The World Bank’s board of executive directors approved $650 million on Friday to support Bangladesh in developing the Bay Terminal deep seaport, a critical infrastructure project.
Located in the Anandangar/Sandwip channel, west of the Chittagong port and near existing road and rail links to Dhaka, the Bay Terminal is projected to handle 36% of Bangladesh’s container volumes. This development aims to enhance Bangladesh’s global trade competitiveness, reduce import and export costs, and boost port operational efficiency by attracting private investment, according to a press release.
The Bay Terminal Marine Infrastructure Development Project includes the construction of a 6km climate-resilient breakwater to protect the harbour from waves, currents, and extreme weather. It will also involve dredging the port basin, entrance, and access channels. The modern Bay Terminal, to be operated by leading international terminal operators, will accommodate larger vessels like panamax vessels and significantly decrease vessel turnaround time, potentially saving the economy about $1 million daily.
Currently, the Chittagong Port, the gateway for over 90% of Bangladesh’s international trade and 98% of its container traffic, can only receive small feeder vessels during limited hours. Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan, emphasized that the Bay Terminal project will enhance export competitiveness by increasing port capacity and reducing transportation costs and time, thus opening new opportunities in global markets.
The project will also attract private investment for container terminal development, with the World Bank investment and government funding boosting investor confidence and mitigating risks associated with the Bay Terminal Development. Additionally, the International Finance Corporation (IFC), the World Bank Group’s private sector arm, is considering investing in one of the proposed private sector-led terminals.
Hua Tan, World Bank Senior Transport Specialist and Team Leader for the Project, noted that the Bay Terminal will modernize the country’s seaport infrastructure and improve connectivity to regional and international markets. The project is expected to benefit over one million people, half of whom are women, by providing improved access to sustainable transport services, including shipping companies, business communities, importers, exporters, and freight forwarders.
