Bangladesh signs a $335 million loan with China for two container terminals at Mongla Port, enhancing trade capacity and regional cooperation.
Bangladesh's Economic Relations Division has announced that the Government of Bangladesh signed a loan agreement with the Export-Import Bank of China on 10 October, securing USD 335.78 million in concessional financing exclusively designated for the construction of two container terminals and associated infrastructure at Mongla Port. The agreement was signed by Alia Meher, Joint Secretary of Bangladesh's Economic Relations Division, and Tian Fengjun, Deputy General Manager of the Export-Import Bank of China. The financing carries an annual interest rate of 2%, a 20-year repayment term inclusive of a 5-year grace period, and is structured as preferential credit. The Mongla Port Authority serves as the implementing entity, with project completion scheduled for December 2028.
As early as February 2025, Bangladesh had approved the comprehensive Mongla Port expansion initiative at a total scale of BDT 40.68 billion (approximately USD 3.305 billion), with the Export-Import Bank of China providing BDT 35.93 billion (approximately USD 2.919 billion) and the Bangladesh government contributing BDT 4.75 billion (approximately USD 386 million) in counterpart funding. In March 2025, the Mongla Port Authority signed a commercial contract with China Civil Engineering Construction Corporation, with the project advancing under a government-to-government cooperation framework.
The project encompasses the construction of two new container terminals, complete with container yards, delivery yards, and cargo handling yards. Modern portal cranes, automated freight systems, and heavy-duty loading and unloading equipment will be installed across the new facilities. Concurrent dredging and widening works along the Pashur River will increase channel depth to accommodate larger-tonnage container vessels and gearless ships. Mongla Port is situated along the Pashur River in the Bagerhat District of southwestern Bangladesh, approximately 80 kilometres from the Indian border and some 200 kilometres from the Bay of Bengal, ranking as the country's second-largest port. Current annual operational capacity stands at 1,500 vessel calls, 15 million tonnes of cargo, 100,000 TEUs, and 20,000 vehicles.
From the perspective of Bangladesh's broader port strategy, the Mongla Port upgrade represents a critical step in optimising the national port system and reducing dependence on a single gateway. Chittagong Port has long handled the overwhelming majority of Bangladesh's foreign trade volumes, holding its position as the country's largest port. Recently, Chittagong Port concluded a 15-year container terminal concession agreement with DP World, proposing to introduce an external operator through a public-private partnership model to advance terminal digitalisation and operational efficiency. However, the arrangement has encountered strong resistance from port workers, triggering multiple strikes and leaving the project's implementation outlook uncertain. Against this backdrop, accelerating the expansion of Mongla Port's capacity stands to alleviate cargo pressure on Chittagong, establish a complementary dual-port configuration, and reinforce the resilience of Bangladesh's foreign trade logistics and supply chain.
In the regional and maritime dimension, Mongla Port's proximity to northeastern India positions the expanded facility to serve not only Bangladesh's own foreign trade requirements but also the potential transit needs of India's landlocked northeastern hinterland, establishing an integrated inland waterway and seaport corridor. Upon completion, the project will strengthen the cargo distribution capacity of Bangladesh's southwestern region, stimulate local industrial, warehousing, and logistics development, and advance Bangladesh's standing within the Bay of Bengal's regional shipping and logistics network.
Industry analysts regard the project as a landmark initiative in China-Bangladesh infrastructure cooperation within the port and maritime sector. The concessional loan's low interest rate and extended repayment cycle substantially reduce Bangladesh's financing burden. As South Asian regional trade continues to expand and port infrastructure investment across the Bay of Bengal enters an active phase, the modernisation of Mongla Port will further consolidate the coastal port hierarchy along the Bay of Bengal and introduce new routing options for regional container shipping.
