8 billion dollar foreign investment potential in Bay Terminal

Chittagong Port Authority (CHWAK) Chairman Rear Admiral Mohammad Sohail has said that foreign direct investment (FDI) of 8 billion dollars can come in the biggest bay terminal project of Chittagong Port.

Yesterday, on the eve of the 137th Port Day celebration, he said in an exchange meeting with journalists, “We are working to sign the agreements in this regard within the next two to three months.”

The day has been celebrated since the Chittagong Port Commissioners Act-1887 (Bengal) came into force on 25 April 1888 during the British colonial rule.

He also told the press about the progress of six new terminals of Chawak Chairman Port. These include the four bay terminals and the first terminal of the Matarbari deep sea port.

The Bay Terminal project consists of two container terminals, a multipurpose terminal and an oil and gas terminal to be implemented through foreign direct investment.

He said, ‘The tender process for the construction of the first terminal of Matarbari deep sea port has already been completed. We have sent it to the Cabinet Committee for approval. The work is expected to start within a week at most if approval is received.’

He believes that the region will become a hub port if the projects are implemented in the next few years. Large ships will be able to flock here to meet the needs of South Asia.

A bay terminal is proposed to be built on about six kilometers of land from the Chittagong Export Processing Zone to Rasmanighat on the Bay of Bengal.

The multi-purpose terminal will be developed in a joint venture between Chawak and Abu Dhabi Ports Group.

Abu Dhabi Ports Group has offered to invest one billion dollars to build a multi-purpose terminal and the port authority has already accepted the proposal.

Chabak chairman also said, ‘Abu Dhabi Ports Group’s delegation will visit the port in the first half of next May. Hopefully a preliminary agreement can be reached at that time.’

The government has already reached an agreement with Singapore’s PSA and UAE’s DP World to build and operate two container terminals at Bay Terminal on a Public Private Partnership (PPP) model.

PSA Singapore and DP World have each offered to invest 150 million dollars, said Chawak chairman.

The plan for liquid bulk terminal has been accepted recently.

He added that three and a half billion dollars will be invested for the oil-gas terminal, and he added, “The local East Coast Group and some international companies will jointly build it.”

After the construction of the terminal, the fuel storage capacity of the country will increase from 25 days to two months, Chawak Chairman said.

He said, ‘The World Bank has announced $590 billion for dredging access channels and building breakwaters for the Bay Terminal.’

Chairman Rear Admiral Mohammad Sohail also said, ‘The master plan for the Bay Terminal has been prepared. Along with land acquisition, design work is also nearing completion. Now we are preparing the quality and cost estimate of the Bay Terminal work.’

These works will be completed in the next two to three months. He said that the tender process will start after that.

Apart from this, AP Molar Maersk’s proposal for construction of Laldia Container Terminal at Chittagong Port has already been taken up as a PPP project.

Claiming that all kinds of studies have been done on the project, he said, ‘We hope to have an agreement within the current year.’