Matarbari Deep Sea Port Welcomes Second Large Coal Ship

The Chittagong Port Authority (CPA) signed a Tk 61.96 billion contract with a Japanese joint venture (Penta-Ocean Construction and TOA Corporation) to build Bangladesh’s first deep-sea port at Matarbari, as part of the revised Tk 243.81 billion Matarbari Port Development Project.

The government has approved a major support project for the Bay Terminal at Chattogram port, focusing on marine infrastructure development with a budget of Tk 13,525.57 crore. The project, considered crucial for Bangladesh’s growing economy due to the lack of a true deep-sea port, will include building a breakwater and improving port connectivity.

The Chittagong Port Authority (CPA) has revised the cost of the Bay Terminal Marine Infrastructure Development Project to Tk13,525.27 crore—down from an initial estimate of Tk14,600 crore—following evaluation committee recommendations.

In response to India’s abrupt withdrawal of transshipment privileges on April 8, 2024, Bangladesh is accelerating its air cargo infrastructure development to maintain export continuity and establish itself as a regional logistics hub. India’s decision to revoke a four-year-old facility disrupted vital air cargo routes, particularly for ready-made garments, as nearly 600 tons—18% of Bangladesh's weekly air exports—had been routed through Indian airports.

Bangladesh is taking a significant step towards establishing its first deep-sea port at Matarbari in Cox's Bazar. The Chittagong Port Authority (CPA) will sign a contract on April 22 with a Japanese joint venture (Penta-Ocean Construction Co. Ltd. and TOA Corporation) to commence the construction of two jetties under the first phase of the Matarbari Port Development Project.

In FY24, Bangladesh's business competitiveness has declined due to rising costs in logistics (15–20% of production expenses vs. Vietnam’s 9–11%), energy (high reliance on imported LNG and furnace oil), and finance (lending rates above 13% compared to Vietnam’s 7–9% and India’s 8–10%).