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Bay Terminal Project In-Depth Analysis: The Core of Chattogram Port Expansion

Bay Terminal: Bangladesh Chattogram Port $1.2B Expansion Project

Bay Terminal is an expansion project for Chattogram Port, Bangladesh's largest seaport, designed to resolve the throughput saturation problem of the existing facility. Located on the Halishahar coast approximately 16 kilometers south of central Chattogram, it represents Bangladesh's largest port infrastructure investment at a total project value of $1.2B. Upon completion, the terminal will add 3 million TEU of annual handling capacity, expanding total port throughput from the current 2.8 million TEU to 5.8 million TEU.

Financed primarily through concessional loans from JICA ($500M) and ADB ($400M), the project underpins Bangladesh's $45B annual garment export industry. Korean firms have $200M+ in participation opportunities in port automation systems (ASC and AGV) and crane and cargo handling equipment — with Busan Port automation experience serving as a powerful reference.

$1.2B
Total Project Cost
JICA $500M + ADB $400M
3M TEU
New Handling Capacity
Current 2.8M → 5.8M TEU
1,450m
Berth Length
8 berths (3 phases)
2028
Full Completion
Phase 1 operations begin 2026
15m
Draft Depth
15,000 TEU ULCV-capable
ASC + AGV
Automation
Southeast Asia's first semi-automated port
0.1%
JICA Loan Rate
40-year term, 10-year grace
$200M+
Korean Opportunity
Equipment, systems, and construction

Technical Specifications and Three-Phase Development Plan

Bay Terminal will be developed in three phases. Phase 1 targets three berths with 1.2 million TEU annual capacity — construction commenced in 2024 with operations targeted for 2026. Designed as a deep-sea terminal with a 15-meter draft, it can accommodate ultra large container vessels (ULCV) of up to 15,000 TEU. Automated stacking cranes (ASC) and automated guided vehicles (AGV) will be introduced, making this Southeast Asia's first semi-automated port — with Chattogram's handling efficiency projected to improve by 40% compared to current levels.

Bay Terminal Three-Phase Development Plan Details
PhaseBerthsHandling CapacityBudgetTarget CompletionKey Facilities
Phase 131.2M TEU$480M2026ASC yard, 9 RMG cranes
Phase 231.0M TEU$380M2027AGV system, reefer container yard
Phase 320.8M TEU$340M2028LNG bunkering, digital twin
Total83.0M TEU$1,200M2028 (full)Southeast Asia's first semi-automated port

Korean Firm Participation Opportunities by Sector

Bay Terminal presents diverse participation opportunities for Korean firms. Competitive sectors include port design and supervision, crane and cargo handling equipment supply, yard automation systems, IT systems (TOS — Terminal Operating System), and dredging works. Korean firms with Busan Port automation experience hold strong references in the ASC and AGV systems segment, and JICA loan procurement terms are structured favorably for Japanese and Korean firms.

Equipment and Systems ($220M)
STS Cranes$120M — 9 units, Korea Motors and Korea Doosan competitive
ASC Automated Yard$85M — automation, Busan Port reference leveraged
TOS (Port Operating Software)$15M — localization required
AGV Transfer System$60M — Phase 2, domestic production opportunity
Construction and Engineering ($525M)
Dredging Works$180M — 15m draft, large dredgers required
Berth Structures$250M — 1,450m caisson and pile foundation
Access Roads and Rail$95M — Chattogram city connection infrastructure
Design and Supervision$30M — including PMC (project management)

Financing Structure and Key Risks

Financing is centered on concessional loans from JICA ($500M) and ADB ($400M), with the Bangladesh government's $300M share to be covered from Chattogram Port revenues. JICA loan terms (0.1% interest rate, 40-year tenor, 10-year grace period) are highly favorable, but alignment with IMF fiscal conditions is required. Following the interim government's formation in 2024, ongoing project reviews create a risk of Phase 1 schedule delays.

01
Financing Structure: JICA + ADB + Government
JICA $500M (0.1%, 40-year, 10-year grace) + ADB $400M (1.5%, 25-year) + Bangladesh government $300M. JICA procurement allows Japanese, Korean, and Bangladeshi firm participation. ADB procurement is open to all member countries.
02
Land Acquisition Delay Risk
580-acre site includes unresolved compensation disputes with some fishing communities. Two court objections pending. Phase 1 construction site is secured, but delays in Phase 2 and 3 land acquisition could affect the overall schedule.
03
Environmental Impact Assessment Compliance Monitoring
Proximity to 200-acre mangrove forest requires compliance with 30 EIA approval conditions. Quarterly monitoring by the Department of Environment (DoE). International environmental pressure means loan disbursement could be suspended if compliance stalls.
04
Chattogram Port Authority (CPA) Operational Rights Adjustment
Division of responsibilities between existing CPA and the new Bay Terminal operator (to be tendered) is not yet finalized. Shared access road use and customs inspection arrangements are under negotiation. Private investment uncertainty remains until operational rights are confirmed.

International Competitor Analysis

Crane and Equipment Competition
China (ZPMC)70% global market share — strongest price competitiveness
Finland (Konecranes)Leading ASC automation technology — premium segment
Korean AdvantagePrice-quality balance + Busan Port reference + after-sales service
Procurement StrategyPriority participation via JICA ODA procurement — competition restriction possible
Construction Competition
China (CCCC, CHEC)Extensive dredging and marine civil experience — low-bid tenders
Netherlands (Boskalis)Global #1 in dredging — highest technical capability
Korean AdvantageOverseas construction track record + local partner network
Bid StrategyADB procurement is most effective through JV (joint venture) format
Bay Terminal Tender Package Status (Estimated)
PackageScopeValueProcuring AgencyExpected NoticeKorean Competitiveness
CT-01STS Cranes (9 units)$120MJICA procurementQ2 2025★★★★☆
CT-02ASC Automated Yard$85MJICA procurementQ3 2025★★★★★
CT-03Dredging (15m draft)$180MADB procurementQ4 2024★★★☆☆
CT-04Berth Structures (caisson)$250MADB procurementQ4 2024★★★★☆
CT-05TOS (Port Operating Software)$15MCPA self-fundedQ4 2025★★★★☆
CT-06Access Roads and Rail$95MADB procurementQ1 2026★★★☆☆
Loan Agreements
JICA $500M + ADB $400M — verify procurement participation eligibility
Phase 1 Construction
2024 commencement — 3 berths, prepare STS crane tender
Phase 1 Operations
2026 — 1.2M TEU, TOS and ASC systems delivery
Phase 2 Construction
2026 — AGV system + reefer yard tender
Full Completion
2028 — 5.8M TEU, Bangladesh logistics game-changer
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Bay Terminal Project In-Depth Analysis: The Core of Chattogram Port Expansion | Dhaka Trade Portal