Payra Sea Port

Payra Port is a sea port located on the west bank of Rabnabad Channel near the Bay of Bengal in
Patuakhali, Bangladesh. The port was initially intended to be built as a deep sea port but was
downgraded to a regular port in 2021, meaning that it will not be able to serve ultra large vessels.

The Payra Port Authority and the port was established on November 2013 through the Payra Sea
Port Act 2013. The port was officially inaugurated in 2016 under port authority. The project
consists of a total of 19 components, 13 of which are to be implemented under foreign direct
investment and six via government to government deals.

Deep Seaport Project Downgraded

In April 2021, five years after the inauguration, the government gave up the idea of building a
deep sea port in Payra and instead opted for a regular seaport. As a result, the site was relocated
from its original location 65 kilometers offshore to an onshore location at the mouth of the
Rabnabad channel.

Infrastructure

The port would have a terminal for loading and unloading of coal to fuel the nearby Kalapara
power station. The Chinese government planned for a coal terminal near the proposed Sonadia
port, but said that they would support a terminal at Payra port if plans for Sonadia did not
materialize. Construction for the coal terminal went underway in January 2018 and was planned
for operation in 2020.
The government floated a tender to build a six-lane bridge over Andharmanik River to make the
port directly accessible by road. A feasibility study on whether it will be possible to convert the
seaport into a deep seaport is currently underway.

Financing

The project costs for the coal terminal are estimated to be US$200-500 million. HSBC and a
number of unnamed banks are reported to be providing loans for dredging works.

In 2021, the government set aside $2 billion from its foreign exchange reserves to create the
“Bangladesh Infrastructure Development Fund”. This fund was to be used to finance port and
power projects, including dredging at the Payra port. An agreement to set up the fund was signed
was signed in March 2021 between the finance ministry, Payra Port Authority and the state-
owned Sonali Bank.

Other Involved Parties

The project is part of the Bangladesh-China-India-Myanmar Economic Corridor, initially put

forth under China’s Belt and Road Initiative. India has not signed onto the Initiative but has
financed the development of the port.

China Harbour Engineering Company and China State Engineering and Construction Company
were awarded contracts to develop two of the 19 components in 2016. In January 2020, it was
reported that the Payra Port Authority had signed a deal with Belgian company Jan de Nul for
the dredging of a 75-kilometer long main channel.

References

1. https://www.gem.wiki/Payra_Port