Ctg sees fresh push to unlock trade potential

The government has taken a series of initiatives to boost trade, investment and connectivity in Chattogram during its first six months in office, including launching construction of the China Economic and Industrial Zone (CEIZ), preparing a framework for Free Trade Zones (FTZs) and giving in-principle approval to a $1 billion Green Dockyard and Shipbuilding Facility at Matarbari.

Business leaders have welcomed the moves but called for faster implementation of the FTZs, Dhaka-Cumilla chord line railway project and Dhaka-Chattogram elevated expressway to unlock the region’s economic potential. The initiatives are part of the government’s broader drive to attract foreign investment, improve logistics and connectivity, and remove long-standing barriers to trade and business.
CEIZ construction begins

After more than a decade of delays, construction of the CEIZ at Anwara began in late July, marking a major step towards establishing a dedicated industrial zone for Chinese investors.

The 800-acre project is expected to attract more than $1 billion in investment and create employment opportunities for over 100,000 people. The Executive Committee of the National Economic Council approved the Tk4,189.46 crore project in June.

Bangladesh and China signed an initial memorandum of understanding to establish the zone in 2014, but implementation was delayed by administrative and financing complications. The project is being developed under a government-to-government arrangement involving the Bangladesh Economic Zones Authority (BEZA) and China Road and Bridge Corporation (CRBC).

Its infrastructure includes a multipurpose jetty, four-lane roads, a central effluent treatment plant, power substation, gas and water supply facilities and other industrial infrastructure. The government expects the zone to generate wider economic activity in southern Chattogram by creating supply chains and opportunities in transport, logistics, housing and services.

FTZ framework unveiled

The government has also moved to establish FTZs as part of its efforts to facilitate international trade and attract investment.

The finance minister proposed amendments to the Customs Act in the budget to facilitate the establishment of FTZs, where goods can be imported for storage, grading, packing, production and processing for export without payment of applicable duties and taxes.

The Cabinet Committee on Economic Affairs approved FTZs near the Matarbari deep-sea port in Moheshkhali and at Anwara near Chattogram Port. The framework was unveiled on 16 July.

The Anwara FTZ is expected to begin operations this year, while the Matarbari facility is targeted for 2030-33.
Bangladesh Bank has also introduced rules for banks to facilitate FTZ-related import transactions. Authorised dealers and offshore banking units will handle the transactions in line with foreign exchange regulations.
Matarbari green dockyard

The Ministry of Shipping has given in-principle approval to a $1 billion Green Dockyard and Shipbuilding Facility at Matarbari under a privately financed public-private partnership.

Australia-based AIS Marine Investments Pty Ltd is expected to finance the project, which will now undergo technical and financial appraisal. The facility is intended to strengthen the operational capacity of Matarbari deep-sea port and develop Bangladesh’s maritime services sector. The proposed facility will provide docking, maintenance and repair services to large commercial vessels operating at Matarbari, other Bangladeshi ports and in the Bay of Bengal.

At present, vessels requiring major repairs often have to travel to Singapore, the United Arab Emirates or China, resulting in additional costs and delays. The proposed facility could help reduce such expenditure while creating new opportunities in shipbuilding and maritime services.

Port, Customs coordination

The government has also decided to form a joint committee comprising officials of Chattogram Port and Customs to address long-standing trade barriers.

The decision was taken at a meeting at Chattogram Port on 11 July involving port and customs officials, business representatives and Finance and Planning Minister Amir Khosru Mahmud Chowdhury.

The minister said higher port costs and lengthy customs procedures were among the major factors increasing the cost of doing business. Problems were identified at the meeting and deadlines were set to address them.

Chittagong Chamber of Commerce and Industry President Mohammed Amirul Haque welcomed the initiatives, saying attracting local and foreign investment, creating jobs and improving the ease of doing business were essential for economic growth.

He called for faster implementation of the FTZs, Dhaka-Cumilla chord line railway project and Dhaka-Chattogram elevated expressway. He also urged the development of Chattogram airport as an international logistics hub.

Bangladesh Freight Forwarders Association former Vice-Chairman Khairul Alam Suzan said removing port and customs-related complexities would help Bangladesh remain competitive in international trade.
He said the FTZs and Matarbari Green Dockyard could further expand trade and improve logistics efficiency, helping the country meet future challenges.