Washington, June 28, 2024—The World Bank’s Board of Executive Directors today approved $650 million to help Bangladesh invest in infrastructure critical for developing the Bay Terminal deep seaport. This development aims to improve Bangladesh's global trade competitiveness and reduce import and export costs by increasing port operational efficiency and mobilizing private investment.
The Bay Terminal Marine Infrastructure Development Project will construct a 6 km climate-resilient breakwater to protect the harbor from waves, currents, and extreme weather. It will also include dredging of the port basin, entrance, and access channels. The new Bay Terminal, to be operated by leading international terminal operators, will accommodate larger vessels such as panamax vessels and decrease vessel turnaround time, potentially saving the economy about $1 million daily. Currently, Chittagong Port—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.
“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 government funding is expected to bolster investor confidence and mitigate risks associated with the overall Bay Terminal Development. Additionally, the World Bank Group’s private sector arm, IFC, is considering investing in one of the proposed private sector-led terminals.
“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.
Located in the Anandangar/Sandwip channel west of Chittagong port and close to existing road and rail links to Dhaka, the Bay Terminal is expected to handle 36 percent of Bangladesh’s container volumes. Over one million people are expected to directly benefit from improved access to sustainable transport services.
In FY 23-24, the World Bank committed a record $3.4 billion in support to Bangladesh, including this project. The World Bank has been supporting Bangladesh since its independence with about $42.3 billion in grants, interest-free loans, and concessional credits.