MATARBARI DEEP SEAPORTCPA to ink deal with two Japanese firms for construction on Tuesday

Five years after receiving approval, the Chittagong Port Authority (CPA) is set to sign an agreement with two Japanese contractor firms on 22 April for the construction of the country’s first deep seaport at Matarbari, located in Moheshkhali upazila of Cox’s Bazar district.

The landmark “Matarbari Port Development Project” aims to transform Bangladesh into a key international transshipment hub for neighbouring countries, enabling the docking of large mother vessels.

It also seeks to relieve the growing pressure on Chittagong Port and to meet the increasing demands of the country’s export-import trade.

Project officials have noted that the new port is expected to reduce container transportation time by 50% and freight costs by 25%, significantly boosting the country’s trade competitiveness.

CPA Secretary Md Omar Faruk confirmed that the CPA will sign a contract with the Japanese firms – Penta-Ocean and Toa Joint Venture – for civil works under Package-1 of the project.

The signing ceremony will take place in the capital on 22 April, and work under the package will commence shortly thereafter, he said.

“We expect to complete the project by the deadline set for December 2029,” Faruk added.

Jointly financed by the Government of Bangladesh, the CPA and the Japan International Cooperation Agency (JICA), the project has an estimated total cost of Tk24,381.40 crore, with Package-1 requiring approximately Tk6,200 crore.

Project Director and CPA Member (Engineering) Commodore Kaosar Rashid told the Daily Sun that at present, containers destined for Europe, America and other destinations must be transshipped at ports such as Singapore, Colombo, and those in Malaysia due to the inability to dock mother vessels at the country’s existing port jetties.

“It currently takes more than 40 days for cargo to reach its final destination,” he said. “Once operational, the deep seaport will be able to handle mother vessels carrying up to 10,000 TEU containers.”

He further noted that, by bypassing transshipment ports, the shipping time to Europe will be reduced to 20–22 days — a reduction of around 50%.

“The improved facilities are also expected to reduce freight charges by approximately 25%, significantly enhancing opportunities for export-import businesses,” he anticipated.

Under Package-2A, procurement orders for equipment have already been issued, while tenders under Package-2B — for the procurement of tugboats, pilot boats, support boats and other facilities — are currently under evaluation, added the CPA member.

Notably, the government’s advisory council on procurement affairs approved Package-1 on 23 February this year, and the contractor firms were awarded the Letter of Acceptance (LOA) on 4 March.

The implementing authority has already taken possession of 283.27 acres of acquired land for the first phase.

Construction and procurement under Package-1 includes a 460-metre container jetty, a 300-metre multi-purpose jetty, 5,100 ground slots for containers, terminal buildings, pavement, retaining wall, seawall, boundary wall, land development, dredging, land reclamation, emergency generators, solar panels and terminal utilities.

The jetties will accommodate vessels with up to a 14.50-metre draft and 300-metre length, capable of carrying 8,200 to 10,000 twenty-foot equivalent unit (TEU) containers.

As part of the project’s road infrastructure, a 27.7-kilometre roadway will be developed to connect the port with the national highway, at an estimated cost of around Tk12,942.37 crore.

By 2029, the port is expected to handle between 0.6 and 1.1 million TEU containers annually, with a projected capacity of 2.2 to 2.6 million TEU containers by 2041, officials said.

Currently, Chittagong Port handles about 3.2 million TEU containers annually but is unable to accommodate vessels with a draft greater than 10 metres and a length over 190 metres.

Initially estimated at Tk17,778 crore, the project cost was later revised to Tk24,381 crore.

The deadline for the mega project — approved by the Executive Committee of the National Economic Council (ECNEC) in March 2020 — has been set for 31 December 2029.

The Coal Power Generation Company of Bangladesh has constructed a 14.3 km artificial access channel with an 18.5-metre depth and 350-metre width in the sea, along with two jetties, under the 1,200MW coal-fired power plant construction project in Matarbari.

Over 160 ships carrying materials and coal for the power plant have already arrived there. The company officially handed over responsibility for the channel to the CPA on 20 September 2023.