Chairman of the Moheshkhali–Matarbari Integrated Development Authority (MIDA) Chowdhury Ashik Mahmud Bin Harun on Wednesday said they want to see it as a township like Singapore and Shanghai which, once successfully executed, could bring about a considerable impact on Bangladesh economy.
“It is not just a vessel city… it is not a satellite city...it itself is a township, an almost enhanced and modified new version of Chattogram,” he told reporters at a media briefing at the Foreign Service Academy in the capital.
Chief Adviser’s Press Secretary Shafiqul Alam and MIDA members were present at the briefing.
Ashik said the region was seen as a power hub and deep seaport by the previous regime but they want to see it as a township.
Highlighting the importance of the private sector’s involvement, he said they all know what needs to be done but there is a huge gap in terms of execution capability.
Earlier, the MIDA chairman met Chief Adviser Prof Muhammad Yunus and made a presentation on the Moheshkhali-Matarbari project and presented MIDA's work plan for the next four months.
Ashik said the project will be completed in three phases - the first phase from 2025 to 2030, the second phase from 2030 to 2045, and the third phase from 2045 to 2055.
“If the project is implemented, it will provide direct and indirect employment to about 2.5 million people and add US$ 150 billion to the GDP,” he said.
Ashik said the initiative, planned as a core to develop one of the largest commercial hubs in Bangladesh, brings logistics, energy and power, manufacturing and fishing industry to one location.
A strong start to that is the 120-day work plan spanning the fourth quarter of 2025, he said, adding that collaboration across 10+ different organisations and ministries will ensure the finalisation of the MIDA Master Plan by the end of Q4.
It is the first step towards the crystallisation of the long-term roadmap that will help evolve MIDA as an economic hub, Ashik said.
Read: Japan reaffirms support for Matarbari deep sea port development
“Simply put, the idea is to combine deep sea port facilities with energy terminals, power plants and economic zones so that industries can operate close to their source of fuel and with logistics support,” according to the MIDA Strategic Vision shared by the Chief Adviser’s press wing.
The Moheshkhali-Matarbari region was chosen for such a multifaceted project owing to several competitive factors: necessary draft for deep sea port; proximate land to build synergic ecosystem for power, energy, manufacturing and heavy industry, marine and fishing.
The ambition is to build an integrated economic hub for trade and investment leveraging direct access to international shipping lines is central to improve competitiveness and future growth.
A study by JICA suggests investment of USD 60-65 billion in the next 20-30 years. Private investment is anticipated at USD 47-48bn, of which 10% (USD 4.8bn) is targeted FDI investment.
The total GDP impact is projected at USD 150bn. Of that amount, direct GDP impact will be USD 70-75bn.
This is backed by the creation of 1.5 lakh direct jobs (25 lakh direct + indirect) in the long term.
This region will become an essential element for long term sustainability of Cox’s Bazar’s regional economy, resulting in 1.5X the current tourist footfall in the region, according to the document.
4 Main Pillars
This execution consists of four main pillars - port and logistics, manufacturing, power and energy, fishing.
There has been ongoing revision and consultation regarding the portfolio mix of these pillars to tap into the geographical advantage meaningfully, according to the MIDA Strategic Vision.
The four pillars will also be sustained by supporting physical and social infrastructure, including a tourism zone at Matarbari.
Each of the pillars has both short and long-term strategies, along with economic impact, such as:
The first pillar of the initiative is the deep sea port and its connected logistics system. This part of the project is designed to handle both bulk cargo and containers in a way that current ports in Bangladesh cannot.
The port at Matarbari is built with a natural depth of about 18.5 meters, which allows large ships to dock directly. This is a significant change from Chattogram where smaller vessels are required and goods need to be moved in several steps.
These changes will allow a projected increase in port capacity by 50% in the next 30 years.
With the advantage of the natural depth, it is estimated that Matarbari will cater to 25% of the country's bulk traffic and 45% of container traffic. Saving up here will have spillover effects in the cost of other essential commodities.
For instance, this reduction in shipping cost can reduce the cost of a 12kg LPG cylinder in Bangladesh by Tk 50.
The risk-factored numbers were procured with a few developments underway - container freight stations, widening to four-lane roads, Intermodal Container Yard at Chakaria to double-line rail connectivity till Dhaka to name a few.
Subsequent large-scale ship building, recycling, and steel manufacturing prospects are also being considered. Since the deep-sea port is bringing about cost competitiveness for both bulk and containerised goods, the synergy of a manufacturing hub comes naturally.
Large volumes of industrial commodities will be traded via the Matarbari port, providing ready feedstock for manufacturing.
After three stages of scrutiny, nine suitable industries were identified including steel, agro and food processing, automobile and electronics.
Besides, pharmaceuticals and API, synthetic fibres, and shipbuilding were identified for export diversification.
Overall, Balance of Payment savings equivalent to USD 6 billion could be achieved in the long term, Ashik said.
Attracting the right investments with a package deal of deep-sea logistics and captive power, the hub is expected to directly contribute to 10% of Bangladesh’s manufacturing output by the next 30 years.
The third pillar is developed keeping the 6.7% CAGR of power demand in mind.
Being significantly import dependent and affected by global price volatility, Bangladesh aims to generate 90% of power demand on its own in the long term.
With that end, the plan for a power generation hub was devised. The mix of traditional and new power sources are to be developed shortly.
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The strategic advantage of deep draft and land availability makes the hub a natural choice for fuel imports for Bangladesh.
An analysis shows that given its competitiveness, the hub can take up 80% and 60% of demand for LNG and LPG imports respectively.
MIDA is also eyeing for the opportunity of Petroleum, Oil, and Lubricants (POL) refining in Bangladesh to substitute imports.
A proposed 8-10 MTPA capacity will support 35% of total product demand in the next 30 years.
This can also potentially save USD 3.4bn in export-import logistics, adding to a strong energy security narrative for Bangladesh.
The fourth pillar ventures into uncharted waters. Being part of a multi-billion-dollar market, deep sea fishing and fish processing are evidently obvious choices. Yet, it has been largely unexplored.
The advent of MIDA makes the choice to tap into that potential now more than ever and 7% of the global fisheries come from the Bay and Bengal. And more than 450 million people rely on its blue economy.
Currently, that economy consists of fishing up to only 100 meters deep with artisanal boats or industrial trawlers.
Bangladesh is a member of the Indian Ocean Tuna Commission (IOTC), which allows Bangladesh to fish in certain territories of the Indian Ocean, fish up to a quota for 2 species of tuna, and fish an unlimited amount of 2 other species of tuna.
Yet, year after year, the quota remains unfulfilled. To address this issue, and to encourage deep sea fishing as a whole, the Ministry of Fisheries and Livestock has permitted the manufacturing or import of 28 longliner fishing vessels.
The Matarbari port will help existing (and new) ventures like the Chakaria shrimp industry by faster shipments to EU, USA, Japan etc.
It will reduce processing time and cost on exporting and potentially make way for value-added product exports like fillet, smoked fish, ready-to-eat seafood, etc.
The potential, for instance, of scallop processing and exporting worth 500 million USD, coupled with the robust logistics of MIDA is expected to bring a new wave of FDI into the country.
The 4 pillars will also be backed by supporting infrastructure, like access roads, rail links, township etc.
To properly leverage the core strengths, the long-term vision was divided across 3 periods/phases: incubation, expansion and diversification.