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Published : 30 Jun 2024, 01:47 AM
The World Bank’s Board of Executive Directors has approved $650 million funding to help Bangladesh invest in infrastructure critical for developing the Bay Terminal deep seaport.
The World Bank says the terminal will significantly improve Bangladesh's global trade competitiveness and reduce import and export costs by increasing port operational efficiency and mobilising private investment.
The Bay Terminal Marine Infrastructure Development Project will construct a 6 km climate-resilient breakwater to protect the harbour from the force of waves, current, and extreme weather.
It will also carry out dredging of the port basin, entrance, and access channels.
The new, modern Bay Terminal, to be operated by leading international terminal operators, will accommodate larger size vessels, such as panamax vessels, and substantially decrease vessel turnaround time, potentially saving the economy about $1 million daily, according to a World Bank statement released on Friday.
Currently, the Chattogram Port, which is the maritime gateway for over 90 percent of Bangladesh's international trade volume and 98 percent of its container traffic, can only receive small feeder vessels during limited hours of the day.
“Bangladesh’s international trade heavily relies on Chittagong Port, which faces significant capacity constraints,” Abdoulaye Seck, World Bank country director for Bangladesh and Bhutan, said in the statement.
“The Bay terminal project 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.”
Moreover, the project will mobilise private investment for the development of container terminals. The World Bank investment along with the government funding will bolster investor confidence and contribute to mitigating risks associated with the overall Bay Terminal Development.
Furthermore, the World Bank Group’s private sector arm, the IFC is considering investing in one of the proposed private sector led terminal.
“The Bay Terminal will contribute to modernizing the country’s seaport infrastructure and improving its connectivity to regional and international markets,” said Hua Tan, World Bank senior transport specialist and team leader for the project.
The Bay Terminal, located in the Anandangar/Sandwip channel, west of the Chattogram port and close to existing road and rail links to Dhaka, is expected to handle 36 percent of Bangladesh’s container volumes.
Over one million people, half of whom are women, are expected to directly benefit from improved access to sustainable transport services, including shipping companies, business communities, importers, exporters, and freight forwarders.
Earlier in May, Abu Dhabi Ports Group agreed to invest $1 billion in the construction of a multipurpose terminal under the Bay Terminal Project of Chattogram Port.
Once the terminal is built, the port will have an annual capacity of 1 million TEU, or twenty-foot equivalent units, containers and 7 million metric tonnes of cargo handling.
The multipurpose bay terminal will be 1 kilometre away from the outer anchorage.
The authorities have acquired 27 hectares of private land while 200 hectares of government land has been allotted for the bay terminal project.
The government expects to open the terminal in 2026 and handle 5 million containers in it per year.
