Bangladesh has taken a major step toward strengthening its maritime infrastructure by granting in-principle approval for a USD 1 billion green dockyard and shipbuilding facility at Matarbari. The project, which will be developed under a privately financed public-private partnership (PPP), is now set to undergo technical and financial appraisal.
The proposed Matarbari Green Dockyard and Shipbuilding Facility is expected to enhance the operational capacity of the Matarbari deep-sea port while supporting the growth of Bangladesh’s maritime services industry.
The Ministry of Shipping approved the unsolicited proposal and forwarded it to the Public-Private Partnership (PPP) Authority for further evaluation. Although dockyard development falls under the Ministry of Industries according to the Rules of Business 1996, the ministry issued a no-objection certificate following an interministerial meeting held on 7 June 2026. The approval reflects the project’s strategic importance and the Chattogram Port Authority’s ability to oversee its implementation.
Australia-based AIS Marine Investments Pty Ltd is expected to finance the project, while China Harbour Engineering Company Limited will serve as the technical partner.
The project will follow a landlord-model PPP, allowing the Chattogram Port Authority to retain ownership of the designated 200-acre site and all existing fixed assets. Any infrastructure developed during the concession period will revert to government ownership once the agreement ends. The proposal also states that the project will be fully privately financed, ensuring no additional debt burden on the government.
Once operational, the facility will provide docking, maintenance, and emergency repair services for large commercial vessels operating at the Matarbari deep-sea port, other Bangladeshi ports, and across the Bay of Bengal.
A key feature of the project is a 600-metre-long and 95-metre-wide dry dock capable of accommodating large international commercial vessels. By offering repair services domestically, the facility is expected to reduce the need for ships to travel to Singapore, the United Arab Emirates, or China for major maintenance. This could lower repair costs, reduce vessel downtime, conserve foreign currency, and improve port safety.
The dockyard is also expected to minimise operational disruptions by providing timely repair services following mechanical failures or other incidents affecting vessels in port channels.
The proposal positions the facility as Bangladesh’s first institutional green dockyard. It is expected to align with the International Maritime Organization’s Net-Zero Framework, the GreenVoyage2050 initiative, and relevant ISO environmental standards.
Planned sustainability features include low-emission energy systems, closed-loop wastewater treatment, and modern facilities for hazardous chemical waste management.
Beyond its environmental objectives, the project is expected to contribute to several UN Sustainable Development Goals, including resilient infrastructure, decent work, climate action, and marine ecosystem protection.
Project proponents estimate the facility will create 1,200–1,300 direct jobs for engineers and technicians, alongside approximately 2,600 indirect employment opportunities across engineering, steel manufacturing, logistics, and maritime supply chains.
The dockyard will also provide international-standard repair services for commercial vessels as well as ships operated by the Bangladesh Navy and Bangladesh Coast Guard. In addition, it is expected to support the wider industrial, energy, port, and logistics hub being developed around Maheshkhali and Matarbari.
The project will now proceed through technical and financial appraisal under the Public-Private Partnership Authority before moving toward implementation.
Source: The Business Standard
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