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Why Bangladesh Cannot Afford Delay in Expanding Its Port Capacity

Gazi Towhid Ahmed

Published: 01 Jun 2025

Why Bangladesh Cannot Afford Delay in Expanding Its Port Capacity
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In today’s global trade landscape, seaports are no longer mere infrastructure; they are strategic levers of national competitiveness. Countries that invested early in modern maritime gateways are now realising lasting economic and geopolitical rewards. Vietnam, once a peripheral player in regional logistics, moved nearly 30 million TEUs (twenty-foot equivalent units) in 2024, driven by consistent port development aligned with its industrial ambitions. Singapore, meanwhile, handled a record 41.12 million TEUs the same year, solidifying its role as the world’s leading transhipment hub and a cornerstone of its economic resilience.

Bangladesh, despite its strategic location on the Bay of Bengal and its dependence on maritime trade, continues to lag. In 2024, Chattogram Port handled 3.28 million TEUs, a domestic milestone, but still modest compared to India’s Jawaharlal Nehru Port Authority at 7.05 million and Vietnam’s far larger capacity. Shallow-draft ports, ageing infrastructure and poor hinterland connectivity have limited Bangladesh’s logistics capabilities and undermined its aspiration to become a competitive manufacturing and export-driven economy.

This delay could not come at a worse time. As global supply chains pivot away from China, multinational manufacturers are re-evaluating their footprints, seeking destinations with reliable, scalable and integrated trade infrastructure. Without significant port capacity upgradation, Bangladesh may miss out this historic realignment.

Infrastructure bottlenecks could easily disqualify the country from serious consideration by global players.

Against this backdrop, the recent $800 million investment announcement by AP Moller–Maersk to develop the Laldia Container Terminal at Chattogram Port marks a potential turning point. Structured under a Build-Operate-Transfer (BOT) model, the project will be fully financed and operated by Maersk, with no fiscal burden on the government. Once completed, it will significantly increase handling capacity, accommodate larger vessels and ease congestion, positioning Bangladesh to support higher volumes of trade with far greater efficiency.

What makes this development even more consequential is the calibre of the investors involved. Engaging world-class port operators like Denmark’s Maersk and the UAE’s DP World brings more than financial capital. It brings decades of technical expertise in terminal design, digital port management and global supply chain integration. Their involvement signals international confidence in Bangladesh’s logistics potential and enhances the credibility of its infrastructure pipeline. More importantly, these partnerships accelerate the transfer of global best practices, raising the standards of local port operations to international benchmarks.

This also boosts Bangladesh’s attractiveness to manufacturers and investors, who require end-to-end logistics reliability. The economic spill overs are substantial.

Beyond trade facilitation, such investments generate thousands of jobs across construction, logistics, transportation, warehousing and maritime services. They also support the growth of ancillary industries, foster workforce development and uplift surrounding communities. In this context, port expansion is not merely a logistics upgrade but a catalyst for inclusive economic growth.

Strategically, the Laldia Terminal is expected to reduce Bangladesh’s long-standing dependence on third-country transhipment hubs. By enabling direct calls from larger vessels, it will lower freight costs, shorten shipping times and enhance the competitiveness of key export sectors, especially garments and light manufacturing. It also represents a breakthrough in attracting large-scale foreign direct investment (FDI) to a sector central to the country’s industrial future and economic resilience.

Geopolitically, the Indo-Pacific is now the world’s most dynamic economic corridor, and maritime infrastructure is a powerful instrument of sovereignty and influence.

Bangladesh’s relevance in this arena is growing. With India facing capacity constraints at its eastern ports, Bangladesh’s ports are emerging as viable logistics alternatives, particularly for serving India’s northeastern states.

China recognised the strategic value of maritime control early, expanding its Belt and Road Initiative through high-stakes investments in Sri Lanka’s Hambantota and Pakistan’s Gwadar ports. Japan, pursuing a vision of sustainable and rule-based infrastructure development, is supporting Bangladesh’s Matarbari Deep Sea Port as part of its Indo-Pacific strategy. This layered interest from regional powers signals that Bangladesh is no longer a peripheral player; it is becoming a node of strategic interest.

However, potential alone is not enough. Bangladesh’s past is riddled with infrastructure plans that failed to materialise due to bureaucratic inertia, fragmented oversight and weak institutional execution. Projects have routinely stalled at the planning stage—caught between overlapping authorities, slow procurement processes and regulatory bottlenecks. This pattern must end.

To unlock its full potential, Bangladesh must now shift from vision to delivery. Public-private partnership frameworks must be streamlined, investment approvals expedited and project governance centralised. Port development should be integrated with road, rail and inland waterway systems to ensure seamless cargo flow from dock to factory. Moreover, the government must prioritise digital customs, port automation and AI-driven logistics solutions—not as pilot projects, but as the new standard.

This is Bangladesh’s moment to lead, not just through ambition but through action. If implemented with urgency and discipline, port expansion can elevate the country from a low-cost producer to a strategic logistics and manufacturing hub in the Indo-Pacific architecture.

This is not simply about building terminals. It is about shaping the economic destiny of a nation. With $55 billion in annual exports and rising pressure for more efficient trade channels, the case for investment is clear. Bangladesh has the labour force, industrial base and geographic advantage. What it lacks is time.

The window is narrow but still open. Bangladesh must choose whether it will remain a cost-sensitive exporter constrained by out-dated infrastructure, or rise as a self-reliant, globally connected trade hub. Investing in port capacity—and partnering with global leaders to do it right—is not optional. It is the next frontier of national progress.
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The writer is a public affairs and communication professional

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