Investment

Bangladesh Port Modernization: Investment in Chittagong, Mongla, and Payra Ports

Bangladesh Ports: Gateways to the National Economy

Roughly 92% of Bangladesh's trade volume moves by sea, making ports a core lifeline of the national economy. Yet Chittagong Port, the country's primary gateway, continues to face chronic congestion and aging infrastructure, with average vessel waiting times of around five to seven days. The result is a structural increase in logistics costs and weaker export competitiveness.

In line with Vision 2041, the government is pushing a large-scale port modernization agenda that includes deepening Chittagong, expanding Mongla Port, and developing Payra Deep Sea Port. Financing support from ADB, the World Bank, JICA, and China EXIM Bank is widening the project pipeline and creating practical entry points for Korean maritime, logistics, engineering, and equipment suppliers.

3.5M TEU
Port Throughput
2025
$8B+
Port Investment
2025-2035
90%+
Chittagong Share
National cargo
5-7 days
Vessel Waiting
Chittagong avg.
16m
Payra Depth
Deep-sea target
2x
Mongla Expansion
Capacity increase
$1.2B
Bay Terminal
New Chittagong hub
14% of GDP
Logistics Cost
Efficiency gap

Modernization of Chittagong Port

Chittagong Port handles more than 90% of Bangladesh's seaborne cargo and remains the single most important logistics asset in the country. However, shallow draft conditions of about 9.5 meters, outdated handling equipment, crane shortages, and limited digital systems continue to constrain productivity relative to major regional ports. To address these gaps, the government is advancing the Bay Terminal project, terminal equipment replacement, and channel dredging.

Key Chittagong Port Modernization Projects
ProjectDescriptionFunding SourceScaleStatus
Bay Terminal Construction3 terminals, 4.8M TEU annuallyJICA / $1.0B$1.2BUnder construction
Channel Dredging and DeepeningDepth expansion from 9.5m to 13mADB / $0.3B$0.4BTendering
Container Crane Procurement50+ STS and RTG cranesWorld Bank / $0.2B$0.25BProcurement
Port IT SystemPort Community SystemADB / $0.05B$0.08BDesign stage
Inland Container DepotDhaka-linked ICD expansionGovernment / $0.1B$0.15BIn progress
Road and Rail ConnectivityBack-end transport upgradesADB / $0.2B$0.3BDesign stage

Development of Payra Deep Sea Port and Mongla Port

Payra Deep Sea Port, under development on the southern coast, is positioned as Bangladesh's first true deep-sea port with a target depth of 16 meters, enabling direct calls by ultra large container ships. Mongla Port, the country's second port, is also gaining relevance as industrial activity expands in the southwest and surrounding cargo volumes continue to rise.

Chittagong Port
Throughput3.2M TEU
Depth9.5m (expanding)
LocationSoutheast coast
Core InvestmentBay Terminal $1.2B
Payra Deep Sea Port
Throughput0.5M TEU target
Depth16m deep sea
LocationSouthern coast
Core InvestmentNew port $4B+
Mongla Port
Throughput150K TEU
Depth8m (dredging underway)
LocationSouthwest inland route
Core InvestmentExpansion $0.5B+

Participation Opportunities for Korean Maritime and Port Companies

01
Port Equipment and Crane Supply
Opportunities include STS, RTG, and RMG cranes, cargo handling equipment, and specialized port vehicles. Korean manufacturers can leverage global references and compete in Bay Terminal equipment tenders.
02
Port IT and Automation Systems
Demand is growing for terminal operating systems, port community systems, automated gates, CCTV, and security platforms. Bangladesh can benchmark Korea's smart port experience at Busan and Incheon.
03
Dredging and Marine Civil Works
Projects include channel deepening, breakwaters, quay walls, and reclamation. Korean contractors with overseas marine and dredging experience can pursue ADB-backed international tenders.
04
Port Design and Consulting
There is room for master planning, terminal layout design, environmental impact work, and marine surveys. Korean public and private expertise can be exported as advisory and feasibility services.
05
Inland Logistics and Linked Infrastructure
ICDs, logistics parks, and port hinterland facilities will expand alongside rail and road connectivity. PPP structures may create openings for both development and operations.

Market Entry Strategy for Port Projects

Port Project Participation Process
Monitor MDB Notices
ADB, World Bank, JICA
Prequalification
Track record, finance, technology
Bid Submission
ICB / NCB tenders
JV Formation
Secure local partners
Execution
Construction and delivery
Main Funding Sources and Procurement Modes for Port Projects
Funding SourceMain ProjectProcurement ModeCondition for Korean Firms
JICABay TerminalICBCompliance with Japanese ODA guidelines
ADBChannel dredging and ITICBCompliance with ADB procurement rules
World BankCranes and equipmentICBCompliance with WB procurement guidelines
China EXIMPayra Phase 1Mainly nominated biddingLimited, but Phase 2 may open up
Government BudgetICD and hinterland facilitiesNCB / PPPLocal JV often required
EDCFAdditional future projectsICB tied to KoreaKorean firms hold an advantage
Bangladesh Bay Terminal Project AnalysisReview the Bay Terminal project in detail and assess Korean participation strategies
Bangladesh Railway Modernization ProjectExplore linked opportunities in port-rail logistics infrastructure
Bangladesh Road and Highway Construction InvestmentSee how port hinterland road projects connect with logistics expansion

Bangladesh's port modernization program is a national infrastructure agenda with more than $8 billion in expected investment. Bay Terminal at Chittagong, Payra Deep Sea Port, and Mongla expansion all connect to international funding channels and international competitive bidding frameworks. For Korean companies, the most realistic opportunities lie in equipment supply, smart port systems, dredging, marine works, and technical consulting, especially where global credentials can be paired with strong local partners.

portsChittagongMonglaPayramaritime infrastructure
Bangladesh Port Modernization: Investment in Chittagong, Mongla, and Payra Ports | Dhaka Trade Portal