A deep-sea port (DSP) at Matarbari, developed with Japanese assistance, is expected to become operational in 2026. Designed to handle both containers and bulk cargo, this high-capacity port aims to enhance regional connectivity and trade, particularly benefiting Bangladesh, Northeast India, Bhutan, and Nepal.
Challenges & Barriers:
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- Infrastructure Gaps
- Customs Issues
- Limited Digital Trade Facilitation
- Multiple Handling of Goods
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The Matarbari DSP is a vital infrastructure project under Japan’s Bay of Bengal Industrial Growth Belt (BIG-B) initiative, with planned investments exceeding $ 25 billion.
Japan is not only financing the port but also developing an economic zone featuring power plants, an LNG terminal, heavy industries, a township, and tourism infrastructure. The Japan International Cooperation Agency (JICA) has designed the DSP as part of the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI), a forward-looking project for Bangladesh’s economic future.
The DSP is expected to play a pivotal role in the regional industrial value chain, connecting North East India (NER), Bhutan, and Nepal. Its ability to accommodate 8,000-10,000 container ships per year positions it as a major logistics hub. The Chittagong Port Authority (CPA) is an equity partner in the project, reinforcing its significance for Bangladesh’s economic growth, especially as the country transitions from a Least least-developed country (LDC) to a developing economy from 2026 onward.
Bangladesh’s multimodal connectivity with the North and Eastern Region (NER) of India is crucial for enhancing trade efficiency. The region, comprising Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim, is rich in natural resources such as oil, gas, and hydropower. It also has a strong agriculture and forestry sector, producing export commodities like oranges, pomegranates, grapes, apples, and dried fish. Three states — Tripura, Meghalaya, and Mizoram — share borders with Bangladesh. Tripura, with the longest border, operates eight land customs stations and two Integrated Check Posts (ICPs).
India and Bangladesh are investing in multimodal transport solutions to improve trade and logistics. The Sabroom transport hub, equipped with an ICP and rail-road connectivity, has the potential to become a logistics and industrial centre. Further, the Agreement on the Use of Chattogram and Mongla Ports (ACMP) and the Protocol on Inland Water Transit and Trade (PIWTT) are being expanded for third-country trade. The opening of Chattogram as a transshipment port for India’s NER is a significant step towards improving bilateral trade relations. Access to Matarbari DSP will provide NER an alternative trade route, reducing transit time and costs.
Despite its potential, several infrastructural and procedural barriers hinder seamless connectivity between NER and Bangladesh. Border checkpoints suffer from poor infrastructure, inadequate road and telecommunications networks, and inefficient customs procedures. There are challenges in digital trade facilitation, banking systems, warehousing, and cargo handling at land ports. Customs operations lack transparency, efficiency, and streamlined inspection processes, causing delays and additional costs.
To maximise the benefits of the Matarbari DSP, both India and Bangladesh need to modernise border facilities, simplify customs procedures, and strengthen multimodal logistics networks. Reinforcing connectivity will boost economic growth and regional trade. Matarbari DSP’s integration into the Bay of Bengal region will enhance its role as a key industrial and trade hub, strengthening Bangladesh’s and India’s economic ties and supporting long-term development.
