Prime Minister Sheikh Hasina is resolute in her drive to enhance connectivity between her nation and its neighbors. This ambition aims to invigorate the economy, strengthen diplomatic ties, and solidify Bangladesh’s pivotal position at the core of the Bay of Bengal region
For millennia, seaports have held pivotal significance in facilitating trade and societal progress. In the contemporary landscape, these ports continue to wield substantial influence within economies, considering that a substantial 80 percent of global trade commodities are conveyed via sea routes. Essentially, a seaport serves as a maritime establishment encompassing single or multiple docks, enabling ships to moor for the exchange of cargo and passengers.
Being a nation strategically positioned along the sea, Bangladesh boasts an extensive coastline spanning 580 km that stretches across its southern region, meeting the Bay of Bengal. Notably, the marine expanse of Bangladesh covers an area 1.4 times larger than its total land area, amounting to 207,000 square kilometers, abundant in both biotic and abiotic resources.
The presence of sea-adjacent ports has acted as gateways, unlocking pathways for trade, economic expansion, and global connectivity for Bangladesh. Remarkably, even amid the challenges posed by the COVID-19 pandemic, Bangladesh has achieved remarkable upswings in its import and export activities facilitated through these maritime ports over recent years. Ranked among the swiftest expanding economies globally, Bangladesh channels over 90% of its international trade via the Chattogram and Mongla ports. These pivotal ports not only furnish vital maritime trade routes but also establish essential connections with neighboring nations. This study aims to evaluate the pivotal role of seaports in propelling domestic trade growth within Bangladesh while concurrently serving as linchpins in fostering maritime commerce within the Bay of Bengal vicinity.
Geographically, Bangladesh finds itself nearly enveloped by India to its west, north, and east, with its southern border open to the expansive Bay of Bengal. Notably, the nation’s strategic placement just north of the Bay of Bengal affords it crucial access to pivotal Sea Lines of Communication (SLOCs) that traverse these waters.
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The intricate network of waterways upon which these ports are established forms an essential component of a comprehensive multimodal system that seamlessly links Bangladesh with the hinterlands of its neighboring nations – India, Nepal, Bhutan, Myanmar, and Thailand (Pic 01). This geographical advantage positions Bangladesh as a pivotal contributor to granting sea access to the landlocked Himalayan countries of Nepal and Bhutan, as well as India’s northeastern region, through its seaports. Notably, Chattogram Port holds the potential for connection to Myanmar’s Sittwe Port owing to its proximity to the nation, and also to Thailand’s Yangon Port.
Bangladesh’s seaports serve as vital maritime gateways, particularly beneficial for its landlocked neighbors, and hold the promise of amplifying their trade activities. This aligns seamlessly with the region’s aspirations of enhancing collaboration in the Gulf area both bilaterally and through the platform of the Bay of Bengal Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), capitalizing on the renewed strategic significance of this maritime expanse. Remarkably, six out of the seven member countries of BIMSTEC possess the capacity to augment trade and connectivity through Bangladesh’s seaports.
Ports play a central role in managing the majority of Bangladesh’s import and export activities, encompassing diverse categories such as raw materials, finished products, and agricultural commodities. Conversely, they assume a vital role in bolstering the nation’s GDP (Figure 01) and employment landscape by fostering an array of sectors, including shipping, logistics, and manufacturing. Beyond its economic significance, these ports also hold the status of essential contributors to the nation’s infrastructure, actively participating in the advancement and upkeep of roadways, railway systems, and various other transportation networks.
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Predominantly, Bangladesh’s imports encompass a range of commodities such as petroleum, textile materials, food products, iron, steel, edible oils, chemicals, yarn, plastic, and rubber items. In contrast, its exports primarily consist of ready-made garments, fish, shrimp, prawns, home textiles, jute goods, leather items, and handicrafts.
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CHATTOGRAM PORT
Serving as the primary maritime gateway for Bangladesh, Chattogram Port was founded in its current location in 1887. The port’s evolution began with the construction of four jetties by 1910, facilitating the handling of 0.5 million metric tons of cargo annually. Over time, the port has undergone a progressive transformation, evolving into its contemporary configuration.
Positioned on the right bank of the Karnaphuli River, approximately 9 nautical miles from the Bay of Bengal’s coastline, lies the Chattogram Port. Revered as Bangladesh’s economic nucleus, this port’s strategic placement engenders favorable circumstances for conducting efficient and economical foreign trade with South Asian nations as well as other Asian counterparts. Moreover, the ready availability of abundant and affordable labor further augments its appeal. These factors collectively bestow upon the Chattogram port the status of a highly promising regional maritime hub. This potential has translated into a significant upswing in cargo handling at the port, both in terms of rapid growth and diversification across various cargo types.
An active participant in the Japan-based International Ports and Harbors (IAPH), the Chattogram port stands as a prominent gateway to Bangladesh. Beyond its role in handling an impressive 92% of the nation’s international trade, the port’s significance transcends to economic dimensions. It contributes approximately 35% of the country’s annual revenue through import taxes, duties, and VAT, thereby firmly establishing its role in government funding mechanisms.
The pivotal nature of the port is further emphasized by the fact that around 80% of the exportimport industries, along with five out of the ten Export Processing Zones (EPZs), are strategically situated between the Dhaka and Chattogram divisions, specifically along the Dhaka- Chattogram corridor. This corridor, bolstered by rail, road, and river transportation, thrives due to the influence of the Chattogram port.
A particularly noteworthy aspect is that the port is responsible for the entirety of Bangladesh’s imported Petroleum Oil and Lubricant (POL). Moreover, it serves as the conduit for 100% of manufactured goods for export, while also facilitating the importation of 80% of raw materials and accessories. The ready-made garments (RMG) sector, which commands a significant 76% share of the country’s export earnings in hard currency, is a shining example of the port’s economic prowess.
PERFORMANCES OF CHATTOGRAM PORT
The Chattogram port stands as the pivotal hub for the nation’s exports and imports. Overcoming numerous challenges, the port has consistently displayed an upward trajectory in its performance year after year. Currently, it contends on par with globally renowned ports across all key metrics. Impressively, the port’s ranking on the world stage has surged to the 64th position in Lloyd’s list of the top 100 container ports. This advancement marks a noteworthy ascent from its previous rankings of 70th, 71st, 76th, and 87th over the last four years.
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IMPORTANCE OF THE CHATTOGRAM PORT
Foreign Trade
According to the most recent data, Chattogram Port managed 3,255,000 Twenty-Feet Equivalent Units (TEUs) of cargo during the fiscal year 2021-22, reflecting a 5.11 percent increase compared to the previous year. While numerous major ports worldwide faced shutdowns due to the COVID-19 pandemic, Chattogram Port remained operational without any closures. As a result, despite the outbreak, Bangladesh maintained a favorable economic stance on international trade.
While air transportation offers greater convenience and time efficiency for goods, coastal nations often opt for maritime trade systems to maintain costeffectiveness. Bangladesh relies on maritime trade for the import of essential commodities such as food grains, sugar, fertilizers, cement, crude oil, and petroleum on an annual basis. Particularly, the import of food grains through this port has played a pivotal role in meeting the country’s food requirements and mitigating food crises.
Conversely, Bangladesh’s primary export commodities include jute, tea, ready-made garments (RMG), leather products, frozen fish, and shrimp. During the fiscal year 2022, the country achieved a total export revenue of $52.08 billion, a substantial portion of which was facilitated through the Chattogram port.
Recognized as the “Gateway of Bangladesh,” this seaport holds this distinction owing to its significant contribution to the nation’s foreign trade operations.
Economy
Since the inception of Bangladesh as an independent nation, Chattogram Port has emerged as a vital cornerstone of the country’s economy, repeatedly unlocking its economic capacities. This port has been pivotal in realizing Bangladesh’s Vision 2021, signifying its integral role in the nation’s progress. During that period, Chattogram Port’s ranking improved from 64 to 58 on Lloyd’s list, a testament to its growth and significance.
To effectively address the challenges of the 21st century and actualize the aspirations of Vision 2041, a range of developmental initiatives and strategies are currently underway. These endeavors are designed to harness the port’s potential and contribute to the realization of long-term goals.
With over 90 percent of Bangladesh’s import and export operations centered around Chattogram Port, its annual earnings surpass $30 billion. Beyond its financial impact, the port plays a pivotal role in fostering diverse developmental ventures within the nation. Industries like shipbuilding, textiles, and chemicals, heavily reliant on ports for product exports, thrive due to Chattogram Port’s strategic contributions.
Moreover, not limited to Bangladesh alone, Chattogram Port serves as a transit hub for three other nations: India, Nepal, and Bhutan. This multi-country utilization generates substantial revenue, thereby significantly bolstering Bangladesh’s economic growth. The port’s inclusive regional role has far-reaching implications, making it a key catalyst in driving both national and neighboring countries’ progress.
Mongla Port
Mongla Port, positioned in the southwestern region of Bangladesh, where the Pasur River and Mangla Nullah meet, stands as the second busiest port among the country’s trio of seaports. Distinguished for its eco-friendliness, it lies approximately 71 nautical miles upstream from the Bay of Bengal. Shielded by the renowned Sundarbans, the largest mangrove forest globally and a UNESCOdesignated “World Heritage” site since 1977, this port has been a vital part of Bangladesh’s maritime landscape.
With its origins tracing back to 1950, when Chalan Port commenced its operations under government jurisdiction, the port steadily evolved. The journey culminated in May 1977 when the administrative entity transformed into an autonomous institution recognized as Chalan Port Authority. Reflecting its growth and importance, the authority under went a name change on 8 March 1987, becoming officially known as “Mongla Port Authority.”
Currently, Mongla Port oversees the export of jute, jute goods, frozen cargo, and various general commodities. Furthermore, the import of heavy machinery, equipment, fertilizers, food grains, sugar, motor vehicles, industrial raw materials, and more are expected to rise through this port. This anticipated trend not only foresees the growth of trade and commerce but also envisions the establishment of diverse industries in the southwestern region of the nation. This, in turn, will facilitate substantial employment opportunities, leading to an accelerated development and expansion of activities within and around Mongla Port.
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PERFORMANCE AND CAPACITY
As stated in the MPA’s annual report for the year 2020-21, the port possesses 50 berthing facilities, 153 cargo handling units, and 38 auxiliary vessels, allowing it to manage a capacity of 100,000 TEUs. Currently, the port is equipped to process a total cargo volume of 17.8 million tonnes annually (Figures 03. Projections indicate that by the years 2025-30, the port’s capabilities will expand significantly, accommodating up to 3,000 ships, 30,000 vehicles, 800,000 TEU containers, and handling a cargo load of 40 million metric tonnes.
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ROLE OF MONGLA PORT IN BLUE ECONOMY
The blue economy is an economic system reliant on marine resources. It has emerged as a robust global solution to address the environmental deterioration challenges of the 21st century. The ocean economy significantly contributes to the global economic landscape. In densely populated countries like Bangladesh, the sea-based blue economy offers substantial employment opportunities. The recent achievements in oceanic exploration have ushered in a new era of the Blue Revolution.
DEEP SEA PORT PAYRA
Beyond its national significance, Payra Port will play a crucial role in fostering connectivity with India’s Northeast region, Bhutan, and Nepal.
On November 19, 2013, Prime Minister Sheikh Hasina inaugurated the nation’s third seaport, named “Payra Sea Port,” situated at Rabnabad Channel in Patuakhali district. The government envisions a comprehensive development around Payra Port, encompassing 19 diverse components such as economic zones, ready-made garments, pharmaceutical industries, cement production, coal-fired power plants, fish processing zones, fertilizer factories, oil refineries, and shipbuilding facilities.
To bolster economic activities in the central region and anticipate future demands, the Payra Sea Port Act of 2013 received approval in the National Parliament on November 10, 2013. The government has outlined short-, medium, and long-term plans to transform the port into a state-of-the-art facility. As part of the short-term plan, the Payra Port Authority is engaged in offloading cargo from motherships at outer/ inner anchorages and transporting it to hinterlands through river routes. The necessary groundwork, including customs clearance facilities, VHF communication, banking services, enlistment of ship handling operators, C&F services, shipping agents, channel marking with buoys on the river and approach channel, designation of Payra’s inner and outer anchorage areas, implementation of ISPS code, UN Locator Code, and port security, including the presence of a Bangladesh Coastguard station with highspeed vessels and personnel, has been completed.
Under the ambit of the long-term plan, the port’s full operation will entail a 16-meter channel accommodating a minimum of 10 kilometers of container and other terminals, alongside comprehensive facilities like establishing an Exclusive Economic Zone (EEZ), an airport, a port city, a dockyard/shipyard, and an ecotourism attraction in proximity to the port.
As of December 2021, approximately 134 commercial cargoes have arrived at Payra, generating a revenue of TK 300 crore (US$29 million). Plans are actively progressing to establish a bulk-cargo handling terminal for coal, a container terminal, and terminals for oil and LNG. The port will also be interconnected with Dhaka through road and waterway links. Beyond its national significance, Payra Port will play a crucial role in fostering connectivity with India’s Northeast region, Bhutan, and Nepal.
DEEP SEA PORT MATARBARI
The proposed Matarbari Port, situated in Matarbari within the Cox’s Bazar district of the Chattogram Division in Bangladesh, is set to become a significant deep-sea port. The port’s primary purpose is to enhance commercial operations by extending the Coal jetty to accommodate vessels for the Maheshkhali power plant in Cox’s Bazar district. Matarbari Port’s accessibility is well-suited for ships with a draft of at least 16.3 meters. Envisioned as a robust facility, the port is designed to feature an 18-meter draft for deep-draft vessels, positioning it as a potential rival to Sri Lanka’s Colombo Port, the present transshipment hub in the region.
To establish the Matarbari port, the Japan International Cooperation Agency (JICA) will construct a 15-kilometer-long channel, with the primary navigational channel spanning 350 meters in width. Financing will be directed towards the construction of a 100-meter jetty within the port.
In its initial phase of development, a container terminal covering 18 hectares will be established. This terminal will feature a 460-meter berth, capable of accommodating vessels of up to 8,000 TEUs, with an annual capacity ranging from 600,000 to 1.1 million TEUs. Subsequently, the container terminal will undergo expansion, encompassing 70 hectares, a 1,850-meter berth, and a capacity of 2.8 million metric tons. Additionally, a multi-purpose terminal spanning 17 hectares will feature a 300-meter berth, capable of handling vessels with a maximum of 70,000 deadweight tons (dwt), with an annual capacity of 2.25 million tonnes.
Given the constraints such as shallow draft and congestion at Chattogram Port, the establishment of Matarbari Port is deemed imperative. To further align with sustainability goals, efforts will need to be directed towards transitioning the project to rely on renewable energy sources.
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The significance of seaports to Bangladesh’s promising future cannot be overstated. As the nation nurtures its trade-dependent ready-made garment sector to bolster its economy, the reliance on these ports is set to intensify. Bangladesh is increasingly leaning on its trade infrastructure as a cornerstone of its commercial wellbeing. Consequently, fostering strong relationships with neighboring countries becomes imperative to enhance port traffic, with transit cargo yields offering the potential to further elevate the nation’s economy.
To ensure the utmost efficiency of its seaports, Bangladesh must undertake a series of strategic initiatives. Regular modernization and upkeep of these ports are essential, while the expansion of infrastructure within and around Chattogram Port is crucial to mitigate congestion. Swift and environmentally cautious development of the Payra and Matarbari deep-sea ports will contribute significantly to the growth of bulk cargo trade in the region.
Extending access to its seaports to its landlocked neighbors carries multifaceted advantages. This approach situates Bangladesh as a central player in regional trade, fostering its integration into interregional and global value networks. By establishing itself as a gateway in the Bay of Bengal, the nation facilitates closer re-engagement between countries in South and Southeast Asia.
Bangladesh’s seaports hold paramount importance for the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). This collaborative endeavor seeks to forge a ‘Bay of Bengal community,’ transcending the historical divide between South and Southeast Asia within the Bay. Prime Minister Sheikh Hasina is resolute in her drive to enhance connectivity between her nation and its neighbors. This ambition aims to invigorate the economy, strengthen diplomatic ties, and solidify Bangladesh’s pivotal position at the core of the Bay of Bengal region.