Is Bangladesh ready to turn Matarbari port into a regional hub?

As global maritime trade increasingly focuses on efficiency, connectivity, and sustainability, the competition to establish regional hub ports has intensified. Bangladesh has placed high hopes on the Matarbari Deep-Sea Port, a transformative infrastructure project that could reshape the country's position in South Asian shipping. 

But ambition alone is not enough. The key question remains: is Bangladesh truly prepared to turn Matarbari into a functioning regional hub?

Maritime expert Dr Jürgen Sorgenfrei, in his widely referenced book "Port Business", outlines the core features a port must possess to qualify as a hub. These include strategic location near global shipping routes, quick vessel turnaround times, efficient terminal operations, strong inland connectivity, robust feeder networks, and supporting logistics clusters. Additionally, factors such as deep-water access, cost-competitive services, efficient administration, and local market potential all play a vital role.

Matarbari enjoys a favourable position along the Bay of Bengal, relatively close to the East-West maritime trade axis. While not directly on the main global lanes like Singapore or Colombo, its location offers significant geopolitical potential. It could serve as a transshipment gateway for landlocked and underserved regions such as Nepal, Bhutan, Northeast India, and even China's Yunnan province. 

However, access to these markets depends heavily on transit agreements with India—an area where bilateral relations, although improved in recent years, still require greater mutual trust and facilitation.

Where Matarbari truly stands out is in its technical capacity. The port offers a natural draft of 14 to 16 metres—reaching up to 18 metres with tidal support—making it the only facility in Bangladesh capable of accommodating mother vessels with over 8,000 TEUs or 100,000 DWT. In comparison, Chattogram and Mongla ports are limited to vessels under 2,400 TEUs due to shallow depths. 

A newly constructed 14.3 km navigational channel, 350 metres wide in Matarbari, has already created the deepest maritime access in the country. 

To function as a regional hub, Matarbari must link efficiently with other domestic ports like Chattogram, Mongla, and Payra, as well as regional ports such as Kolkata, Sittwe, and Yangon. The success of this network depends on strong bilateral shipping agreements and regional coordination. Otherwise, if mother vessels bypass Matarbari, the port risks being underutilised—especially if shipping lines continue to prefer transshipment through Colombo or Singapore.

Once operational, the port will offer a 460-metre container berth and a 300-metre multipurpose berth, with a projected handling capacity of up to 1.1 million TEUs and 2.25 million tonnes of cargo per year. By 2041, this capacity could scale to over 4 million TEUs annually.

Despite its promising technical profile, a port's success depends on more than ships and cranes. Matarbari's effectiveness as a hub will hinge on its ability to connect to the national hinterland. Bangladesh is making progress in developing highway corridors, expanding railway lines, and improving inland waterways. Yet multimodal integration remains patchy. 

Containers primarily move by road and rail, while inland waterways still focus on bulk cargo. Logistics remains fragmented, especially in terms of customs automation, intermodal facilities, and last-mile efficiency. Without swift and coordinated improvements, these gaps could seriously limit the port's performance.

Beyond serving as a gateway, Matarbari must evolve into a value-adding port cluster. Plans are in motion to establish Special Economic Zones (SEZs) and logistics parks nearby, where cargo can be processed, repackaged, or assembled before onward distribution. Significant land has been acquired for these purposes, but construction is still in the early stages. Equally critical are the development of dry ports for consolidating cargo, managing empty containers, and facilitating customs clearance—none of which have progressed substantially.

Even with all these efforts, the port's future will also depend heavily on its feeder network. To function as a regional hub, Matarbari must link efficiently with other domestic ports like Chattogram, Mongla, and Payra, as well as regional ports such as Kolkata, Sittwe, and Yangon. The success of this network depends on strong bilateral shipping agreements and regional coordination. Otherwise, if mother vessels bypass Matarbari, the port risks being underutilised—especially if shipping lines continue to prefer transshipment through Colombo or Singapore.

Cost competitiveness will be another deciding factor. While Matarbari's tariff structure is still being finalised, it must be globally competitive, transparent, and predictable. Offering volume-based incentives, extended free storage periods, and simplified handling charges—similar to those at Jebel Ali Port in Dubai—could help attract larger shipping lines during the port's early operations.

Governance will be the final piece of the puzzle. Most high-performing hub ports today, such as Rotterdam or Singapore, follow the landlord model—where the government owns the infrastructure but private operators handle the terminals. In contrast, Bangladesh's ports are still managed as government-run service ports, often hampered by inefficiency and bureaucratic delay. 

The example of Indonesia's JICA-supported Patimban Port, which initially struggled under local management and later shifted to a landlord model, may offer important lessons for Matarbari. Involving globally reputed container terminal operators—particularly those with ties to major shipping lines—could dramatically enhance service delivery and operational efficiency.

In many ways, Bangladesh has made bold and commendable moves towards establishing Matarbari as a 21st-century maritime gateway. But turning it into a thriving regional logistics hub will demand more than just deep water and advanced machinery. It will require investment in multimodal transport, legal and administrative reform, capacity building, and regional diplomacy. 

The transition from a deep-sea port to a regional hub journey is a marathon—not a sprint that lasts for a short period. Are we ready to go the extra mile? 

Sketch: TBS

Mostafa Shaheen, a former mariner, is a faculty of port and shipping management at Bangladesh Maritime University. Email: shaheen.psm@bmu.edu.bd

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.