The Bay Terminal construction project, once a symbol of Sheikh Hasina government and now a contentious issue after its fall, has drawn criticism from port stakeholders.
Despite the project’s high cost and international interest in funding, questions are raised about its necessity, given that 50 percent of current jetties remain underutilised.
At present, Chittagong Port has 17 jetties under its control, 11 of which are container jetties and 6 are bulk cargo jetties. In addition to these, government and semi-autonomous jetties include Dolphin Oil Jetty at Patenga Container Terminal (PCT), Grain Silo Jetty, Cement Clinker Jetty, TSP Jetty, and CUFL Jetty. Private institutions also manage several jetties, such as Karnaphuli Dry Dock, which can handle ships up to an 11-metre draught.
With proposals for further expansions such as two planned jetties at Matarbari Deep Sea Port and four jetties by MARESK Lines at Lal Diar Char, the total number of jetties in Chattogram, including private and semi-autonomous jetties, is 43 with six more under construction. Despite this, much of existing infrastructure remains underutilised.
According to port authorities, Chittagong Port’s 11 container jetties and 6 bulk cargo jetties handled an average of 3.3 million TEUs (twenty-foot equivalent units) and 6 million tonnes of bulk cargo annually during the 2019-2023 period.
However, the recent global recession has led to a decrease in cargo handling, with several jetties frequently remaining idle. The declining demand for both containerised and bulk cargo has also resulted in fewer ships arriving at the port.
Other jetties, such as those used for cement clinker, dry dock operations, and Karnaphuli Dry Dock, also remain underused. Even though the PCT has three operational jetties, ships rarely dock there. Port stakeholders claim that the activation of MARESK Lines’ jetties would result in a 40 percent loss of container cargo for Chittagong Port.
Government-approved jetties that are currently functional, under construction, or partially completed would give Bangladesh an annual container handling capacity of 8.3 million TEUs—3.3 million from Chittagong Port, 2 million from MARESK Line, 2 million from Karnaphuli, and 1 million from Patenga Container Terminal. However, experts estimate that it may take up to 30 years to fully utilise this capacity.
Moreover, the completion of Matarbari Deep Sea Port, which is designed to accommodate vessels with draught of 14 to 16 metres, will add another 3 million TEUs of handling capacity. This will bring the total annual container handling capacity in Bangladesh to 11.3 million TEUs—a volume that may not be reached for another 50 years, based on current and projected demand.
As the interim government plans to cut back on expensive projects, experts argue that the Bay Terminal project, with its negative financial indicators such as Internal Rate of Return (IRR) and Benefit-Cost Ratio (BCR), should be reconsidered. The project’s high port charges could make Bangladesh less competitive with regional ports, placing further strains on the country’s economy.
Another major concern is the terminal’s location, which is prone to rapid silt accumulation. Despite plans for regular dredging, experts believe that maintaining navigability in the long term will be nearly impossible, rendering the project unsustainable. There is also fear that once Bay Terminal becomes operational, the number of ships arriving at Chittagong Port will decline, leading to significant financial losses. Currently, Chittagong Port generates an annual income of Tk 2,000 crore to Tk 2,500 crore, which could be at risk if the terminal is developed.
Furthermore, there are concerns about the impact on employment, as Bay Terminal could lead to a reduction in revenue for Chittagong Port, potentially affecting its 20,000 workers.
The studies conducted by experts and consultants on Bay Terminal have yielded negative conclusions. As a result, port stakeholders are calling for immediate cancellation of the Bay Terminal project in the interest of national and public welfare, urging the authorities concerned to prioritise optimisation of existing and under-construction jetties.
