Matarbari port: Potential business hub for South Asia

• First terminal is expected to be ready by 2026
• It is capable of hosting 4 ships concurrently
• The channel is 14.3km long and 350m wide 
• A 2nd terminal to be built after first one completes 

Bangladesh took a significant stride towards a new era in deep-sea port infrastructure on Saturday with Prime Minister Sheikh Hasina formally inaugurating the Matarbari deep-sea port channel and laying the foundation stone for its first terminal. 

Already, 123 ships have utilised the 14.3km long and 350m wide channel for transporting goods and coal for the Matarbari coal power plant. 

Ships carrying 65,000 tonnes of coal have already utilised the channel, said Chittagong Port Authority officials, who assumed control of the channel on September 21.

The first terminal, capable of hosting four ships concurrently, is slated for completion in 2026, they said, adding that the two power plant jetties can also accommodate port ships if needed. 

Port officials anticipate the Matarbari port to create new global routes for container and bulk cargo transportation, enabling mother vessels to import goods from neighbouring countries like India, Nepal, Myanmar, and others.

This positions Matarbari as a transit port similar to Port Klang and Singapore, and it aims to become the business hub of the South Asian region.

Currently, it takes 45 days to send goods from Bangladesh to the US, but with the Matarbari port in operation, this time can be reduced to only 23 days, streamlining transportation to various global destinations, including Europe, they said.

Chattogram Port Authority Chairman Rear Admiral Mohammad Sohail said the construction of the first terminal will start at the beginning of next year. 

"It will be completed within three years. The port authority has plans to start the work of the second terminal after the completion of the first terminal," he said.

The chairman also said that it will be possible to handle 0.6-1.1 million TEUs (twenty-foot equivalent units) by 2026 and approximately 2.2-2.6 million TEUs by 2041. Besides, it will be possible to berth large container ships with a capacity of 8,200 TEUs at Matarbari port.

State Minister for Shipping Khalid Mahmud Chowdhury said the deep-sea port is a symbol of South Asia, projecting a substantial contribution of two to three billion dollars to the country's economy. 

"The port is expected to significantly reduce transportation costs from Singapore and Colombo ports by 10% to 20% upon commencement of operations," he said.

The total budget of the project, which was approved on 10 March 2020, is Tk17,777 crore. Later, Tk30 crore was added after a revision.

According to the Chittagong Port Authority, the project is being executed in two packages. Package 1, covering Civil Works for Port Construction, is currently undergoing contractor negotiation, with the contract expected to be signed by this month. 

Package 2, encompassing cargo handling equipment, TOS, and security system, is also set to award a contract during the same period.

Khairul Alam Sujan, vice president of the Bangladesh Freight Forwarders Association, noted that investors are increasingly directing their attention towards Chattogram and coastal areas. 

"The ongoing development of infrastructure in the southern region, with a focus on the Matarbari port, roads, railways, and the Karnaphuli Tunnel, is beginning to reshape the landscape of the area," he said.