Bangladesh Launches $327 Million Expansion at Port of Mongla

Bangladesh launched a $327 million expansion at the Port of Mongla, the country's second largest, which includes the construction of two new container terminals designated 10 and 11, with a combined quay length of 368 meters. Prime Minister Tarique Rahman laid the foundation stone on November 5 in Bagerhat.

The work is being carried out by the Mongla Port Authority, with China Civil Engineering Construction Corporation (CCECC), a subsidiary of China Railway Construction Corporation (CRCC), serving as the engineering, procurement and construction contractor. The new terminals are designed for vessels of up to 20,000 deadweight tonnes, with a construction period of 42 months, and will include 49 units of cargo-handling equipment along with container yards. Bangladesh's Ministry of Shipping projects the facilities will handle approximately 394,000 TEU per year, although the Chinese contractor gave a lower design figure of 350,000 TEU.

China is financing the bulk of the investment through a concessional loan from the Export-Import Bank of China, agreed on October 10 for RMB 2,404 million (US$360 million at the current exchange rate), although Bangladeshi government documents place the financing at 35,930 million taka (US$288 million) and also at US$335.78 million. Bangladesh is contributing a further 4,750 million taka (US$38 million). The Chinese loan carries a 2% interest rate over 20 years, with a five-year grace period.

During the ceremony, Rahman stated that the project will improve the port's service capacity, reduce logistics costs and boost investment, employment and economic development in the southwest of the country, while highlighting the cooperation between Bangladesh and China. CRCC Chairman Dai Hegen said the company would apply green construction practices and aim to transform Mongla into a modern maritime hub connecting the Bay of Bengal with the rest of South Asia, while the Chinese embassy's economic and commercial counsellor, Song Yang, described the project as a significant achievement of bilateral cooperation.

Alongside the groundbreaking, a non-binding investment cooperation agreement was signed between Invest Bangladesh and CRCC, covering transport, logistics, renewable energy, waste-to-energy and railway equipment. In fiscal year 2025-26, Mongla handled 29,714 TEU, up 38.49% year-on-year, along with 12.25 million tonnes of cargo and 815 vessel calls. The port continues to face navigational constraints in the 144-kilometer Pashur Channel, where regular dredging is required to maintain the necessary depth.