The authorities is planning to commence the construction of the Bay Terminal at Chattogram Port next twelve months, a landmark project anticipated to steal the capacity of the nation’s fundamental alternate gateway by as a lot as sixfold.
The project comprises multiple supporting initiatives. The proposal for a key side project to glean a seven-km navigational glean admission to channel and a six-km breakwater will most likely be finalised and authorized by 25 December. Other proposals are also in the making, in step with a determination made at some level of a assorted assembly chaired by Finance Adviser Dr Salehuddin Ahmed the outdated day (12 December).
Sources contemporary in the assembly suggested TBS that the glean admission to channel proposal will most likely be presented for closing approval on the Executive Committee of the National Financial Council (Ecnec) assembly in the first half of of January 2025.
A breakwater is a coastal structure designed to guard a port from waves and storms and a navigational glean admission to channel is a dredged course that enables ships to soundly potential and leave a port. This supporting project will pave the formula for the construction of three terminals below the first project.
In June this twelve months, the World Bank authorized a $650 million loan to fund this side project and the authorities is raring to put collectively the DPP rapidly to save a glorious deal of the loan agreement.
Adviser to the Ministry of Boulevard Transport and Bridges and the Ministry of Railways Fouzul Kabir Khan, Adviser to the Ministry of Transport Brig Gen (Retd) M Sakhawat Hossain and key officers from relevant ministries were contemporary in the assembly held on the Finance Division.
Fauzul Kabir Khan suggested TBS that the World Bank board has already authorized a loan for the side project. The authorities had supposed to save a glorious deal of the loan agreement by December, but this has been delayed. Plans are now in blueprint to finalise the agreement as soon as doubtless.
Further steps dangle also been taken to scoot the Public-Private Partnership (PPP) actions linked to the first project. The Roads and Railways ministries were suggested to scoot up their respective side initiatives for the terminal, he said.
With the Ecnec approval expected in January, project implementation will also commence next twelve months, Fouzul Kabir added.
A senior legit from the Financial Family Division (ERD), talking anonymously, suggested TBS, “The authorities is readily making ready the proposal to safe the World Bank loan on time. The worldwide lender has been urging for the agreement signing and is extremely attracted to the project. It even equipped to finance Terminal 3 which the Chittagong Port Authority plans to glean with its comprise funding.”
Terminals 1 and 2 will most likely be constructed below the PPP modality.
“There might possibly be in actual fact broad curiosity from various other international firms having a gaze to be entertaining in this project,” he added.
In 2013, the outdated Awami League authorities decided to amplify Chattogram Port’s capacity by constructing the bay terminal. That similar twelve months, a pre-feasibility gaze became conducted by the German agency Hamburg Port Consulting.
In 2017, a determination became made to operate an intensive feasibility gaze and master belief. Following this, in 2021, a Korean company Kunhwa became awarded a piece repeat to behavior the feasibility gaze and master belief. The closing feasibility gaze became submitted to the Chittagong Port Authority.
In accordance with the feasibility gaze, the Port Authority estimated the complete rate of constructing the complete bay terminal, which contains three terminals, glean admission to channels, and breakwaters, at $2.8 billion.
Of this amount, $609.44 million is allocated for every of Terminal 1 and Terminal 2, whereas the construction of Terminal 3 is anticipated to rate $755.11 million. Moreover, $831 million will most likely be spent on other works, including the side project for the navigational glean admission to channel and breakwater.
Terminal 3 will most likely be implemented by the Chittagong Port Authority with its comprise funding, whereas the final two terminals will most likely be developed below the PPP items.
In accordance with finance ministry sources, PSA Singapore has proven curiosity in imposing regarded as among the terminals, despite the incontrovertible truth that a closing determination on their involvement has now not yet been made. PSA is regarded as among the ideal port operators globally, with terminals in 26 countries, including deep-sea, rail, and inland facilities.
The authorities has also decided in theory to appoint DP World, a UAE-essentially based totally mostly company, to create another terminal. Established in 2005 by the merger of Dubai Port Authority and Dubai Ports International, DP World now operates 77 marine and inland terminals across 40 countries.
A Chittagong Port Authority legit said, “The determination to appoint DP World and PSA Singapore is in a preliminary stage. Further negotiations are deliberate, with Ernst & Young, a UK-essentially based totally mostly company, appointed because the transaction consultant for the negotiation.”
The Bay Terminal project also comprises two key supporting initiatives: the construction of a 7 km glean admission to side road and a 6.71 km rail music.
The Boulevard Transport and Highways Division is accountable for the side road construction, having already entertaining and submitted the project’s proposal to the Planning Rate. The Asian Pattern Bank will present funding for this portion of the project.
In the intervening time, the proposal for the railway construction has now not yet been finalised.
Mission Overview
The CPA developed the Strategic Grasp Thought in 2013, funded by ADB and entertaining by Hamburg Port Consulting, which beneficial the instant initiation of the Bay Terminal project. A preliminary feasibility gaze became also conducted by the same company in 2017.
The project became authorized as a Public-Private Partnership (PPP) by the Cabinet Committee on Financial Affairs (CCEA) on 4 August 2019.
In accordance with projections, Bangladesh’s container facing capacity will must develop bigger to 6.3 million TEUs by 2030, 8.6 million TEUs by 2035, and 11.5 million TEUs by 2040.
The CPA expects to tackle roughly 12.9 million tonnes of cargo by 2027, with this amount rising to 17.08 million tonnes by 2040.
Currently, the CPA operates as a river-essentially based totally mostly feeder port with boundaries on vessel length, draft, and tide prerequisites, facing ships as a lot as 190 meters in length, 9.5 meters in draft, and 2400 TEU capacity.
Ships continually abilities a 3-day ready time, which incurs an additional rate of $Forty five,000. In distinction, the Bay Terminal will accommodate vessels of 300 meters in length, 11.5 meters in draft, and 4800 TEUs, working 24/7, unaffected by tide prerequisites, thus reducing costs and rising effectivity.
A recreation changer
The Bay Terminal is fundamental for accommodating future seek knowledge from of and supporting international reveal investments (FDIs), export/import actions, and national vogue.
The total investment required for the Bay Terminal is estimated at almost $3 billion, with $2.4 billion supplied by worldwide International Terminal Operators (ITOs) equivalent to PSA, DP World, and AD Ports. The World Bank and all ITOs dangle expressed solid curiosity in investing in the project, which is able to also abet future FDI.
The project will create roughly 13,500 jobs, which is extremely wished in the sizzling economic native climate. Moreover, the Bay Terminal will most likely be strategically located to beef up logistics effectivity, connecting the Dhaka-Chattogram toll road, inland water transport, and railways.
By 2040, because the lifespans of Chittagong Container Terminal (CCT) and Novel Mooring Container Terminal (NCT) cease, the Bay Terminal will meet the rising demands of Chattogram.
Furthermore, this might possibly occasionally also be Bangladesh’s first Green Port, with 30% of the dwelling devoted to forestation, some distance exceeding the 51 acres deliberate by the Department of Forest.
Total, the Bay Terminal is poised to be a recreation changer for Bangladesh, boosting exports and offering unexcited, rate-efficient terminal facilities that enhance scoot and effectivity.
