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Dhaka Cancels port to be build by China, India eyes another

Soumitra

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Delhi:With India's relations with Bangladesh on an upswing, New Delhi has expressed interest in developing the neighbour's newest deep sea port, Payra.

It's a big move by India and an expression of the trajectory of strategic ties between the two countries. Separately, Japan may develop another deep sea port, Matarbari, in Cox's Bazar.

As the Asian allies synergise converging interests, Bangladesh has quietly killed the Sonadia project in Cox's Bazar, which was to have been developed by China.

For India, the Sonadia port, as the Hambantota and Gwadar ports, were deemed to be part of China's much talked about "string of pearls" strategy to encircle India in its maritime neighbourhood.


The Payra seaport, which is on the south-western corner of Bangladesh, close to Chittagong, is much closer to the Indian coastline.

Dhaka has cancelled a port that China proposed to build at Sonadia, on the south-eastern corner of Bangladesh, which if completed would have brought the Chinese presence close to India's Andaman and Nicobar Islands.

While the official reason for cancellation of the Sonadia port was lack of commercial viability,the Japan-developed Matarbari is only 25km away. China had not only prepared a feasibility study for Sonadia, it had reportedly promised deep funding for the port. The cancellation of Sonadia is clearly a strategic decision by Bangladesh, doubtlessly helped along by India, Japan and the US.


The Payra port has gathered steam only since 2014, with a Payra Seaport Authority being setup under the Chittagong administrative authority.

The Bangladeshi government has decided the port will be built on a public-private partnership (PPP) basis and sources said a UK-based consultant is in the process of working out a feasibility study.

The port will take over seven years to build, but it's not just the port, a deep channel would have to be cut through the heavily silted port to allow big vessels to come through. The Chittagong port is so heavily silted that only small vessels, taking advantage of incoming and outgoing tides, can come in at present.
Indian companies have reportedly started taking an investment interest in the Payra project. Bangladesh has also invited Chinese companies to build the port, and reports from Dhaka say some 10 countries have expressed interest in the project. That, sources said, was very different from China designing, funding and building a port all on its own, which would have a commercial as well as a potential military role. The loss of Sonadia for China comes after it lost its competitive edge in Sri Lanka with the loss of Mahinda Rajapaksa's government.

Dhaka cancels port to be built by China, India eyes another - Times of India
 
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Payra (some times called Patuakhali), is a proposed $15.5bn port project to be completee in 2023. Its a multi-national open tender, with proposals from various countries, Holland, india, Japan, China etc. The project will be funded as a PPP,...the main contenders for its contruction are China and Japan....considering that Japan is already building another port, its most likely going to China.
 
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Payra (some times called Patuakhali), is a proposed $15.5bn port project to be completee in 2023. Its a multi-national open tender, with proposals from various countries, Holland, india, Japan, China etc. The project will be funded as a PPP,...the main contenders for its contruction are China and Japan....considering that Japan is already building another port, its most likely going to China.

Pardon my rant on this - but from what I've read - building a port at Payra is next to non-feasible because of shallow draft. It can't be called a port proper, much less a deep draft port. Dredging has been and will be the number one problem in locating a port at that God-forsaken place. Plus dredging is considered as one-third if not more of all costs from all the feasibility reports so far for that project.

Indian govt.'s motive is only one - to delay any deep sea port being built at Matarbari or North of CXB (in Bangladesh) as long as possible (using any context they can lay their hands on), while they work at strengthening their deep see ports (Nuke subs ports) North of Odisha coast and also near diamond harbor. This dangling of carrots in the name of Indian 'investment' is so much BS. Indian Govt. is _not_ comfy with a deep sea port in Southern Bangladesh.

We can secure our own financing and get ToT from whomever we want. We don't need Indian 'collaboration'. When will this fetish of colonial boot-licking ever end??

This post will doubtless be followed by Indian trollers claiming 'we got your balls' etc.etc. I'm opening my umbrella right now- the sh*t-storm is about to start.:disagree:
 
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This is exactly what i was talking about regarding Bangladesh frustration earlier.
 
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What is the situation of the route to mayanmer avoiding india that bangladesh was trying to build?
 
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Pardon my rant on this - but from what I've read - building a port at Payra is next to non-feasible because of shallow draft. It can't be called a port proper, much less a deep draft port. Dredging has been and will be the number one problem in locating a port at that God-forsaken place. Plus dredging is considered as one-third if not more of all costs from all the feasibility reports so far for that project.

Indian govt.'s motive is only one - to delay any deep sea port being built at Matarbari or North of CXB (in Bangladesh) as long as possible (using any context they can lay their hands on), while they work at strengthening their deep see ports (Nuke subs ports) North of Odisha coast and also near diamond harbor. This dangling of carrots in the name of Indian 'investment' is so much BS. Indian Govt. is _not_ comfy with a deep sea port in Southern Bangladesh.

We can secure our own financing and get ToT from whomever we want. We don't need Indian 'collaboration'. When will this fetish of colonial boot-licking ever end??

This post will doubtless be followed by Indian trollers claiming 'we got your balls' etc.etc. I'm opening my umbrella right now- the sh*t-storm is about to start.:disagree:


You are right. Meanwhile Payera can function at best as a satellite port to congested Kolkata.
 
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No Damienhedhorn...it will go to India...i have a very deep relation with the southern bangladeshi people...( in term of business and family relationship ) and have been folowing the Deep water port project for the last two years.....Sonadia is the most suitable location, it has a natural depth of 12-15 meter which increases further in high tide, depth can be furthered by dredging....indian port builders(Adani...) have long been raised questions about the viability of Payra port as it stands at the mouth of Ganges(=its tributaries)..therefore incessant siltation will be a headache for the port operators...besides draft of the river route to Dhaka from Payra is of C category ( according to BIWTA officials and Institiute of Water Modeling )...that means it is only 2-3 meter deep ( more dredging )...contrary to river route from Chittagong is of A category...that means it is almost 5-7 meter deep ( no or less dredging required )...THEREFORE...

1. Govt will have to undertake a large scale dredging project along the river route to ensure smooth plying of vessels in the waterway...+ + + Maintenance dredging cost in each year = $$

2. One fourth of the 15 billion dollar will be required for the capital dredging ( to increase the current depth of the channel to 14 meter at the port mouth ) + + + maintenance dredging cost will be 350 Million dollar in each year ( you can expect it to rise further in upcoming years) = more $$$$

From my point of view, this port will be a white elephant for the Govt......like the Haldia port of Calcutta....eventually it will suffer the same fate ( Calcutta closed down part of the Haldia port due to reduced navagability )...... On the other hand it will turn into a " goose that lay golden egg " for those COs who get the contract...bcz they know it will give them $$$$$ for many years.( for dredging at the port mouth and along the river route to Dhaka) ..

I agree with Bilal9....and want to add one more observation--- a deep sea port at Bangladesh coast will snatch the business from already dead Haldia port ( since we r allowing transit, their businessman will avail the opportunity happily to bypass Haldia ) -- It is the same reason Singapore opposed Sri Lanka's inclusion in ASEAN fearing Hambantota port will be more preferrable to shipliners .

For your convenience ....

1. A report from Business Outlook
2. A report from Hindu business online
3 Another report from financial express bd--which voiced the concerns of indian port builders over the viability of this project

Deep Water Port Gets Another Twist

Business Outlook

By Apu Ahmed:

ddbb01.jpg
The fate of the country's maiden deep water port at the Bay of Bengal received another twist after a draft of the feasibility study on the Payra port in Patuakhali assessed the construction cost at $20 billion. More than one sixth of the estimated cost would be required for dredging according to the study done by a British firm.
Will the proposed site for a deep water port in Patuakhali be viable when another site with suitable natural draft was already identified in Sonadia Island more than half decade ago? It seems that the government has adopted a dilly dally tactics in selection of site to holdup the construction of a deep water port. Or, it is looking for a way out to find a suitable site within vicinity of Sonadia and an investor having no link with China.

Sonadia Shelved

The present government has almost shelved the proposed deep water port in the Sonadia Island despite the ministry of shipping doing all the hard work to select the site in 2009. The government scuttled the awarding of construction works of the port to China in the last minute during a visit by prime minister Sheikh Hasina in Beijing in June 2014.

Dhaka said it favoured consortium-based investment instead of relying on a single country to build Sonadia deep sea port. Many said India had influenced the decision making process of the deep sea port in Bangladesh as Delhi is worried with the advancement of Beijing in the Bay of Bengal.

India's Worries


Many in India believe that Beijing is building special relationships with India's old foe Pakistan and Sri Lanka and is extending its reach down the Indian Ocean under a strategy called the 'String of Pearls'. 'String of Pearls' describes the manifestation of China's rising geopolitical influence through efforts to increase access to ports and airfields, developing special diplomatic relationships and modernize military forces that extend from the South China Sea through the Strait of Malacca, across the Indian Ocean, and on to the Arabian Gulf. Even the Indian strategic experts suggested that China could be developing a deep-sea feasibility off the cost of Bangladesh at Sonadia. It is a reason for concern for India, and would require deeper diplomatic ties with Dhaka to counter such strategic Chinese moves right in India's backyard.

Payra Port

The idea of proposed Payra Port was conceived in 2013. The government appointed British firm HR Wallingford in January for the feasibility study. India has shown keen interest to construct the Payra port despite they knew too that massive dredging would be needed to maintain required draft for bigger vessels.

The shipping ministry officials said Dhaka had committed to Delhi during the shipping secretary-level meeting last month that construction works of the port could be given to India under a government-to-government deal. Commitment by Dhaka should be seen as a major policy shift in its foreign policy. Dhaka refrained from a government-to-government deal with China on the Sonadia deep sea port. Bit it is near to accept similar deal with India over the construction of the Payra port.

Deep Sea Port Essential


There is a doubt whether India would investment on the Payra port. It has been apprehended that Dhaka is caught in geo-politics while settling the issue of constriction of the deep sea port in the Bay of Bengal.

Shift in policy by Dhaka is only delaying its plan to construct the deep water port which has immense potential to transform the country as a regional hub to serve this region and beyound.

Apart from the interest of the neighboring countries establishment of a deep sea port nowadays seems to be a necessity for Bangladesh itself to back up its high growth of the imports and the exports.

The capacity in existing sea port in Chittagong would not able to handle the additional sea-borne traffics needed to spur the faster economic growth envisaged for becoming a middle income country by the new decade.

Sonadia Most Suitable


The proposed deep-sea port at Sonadia-Moheskhali point will enable Bangladesh to be a major player in the regional trade and act as a gateway to the region because of its geographic location. Sonadia Island was selected out of nine s locations, according to the Japan's Pacific Consultant International which conducted a feasibility study on Sonadia Island.

The consultant has suggested the Sonadia-Moheshkhali point as the best location to set up the deep-sea port in three phases until 2055 at a cost of $ 1.2 billion with the first phase completed by 2016.

The nine-square km Sonadia Island will be constructed in three phases until 2055. Dredging work at the Sonadia point will be environment friendly and the natural surrounding of the island will provide suitable shelter. Sonadia is being considered as the best site for required water level of 14 metres within its three kilometers area that will help ships to maneuver easily.

Besides, deposit of silt at Sonadia is negligible and the site is suitable for further development in both sides.

Moheskhali Island

Another school of thought is getting preference on construction site of the proposed deep water port. Planning Minister ANH Mostafa Kamal last January said the government was mulling construction of the proposed deep sea port at Maheshkhali Island, just 25 km away from Sonadia. He mentioned that a sea port was supposed to be constructed at Matarbari on Moheskhali Island in Cox's Bazar as part of Matarbari Coal Power Plant for carrying coal for the plant and ships with capacity of 80,000 DWT would be able to use the port. Matarbari sea port can be transformed into deep sea port by extending the facilities, he said. The shipping ministry officials knew the matter much before. The ministry officials even suggested the policy makers that exclusive coal lending station could be constructed at the Sonadia deep sea port for maintaining smooth supply of coal to the proposed thermal power plant at Matarbari. But the logical suggestion was ignored, they said.

Japan's Chance Brightened


Japan International Cooperation Agency (JICA) has already come forward with nearly US$3.6 billion soft loan for setting up a coal-handling seaport at Matarbari. Under the very Japanese financial support, a 1,200-megawatt capacity coal-fired power plant and a township would also be developed at Matarbari in the Maheshkhali Island.

Now the Japanese, according to the government officials, is suggesting that the coal lending station could be transformed into a deep sea port in future. Japan has preliminary chosen Matarbari and Kutubdia as the potential places for setting up the deep seaports. Bangladesh had planned to build the deep seaport seven years ago in 2006 at Sonadia Island in the Bay.

JICA has been discussing with the Power Division about the deep seaport construction at Matarbari and Kutubdia. The Japanese are in views that a comprehensive development plan for southern Chittagong and Cox's Bazar districts is imminent with the expansion of the Matarbari deep seaport for multiple purposes and development of another deep seaport at Kutubdia Island.

There is no doubt that correspondence between Dhaka and Tokyo increased on the construction of the deep sea port after the Japanse PM Shinzo Abe's visit in Bangladesh during last September. On the other hand, correspondence between Dhaka and Beijing on the same issue has almost stopped.


India not keen on Payra port
payra-sea-port_01_newsnextbd_11914.jpg

The Indian Union Shipping Ministry is not inclined towards investing in and operating the Payra port in Bangladesh, due to high dredging cost. It has conveyed its reservation to the Prime Minister’s Office and Foreign Ministry, asking them to take the final call, according to a report by India based The Hindu BusinessLine About $3 billion will be India’s contribution in developing the port, which is coming up in Patuakhali district of Bangladesh. A senior Shipping Ministry official told BusinessLine that if the Centre does not take a call on the project, then the Chinese government could step in and develop it for their own commercial and strategic advantages. Due to massive siltation on coastal Bangladesh, maintenance dredging of the port is like keeping and feeding a white elephant. The Shipping Ministry has also told the PMO and Foreign Ministry that it could build the port and other infrastructure at Payra on an EPC basis, but maintaining and operating it could become a very expensive affair, the official said. Maintenance dredging of ports and harbours are regularly required for keeping the safe depths of navigation channels, which allow safe entry and exit of the ships. The depth of a channel decrease due to deposition of silt, sediments and other material. To restore the depth, removal of the accumulated material is carried out at fixed intervals. The official added that questions have been raised about the Bangladeshi government’s insistence of having an 18-meter draft in the port. A deep draft will allow very large ships to be docked, but given the size of Bangladesh’s economy, whether such ships will call on the harbour is also a question.-Asfar
 
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FYI my reply was to you :D
Pardon my rant on this - but from what I've read - building a port at Payra is next to non-feasible because of shallow draft. It can't be called a port proper, much less a deep draft port. Dredging has been and will be the number one problem in locating a port at that God-forsaken place. Plus dredging is considered as one-third if not more of all costs from all the feasibility reports so far for that project.

Indian govt.'s motive is only one - to delay any deep sea port being built at Matarbari or North of CXB (in Bangladesh) as long as possible (using any context they can lay their hands on), while they work at strengthening their deep see ports (Nuke subs ports) North of Odisha coast and also near diamond harbor. This dangling of carrots in the name of Indian 'investment' is so much BS. Indian Govt. is _not_ comfy with a deep sea port in Southern Bangladesh.

We can secure our own financing and get ToT from whomever we want. We don't need Indian 'collaboration'. When will this fetish of colonial boot-licking ever end??

This post will doubtless be followed by Indian trollers claiming 'we got your balls' etc.etc. I'm opening my umbrella right now- the sh*t-storm is about to start.:disagree:
 
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Pardon my rant on this - but from what I've read - building a port at Payra is next to non-feasible because of shallow draft. It can't be called a port proper, much less a deep draft port. Dredging has been and will be the number one problem in locating a port at that God-forsaken place. Plus dredging is considered as one-third if not more of all costs from all the feasibility reports so far for that project.

Indian govt.'s motive is only one - to delay any deep sea port being built at Matarbari or North of CXB (in Bangladesh) as long as possible (using any context they can lay their hands on), while they work at strengthening their deep see ports (Nuke subs ports) North of Odisha coast and also near diamond harbor. This dangling of carrots in the name of Indian 'investment' is so much BS. Indian Govt. is _not_ comfy with a deep sea port in Southern Bangladesh.

We can secure our own financing and get ToT from whomever we want. We don't need Indian 'collaboration'. When will this fetish of colonial boot-licking ever end??

This post will doubtless be followed by Indian trollers claiming 'we got your balls' etc.etc. I'm opening my umbrella right now- the sh*t-storm is about to start.:disagree:
You are quite wrong.

Govt of India is deeply interested in ensuring the economic prosperity of Bangladesh. For they have realized that unless Bangladesh prospers economically, India will always be susceptible to migration from Bangladesh.

The only sustainable solution is to upgrade Bangladesh's developmental path.

This however does not come at the cost of our security - for example, while BD progressing economically is a desired outcome, having Chinese station their military and personnel is not.
 
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Pardon my rant on this - but from what I've read - building a port at Payra is next to non-feasible because of shallow draft. It can't be called a port proper, much less a deep draft port. Dredging has been and will be the number one problem in locating a port at that God-forsaken place. Plus dredging is considered as one-third if not more of all costs from all the feasibility reports so far for that project.

Indian govt.'s motive is only one - to delay any deep sea port being built at Matarbari or North of CXB (in Bangladesh) as long as possible (using any context they can lay their hands on), while they work at strengthening their deep see ports (Nuke subs ports) North of Odisha coast and also near diamond harbor. This dangling of carrots in the name of Indian 'investment' is so much BS. Indian Govt. is _not_ comfy with a deep sea port in Southern Bangladesh.

We can secure our own financing and get ToT from whomever we want. We don't need Indian 'collaboration'. When will this fetish of colonial boot-licking ever end??

This post will doubtless be followed by Indian trollers claiming 'we got your balls' etc.etc. I'm opening my umbrella right now- the sh*t-storm is about to start.:disagree:




Quite agree with you. in fac I don't believe that anything will go forward until 2025, as much as government and the newspaper making it look easy, it certainly not. Specially who gave idea to our government to make a deep sea port in that crappy place on God's green earth? Plus we are having a submarine base in Rabnabad, Patuakhali. Not a good idea to try to make a deep sea port because they will use same water channels.
 
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congrats to India and BAL
we have also shown complete we dont honor contracts
 
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Self preservation takes priority over greater good.
 
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Well, delaying the construction of a deep sea port will have serious economic implications in near future for Bangladesh. TPP just got signed involving some of our largest export markets which means we are set to lose our competitive advantage in those markets. The best possible solution to this would be reducing the cost of doing business by minimizing the logistics expenses. For this, a deep sea post is essential.

Payra is never going to be a deep sea port, neither India is capable of funding such huge project. What they are going to build is just a namesake miniature sea port with substandard material. While the deep sea port in Matarbari is not going to be a full fledged one, it is being built just to unload the coal required for the Matarbari coal-based power plant.

Whatever the reasons, the government just cannot hide its face from this failure. Even the current Sri Lankan government, which is perceived to be quite close with India, also given the go ahead to the port developments by China.
 
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Imo renovating Mongla for a sea port was a mistake from start. Payra should have been the sea port instead. Payra is situated in a suitable position far away from Sundarban. Mongla should have been a river port as it is now and never could be fully materialized. And the danger of operating it inside Sundarban and disturbing animal life there. And Matarbari is just 25 km away from Sonadia as the port can be extended later as Japanese company also studied for a port in Sonadia before Chinese. The Japanese offer was better than Chinese that is all. Just let the work start. And the Indian TOI is famous for making news out of thin air.

Japan Beating China in Race for Indian Ocean Deep-Sea Port - Bloomberg Business

Matarbarhi deep sea port work to start ‘next year’ -
bdnews24.com
 
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