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CHAPTER-01: INTRODUCTION

1.1 Introduction

Purpose- The purpose of this paper is to explore the potentials and prospects of Payra port.

Design/methodology/approach: A report needs methodology which reveals how the reporter

is going to achieve its objectives of the stipulated study. At first we have planned about the

overall study. We have collected data from various website. Then we have analyzed these data

by group working. After that we have tried to make a report on the basis of the collected

data. We make this report through the following way that is given bellow:

opic is assigned by our teacher

Collecting data (secondary and primary)

Analysis of data

Interpretation of analysis.

Presentation of analysis in the report.

1.2 Objectives of the report:

Primary objectives:

- To Find out the future prospects of Payra port

- To Find out the potentials of Payra port

Secondary Objectives:

- To know the economic impact of Payra port in our country.

- To know the regional facilities of Payra port.

- To know the socio economic contribution of Payra port.

- To know the strength and Opportunities of Payra port

Keywords: Potential, Prospect, Economic, Socio Economic

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CHAPTER-02: BACKGROUND OF PAYRA PORT

2.1 Overview of Payra Port

Prime Minister Sheikh Hasina inaugurated Payra sea port, the third one of Bangladesh, at

Ramnabad Channel under Kalapara upazila of Patuakhali district on Tuesday on 13 August 2016.

This third seaport of the country is indeed a vital addition to the country’s infrastructure. For a

nation whose economy is considered to be on a rapid rise in the world, known as the second most

powerful textile industry, listed in Goldman Sach's 'Next 11' and expected to advance at around

seven this year, Bangladesh still lacked a sea port.

Bangladesh’s economy has been expanding steadily and this deep-sea port is likely to play a

crucial role in the country’s economic future especially considering the fact that capacity of the

Chittagong Port is almost exhausted. Since independence, no other new seaport was built to cope

with the growing pressure of cargo. Fully operational Payra port will be able to handle 75,000

containers a year and this capacity is nearly five times more than the existing sea ports. Payra sea

port will generate massive employment, boost export and import and increase the capacity of the

country in handling ocean-going cargoes.

Without waiting for the high and low tides of the sea, it will be possible easily to send the imported

goods from the outer anchorage of Payra to Dhaka, Narayanganj, Khulna, Barisal and other places.

Similarly, it will be possible to send export goods to any country. Nepal and Bhutan will be in a

position to use this port very easily. We can expect that Payra has all the potential to be a nerve

centre of the proposed Bangladesh-China-India-Myanmar Economic Corridor, BCIM.

This will not only bring new pace of development in the country but also play an important role in

strengthening socio-economic and political co-operation of Bangladesh with other countries in this

region. In terms of economic diplomacy, Bangladesh will get an advantageous position for this

port.

Bangladesh can earn a significant amount of foreign exchange by allowing nearby countries

including Nepal, Bhutan, Myanmar, India and China to use its port facilities. Supporting

infrastructures including the most modern container carrier and a jetty have already been installed

and construction of other structures is going on. It is expected that this port will start operation in

full swing in 2023.

Payra sea port is a strategically important project for Bangladesh. For the time being, the port is

being put into operation with transportation of goods on waterways only. It will be connected to a

dual-gauge rail line and a four-lane highway within next three and a half years.

2.2 Historical background

The coast line of Bangladesh is about 710km and coastal area is characterized by many tidal rivers,

which can be utilized in development work for enhancement of economic growth of the country

and creating employment opportunity of growing population of Bangladesh. In accordance with

the decision of the 14th meeting of the Parliamentary Committee on Shipping Ministry a

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committee was formed with the in-house experts of CPA and BIWTA for site selection and

preliminary feasibility study on development of sea port at the Rabnabad Channel in the Patuakhali

district in 2010.

2.3 Chairman’s Message

Bangladesh is a country of great potentialities because of its strategic location in south east asia,

large work force and fertile land and rivers. It is also bounded by the Bay of Bengal to the south

which provides an open stretch of 710km as the gateway to the rest of the world. It has the foreign

policy of “Friendship to all, Enemy to none”. Moreover, the country has solved the delimitation

problems both is sea and land sectors with the neighbors. So, now the country is free to gear up its

development activities in all sectors. In recent years, Bangladesh has experienced economic

growth that has been applauded in the international arena. The Country maintained a stable GDP

growth pattern of 6.2% over the last decade – even amongst periodic natural disasters and political

turmoil.

Country’s sea-borne trade is growing on average at 9.2 percent per annum. This trade is anticipated

to continue or even accelerate in the foreseeable future. In 2020, the country’s total annual sea

borne trade will be in the range of 70 to 80 million tones. The existing two ports will not be able

to bear the future trade volumes. As such, new sea port will have to be operational by the end of

present decade (2020) even if the Mongla and Chittagong ports are further developed.

Moreover, RMG sector is earning more than 25 billion dollars comprising 80 percent of export

earning of Bangladesh. By the 50th Anniversary of Bangladesh (In 2021), Bangladesh RMG sector

is aiming to reach an export level of 50 billon. Besides, World Bank has declared Bangladesh as a

lower middle income country which is a notable step forward in our endeavour to become a middle

income country by 2021. So, this growing economy of Bangladesh is demanding a growth of its

port infrastructure – both in capacity and number. The country’s central coastal zone is also

;demanding an extension of the country’s port facilities. The proposed solution to this is the

development of the Payra Sea Port – a 3rd Sea port at Rabnabad channel in Patuakhali district.

Now, to implement the project, the government has taken a Short, Mid & Long term Plan to

develop the proposed state-of-the-art sea port. As a short term plan, by 2018 operations of the port

with at least 2.5 km terminal is set to begin. By the end of this year, operations of the port activities

by off-loading cargos from mother ships at outer anchorage and transported to the hinterlands

through river routes. As a midterm plan, by 2023 the port will be fully operational with a minimum

of 10 km container and bulk terminals with all other associated facilities. Finally, as a long term

plan, the government has decided to establish EEZ, Airport, Port City, Dockyard and Shipyard,

Eco-tourism and other relevant facilities and infrastructure centering the port.

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The Payra Sea port is set to become the bustling player in our international seaborne trade. It has

all the strategic, geographic and hydraulic benefits required. Partnering with the Payra Sea port

means partnering with a better tomorrow for the country and docking safely into Bangladesh’s

future.

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CHAPTER-03: PAYRA SEAPORT AND BANGLADESH'S HOPE

3.1 Expectations from Payra sea port.

Payra Seaport, the third seaport of Bangladesh located on the west bank of Rabnabad Channel at

Kalapara in Patuakhali, brings a high hope for the nation after its being inaugurated for limited

scale operation on 13 August, 2016. Hopefully, the full-fledged functions will be commenced in

2018 and the port will provide services round-the-clock. This port will be built as a deep seaport

in future. For the development of the port, there would require about six thousand acres of land.

This place has been chosen because of land availability, and the height of the site is two meters

above from sea level, for which the land does not go under water in monsoon. The land is

connected by roads and rivers too.

The need of the country is expanding on a greater scale as it is in a transitory position from lower-

income country to middle-income country. The port is expected to reduce the pressure on the

country's other two seaports, i.e., Chittagong and Mongla seaport. Chittagong and Mongla ports

will not be able to grip the shipping needs in the next 15 years, as the anticipated GDP growth

states that the nation's container handling demand will be tripled by 2030. In addition to container

handling, coal is estimated to be the second base cargo for the port as the country will need huge

coal imports for coal-based power plants. The other major dry bulk imports are cement clinker,

brick kilns, food grain and many other materials including bagged fertiliser, steel, forest products

and cruise vessels. A Liquefied Natural Gas (LNG) terminal will also be made there to handle the

import of LNG. There is also a prospect to build up an oil refinery. Consequently the seaport will

play a key role in future. To make Payra port more functional, the government needs to connect

the port to Dhaka by roads, waterways and railways.

The uniqueness of the seaport is that the foreign ship will be able to come here directly as it is

located centrally. The depth of Payra seaport is 15 metres compared to 9.2 metres that of

Chittagong port. Another important fact is that mother vessels can also be able to anchor there due

to its depth. This will facilitate Bangladesh to easily handle large vessels, which the country cannot

do now.

The port will also create opportunities by establishing new industries like garment plants,

shipbuilding sectors and other exportable production plants which will particularly generate a large

number of employments. The adjacent areas would witness an investment boom after its full-

fledged operation by encouraging private companies to set up plants in the southern region.

Particularly, the people of the area would be much benefited from the port. It may be mentioned

that the port will certainly make the weak south-west region more vibrant and will contribute to

the economic development of Bangladesh.

Additionally, the port will make the dream cherished by the government for regional connectivity

come into reality. If the Seven Sisters of India transport their goods through Bangladesh by using

the port, Bangladesh can be hugely benefitted by imposing duty on that. If Nepal and Bhutan use

the port for carrying their products, Bangladesh will certainly earn a handsome amount from that.

Both Nepal and Bhutan are landlocked countries, so Bangladesh may be a potential way for

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shipping their goods with a competitive package including another height in terms of regional

connectivity including bilateral trade relations.

The port will be a key player for Bangladesh in the international seaborne trade as it has all the

strategic, geographic and hydraulic opportunities. Undoubtedly, Payra will ensure the economic

and social development of the country by creating business, employment as well as goods

transportation in general.

3.2 Bangladesh's Deep Sea Port Problem

Bangladesh needs a deep sea port. The country has one of world’s fastest growing economies,

which is expected to rise at a 7.1 percent clip this year. It is on Goldman Sachs’s list of the “Next

11” emerging economic powerhouses of the 21st century. On the strength of the second-most

dynamic textile industry on the planet, Bangladesh’s export sector is booming, and is expected to

eclipse $50 billion per year in value by 2021. This is all in a country without adequate maritime

infrastructure.

In its 45-year history as an independent state, Bangladesh has never built a new port. While $60

billion of annual trade currently pours through the country’s two existing seaports, Chittagong and

Mongla, both are too shallow for large container ships and require costly load transfers to smaller

vessels to get cargo in and out — an added step that can cost an additional $15,000 per day and

severely decreases the ports’ global competitiveness.

However, finding solutions to this problem has proven problematic for Bangladesh. But this isn’t

because of a lack of options, a deficit of investors, or even a dearth of international support, but

exactly the opposite: too many powerful players are pushing for too many contending plans. This

has left Bangladesh geopolitically stalemated, making and breaking deals, going with one project

and then changing position and going with another. Ultimately, this plethora of options has pitted

China, Japan, and India in direct competition with each other to build Bangladesh’s first deep sea

port.

Although a small country, Bangladesh is of clutch geopolitical importance, being located in the

armpit of India and right on the Indian Ocean. The Indian Ocean region contains 25 percent of the

world’s land, 40 percent of its oil and gas reserves, and a third of the global population. It hosts

one of the world’s busiest and most important shipping lanes, which supplies East Asia with the

bulk of its Middle Eastern crude oil. Dhaka is still politically and economically pliable–like a ball

of clay–and has become one of the preeminent global staging grounds of interests from east and

west, which are trying to mold the country to be what they want it to be and not get pushed out of

the game. Bangladesh is a keystone nation in the region, balancing together the contending

influences of India, China, the United States, and Japan.

The Belt and Road initiative is the formalization of China’s strategy for securing and bolstering

their commercial trade routes, and Bangladesh is a major part of its maritime agenda. China has

been establishing a network of ports, dubbed the 21st Century Maritime Silk Road, extending from

their own coastlines through Southeast Asia, the Indian Ocean, the east coast of Africa, and up

through the Mediterranean to Greece. Although designed as a commercial project, this endeavor

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has instilled a sense of trepidation in the other actors in the South Asian Theater, who perceive it

as potentially having militaristic ramifications — or at least leveraging this reasoning to push their

own competing agendas. This trepidation was brought up by consulting firm Booz Allen Hamilton

in a 2005 internal report prepared for the U.S. Department of Defense, which first dubbed this plan

the “String of Pearls” — a label that has been used ever since to denigrate China’s ambitions in

the watery parts of South Asia.

This geopolitical competition has risen to an apex when it comes to selecting the site and the

financier of Bangladesh’s first deep sea port, with some powers making great financial and

political strides to secure their own interests and to keep those of others at bay. There are currently

at least four potential locations for the impending new port: Chittagong, Sonadia, Matarbari, and

Payra.

Chittagong

Chittagong, positioned a little way up the Karnaphuli River on the northeast curve of the Bay of

Bengal, has always been the largest and by far most important seaport in Bangladesh. Once a major

hub on the ancient Maritime Silk Road, Chittagong has a history that stretches back to the fourth

century B.C. Ptolemy, the Chinese traveler-monk Faxian, and Ibn Battuta all wrote about the place.

Today, this position of relevance still rings true.

“We handle 98 percent of the country’s container cargo, 92 percent of the total cargo volume,” a

port development administrator explained. “So you can imagine how important this port is to

Bangladesh. If Chittagong port collapsed the whole economy will collapse.”

Ninety-two percent of Bangladesh’s total ocean freight equates to over 30 million tons of bulk

cargo and more than 1.8 million TEUs (twenty-foot equivalent units) each year. And these

numbers are rising fast. Cargo volume through Chittagong port is rising at a 14 to 15 percent clip

annually, and at the present growth rate it is estimated that the port would top out by 2018.

The problem with Chittagong is that the current maximum draft of the port is just 9.2 meters —

definitely not deep enough for many modern container ships. This requires a time-consuming and

costly transfer operation, as smaller ships must be used to transport cargo to and from big ocean

freighters that are anchored out in the bay.One proposal to remedy this problem is the construction

of a new port on a 1,200 acre island in the Bay of Bengal off the coast of Patenga, and in proximity

to Chittagong. Dubbed the Bay Terminal, this would not technically be a deep sea port–as its

maximum draft would be up to 13 or 14 meters, rather than the 15 needed to be granted this

designation–but it would allow for larger ships to come directly into port.As early as 2010, China

was publicly invited to get on board with expanding and modernizing Chittagong port, and at one

point the country pledged $9 billion toward the endeavor.

“It will be a great achievement if China agrees to use our Chittagong port, which we want to

develop into a regional commercial hub by building a deep seaport in the Bay of Bengal,”

Bangladesh’s Foreign Minister Dipu Moni told Reuters.

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This plan bode well for China’s broader ambitions of building an overland corridor from Yunnan

province to a port on the Bay of Bengal. The plan would essentially provide China with a link to

the sea that, aside from transiting Myanmar, could bypass Southeast Asia and the snake pit of

potentially volatile interests there. This prompted international commentators to quickly brand the

Chittagong deep sea port proposal as one of China’s “pearls,” which put Bangladesh in a rather

precarious geopolitical position. So much so that in June 2015 Bangladesh granted Indian cargo

ships permission to use Chittagong port.

Sonadia

Realizing that Chittagong may fall through, China had a contingency plan for another deep sea

port in Bangladesh all cued up and ready to go. A few years following a 2009 Japanese survey in

Sonadia, an island near Cox’s Bazar in the south of the country, which determined it a suitable

location for a deep-draft port, China jumped in and offered its financial assistance.

China Harbor Engineering Company, a subsidiary of the state-owned China Communications

Construction Company–the same enterprise that is building Colombo Port City in Sri Lanka, and

which also happens to be blacklisted by the World Bank on allegations of corruption–was chosen

as the developer, and Bangladesh appeared to have given China the green light. During Prime

Minister Sheikh Hasina’s 2014 visit to Beijing it was widely assumed that a deal for Sonadia was

going to be formally signed, but then it wasn’t.

It was widely assumed that political pressure was put on Bangladesh from India and the United

States to disallow China to build and operate the Sonadia port. With China already building ports

in Sri Lanka, Pakistan, the Maldives, and Myanmar, Bangladesh was the last remaining link on a

chain that would leave India completely surrounded.

“India’s not very happy that China and Pakistan are holding a strategic and economic relationship,

and part of their objection is the One Belt, One Road and the Pakistan-China economic corridor,”

said Shahid Islam, a research fellow at the BRAC Institute of Governance and Development, a

Dhaka-based center for policy research. After a period of being quiet about the prospective port,

in February of 2016 Bangladesh made the formal announcement that it had been scrapped.

“The cancellation of Sonadia is clearly a strategic decision by Bangladesh, doubtlessly helped

along by India, Japan and the U.S.,” wrote Indrani Bagchi in an article in the Times of India.

Matarbari

Another reason for the potential cancellation of the Sonadia port was that Bangladesh had granted

a contract to Japan to build a deep sea port at Matarbari, just 25 kilometers away. Japan

International Cooperation Agency (JICA) is to build the port along with a liquefied natural gas

terminal, a series of four 600 MW coal-fed power plants, as well as rail lines, roadways, and

electrical systems as part of a monumental infrastructural package deal. The master plan is that the

port would be used to receive coal, which could power an entire new industrial zone in the far

southeast of the country.

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To make this happen, JICA offered a loan to take care of $3.7 billion out of the total $4.6 billion

price tag, at 0.1 percent interest for 30 years and a 10 year grace period thrown in on top of that,

according to the South China Morning Post.

Payra

Originally seeming like a condolence prize for China, which had been beaten out for a deep sea

port in the south of the country by Japan, Bangladesh proposed a deep sea port at Payra, which is

located on the northwestern coast of the Bay of Bengal. The construction of this port, which was

being financed on a public-private partnership (PPP) platform, was originally granted to a Chinese

company, and it was starting to look like China was finally going to get its deep sea port in

Bangladesh. Then the usual chorus of India, Japan, and the United States resounded once again.

However, as a change of pace, India stepped in and stated that they wanted to get in on the action

and be one of the port’s big investors. This was a very different strategy than simply trying to

prevent China from having their port while offering no other viable alternative, which had

previously been the diplomatic model.The Payra deep sea port was then reconfigured as a

cooperative port that many different countries could invest and operate terminals in. It has been

reported that Indian companies are now participating and 10 countries have considered jumping in

with $15.5 billion of investment, which is felt to be very different than China having a port in

Bangladesh all to themselves.“Bangladesh politics are driven by India, and the U.S. to some

extent,” Shahid Islam explained. “Bangladesh can’t move ahead with China in terms of big

collaborations, in terms of making the Silk Route or One Belt, One Road or an economic corridor.”

Like many other countries along the Belt and Road, Bangladesh wants to leverage its keystone

position between major global powers and be “a friend to everyone.” But at this junction the

country finds itself in very turbulent waters as the great game of geopolitics exerts its influence on

every horizon.

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CHAPTER 04: POTENTIAL AND PROSPECTS OF PAYRA PORT

4.1 Payra Sea Port will facilitate regional connectivity

The Payra Sea Port began providing limited services from August 13 last following its

inauguration by Prime Minister Sheikh Hasina. Full-fledged function of the port is scheduled to

begin from 2018. The government has a plan to develop it into a deep sea port in the future. Payra,

the third sea port of the country, is located on the west bank of Rabnabad Channel at Kalapara in

Patuakhali. The site of the port has been selected considering its physical advantages. Six thousand

acres of land will be required which was easily available. The place is two metres above the sea

level and does not go under water in the rainy season. It is connected with the hinterland by roads

and rivers too. Payra will reduce the pressure of handling cargo on Chittagong and Mongla sea

ports. In addition to container handling, coal is likely to be the second base cargo for the port; a

huge amount of coal will have to be imported for coal-based power plants. A Liquefied Natural

Gas (LNG) terminal will be set up to handle import of LNG. There is also a prospect of establishing

an oil refinery. To make Payra port more functional, the government needs to connect it to Dhaka

by roads, waterways and railways.

The uniqueness of Payra sea port is that foreign ships will be able to come here directly as it is

located centrally. The depth of Payra sea port is 15 metres compared to 9.2 metre that of Chittagong

port. Mother vessels will be able to anchor here due to its depth. This will facilitate Bangladesh to

handle large vessels which it cannot do now. When the Payra sea port will get fully operationalized,

areas adjacent to it will witness an investment boom. Private entrepreneurs will hopefully set up

plants in the southern region. The port will certainly make the poor south-west region more vibrant.

Additionally, the port will facilitate for regional connectivity - a much cherished dream of the

present government a reality that is cherished by the present government. The north-east Seven

Sisters region of India, and landlocked Nepal and Bhutan will find Payra sea port very useful for

conducting their sea-borne trade.

4.1.1 Facilities will be provided by Payra Sea

Payra Port is located in the Meghna Estuary at Rabnabad Channel in the Patuakhali district. It is

about 154 NM far from Chittagong port and 125 NM from Mongla Port. Rabnabad Channel is a

naturally suitable place to build a seaport. Port Limit is demarked which about 504 square miles is

and outer anchorage will be 210 square miles for anchoring the vessel draught 10-20 m.

Payra Sea Port will have following facilities:

o Jetty area has depth of water 12-25 m where deep draught and bigger size vessel can be

accommodated.

o 11 km long jetty/terminal facilities can be developed.

o 4 km wide channel.

o Plenty of hinterland to develop a seaport with modern infrastructure.

o Planned Navy base and Coast Guard close to the proposed port area will provide necessary

safety and security.

o Protected from natural disaster.

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o Located in regional and international shipping friendly position.

o Can be used as a regional transshipment port.

o Constraint free large channel available for anchorage and loading/unloading facilities on

both sides for ships.

o In compare with Chittagong Port, the Landing charge, Shipping charge and River dues are

lower in Payra port.

o The port will be open for 24 hours.

o Handling & parking facilities of motor vehicles will be available.

4.2 Potentials of Payra port:

The government of Bangladesh takes a project for the Payra Port which will be considered as the

depth port of Bangladesh. The geographic location of this port creates the opportunity of easy and

cost-effective foreign trade to be carried out through this port with all the South Asian countries

as well as other Asian countries. Payra Port holds so much potential as a highly promising regional

sea-port those are discussed below:

a) Physical Infrastructural development- (Availability of Utility Connection) :

I. Power Availability for the payra port: Payra port is situated at a distance of 17 km

(approx.) from the Kalapara Upzila .There is no electricity supply within 2 km of

the Payra port. Payra port is totally dependent on solar supply electricity. There is

so much potentials of development of electricity in the Payra Port area.

II. Telecom and Internet Connectivity: There are telecommunications lines at present

in the site of port area. At present, the internet services are provided by mobile

companies such as Grameen, Banglalink and Robi in this region. But at present the

network services in this area are not so much strong. So, there is so much potentials

of development of network with telecom facilities in this port area.

III. Gas Availability: At present there is no gas transmission / distribution network is

available in this Payra Port region. So, there is so much potentials of development

of gas facilties in the Payra Port area.

IV. Business Support infrastructure and facilities: Business support infrastructure and

facilities are not available in the Payra Port area such as construction related

materials (Brick, San, Sream, Cement etc.) those are used for export and import in

the home country and host country.

b) Social Infrastructural development:

Recreation Facilities The construction of the Payra port was one of the ten mega

projects fast-tracked and prioritized by the Sheikh Hasina administration. The

Payra port is expected to boost the economy of the country's southern districts,

along with the Padma rail-road bridge now under construction. It will change the

socio-economic conditions of total Southern part of Bangladesh. Many Foreign and

Domestic organization establish their branch around the southern part of

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Bangladesh which will change the condition of the people of this region. New

development project will be established by government and private sector like

school, college, university, hospital, shopping moil, bank, NGO, hotel, motel,

cottage etc. The payra port, Padma Bridge and Kuakata tourist spot combine facility

will change the present condition of our people as well as country. The need of the

country is expanding on a greater scale as it is in a transitory position from lower-

income country to middle-income country.

c) Connectivity development:

I. Road: Roadway is the most convenient means of accessing the Payra Port. The road

distance between the center of the Kalapara town and the Payra Port is about 12-15

meters. In this area’s roads are not so much good as a result communication systems

are so much troubled. So, there is so much potentials of development transportation

facilities

II. Airport: At present there is no airport station in the payra port area or nearest to this

Payra Port region. There is also potentials of development of airport

communication system in the payra port area.

III. Rail: The whole district of Patuakhali doesn’t possess any railway connectivity. A

new railway station has been proposed from Dhaka Kamlapur Rilway station to

Barisal which will be completed after completion of Padma Bridge. So, there is also

potentials of development of railway connectivity in the southern part of

Bangladesh as a result of completion of Payra Port

IV. Waterways: Payra port is situated at Kalapara Upzila , Patuakhali beside the

Andharmanik river. At present the depth of this river is about 7 meter, as a result

different types of large sheeps and cargos cann’t enter into this port. So the river’s

depth is need to increase for entering the large sheeps and cargos into the Payra

port.

d) Potential of the Payra port as a tourism perspective:

The overall Payra port region is blessed with the scenic beauty and have various tourist

attractions and most of these are within close distance of the Payra port area. The Payra

Port is situated near the kuakata sea beach which is also a part one of the attractive sea

beach with a length of 18 Kms .When someone will visit the kuakata sea beach then he/she

will also can visit Payra Port as a tourist place. As a result, there is also so much potentials

of Payra port as a tourist place.

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4.3 The future prospect and potentials of Payra Sea Port specially after completion of the

Padma bridge.

Payra Sea Port is one of the Sea Ports of Bangladesh and is the most eco-friendly port. Payra Port

is a under construction port on the west bank of Rabnabad Channel in Kalapara upazila in

Patuakhali, Bangladesh. The port would have a terminal for loading and unloading of coal.The

port will be start it operation completely at 2018 and the Bangladesh government mega project

Padma bridge also run their operation. Payra sea Port will be basically a service-oriented

organization. The Port provides facilities and services to the international shipping lines and other

concerned agencies with shore based facilities like jetties, godowns, cargo handling equipment

and maintaining adequate water depth in the channel.

In our country, most of the industries are located in and around Dhaka-Chittagong. The business

community of Dhaka and its surrounding areas is less interested to import and export their cargo

through Payra Sea Port for lack of fair road communication and bridge connection. The present

government has given emphasis for the development of Payra sea Port and the Govt. has decided

to construct the Padma bridge at Mawa point. After Padma bridge at Mawa point is constructed,

the distance from Dhaka to Payra sea port through Mawa will be within moment of time. So, the

business community of Dhaka and its surrounding areas will be more interested to use Mongla

Port for importing & exporting cargos as the transportation distance from Dhaka to Mongla will

be shorter than Dhaka to Chittagong after the construction of Padma Bridge.

Time and transportation cost of exporting & importing cargo through Payra sea Port will be more

economic and comparatively less. Cargo handling congestion in chittangong & Mongla Port will

be decrease if the cargo handling capacity of Payra Sea Port is utilized fully. At present, Jute &

jute goods, Coal & Liquefied Gass, Frozen cargo and other general cargoes are normally will be

exported from Payra sea port. After commissioning of the Padma bridge at Mawa point, there will

create a bright prospect in exporting garments, tea and lather etc. through Mongla Port. Moreover,

import of heavy machinery & equipments, fertilizer, food grain, sugar, motor vehicles, raw

materials of industry etc. through Mongla Port will increase with respect to the present rate. As a

matter of consequence, the act of establishing different types of new industries in the south-western

part of the country, scope of huge employment, expansion of trade & business and overall activities

of Mongla Port will increase and develop rapidly. So, there will create a mobility in economic

development of the country through the increase of revenue income of Mongla Port.

4.4 Prospective Payra deep-sea port

This sea port, the third of its kind in the country, is set to be operational from next month. It is a

cornerstone for the country towards economic progress and it will serve the need for increased

trade and commerce in future. The country is improving in international trade and commerce. The

capacity of the Chittagong Port is almost exhausted. Fully operational Payra port will be able to

handle 75,000 containers a year and this capacity is nearly five times the existing main sea port.

Payra sea port will generate massive employment, boost export and import and increase the

capacity of the country in handling ocean-going cargoes.

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This port will be linked with important business points in the country including Dhaka, Barisal

and Narayanganj by rail, waterways and road more easily than Chittagong port. Whereas

Chittagong port needs to wait for a high tide for full efficiency, Payra will remain fully operational

in both low and high tides. Obviously, Payra deep-sea port will be a dynamic and busy port to

meet the country’s need of tomorrow. Experts believe that Payra will be the centre of the

Bangladesh-China-India-Myanmar economic corridor. This will not only bring new pace of

development in the country but also play an important role in strengthening socio-economic and

political co-operation of Bangladesh with other countries in this region. In terms of economic

diplomacy, Bangladesh will get a better position for this port. Singapore has achieved success by

utilising its port potential. Bangladesh can earn a significant amount of foreign exchange by

allowing nearby countries including Nepal, Bhutan, Myanmar, India and China to use its port

facilities.

Supporting infrastructures including the most modern container carrier and a jetty have already

been installed and construction of other structures is going on. It is expected that this port will start

operation in full swing in 2023. The Payra deep-sea port is a strategically important project for

Bangladesh. This port will have a huge positive impact on the economy. We expect inefficiency

and red-tapism will not delay its implementation.

4.5 Operations of Payra seaport:

Operations of the country’s third seaport at Kalapara of Patuakhali began yesterday in limited

scale. But once the Payra seaport is extended to its full capacity and other facilities installed by

2013, it will open a new era for regional trade and commerce. Officials related to the 2,428-hectare

project which the government hopes to turn into a deep seaport in future will gradually support

transit trade handling as well as propel economic and social development of the region. Payra Port

Authority’s acting chairman Captain Saidur Rahman hopes that it would become a regional hub

for trade and commerce. “A port can change the fate of a nation. The Payra seaport can be that

promising port for us,” he told the Dhaka Tribune after the inauguration of the port. Currently, the

country’s shipments are handled by the two existing ports in Chittagong and Mongla. As per the

plan, Payra seaport would be developed in three phases by 2023. The first phase has already been

completed and operations began with unloading goods from a foreign ship.

Secretary of the Payra Seaport Authority Rezaul Kabir says that international seaborne trade is

growing by on an average 9.2% per annum. “In 2020, the country’s total annual seaborne trade

will be in the range of 70 to 80 million tonnes. The existing two ports will not be able to bear the

future trade volumes,” he said.

Feasibility study of the project began in 2010 and was completed in 2013. Parliament passed Payra

Seaport Act 2013 on November 10, 2013 while the prime minister laid foundation stone of the port

on November 19 the same year.

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So far, the port authorities have completed survey of river routes and channel marking, installed a

radio control station, VHF communication, a 1000kva substation and a water treatment plant. They

have also introduced bank facilities and customs service at the port. Under the mid-term plan, the

port would have at least one multi-purpose and one bulk terminal, and would be connected to

Rajapara by 2018.

When the port is expected to be fully operational in 2023 it would have a 16-metre channel, a

10km container terminal having dry and liquid bulk terminals, and an LNG terminal. The

government is set to build an airport in Patuakhali and a rail link to connect the Padma Bridge.

The Katakhali area would be industrially developed through the establishment of an exclusive

economic zone, a 200MW power station, and ship-yard and ship repairing units. The port

authorities would also promote ecotourism in the area. The scenario in Patuakhali, Barisal and

Pirojpur coastal districts has already been changing rapidly as of now, Shipping Minister Shajahan

Khan says. “Once the planned initiatives are materialised, the total scenario of the region as well

as the country’s economy will be developed,” he told the Dhaka Tribune.

“Not only that, in the global scenario, economy of the South and South-East Asian countries can

be integrated with Payra seaport emerging as an effective partner of Chittagong and Mongla ports,”

he added. While inaugurating the port’s operational activities through a video conference from

Ganabhaban yesterday, Prime Minister Sheikh Hasina announced that it would be turned into a

deep seaport in future.

The first commercial ship “MV Fortune Bird” arrived at the outer anchorage from China with

53,000 tonnes of stones for the Padma Bridge project.

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05. STRENGTH AND OPPORTUNITIES & MAJOR FINDINGS

5.1 STRENGTH AND OPPORTUNITIES

1) Payra port is the first Deep Sea port In Bangladesh.

2) Payra Port never have to wait for Hide tide and low tide of the sea, it will be possible

easily to send the imported and exported goods for the outer and anchors of payra.

3) It’s a service port and good chain of command

4) It is a self-financing organization, its implements all the development projects from its

own source.

5) Payra port will be connected with hinterland by rail, road, river and foreland.

6) Payra port Will able 15.00 Meter draft Vessel can be accommodated.

7) Payra port will be handled 75000 container in a year, and this capacity is nearly five

5times more existing sea port.

8) Payra sea port will generate massive employment boost, export and import and increase

the capacity of the country in handing going cargos.

9) It will create Bangladesh- china – India – Myanmar economic corridor (BCIM)

10) Payra port is expected to boost the economy of the country southern district along with

Padma Rail Bridge.

5.2 Major findings From our survey at Payra Port:

Findings: After Completing Survey we find out that Payra port have insufficient human capital

which is essentially needed to complete the project within short time. Also we major findings

is that payra port is now able to anchor only light vessel right now. Recently payra port

completely controlled and monitored by Chittagong port, also Majority Skilled person come

from Chittagong Port.

After Completing of this Report we find out that payra port have positively impact in our

economy as well as contribute Socio Economic development and it will expect that economic

impact boost up after completing Padma Bridge. It’s also greatly Impact on southern area of

Bangladesh.

1) Insufficient human resource and equipment

2) Inadequate dock-worker management

3) Irregularities in import and export

4) Communication systems are not good

5) Electricity problem

6) Depth of Andharmanik river is not sufficient ( At present river’s depth is about 9 meter,

projected 12-25 meter)

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7) Roads and buildings are in under construction by

8) Lack of skilled employees

9) Lack of employee residential facilities

10) At present, only lighter vessel can anchor in this port and

11) Payra port’s administrative area is about 16 acore, and the Port authority is trying to

take more land for Payra port

12) Payra port area is situated at the village site which is about 7 km. far from the kalapara

town

13) There is a helipad for helicopter landing

14) Payra port is totally controlled and monitored by Chittagong port

15) Majority skilled people come from Chittagong port

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CHAPTER-06: CONCLUSION

Conclusion:

The construction of the Payra port was one of the ten mega projects fast-tracked and prioritised by

the Sheikh Hasina administration. Work on the Payra port started on Nov 18, 2013 on a 16-acre

plot of land on the west bank of Ramnabad channel at Tiakhali Union of Patuakhali's Kalaparha

Upazila. Construction of the Payra port may involve an overall expenditure of more than Tk 11

billion and it will be fully operational by 2018. But ships have started docking even before the

facilities are complete. Capt Saidur Rahman said construction work is on at a furious pace at the

jetties and modern container facilities, water purification plant, the NBR's customs station and

security facilities."Shipping agents, C&F agents and freight forwarding agents have been

appointed," he said. This port will be built as a deep seaport in future. For the development of the

port, there would require about six thousand acres of land. This place has been chosen because of

land availability, and the height of the site is two meters above from sea level, for which the land

does not go under water in monsoon. The land is connected by roads and rivers too.

References:

1. “Payra Sea Port will facilitate regional connectivity” Retrieved from:

http://www.thefinancialexpress-bd.com/2016/09/07/45057/Payra-Sea-Port-will-facilitate-

regional-connectivity

2. “Payra Port to change socio-economic scenario of south Bengal” Retrieved from:

http://www.observerbd.com/2016/06/28/158614.php

3. “Bangladesh opens third commercial seaport at Payra” Retrieved from:

http://bdnews24.com/economy/2016/08/13/payra-port-to-be-inaugurated-on-saturday

4. “Prospective Payra deep-sea port” Retrieved from: http://www.daily-

sun.com/post/110402/Prospective-Payra-deepsea-port

5. “Payra sea port” Retrieved from:

http://www.theindependentbd.com/printversion/details/53975

6. Payra seaport to boost regional business” Retrieved from:

http://www.dhakatribune.com/bangladesh/2016/08/14/payra-seaport-boost-regional-

business/

7. “Bangladesh's Deep Sea Port Problem” Retrieved from:

http://thediplomat.com/2016/06/bangladeshs-deep-sea-port-problem/

8. “Payra Seaport and Bangladesh hope” Retrieved from:

http://www.observerbd.com/details.php?id=32849