Bangladesh set for $1 billion boost from Australian AIS Marine Investment
The Ministry of Shipping has granted in-principle approval for a $1 billion green dockyard and shipbuilding facility to be built at Matarbari under a privately financed public-private partnership.
The project will now undergo technical and financial appraisal.
The proposed "Matarbari Green Dockyard and Shipbuilding Facility" aims to bolster the operational capacity of the Matarbari deep-sea port and advance Bangladesh's maritime services industry.
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The Ministry granted in-principle approval to the unsolicited proposal and forwarded it to the Public-Private Partnership Authority for further review. Although the Rules of Business 1996 place the dockyard industry under the Ministry of Industries, the Ministry of Industries issued a no-objection certificate for the project after a high-level interministerial meeting held on 7 June 2026.
The decision was made in view of the project's strategic importance and the Chattogram Port Authority's capacity for implementation. Australia-based AIS Marine Investments Pty Ltd is expected to finance the project, with China Harbour Engineering Company Limited serving as the technical partner.
The project will follow a landlord-model public-private partnership, with the Chattogram Port Authority retaining full ownership of the designated 200 acres of land and existing fixed assets. All infrastructure developed under the project will revert to state ownership at the end of the concession period. According to the proposal, the project will be implemented entirely through private financing, without exposing the government to debt liability.
Docking and repair capacity
The facility will provide docking, maintenance, and emergency repair services to large commercial vessels operating at the Matarbari deep-sea port, other Bangladeshi ports, and in the Bay of Bengal.
It is expected to reduce the need for vessels to travel to Singapore, the United Arab Emirates or China for major repairs, saving time and foreign currency and enhancing port safety. Plans include a flagship dry dock measuring 600 metres long and 95 metres wide, designed to accommodate large international commercial vessels.
The facility is also expected to support shipowners, stakeholders and mainline operators by reducing delays after mechanical failures or other incidents in port channels.
Environmental safeguards
The proposal describes the facility as Bangladesh's first institutional green dockyard. It is expected to comply with the International Maritime Organisation's Net-Zero Framework and GreenVoyage2050 initiative, as well as relevant ISO environmental standards. Planned features include low-emission energy systems, closed-loop wastewater treatment, and modern facilities for managing hazardous chemical waste.
The project is designed to support several United Nations Sustainable Development Goals, including resilient infrastructure, decent employment, climate action and marine ecosystem protection. Its proponents estimate the project will create 1,200 to 1,300 direct jobs for skilled engineers and technicians, and a further 2,600 indirect jobs.
The facility is also expected to support local engineering, steel manufacturing, logistics and small and medium-sized maritime supply chain businesses. Commercial vessels and ships operated by the Bangladesh Navy and Bangladesh Coast Guard will be able to access international-standard repair services domestically.
The project is intended to serve as a key support facility for the industrial cluster and the energy, port, and logistics hub under development around Maheshkhali and Matarbari. Technical and financial appraisals are now underway under the Public-Private Partnership Authority.
