The government of Bangladesh plans to discourage local businesses from using Indian ports for export and import activities. The reason behind this decision is that Indian ports are not offering any significant advantages, especially with the anticipated launch of operations at the local deep-sea port in Matarbari in the near future. This port is expected to provide more competitive and efficient services. Additionally, the Matarbari deep-sea port, which began construction in 2020, is projected to become fully operational by 2026, according to officials involved in the project.
The total cost of the Matarbari port project is estimated at BDT 17,777 crore. Of this, BDT 12,893 crore was borrowed as a loan from Japan, while the Bangladesh government is contributing BDT 2,671 crore, and the Chittagong Port Authority is investing BDT 2,213 crore. The port’s construction includes not only the port itself but also crucial connecting road infrastructure, making it a significant national investment.
In comparison, it has been found that Indian ports do not offer any special advantages to Bangladeshi businesses. Ports like Colombo, Singapore, and Port Klang in southwest Malaysia are seen as much better transshipment hubs in the region. For Bangladesh to utilize Indian ports for shipping services, a substantial number of feeder vessels between Chittagong and Indian ports would be necessary, which remains uncertain. These feeder vessels are vital to ensure that shipping operations between Bangladesh and Indian ports are consistent and effective, particularly for export and import operations involving third countries.
Despite the potential, it remains unclear whether mother vessel operators would be willing to invest in deploying ships along this route, based on their assessment of the business viability. To further explore these possibilities, a 13-member Bangladeshi delegation, led by Joint Secretary S M Mostafa Kamal from the Ministry of Shipping, visited several Indian ports in early July. These ports included Chennai, Krishnapatnam, Visakhapatnam, Kolkata, and Haldia.
The visit followed a decision made during a meeting between the Indo-Bangla Shipping Secretaries held in Dhaka. The aim of the visit was to observe the technical feasibility, commercial effectiveness, and infrastructural capabilities of the Indian ports. The delegation also discussed what additional benefits could be provided to Bangladeshi businesses if they chose to use Indian ports for international trade.
However, despite written requests from Bangladesh’s representatives asking Indian port authorities to specify what special facilities or advantages could be offered to Bangladeshi businesses, no response has been received yet. Joint Secretary S M Mostafa Kamal noted in an interview with The Mirror Asia that although more than a month and a half had passed since their visit, the Indian side had yet to communicate back. The next step for the Bangladeshi delegation will be to hold a meeting with relevant members and prepare a report for the Ministry of Shipping.
Bangladesh has a long history in maritime trade, with its first commercial vessel, MV Banglar Jyoti, flying the national flag in 1988 under the Bangladesh Shipping Corporation. Since then, the country’s maritime industry has grown substantially, with over a hundred container ships, cargo vessels, LPG carriers, chemical tankers, and oil tankers now operating under the Bangladeshi flag. Investments in the shipping sector have exceeded BDT 20,000 crore, reflecting the growth and importance of this industry for the country’s economy.
As Bangladesh prepares for the full operationalization of the Matarbari deep-sea port, the government appears increasingly focused on reducing the country’s reliance on Indian ports. This shift will be driven by the advantages the local port will offer, both in terms of reduced costs and enhanced efficiency, as well as the strategic aim of strengthening national infrastructure. The Matarbari port is expected to handle a significant volume of the country’s trade, positioning Bangladesh as a stronger player in the regional maritime sector and making it less dependent on neighboring countries for its shipping needs.
Moreover, the government is keen to establish the deep-sea port as a regional transshipment hub. Matarbari’s location, along with the significant investments in infrastructure, makes it a promising alternative to Indian ports. The government hopes that this move will enhance the country’s ability to conduct international trade more autonomously and efficiently, reducing any dependence on foreign ports that do not offer significant additional benefits.
In the broader context, the government’s decision to discourage the use of Indian ports reflects its strategic priority to boost national capabilities and infrastructure. With the Matarbari deep-sea port nearing completion, Bangladesh is poised to become more self-reliant in its shipping and maritime activities, which will ultimately benefit local businesses by offering more efficient, cost-effective, and competitive services.
