New Chinese-funded project is aimed at enhancing Mongla port’s cargo handling capacity by 3.50 lakh TEUs by 2027.
Mongla port – Bangladesh’s second-largest seaport currently undergoing a development spree – is set to receive a substantial capacity boost through a Chinese-funded project aimed at facilitating efficient handling of neighbouring countries’ transit cargo.
The Tk4,283 crore project, with Tk3,782 crore to be provided by China on a government-to-government (G2G) basis, will enhance the port’s container handling capacity by 3.5 lakh TEUs (twenty-foot equivalent units).
Once implemented by 2027, it is expected to boost the revenue of Mongla port and Mongla customs by Tk823 crore and Tk3,000 crore, respectively. In fiscal 2020-21, the port and customs earned Tk340 crore and Tk3,975 crore, in that order.
According to officials, the shipping ministry has already sent the project proposal to the planning commission.
Sheikh Sowkat Ali, chief engineer at Mongla Port Authority, told The Business Standard, “The Chinese-funded project will involve the development of two terminals and a delivery yard, along with the transformation of Mongla into a smart port. Additionally, an automated system for cargo handling will be introduced.”
He added that the project is targeted to be completed by 2027, with implementation work scheduled to commence this year.
According to officials, four projects are already being implemented for the development of the port, at a total cost of Tk7,977 crore. One of these projects, aimed at upgrading the port, is being funded by India, which is providing a loan of Tk4,459 crore for the Tk6,014.61 crore project.
Sheikh Sowkat Ali said that under the India-funded project, the construction of container terminals at Jetty No. 1 and 2 is underway. Additionally, a total of 13 segments, including roads and residential buildings, are being implemented.
“An Indian consultant company has been appointed for the implementation of this project. Its role will involve preparing designs. Once this phase is complete, contractors will be hired for the main construction work,” he added.
In the project proposal, which is awaiting approval at the planning commission, the Mongla Port Authority says the port is in a strategic position to support international trade.
The entire western part of Bangladesh, Nepal, Bhutan, and border areas of India are considered its hinterland, and has a unique opportunity to play a vital role in the arena of world trade and the economy of the country and region as well, it adds.
According to officials, currently, 47 ships can berth at a time in Mongla port, which can handle one lakh TEU containers a year.
Shipping ministry officials said Prime Minister Sheikh Hasina directed the Executive Committee of the National Economic Council at a meeting on 6 June this year, to expedite the implementation of the G2G projects with an Indian line of credit and a Chinese loan.
As mentioned in the DPP, Mongla port is in a good position to provide enough facilities for handling more cargoes from the North and South-West zones of Bangladesh as well as its adjoining border areas with India, Nepal and Bhutan.
For this region, Mongla is considered to be the most suitable port from the point of view of regional trade and commerce, it adds.
With the inauguration of transit cargo of India, Nepal and Bhutan through this port, it is expected that initially 5-10 lakh tonnes of cargo will be handled, and that will increase to 15-20 lakh tonnes shortly, according to the DPP.
In comparison with the distance between Chattagram and Payra ports, Mongla port is the port nearest to Dhaka.
