Bangladesh secures Chinese loan for Mongla Port expansion

Bangladesh has finalised a $336 million concessional loan from the Export-Import Bank of China to fund the expansion and modernisation of Mongla Port. The agreement, signed on 10 October, will finance new container terminals, cargo yards, and modern port equipment to increase annual capacity by 394,000 TEU.

The loan terms, confirmed by Bangladesh’s Economic Relations Division (ERD), feature a 2% interest rate with repayment spread over 20 years, including a five-year grace period. Joint secretary Alia Meher signed for Bangladesh, while assistant general manager Fengjun Tian signed for China Exim Bank. The Mongla Port Authority will implement the project.

Mongla positioned as alternative to congested Chittagong

As Bangladesh’s second-largest seaport, Mongla is being developed to relieve pressure on the nation’s busiest container gateway, Chittagong. The project includes the construction of two new container jetties, a dedicated container delivery yard, and a separate cargo handling yard. It is designed to serve industrial and trading centres in the country’s southwest.

Dhaka-based garment exporter Rafayet Ullah noted the strategic timing. He said construction of the Padma Bridge would make Mongla a genuine alternative to Chittagong. "The increased number of jetties and modern equipment means the port will be able to facilitate significant volumes," Ullah stated.

Worker opposition grows over DP World Chittagong concession

Authorities in Bangladesh face intense opposition from port workers over a separate decision to award DP World a 15-year concession to operate Chittagong’s New-mooring Container Terminal (NCT). The agreement was signed on 8 October. Workers and left-wing political groups have staged mass symbolic hunger strikes outside the port, demanding the deal’s cancellation.

Humayun Kabir, coordinator of the Port Protection Sangram Parishad, said government authorities refusing to discuss the deal means workers are giving the government another bout of time. He cited Djibouti as an example where port agreements involving DP World were cancelled. Kabir warned of escalating action. "If the deal is not cancelled, we will go on a ‘fast unto death’ on 19 October," he said.

Colleague Ibrahim Khokon added that workers had not been adequately informed about the deal before it was signed.

Key details on loan terms and project scope remain undisclosed

While the financial terms of the Mongla loan are public, several key operational details are not. Authorities have not disclosed a construction timetable, the planned handling capacity of the two new terminals, or a target completion date for the expansion project.

Local exporters welcome Mongla’s upgraded capacity

Local business figures have welcomed the Mongla expansion for its potential to diversify Bangladesh’s port infrastructure. The upgrade is expected to modernise existing facilities and significantly boost cargo-handling capacity. The project's scope and financing are detailed in the table below.

Workers in Chittagong plan to escalate their protests with a fast unto death beginning on 19 October if the DP World concession is not cancelled.