Mongla Port, located in Bagerhat district in the country’s southwestern region, handled the highest volume of cargo and generated the highest revenue in its history in FY2025-26. During the year, the port handled 122.51 lakh tonnes of cargo, 29,714 TEUs of containers and 12,000 vehicles, generating revenue of around Tk388 crore.
Despite this operational progress, maintaining the navigability of the 144-kilometre Pashur Channel has emerged as the port’s biggest challenge. The enormous cost of regular dredging, coupled with the burden of repaying government loans, is putting significant pressure on the port authority.
The country’s second-largest seaport presented these findings in a report at a meeting of the Parliamentary Standing Committee on the Ministry of Public Enterprises held at the Jatiya Sangsad on 12 October.
According to the port authority’s report, a total of 815 vessels called at Mongla Port in FY2025-26.
The port generated Tk387.95 crore in revenue against expenditure of Tk324.74 crore in FY2025-26. In FY2023-24, revenue stood at Tk348.60 crore and expenditure at Tk273.55 crore.
Despite its operational success, the port authority told the parliamentary committee that it was facing considerable financial pressure.
In its report, the authority identified maintaining the navigability of the 144-kilometre Pashur Channel as the main obstacle to improving Mongla Port’s operational capacity. Regular capital and maintenance dredging are required to keep the channel navigable.
To carry out the necessary dredging, a project worth Tk1,538.19 crore has been undertaken for the period from 1 January 2025 to 31 December 2029. Under the project, the port authority plans to dredge 331 lakh cubic metres of sediment.
The government has allocated Tk221.45 crore for the project in the current fiscal year’s Annual Development Programme (ADP). The Bangladesh Navy is implementing the project. As of September, 10 lakh cubic metres had been dredged, while overall progress stood at 3.48%.
The report said Tk1,384.37 crore had been approved for maintenance dredging in the Pashur Channel. To meet the cost, the port authority secured government approval for a loan of Tk1,245.93 crore at 5% interest, repayable over 20 years.
Including principal and interest, Mongla Port will have to repay a total of Tk1,868.90 crore. Repayment is scheduled to begin in May 2030, with the first instalment amounting to Tk199.61 crore.
People familiar with the matter said the financial obligations arising from investments to maintain the channel’s navigability would place a long-term burden on the port.
The port authority also said operating its dilapidated and ageing support vessels was creating additional pressure. Its operations currently depend on the oil tanker MT Meghdoot, built in 1942 and now 83 years old, three 58-year-old mooring boats built in 1961, and two pilot boats.
Meanwhile, construction of two privately operated container jetties under a public-private partnership (PPP) arrangement has been suspended due to legal complications, despite being 62% complete. The port authority has also had to submit proposals for strategic changes and alternative financing to the shipping ministry to implement a major project under India’s third Line of Credit (LoC-III).
Upgradation plans
Despite these challenges, plans are underway to develop Mongla Port into a major hub for economic connectivity in the southwest and regional trade.
Under an ongoing project, two tugboats are being added to the port’s fleet. The process is also underway to procure a buoy-laying vessel, a search-and-rescue vessel, a mother vessel, and a survey and research vessel.
In addition, a $340 million loan agreement has been signed with China for the expansion of Mongla Port and the construction of a container delivery yard.
The project will modernise the port through the construction of a container terminal equipped with modern machinery, a container yard, a container delivery yard and a dedicated yard for handling hazardous cargo.
Under the agreement, China’s Exim Bank is providing the loan at 2% interest, with a five-year grace period and a repayment period of 20 years.
The port authority’s report also outlined a long-term plan to transform Mongla Port into an environmentally sustainable “green port” with modern automated facilities between 2027 and 2050.
The plan includes developing the second phase of the container terminal at Joymonirgol, a car yard and a multipurpose jetty; constructing dedicated jetties for LPG, coal, perishable goods and chemicals; river training works; and building a helipad and hangar, as well as procuring a helicopter.
The authority also plans to modernise its Vessel Traffic Management Information System to increase the frequency of container vessel calls at the port.
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