Bangladesh Unveils Plans for 400-Acre Free Trade Zone; Maersk to Invest $800M in Chattogram Port Expansion
Bangladesh is set to establish a Free Trade Zone (FTZ) on 400 acres of land in Chattogram’s Anwara upazila, aiming to bolster its position as a regional manufacturing powerhouse. Bangladesh Investment Development Authority (Bida) Chairman Ashik Chowdhury described the initiative as a potential “game changer” for the nation’s economy.
Speaking to reporters after inspecting a prospective site, Chowdhury highlighted the strategic benefits of the FTZ, noting its proximity to both the port and airport. “A free zone functions much like an overseas territory, allowing foreign companies to set up factories, export products, and bypass domestic bureaucratic hurdles. It’s a win-win for investors and Bangladesh alike,” he explained.
A national committee is already charting a roadmap, consulting international FTZ operators and conducting feasibility studies. Chowdhury expressed confidence that key milestones—including site selection, operator appointments, and timelines—will be finalized by year’s end.
Bay Terminal Project Set to Create 25,000 Jobs
Chowdhury also visited the under-construction Bay Terminal, noting its significant potential for job creation and trade capacity. “PSI Singapore and DP World are each investing over $1 billion to build two terminals, with a third terminal’s operator to be selected through a competitive process. The project is slated for completion by 2030,” he said.
Once operational, the Bay Terminal will accommodate large mother vessels with 13-meter drafts and is expected to handle 3.5 million TEUs annually—significantly enhancing Bangladesh’s shipping capabilities.
Maersk’s $800M Laldia Terminal Investment Marks Major FDI Boost
In a significant development, Danish shipping giant AP Moller-Maersk is preparing to invest $800 million in the Laldia container terminal at Chattogram Port. Chowdhury emphasized the importance of this deal, noting, “Our annual foreign direct investment typically hovers below $700 million. This single project will surpass that and generate substantial employment opportunities.”
Maersk’s project, spearheaded by its subsidiary APM Terminals, marks Bangladesh’s first BOT (build-operate-transfer) port venture under a public-private partnership and a government-to-government framework. Initially planned at $300-$400 million, the investment has now more than doubled.
Chowdhury underscored the broader vision: “To establish Bangladesh as a global manufacturing hub, we must upgrade our port infrastructure and bring in world-class operators.”
The visit, which also included Chattogram Port Authority Chairman Rear Admiral SM Moniruzzaman and other senior officials, is part of a broader push to attract investment and modernize Bangladesh’s critical maritime infrastructure.