Bay Terminal Project advances with CPA’s final 500-acre land approval

The Chattogram Port Authority (CPA) has achieved a crucial milestone in the Bay Terminal project by securing final approval for the allocation of 500 acres of government land.  

The Chattogram district administration on Tuesday (20 August) approved the land transfer following the payment of a token fee of 3.03 crore BDT. This development is a significant step forward for the mega-project aimed at expanding the port’s capacity.

Initially, the Ministry of Land allocated 500.7 acres of government land for the project on February 11 this year, at the same symbolic fee. With the recent approval, the CPA now officially owns the land, facilitating the next phases of the Bay Terminal’s development.

Chattogram Port Authority Secretary Md Omar Faruq told TBS, “The final approval of the 500-acre land allocation is a major progress for this project. We expect the construction of this new port to begin within the stipulated time.”

Global port operators are set to enter investment agreements this year, with PSA Singapore and Dubai-based DP World poised to invest in Terminals 1 and 2, respectively, for container handling. The Abu Dhabi Port Group has proposed a $1 billion investment for the construction of Bay Terminal 3, and the East Coast Group plans to invest around $3.5 billion in a liquid bulk terminal.

Currently, Chittagong Port’s capacity is limited to vessels with a draft of 10 metres and a length of 200 metres. The new Bay Terminal will accommodate larger vessels, up to 12 metres in draft and 260 metres in length, without dependence on high tides.
Mohammad Shafiqul Alam Jewel, Vice Chairman of the Bangladesh Shipping Agents Association, praised the land allocation as a significant advancement that will bolster the country’s import and export trade.

The Bay Terminal project aims to increase the port’s capacity by nearly six times and is being developed on 2,500 acres of coastal land in Patenga Halishahar, six kilometres from the current Chittagong Port. The CPA has previously acquired 66.85 acres of private land and is in the final stages of acquiring an additional 124 acres from the Forest Department and 188 acres under private litigation. Furthermore, 1,620 acres of land will be reclaimed from the sea.

As part of the Bay Terminal Marine Infrastructure Development Project, a 6-kilometre climate-resilient breakwater will be constructed to safeguard the harbour from environmental challenges. The World Bank has already approved a $650 million loan to support this critical infrastructure.