CHATTOGRAM, June 15: The government has allocated Tk 3,707 crore in the proposed FY 2026"27 national budget for the construction of the Matarbari Deep Sea Port, marking a renewed push to accelerate one of Bangladesh’s most strategic infrastructure projects.
The allocation reflects continued commitment to expanding the country’s maritime capacity and easing congestion at the Chattogram Port, with the deep-sea facility expected to play a pivotal role in transforming regional trade connectivity.
According to the budget statement, the allocation has been divided across key components of the project, compared to Tk 2,850 crore in the FY2025"26 budget. Of the total proposed amount, Tk 1,642 crore has been earmarked for the Chattogram Port portion, while Tk 2,650 crore is designated for the Roads and Highways Division.
Officials from the Chattogram Port Authority (CPA) said construction work is progressing steadily, with the aim of commencing partial operations by 2030. Site clearance, boundary wall construction, access road development and dredging activities are currently underway.
Procurement processes for key port equipment"including quay gantry cranes, rubber-tyred gantry cranes, multi-purpose gantry cranes, tug boats and terminal operating systems"are also progressing.
CPA officials described the project as a “game changer” for Bangladesh’s economy, with the potential to establish the country as a regional transshipment hub.
As part of early implementation works, the CPA signed an agreement on 22 April last year with Japanese firms Penta-Ocean Construction and Towa Corporation for the construction of two jetties under Package-1. Construction work on the jetties has already begun.
Under this package, a 300-metre multipurpose jetty and a 460-metre container jetty are being built, along with associated infrastructure including terminal buildings, pavements, seawalls, retaining walls, land reclamation, dredging, solar power facilities and other utilities.
Once completed, the port is expected to accommodate vessels of up to 8,200 TEUs, with a draught of 14.5 metres and a berth length of 300 metres.
Officials noted that the Chattogram"Cox’s Bazar corridor has strong potential to develop into a logistics hub comparable to Singapore, attracting investment and creating opportunities for the next generation. However, they emphasised the need for assurances regarding maritime and port security to sustain investor confidence.
In the coming years, container handling demand is projected to reach around five million TEUs, underscoring the urgency of expanding port capacity. Agreements with Japanese partners have therefore been signed to support the development of both terminal and bay terminal facilities.
The Matarbari Deep Sea Port in Maheshkhali upazila of Cox’s Bazar is being financed by the Japan International Cooperation Agency (JICA). The Phase-1 Package-1 contract, titled “Matarbari Port Development Project Phase-1: Procurement of Civil Works for Port Construction,” is valued at approximately Tk 6,200 crore, with completion targeted for 2030.
The total project cost is estimated at Tk 24,300 crore, with funding largely provided by JICA.
Phase-1 includes construction of two major jetties, yard reclamation, soil improvement, terminal facilities, and administrative and operational buildings.
The concept of a deep-sea port at Matarbari emerged in 2018 alongside the development of a coal-fired power plant in the area.
The state-owned Coal Power Generation Company Bangladesh (CPGCBL), which implemented the 1,200MW plant, also constructed an artificial channel 14.5 kilometres long, 250 metres wide, and 18 metres deep.
CPGCBL further developed key maritime infrastructure, including a 1,753-metre northern breakwater, a 713-metre southern breakwater, and a 1,802.85-metre revetment built with stone blocks.
