected to enhance port capacity, reduce vessel -turnaround time, and improve Bangladesh's competitiveness in global trade.

The terminal complex will include three state-of-the-art terminals: a 1,500-metre multipurpose terminal, a 1,225-metre container terminal, and an 830-metre container terminal. Container Terminals 1 and 2 will be constructed under PPP agreements with Enterprise of Singapore and DP World of the UAE, respectively. Each terminal will have modern cargo-handling equipment, with multipurpose facilities catering to general cargo. The total berth length will be 3,500 metres, allowing simultaneous docking of four to five large vessels.

A 6-km climate-resilient breakwater will protect the harbour from strong waves, currents, and extreme weather conditions. The dredging of the port basin, entrance, and access channels will allow in larger vessels, including Panamax ships, to operate efficiently. Officials estimate that faster turnaround times could save the economy around $1 million daily.

The project will also enhance social and economic benefits. Over 1.0 million people, half of them women, will gain improved access to sustainable transport services, including shipping companies, importers, exporters, and freight forwarders. The project will encourage women-owned enterprises to participate in trade and port-related employment. By streamlining logistics, reducing transportation costs, and improving regional connectivity, the Bay Terminal is set to become a hub for inclusive growth.

In April 2025, Bangladesh and the World Bank signed financing agreements totalling $850 million, including $650 million for Bay Terminal and $200 million for modernizing the national social protection system. Out of the total project cost of Tk 13,525.57 crore (over Tk 135 billion), the World Bank will provide Tk 9,333 crore to develop infrastructure, attract private investment, and improve operational efficiency.

Sources say the Master Plan of Bay Terminal has been prepared by the appointed two consultant firms -- Kun Hwa Engineering and Consulting Company Limited and Daeyoung Engineering Company Limited -- of South Korea, which had been appointed consultants for Bay Terminal in April 2022. Meanwhile, the groundbreaking work for the Bay Terminal is likely to start next year.

The CPA has decided to set up the Bay Terminal on Patenga coastline with all modern port facilities to mobilise port activities and reduce transportation costs. The terminal, planned to be built on an area of 900 acres, would harbour big ships, which now cannot berth at the jetties of the Chittagong seaport, for carrying out shipment activities. It will 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 2.0 to 3.0 per cent to the growth of the national economy.

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