The World Bank (WB) approved $650 million loan to Bangladesh on Friday to help construct a breakwater at Bay Terminal, a mega expansion project of Chattogram port to protect the harbor from the force of waves
The Bay Terminal would significantly improve Bangladeshs global trade competitiveness and reduce import and export costs by increasing port operational efficiency and mobilising private investment, said a press release of WB on this occasion.
The government has planned to develop two container terminals, a multipurpose terminal and an oil and gas terminal attached to Bay Terminal.
The World Bank earlier promised to finance Bay Terminal Marine Infrastructure Development Project, under which a 6-km-climate-resilient breakwater would be constructed 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 as part of the project, the release stated.
The modern Bay Terminal, to be operated by leading international terminal operators, will accommodate larger vessels, such as panamax vessels, and substantially decrease vessel turnaround time, potentially saving the economy about $1 million daily.
Currently, the Chattogram Port, which is the maritime gateway for over 90 percent of Bangladeshs international trade volume and 98 percent of its container traffic can only receive small feeder vessels during limited hours of the day.
"Bangladeshs international trade heavily relies on Chittagong Port, which faces significant capacity constraints," said Abdoulaye Seck, World Bank country director for Bangladesh and Bhutan.
"The Bay Terminal will be a game changer. It will improve Bangladeshs export competitiveness through enhanced port capacity, reduce transportation cost and time, opening new opportunities to key global markets."
Moreover, the project will mobilise private investment for development of the ports 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 International Finance Corporation (IFC), private sector arm of the WB is considering investing in one of the proposed private sector-led terminal, according to the release.
"The Bay Terminal will contribute to modernising the countrys 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 at Anandangar near Sandwip channel, west of the Chattogram port and close to existing road and rail links to Dhaka, is expected to handle 36 percent of Bangladeshs container volumes.
In 2023-24 fiscal year, the World Bank committed a record $3.4 billion in support to Bangladesh, including this project.
