From salt fields to economic hub: the rise of Matarbari signals a new Bangladesh

With the sea stretching out on one side and vast, uninhabited salt fields on the other, this area continues to be a hub for salt farming, utilising water from the Bay of Bengal. Truck after truck transports unrefined salt from these fields to the factory. However, amidst this traditional activity, a new Bangladesh is taking shape in this salt-rich land.

On one side, significant infrastructure projects have emerged, including a deep sea port, the Matarbari power station, a permanent LNG terminal, and a single-point mooring terminal for fuel oil offloading from the sea. Additionally, a large-scale export processing zone has been established, signifying the region's potential for economic growth and industrial development. This transformation showcases Bangladesh's commitment to leveraging its natural resources and strategic location to propel itself into a new era of prosperity and progress.

In a recent presentation on the 'Maheshkhali-Matarbari Integrated Infrastructure Development Initiative,' Ichiguchi Tomohide, the chief representative of the Japan International Cooperation Agency (JICA), highlighted the evolving significance of Matarbari as an economic zone centered around its deep sea port. He outlined the potential development of three key economic hubs in the region: logistics, power and energy, and industrial hubs.

The prospect of these hubs has drawn interest from neighboring countries for good reason, given the opportunities they present for economic growth and regional connectivity. Now, the focus shifts to how Bangladesh can effectively capitalise on this opportunity and maximise its potential benefits.

The Matarbari 1200 MW power plant has reached a significant milestone with the first unit of 600 MW already in commercial production. Construction of the second unit has also been completed, and trials are currently underway to initiate commercial production. This vital infrastructure project was undertaken by the state-owned Coal Power Generation Company Bangladesh Limited (CPGCBL), marking a significant step towards meeting the country's growing energy needs.

The construction of the power plant was made possible through loans provided by the Japan International Cooperation Agency (JICA).

Abul Kalam Azad, the Managing Director of the Coal Power Generation Company, has provided insights into the operations of the Matarbari power plant. He mentioned that the second unit is currently supplying up to 600 megawatts of electricity to the grid, while the other unit is available to meet demand as needed.

Regarding the apparent high construction cost of the power plant, Azad highlighted additional infrastructure development, including the excavation of a deep sea port channel alongside the power plant. This channel accommodates ships with a draft of 18.5 meters, enhancing maritime access to the area. The Coal Power Generation Company has invested significantly, approximately Tk 20,000 crore, in digging this channel.

The excavation of this channel enables large mother vessels to dock directly at the power plant's jetty, a capability not feasible at any other port in the country. One side of the channel has been reinforced with concrete, facilitating efficient maritime operations. However, plans are in place for the Chittagong Port Authority to widen the channel by an additional 100 meters to accommodate the development of a deep sea port. Although these works have not yet commenced, the Economic Relations Department (ERD) has finalised the construction cost of the Matarbari Port and submitted it to the Prime Minister's Office for approval.

According to sources within the Coal Power Generation Company, all expenses related to the Matarbari port infrastructure, including those incurred by CPA and CPGCBL, will be managed separately. This strategic approach ensures transparency and accountability in the development and financing of the port facilities, further underscoring the commitment to effective project management and resource allocation.

The inauguration of the construction of the Matarbari port by Prime Minister Sheikh Hasina before the last national elections marked a significant milestone in the project's timeline. However, despite the inauguration, the official commencement of construction work by the port authority is yet to take place. Once construction begins, it will initiate a series of significant undertakings, including the development of connecting roads and other infrastructure.

Fortunately, land acquisition for the port has been successfully completed, laying the groundwork for the subsequent phases of development. In some areas, preliminary work on connecting roads has already commenced on a limited scale.

In addition to the port and power plant, plans are underway for the development of an economic zone in Matarbari, which holds the promise of creating significant employment opportunities for a large population. While this project is still in progress, it is envisioned that the Matarbari Corridor could serve as a central hub for inter-communication among countries in the Bay of Bengal region, including Bangladesh, India, Bhutan, and Nepal. Matarbari has the potential to be a 'game changer' in terms of facilitating communication and connectivity with neighboring countries, positioning itself as a key player in regional geopolitics.

Moreover, the government has expressed its vision for Matarbari to be modeled after Singapore, with plans to develop a modern living system and provide economic facilities that will attract both domestic and foreign tourists. This strategic approach aims to transform Matarbari into a vibrant and dynamic hub, offering a high quality of life and fostering economic prosperity for its residents and visitors alike.

It appears that while the Coal Power Generation Company Bangladesh Limited (CPGCBL) is considering the construction of another 1200 MW power plant, the Japan International Cooperation Agency (JICA) has expressed disinterest in investing in new coal-fired power plants. Instead, there is a shift in focus towards alternative energy sources.

Furthermore, according to an engineer from the power plant, the land in front of the Matarbari power plant is now being cleared for the construction of a land-based LNG terminal or a permanent LNG terminal.

A Single Point Mooring Terminal (SPM) has been constructed at Maheshkhali, situated in close proximity to the Matarbari Power Plant. Initially, the terminal was designed to facilitate the direct discharge of fuel oil from the deep sea through a pipeline connected to the mother vessel. This streamlined process eliminates the need for intermediate steps such as transferring oil from the mother vessel to cargo ships and then to the depot for distribution. By enabling direct transfer from the mother vessel, the SPM terminal enhances efficiency and reduces logistical complexities in fuel oil handling.

A state-of-the-art single point mooring buoy has been installed in the sea southwest of Maheshkhali Island, located in Maheshkhali Upazila of Cox's Bazar district. This mooring is linked to a storage tank terminal constructed in the Maheshkhali area via two separate pipelines, each with a diameter of 36 inches. The purpose of these pipelines is to facilitate the pumping of imported crude oil and diesel from transport ships directly into the storage tanks.

Subsequently, the stored crude oil is conveyed from the storage tanks to the Eastern Refinery Limited in Chittagong through an additional two separate pipelines, each with an 18-inch diameter.

Sharif Hasnat, the Project Director of the Single Point Mooring Terminal, has confirmed that the testing and commissioning of the project have been successfully completed. He emphasised the necessity of constructing a pipeline through the deep sea for the development of the Matarbari port. Furthermore, he highlighted that this marks the first instance of constructing such a pipeline through the sea in Bangladesh.

It's noteworthy that Bangladesh has constructed the single point mooring terminal with the financial assistance of China's Exim Bank.