Initially, in view of the shallow depth of the inlet, goods had to be taken out to the sailing ships by barge but in 1834 a small jetty was built to facilitate mooring.

[5] The more recent history of Bandholm is linked to the Knuthenborg estate and the castle, which owned the port and also some of the houses (distinctive in their yellow exteriors) in the town and its extensive surroundings.

[2] Bandholm has developed not only into a prosperous port but has also benefitted from the establishment of an iron foundry, hotels and a vibrant commercial life in connection with the railway.

However, the city offers plenty of alternate opportunities for enterprising businesses, and local initiatives have ensured restoration of the heritage status of many of the old structures, especially the granaries (for other uses) and the old railway station.

The port served the town of Maribo which is located 4 miles (6 km) away with connections to Nakskov, Rødby, and Sakskøbing stations.

Built of red brick in the Romanesque Revival style, it consists of a chancel, a nave and a tower with a conical spire.

[8] A prominent wheat silo, now converted into an exhibition centre, stands on the harbor's east side while a red church with a slender spire is located near the town's west end.