World Bank approves $650mln for Bangladesh's Bay Terminal project

The World Bank’s Board of Executive Directors on Friday approved $650 million to support Bangladesh's investment in essential infrastructure for the development of the Bay Terminal deep seaport.

The Bay Terminal, situated in the Anandangar/Sandwip channel west of Chittagong port and near existing road and rail links to Dhaka, is projected to handle 36 percent of Bangladesh’s container volumes.

A press release stated that it will significantly enhance Bangladesh's global trade competitiveness and lower import and export costs by boosting port operational efficiency and attracting private investment.

The Bay Terminal Marine Infrastructure Development Project will build a 6 km climate-resilient breakwater to shield the harbor from waves, currents, and extreme weather.

It will also carry out dredging of the port basin, entrance, and access channels. The new, modern Bay Terminal, to be operated by leading international terminal operators, will accommodate larger size vessels, such as panamax vessels, and substantially decrease vessel turnaround time, potentially saving the economy about US$1 million daily.

Currently, the Chittagong Port—which is the maritime gateway for over 90% of Bangladesh's international trade volume and 98% of its container traffic—can only receive small feeder vessels during limited hours of the day.

“Bangladesh’s 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 project will be a game changer. It will improve Bangladesh’s export competitiveness through enhanced port capacity and reduced transportation cost and time, opening new opportunities to key global markets.”

Moreover, the project will mobilize private investment for the development of 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 World Bank Group’s private sector arm, the IFC is considering investing in one of the proposed private sector led terminal.

“The Bay Terminal will contribute to modernizing the country’s 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.