Despite an investment of around Tk16,000 crore over 13 years, Payra seaport has yet to realise its full potential as silt accumulation in the 75km Rabnabad Channel prevents large vessels from entering directly, reducing the returns on public investment.
Around Tk6,500 crore has already been spent on capital dredging. Yet, declining channel depth has increased cargo-handling steps and transportation costs, disrupting coal supplies to the Payra and RPCL-Norinco thermal power plants.
The government is once again turning to dredging, with a proposed Tk4,662 crore project for channel maintenance and two hopper dredgers. However, a decision remains pending after the Planning Commission returned the proposal over cost concerns.
Payra Port Authority Chairman Rear Admiral Syed Saif-ul-Islam said dredging would boost the port's capacity, allowing coal-carrying mother vessels and ships carrying other essential goods to enter once the channel's depth is restored.
He added that the Payra Port Authority is prioritising a long-term, sustainable management plan to prevent recurring navigability problems.
Channel depth falls after expensive dredging
The challenges were highlighted in a report presented by the Payra Port Authority at a meeting of the Parliamentary Standing Committee on Public Undertakings on 12 October.
It said the crisis threatens efforts to ease pressure on Chattogram port and promote industrialisation in the southern region, despite substantial investment in terminals, jetties, yards, roads and other facilities at Pyra.
The Rabnabad Channel, which connects Payra port to the Bay of Bengal, is prone to heavy siltation because it lies where major river systems meet coastal waters.
The port authority's report says around 20% of sediment-laden water flowing downstream passes through the channel, making regular dredging essential.
Capital dredging completed between 2021 and 2023 increased the channel's depth to 10.5 metres, allowing vessels up to 200 metres long, 30 metres wide and with a 10.5-metre draught to navigate it. However, inadequate maintenance dredging has reduced its depth again.
The port authority's May 2026 charts show the average depth had fallen to 5.4-5.9 metres, with the maximum available draught reaching around 6.5 metres at some points. Before capital dredging, the channel's natural depth was about 5.6 metres.
The shallow channel has disrupted coal transportation. In March, the coal-laden MV Theresa Grace could not reach Payra directly and instead anchored at Chattogram, where its cargo was transferred to smaller vessels and barges for onward delivery.
The extra handling increases transport time and logistics costs. Sources estimate it raises electricity generation costs by around Tk0.70 per unit, although this figure requires verification against power plants and power division records.
Fresh Tk4,662cr project faces scrutiny
The Port Authority has proposed a Tk4,662 crore project for channel maintenance dredging and the purchase of two trailing suction hopper dredgers, including Tk1,400 crore for the vessels.
The Planning Commission returned the proposal before it could be placed before the Executive Committee of the National Economic Council (Ecnec).
The project aims to remove 12 lakh cubic metres of sediment and restore the channel's depth to nine metres. The dredgers would allow the authority to carry out maintenance work as needed, reducing reliance on external contractors.
Vessel calls decline despite rising cargo handling
Foreign vessel calls at Payra fell from 123 in FY24 to 85 in FY25 and just 29 in FY26, down from 111 in FY23, according to port authority data. Cargo handling, however, rose to 55.13 lakh tonnes in FY26.
Despite the navigability crisis, infrastructure development has progressed, with a 650-metre jetty, a 3.25 lakh-square-metre backup yard, a 100-metre service jetty and cargo-handling equipment built under the first terminal project, alongside warehouses and roads.
The terminal is targeted for completion by December, with full-scale operations planned for January 2027. Two road links are also due for completion by December: a 6.35km, six-lane road connecting the port to the Dhaka-Kuakata highway and a 1,180-metre, four-lane bridge over the Andharmanik River.
Experts call for accountability and continuous dredging
Rifat Ferdous, associate professor of economics at the University of Barishal, said the port had reached a stage where the necessary measures must be taken to make it operational.
"It cannot simply be shut down now. If additional investment is required, it should be made to get the port running, after which its income and expenditure can be assessed," he said.
He called for measures to make the port operational while ensuring transparency and accountability in the use of public funds.
Gazi Zahid Hossain, president of Shushashoner Jonno Nagorik (Shujan) in Barishal, called for an assessment of previous dredging expenditure before approving new projects.
He said each project should be subject to accountability and the port needs a continuous maintenance plan rather than relying on large dredging projects every two or three years.
Payra's challenge is not just to restore the channel's depth but to maintain it. Without sustained dredging, adequate cargo flows and effective transport links, the port may fail to deliver the expected returns on public investment, he said.