Why we should prioritise Matarbari over Bay Terminal development

Bangladesh’s port congestion has long shaped the popular perception that our maritime gateways are straining under unmanageable pressure. Images of vessels lining up at the outer anchorage, overflowing container yards and choking access roads have fuelled a narrative that the country is running out of port capacity. This conclusion, though emotionally compelling, is strategically misleading. Congestion does not necessarily signal failure; rather, it often signifies growth. It reflects an economy whose trade demands are expanding faster than its legacy infrastructure—exactly the pattern observed in Vietnam, India, Malaysia, and even China during their busiest years of industrial acceleration.

In other words, Bangladesh is emerging as a more active node in global commerce, which gives rise to a far more consequential question: how do we interpret this growth pressure, and which strategic choices will determine whether Bangladesh becomes a competitive logistics hub or remains tethered to outdated systems?

The answer hinges on the sequencing of our port investments. Bangladesh today stands at a pivotal juncture in its maritime and economic landscape. Global supply chains are undergoing dramatic realignment as multinational firms diversify production networks and shipping lines restructure their routes in response to geopolitical, environmental, and economic pressures. In this shifting environment, the Bay of Bengal is gaining unprecedented prominence. Carriers are consolidating port calls, preferring fewer, deeper, and more efficient gateways rather than fragmented networks reliant on feeder vessels. For Bangladesh, which aspires to move beyond its historical dependence on transshipment via Colombo, Singapore, or Port Klang, the moment is both urgent and potentially transformative. But it also requires clarity of purpose and discipline in prioritisation.

At the centre of this strategic crossroads sits the Matarbari Deep Sea Port. It is our only true deep-sea facility capable of receiving mainline vessels directly. The difference between a deep-sea port and a feeder port is not merely a matter of draft depth or quay length; it reflects a fundamental shift in economic identity. A deep-sea port can attract the world’s largest carriers, reduce freight costs, shorten transit times, stimulate foreign investment, and anchor Bangladesh more firmly in regional and global value chains. Unlike Chattogram Port, which has served the country well but remains constrained by draft limitations and tidal windows, Matarbari offers a path toward a different future, one in which Bangladesh is not merely an endpoint of feeder routes but a strategic node in global shipping networks.

Recent updates underscore this potential. Construction progress at Matarbari has accelerated, with significant advancements in channel dredging, breakwater structures, and berth readiness. These milestones bring Phase-1 closer to operational reality and strengthen the case for Matarbari as the country’s next-generation maritime gateway. Complementing this momentum is a major development involving Japan’s JICA, which has advanced its proposal for extensive upgrades to the Chattogram-Cox’s Bazar-Matarbari highway corridor.

A port’s strength is defined not only by what arrives at its berths but by how efficiently cargo moves inland. Without robust and reliable connectivity, even the most advanced port becomes a stranded asset. Matarbari’s viability depends directly on its road and rail links to the country’s industrial and commercial heartlands, particularly Dhaka.

Yet, it is precisely here that Bangladesh faces its most significant bottleneck. Road capacity along the Matarbari-Karnaphuli Tunnel corridor remains limited, rail integration will require substantial engineering work and time, and Dhaka-bound routes remain chronically saturated. These constraints do not diminish Matarbari’s potential; they merely emphasise the necessity of completing the inland connectivity before expecting deep-sea benefits to materialise. That is why the sequencing of national port projects is a matter of strategic importance rather than administrative preference.

In contrast to Matarbari’s transformative potential, the Bay Terminal at Chattogram represents a different, though entirely valid, kind of project. It promises to expand the existing port’s capacity, reduce dependence on lighterage operations, and improve operational efficiency. It is fundamentally an expansion of a legacy system—not the creation of a new strategic frontier. Over the past weeks, however, Bay Terminal has gained renewed political momentum, with discussions, meetings, and advocacy intensifying. While no one disputes the usefulness of Bay Terminal in the long run, accelerating it prematurely could undermine Matarbari at the very moment when Bangladesh needs to direct its full institutional, financial, and diplomatic energy toward the deep-sea gateway.

If Bay Terminal progresses too quickly, carriers could be drawn back into the traditional Chattogram ecosystem, cargo volumes could shift toward the familiar rather than the future, and investment attention could be diverted away from the inland infrastructure that Matarbari urgently requires. Bangladesh would risk reinforcing its dependence on feeder systems just as global shipping moves in the opposite direction.

This is why the argument is not about choosing between Matarbari and Bay Terminal. It is about sequencing—about recognising which project unlocks a new era of competitiveness and which project supports that transformation as a second step. Prioritising Matarbari does not diminish the importance of Bay Terminal; it simply ensures that Bangladesh does not dilute its deep-sea ambition at the most critical stage of its development.

An additional strategic layer further strengthens the case for Matarbari. Global shipping lines—including Mediterranean Shipping Company, Maersk, the French CMA CGM, and new cooperative ventures such as the Gemini Cooperation—are increasingly seeking integrated port-to-inland solutions rather than standalone terminals. They prefer ecosystems that combine deep-sea capabilities with predictable, multimodal inland logistics. Bangladesh is uniquely positioned to offer such a system by pairing Matarbari with the Pangaon Inland Container Terminal. Pangaon already provides direct access to Dhaka through river routes and is underutilised relative to its potential. By presenting Matarbari as the deep-sea gateway and Pangaon as the stable inland anchor, Bangladesh can offer carriers a seamless deep-sea-to-Dhaka corridor while longer-term road and rail upgrades are underway. This combination strengthens Bangladesh’s ability to attract a major terminal operator or carrier partnership at a scale that could reshape the country’s logistics landscape.

Meanwhile, congestion in the existing port system—though real—can be mitigated without rushing into large-scale infrastructure commitments that risk misalignment. Recent customs modernisation initiatives, including digital queueing, automated clearance processes, and improved container yard management, have already begun reducing inefficiencies. Upgrading off-dock inland container depot (ICD) capacity, streamlining inspections, and adopting predictive berth allocation systems can further improve flow without diverting national focus away from Matarbari. These reforms cost only a fraction of what new terminals require and provide immediate relief while the deep-sea strategy matures.

Bangladesh’s maritime moment has arrived, shaped by global realignments that may not recur for decades. Seizing this moment requires disciplined prioritisation. The country must first invest where the return is highest: in building deep-sea capability, completing Matarbari’s inland connectivity, and leveraging the Matarbari-Pangaon corridor to attract major international partners. Only after these foundations are laid should Bay Terminal move forward as a complementary and supportive expansion.

The future of Bangladesh’s maritime advancement depends not on how quickly we build, but on how wisely we sequence what we build. Matarbari is the gateway to a new era in global trade. Pangaon is its inland anchor. Together, they offer Bangladesh an opportunity to move beyond its feeder-bound past and into a position of regional prominence. So, focus on the deep-sea future first, and build the rest in the right order.

source : thedailystar