The Chattogram Port Authority (CPA) is scheduled to sign a contract with Japanese firms Penta-Ocean Ltd and TOA Corporation on April 22 in Dhaka for the construction of Bangladesh’s first deep-sea port in Matarbari, Cox’s Bazar, according to THE BUSINESS STANDARD.
The project, approved in 2020, has a total estimated cost of Tk24,300 crore, with the first phase valued at Tk6,197 crore and targeted for completion by 2029.
Funded by the Japan International Cooperation Agency (Jica), the Matarbari Port will enable large vessels with a 16-metre draught to dock directly, unlike Chattogram Port, which is limited to ships with a 10-metre draught, up to 200 metres in length, and carrying 30,000 to 35,000 tonnes.
The new port is expected to reduce shipping costs by 57% and delivery times by 60%.
“This marks a major step forward. The project is progressing with Jica’s supervision and approval. Construction work will commence immediately after the agreement is signed, and we anticipate the port to be operational by 2029,” said CPA Secretary Mohammad Omar Faruk.
The port’s infrastructure leverages a 14.3-kilometre navigational channel originally built for the Matarbari Ultra Super Critical Coal-Fired Power Project (1,200 MW), which has facilitated 161 ship dockings and transported 3.29 million tonnes of cargo.
The port will handle container ships with over 8,200 TEUs, reducing the cost of transporting one TEU from $3,000 to below $1,300 and cutting Europe-bound shipment times from 40-42 days to 16-17 days.
“The port will also support feeder vessel services from Kolkata and Haldia ports in India. This transshipment framework will enable goods from India, Nepal, and Bhutan to be transported efficiently while generating significant foreign currency earnings for Bangladesh,” said Khairul Alam Sujon, Vice President of the Bangladesh Freight Forwarders Association.
Syed Mohammad Arif, Chairman of the Bangladesh Shipping Agents Association, added, “Neighboring countries will be able to use the port to transport their goods. Additionally, Bangladeshi cargo bound for Europe or America will no longer require feeder vessels to transit through Singapore, Colombo, or Malaysia.”
The project cost was revised in October 2024 by the Executive Committee of the National Economic Council (Ecnec) from Tk17,777 crore to Tk24,381 crore, an increase of over Tk6,500 crore due to the rising US dollar value and other financial factors.
Delays since 2020 were attributed to land acquisition and other issues. Feasibility studies for the second phase are underway, and two Japanese firms have secured equipment supply contracts.
The third phase will involve procuring tugboats and pilot boats. A 28-kilometer road connecting the port is also planned by the Roads and Highways Department.
Penta-Ocean Construction Co., Ltd., founded in 1896 and headquartered in Tokyo, Japan, is a major construction and engineering firm specializing in marine and civil engineering projects. It is known for its expertise in port construction, dredging, and reclamation works. The company has undertaken significant international projects, including the Matarbari Ultra Super Critical Coal-Fired Power Project in Bangladesh, where it developed the port and navigational channel.
TOA Corporation, established in 1908 and based in Tokyo, Japan, is a leading construction company with a strong portfolio in marine, civil, and architectural projects. It specializes in port and harbor construction, coastal protection, and infrastructure development.
Japan International Cooperation Agency (Jica), established in 1974 and reorganized in 2008, is a Japanese government agency responsible for providing official development assistance (ODA) to developing countries.
The Chattogram Port Authority, established in 1976, is a government body under Bangladesh’s Ministry of Shipping, responsible for managing and operating the Port of Chattogram, which handles 98% of Bangladesh’s container cargo.