Favourable geopolitics key to unlocking potential of economic corridors: Planning adviser

Countries in the region can reap mutual economic benefits by utilising economic corridors – but only if the geopolitical environment remains favourable, Planning Adviser Wahiduddin Mahmud has said.

Bangladesh's strategic location, with access to key ports like Chattogram and Mongla, which could benefit neighbours such as India, China, Nepal and Bhutan, he said at a seminar titled "Economic Corridor and Logistics Development in Bangladesh: Investment Opportunities" in Dhaka today.

"For the full potential of Bay of Bengal connectivity to be realised, regional political goodwill is essential," he said, stressing the need for equitable gains among all participating countries.

The adviser noted that India's northeastern states possess abundant natural resources, including bamboo, timber, and minerals, which could be exported via Chattogram port. "Bangladesh can benefit by processing these resources and facilitating access to global markets," he said.

He added that using the Mongla port could also benefit Bhutan, Nepal, and parts of West Bengal, given its logistical potential. "A corridor that integrates road, rail, and waterways with ports and neighbouring countries is key to unlocking trade benefits."

According to Mahmud, the idea of integrated economic corridors presented by the Asian Development Bank (ADB) is timely and strategic, but domestic corridor development must come first, followed by regional integration through dialogue.

The ADB has proposed several corridor projects, but implementation faces challenges, he said. Nearly 1,200 projects undertaken by the previous government are still ongoing, consuming most of the development budget and leaving little for education, healthcare, or prioritising new infrastructure.

"Many of these projects had design flaws and cost overruns," he noted. "Completing them must take precedence. Starting new ones midway would be financially unsustainable."

The seminar was jointly organised by the International Chamber of Commerce (ICC) Bangladesh and the Asian Development Bank (ADB).

Road links with Bhutan and Nepal

In a technical paper on "Bangladesh Economic Corridor and Logistics Development – Integrated Connectivity", ADB's Senior Transport Specialist Nazrul Islam highlighted the importance of road links with Bhutan and Nepal – especially 107.7km to Bhutan and 47km through Banglabandha to Nepal.

He also underscored the need to expedite the Dhaka-Chattogram highway improvement, Dhaka-Cumilla Railway Chord Line, and Dhirasram ICD Logistics Centre projects. Around 92% of Bangladesh's total trade and 81% of RMG exports move along the Dhaka-Chattogram corridor.

Nazrul said the Bay Terminal will significantly amplify this route's importance. The highway upgrade alone would require $4.444 billion, and survey work is nearly 90% complete. The highway is part of the Asian Highway and other international routes.

He also highlighted plans to fully convert the Dhaka-Cox's Bazar rail line to broad gauge, covering sections from Tongi-Bhairab Bazar, Laksam-Chattogram, and Chattogram-Dohazari, with ADB set to finance these.

He urged priority for links enabling landlocked Nepal and Bhutan to access Bangladesh's ports – Chattogram, Matarbari, and Mongla – and pressed for rapid implementation of projects like the Matarbari Deep Seaport-Chakaria intermodal link, Dhirasram ICD rail connectivity, and the Rangpur-Banglabandha/Burimari road upgrade.

Other focus areas include: Panchagarh-Banglabandha (which lacks railway links), Parbatipur-Lalmonirhat-Burimari (meter-gauge single line), and the proposed Sirajganj-Bogura railway.

Stability needed for corridor development

In another paper, ADB Senior Logistics and Economic Corridor Expert Sabyasachi Mitra stressed the need for institutional and policy reforms to sustain corridor development.

He called for clear policies on corridor governance, simplification of business entry and exit procedures, and alignment of port, maritime, and trade facilitation frameworks.

Anisuzzaman Chowdhury, special assistant to the chief adviser, noted that resilient and inclusive infrastructure is vital for achieving long-term economic goals. He stressed investing in both infrastructure and human capital to meet LDC graduation challenges.

Mir Nasir Hossain, ICC Bangladesh executive board member and managing director of Mir Akhter Hossain Limited, said a stable law and order environment is essential for improving the business climate alongside logistics support.

Hoe Yun Jeong, country director of ADB, said Bangladesh's logistics sector suffers from overreliance on roads, congestion, high costs, and a lack of multimodal infrastructure – all of which undermine export-led growth. "This is why logistics reform is as important as corridor development," he said.

Mahbubur Rahman, president of ICC Bangladesh, chaired the seminar. He called for coordinated public–private efforts to attract investment, enhance connectivity, and streamline trade logistics.

"The case for corridor development is no longer aspirational – it is urgent, evidence-based, and actionable," he said, noting that regional GDP could rise from $32 billion in 2020 to $286 billion by 2050 under a business-induced scenario. The same scenario could generate up to 71.8 million new jobs.