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Mongla Port set for major upgrade with Tk40.68b investment

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Staff Reporter :

The Mongla Port Authority (MPA) is moving ahead with plans to upgrade the Mongla seaport, with the aim of reviving a stalled project previously funded by China.

The interim government, which assumed office in August 2023, is expected to approve an investment of Taka 40.68 billion for the expansion and modernization of the port facilities.

Insiders have revealed that the MPA recently submitted a revised project proposal to the Executive Committee of the National Economic Council (ECNEC) for approval.

The original project was put on hold by the previous government, led by Sheikh Hasina, in September 2022 due to “geopolitical considerations.”

The new plan will involve China Civil Engineering Construction Corporation (CCECC) as the designated contractor.

The project includes the construction of two new container jetties, a loaded container yard, an empty container yard, and a hazardous cargo-handling yard.

These enhancements are expected to increase the port’s container-handling capacity by around 394,000 twenty-foot equivalent units (TEUs) annually.

Additionally, the project includes the procurement of four gantry cranes and other essential equipment for the operation of the jetties. China has agreed to finance Taka 35.93 billion of the total cost, signalling renewed interest in this strategic development.

With the change in Bangladesh’s political landscape under the new interim government, the project, which was part of a 2016 agreement to fund 27 development projects during President Xi Jinping’s visit, has gained new momentum.

The Mongla seaport has become increasingly significant, particularly following infrastructure developments in the southern region of Bangladesh, such as the Padma Bridge.

Its strategic location makes it the nearest seaport to the capital, Dhaka, attracting interest from international shipping lines and garment exporters seeking to take advantage of its proximity.

Mongla seaport has achieved record ship arrivals, cargo handling, and revenue generation, positioning it as a key player in regional and international trade. In 2020, the port saw its highest-ever ship turnout of 970, generating a profit of Taka 1.30 billion.

Md. Abdul Baki, Vice President of the Bangladesh Frozen Foods Exporters Association, shared his experience with Mongla Port, having used it for 20 years.

He acknowledged the previous challenges but emphasised the need for modern facilities, akin to those at overseas ports like Port Said.

“When three or four vessels anchor together at the jetty, delays in unloading due to staff shortages lead to additional costs and potential damage to goods,” he explained. “Last year, we exported shrimp and freshwater prawns worth TK 3,300 crore.”

The planned upgrade is expected to address these operational challenges, offering modern infrastructure and boosting the port’s efficiency for growing trade demands.

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