Chattogram Bay Terminal: Bangladesh's Largest Port Project
The Chattogram Bay Terminal is the largest port infrastructure project ever pursued by the Government of Bangladesh. It is intended to resolve chronic congestion at the existing Chattogram Port and elevate the country into a regional hub port in South Asia. The plan calls for a new deep-water terminal to be built offshore at the mouth of the Karnaphuli River, south of the existing port area.
Chattogram Port handles roughly 92% of Bangladesh's total trade cargo, but it faces structural limits including shallow draft conditions of up to 9.5 meters, berth capacity constraints, and weak inland connectivity. As a result, large container vessels above 8,000 TEU cannot berth efficiently today. Bay Terminal is designed as the national-scale project that addresses those bottlenecks at their root.
Why the Project Matters
Bangladesh's annual container throughput reached roughly 3.5 million TEU in 2024 and has grown by more than 8% per year on average over the last decade. The current capacity of Chattogram Port is only about 3.3 million TEU, meaning the system has already reached saturation. Demurrage and delay costs caused by port congestion are estimated at roughly USD 500 million per year, materially weakening Bangladesh's export competitiveness.
Project Structure and Current Status
The Bay Terminal project is being advanced under a public-private partnership structure, with the Chattogram Port Authority (CPA) serving as the lead agency and project sponsor. The World Bank and the Asian Development Bank are providing technical advice and partial financial support, while JICA has already completed the project feasibility study.
| Stage | Period | Key Scope | Investment |
|---|---|---|---|
| Feasibility Study | 2018-2021 | JICA-backed feasibility and EIA | $15M |
| Phase 1 Design | 2022-2025 | Detailed design and bid documents | $30M |
| Phase 1 Construction | 2025-2030 | 4-berth container terminal and breakwater | $2B |
| Phase 2 Construction | 2030-2035 | 8 additional berths and logistics zone | $1.8B |
| Phase 3 Expansion | 2035-2040 | Multipurpose and bulk cargo facilities | $1.2B |
Participation Opportunities for Korean Companies
Korea has globally competitive capabilities in port construction and operations, making it a credible participant in the Bay Terminal project. Experience from Busan Port, Incheon New Port, and overseas port operations such as Thilawa and Colon can be leveraged as practical reference cases for Korean entrants.
Bid Requirements and Practical Considerations
Participation in the Bay Terminal tender is expected to require a strict prequalification process. CPA is expected to adopt an international competitive bidding approach, and in practice a joint venture with a qualified Bangladeshi company is likely to be essential rather than optional.
| Item | Requirement | Note |
|---|---|---|
| Minimum Track Record | 3 overseas port projects worth $500M+ | Within the last 10 years |
| Financial Capacity | Annual revenue above $1B | Average of the last 3 years |
| Local JV | Effectively required | Bangladesh-registered partner |
| Financing Plan | Project financing proposal required | MDB-backed funding favored |
| Environmental Standards | IFC Performance Standards | ESG compliance required |
| Technical Personnel | PE-qualified project manager | 15+ years of port experience |
Risk Assessment and Response Strategy
Because of its size and complexity, the Bay Terminal project carries a broad mix of commercial, political, and execution risks. Korean companies should evaluate those risks explicitly before committing resources.
Risk mitigation should focus on securing MDB guarantees, obtaining political risk insurance through MIGA, phasing investment commitments, and forming joint ventures with strong local partners. Active use of KOTRA Dhaka's network and coordination with the Embassy of the Republic of Korea in Bangladesh would also improve execution readiness.
Chattogram Bay Terminal has the potential to become a genuine game changer for Bangladesh's infrastructure landscape. If Korean construction, port, and financing capabilities are aligned effectively, the project can become a meaningful entry point into one of South Asia's most consequential logistics developments. That said, the project's long horizon and local execution risks make a phased and highly strategic approach essential.