Contents
Historical Context and Development
The Strategic Involvement of Japan and the Role of JICA
Project formalization and financial agreements
Project Overview
Matarbari deep sea port is Bangladesh’s first deep sea port, which is currently under construction. Located in the Maheshkhali of Cox’s Bazar, this project promises enhanced connectivity with Southeast Asia for the country and facilitates international trade. Besides the long-term economic prospects regarding the utilization of the port, the construction project has a major impact on the local economy and environment. This article aims to examine the historical context and current development of the project, the construction details including the budgeting, capacity and design, and the potential economic impacts for Bangladesh and nearby regions. The environmental consideration and current challenges and their solutions are discussed as well as the prospects and community impacts.
Historical Context and Development
The major ports of Bangladesh, especially Chattogram (Chittagong) Port, have long struggled with infrastructure, which is where the idea for the Matarbari port originated. As the main maritime entry point to the nation, Chattogram has experienced significant traffic jams and a lack of infrastructure to manage growing commerce volumes. The efficiency of trade has been hampered by the delays in cargo handling and the rise in shipping costs caused by this congestion. Alternative solutions were sought as a result of Chattogram Port’s restrictions and the expected increase in trade (Saha, 2015).
A governmental priority to build a new, cutting-edge port that could handle larger ships, handle higher cargo volumes, and relieve Chattogram’s burdens first sparked the concept of building a deep-sea port in Matarbari. Due to its closeness to important shipping lanes, deep seas in the Bay of Bengal, and potential as a regional logistics hub, the Bangladeshi government identified Matarbari as a prospective site in the early 2010s.
The Strategic Involvement of Japan and the Role of JICA
Japan has been a major development partner of Bangladesh for a long time, and the Japan International Cooperation Agency (JICA) has been instrumental in the advancement of industrial and infrastructure projects in Bangladesh. The Matarbari Ultra Super Critical Coal-Fired Power Project, which Japan supported, marked the beginning of JICA’s involvement in the Matarbari region with an emphasis on energy. To alleviate Bangladesh’s electricity problems, this power project established the groundwork for Matarbari’s eventual development into a major industrial and logistical center.
JICA recognized the strategic potential of turning Matarbari into a deep-sea port in addition to endorsing the coal power project. JICA and the government of Bangladesh established plans to construct a deep-sea port in addition to the power plant after realizing the potential economic and regional advantages of such a port. This choice was a component of a broader program under Japan’s Bay of Bengal Industrial Growth Belt (BIG-B) plan, which seeks to enhance connectivity and logistics to encourage industrialization and economic growth in Bangladesh (News and Publication – JICA, 2023).
Project formalization and financial agreements
To finance the deep-sea port project, JICA and Bangladesh signed a major deal in 2020. Under its Official Development Assistance (ODA) program, JICA provided a sizable loan package along with technical and financial support. The aid covers the infrastructure needed to build a deep-sea port, such as a 14.3-meter-deep harbor that can handle big container ships, contemporary facilities for handling cargo, and terminals that facilitate effective loading and unloading of cargo.
To ensure sustainable development, this cooperation also involves technical advice on how to build the port by international engineering standards and include cutting-edge environmental protections. The Matarbari project is an example of international collaboration because of JICA’s engagement, which extends beyond financial support and includes knowledge of project management, logistics, and environmental issues (Khatun et al., 2023). Phases of the Project and Their Strategic Implications
There are several stages to the Matarbari port’s construction, with the first one expected to be finished by 2026. The port will have berths that can accommodate bulk cargo and container ships once it is operational, to ease the logistical strain on Bangladesh’s existing port infrastructure. The port’s importance is increased by its advantageous location close to important Bay of Bengal shipping lanes, which might make it a major hub for regional trade.
The port project in Matarbari is in line with Bangladesh’s economic plans, particularly the “Look East” policy, which seeks to improve commercial ties with East Asian nations including China, South Korea, and Japan. By offering a convenient commerce route, the port might also be a crucial regional link, helping landlocked nations like Nepal and Bhutan as well as the northeastern provinces of India.
In a larger sense, Matarbari is anticipated to establish Bangladesh as a hub for regional trade, a move that has the potential to revolutionize the logistics sector and improve the nation’s economic standing in South Asia (Alam and Akon, 2023).
Construction Details
Matarbari Port, an under-construction deep-sea port on the Bay of Bengal, is poised to become Bangladesh’s first deep-sea port, marking a significant milestone in the country’s maritime and economic development. Situated in the Matarbari area of Bangladesh’s Chittagong division, the port project began in the late 2010s with the initial construction of a captive jetty for the Matarbari Power Plant. Subsequently, the Government of Bangladesh expanded the scope of the project to develop a full-fledged commercial port, responding to the nation’s need for enhanced port capacity and modernized infrastructure.
Once operational, Matarbari Port will provide much-needed relief to the Port of Chittagong, which currently handles the bulk of the country’s trade. The estimated cost of the port’s first phase, including essential infrastructure such as the approach road, ranges between 1.5 billion and 1.7 billion dollars. Funding for this ambitious endeavor is supported by the Japan International Cooperation Agency (JICA), which provides loan assistance of 514 million USD, with the remaining 223 million USD allocated from government funds (Japan International Cooperation Agency (JICA), 2018).
Matarbari Port’s design draws inspiration from Japanese ports, specifically Kashima and Niigata, and incorporates advanced infrastructure suited for large-scale operations. An artificial harbor, protected by breakwaters, will house the port’s facilities. The harbor’s navigable channel, measuring 14.3 kilometers in length and 350 meters in width, reaches 16 meters, making it the deepest port in Bangladesh. This channel depth will allow Matarbari to accommodate Panamax and Capesize vessels, along with container ships carrying up to 8,000 twenty-foot equivalent units (TEUs) or 100,000 tons in deadweight. The draft of the port ranges from 14.4 meters to a maximum of 18 meters, aided by tidal support, creating optimal conditions for handling large-scale cargo.
The first stage of development will include the construction of a 300-meter multipurpose terminal and a 460-meter container terminal, both of which are expected to be operational by 2026. The 350-meter navigable channel will enable efficient docking for large vessels, alleviating pressure on Chittagong Port and setting a new standard for port infrastructure in Bangladesh.
Given Bangladesh’s vulnerability to earthquakes, the port’s design incorporates a seismic importance coefficient of 1.5 to ensure stability and resilience. This higher coefficient accounts for the risk of seismic activity and ensures that Matarbari Port can withstand potential earthquakes or tsunamis, a critical feature in a region susceptible to natural disasters. By implementing rigorous seismic resistance standards, the port is expected to provide a secure and reliable backup to Chittagong Port, which, built on softer ground, is at a higher risk of damage from seismic events.
Connectivity to Matarbari Port is also a key component of the project, with a 27-kilometer access road under construction from Chakaria in Cox’s Bazar to Matarbari. This road will greatly improve logistical efficiency, linking the port to the Chattogram-Cox’s Bazar highway. Out of the total 27 kilometers, 10 kilometers are comprised of bridges, with additional infrastructure including three rail overpasses to avoid traffic disruptions. The road will transition between two-lane and four-lane sections, with a 1.2 kilometer four-lane North-South Connector Road leading directly from the port to Dhalghat Roundabout. The remaining 26 kilometers, extending from Dhalghat to Fasiakhali, will consist of two lanes and include 14 bridges. Flexible polymer-modified asphalt concrete pavement, known for its durability under heavy vehicle loads, has been chosen for the road. The pavement’s flexibility makes it well-suited to the soft, compressible soils found along the alignment, as borehole and lab tests indicate the presence of soft clay layers between sand and stiff clay (Ahmed, 2017).
Supporting the port’s development are several critical infrastructure projects. The Dohazari-Cox’s Bazar Railway Line, which started construction in 2017, will be extended to reach Matarbari and Moheshkhali Islands. This expansion, part of the “Dhaka-Chittagong-Cox’s Bazar Rail Project Preparatory Facility” funded by the Asian Development Bank, will provide essential rail connectivity to the port, facilitating the movement of both cargo and passengers.
Additionally, the Matarbari area is home to the Matarbari Ultra Super Critical Coal-Fired Power Plant, designed to meet the country’s growing energy demands while mitigating greenhouse gas emissions. The power plant, with a capacity of 1,200 megawatts, aligns with Bangladesh’s commitment to sustainable development and will further boost economic activity in the region. The development of a Single Point Mooring (SPM) system by Bangladesh Petroleum Corporation will support the import of crude oil through an offshore buoy connected to storage facilities in Maheshkhali via underwater pipelines, enhancing the energy infrastructure around Matarbari.
The port’s operational infrastructure has already seen significant progress, with the completion of breakwater barriers designed to protect the harbor from the force of waves. A 2.15-kilometre breakwater has been constructed on the northern side of the approach channel, with an additional 670-meter breakwater on the southern side, ensuring safe, calm conditions for port activities and vessel docking. These breakwaters are critical to safeguarding the port from strong waves and maintaining stable harbor conditions.
The Matarbari Port Development Project will play a crucial role in driving economic growth, with the potential to transform Matarbari and the neighboring Moheshkhali Islands into an economic hub. The Bangladesh Economic Zones Authority (BEZA) has plans to establish 14 economic zones in the area, while the Coal Power Generation Company Bangladesh Limited (CPGCBL) is preparing to expand its power generation facilities. With the development of the deep-sea port, along with improved road, rail, and energy infrastructure, the region is poised to attract significant investment and development.
As Bangladesh’s first deep-sea port, Matarbari represents a leap forward in the country’s maritime capabilities, with the capacity to handle large-scale cargo operations and enhance regional trade. Expected to become operational by 2026, Matarbari Port will relieve pressure on existing ports, support larger vessels, and create a foundation for resilient infrastructure that can withstand natural disasters, positioning Bangladesh as a stronger player in global trade and economic growth (Chowdhury, 2023).
Economic Impact
Bangladesh’s economy is on a path of continuous growth, with ship arrivals increasing by more than 11% each year. However, the country’s seaports are struggling to keep up. Currently, Chittagong and Mongla ports have an annual handling capacity of 4 million TEUs, with Chittagong alone handling nearly all container traffic, about 3.2 million TEUs in the 2021-22 fiscal year. This Congestion requires more ports and with much-containing capacity to be solved. As container demand is projected to reach 14 million TEUs by 2041, the need for expanded and modernized port facilities has become critical.
Matarbari Deep Sea Port, a transformative infrastructure project, is designed to address these challenges by creating additional capacity and reducing the overwhelming dependence on Chittagong and Mongla ports. Once operational, Matarbari’s container terminal is expected to handle between 600,000 and 1.1 million TEUs by 2026, growing to a capacity of 1.4 to 4.2 million TEUs by 2041. The introduction of this port will enable Bangladesh to receive larger container ships, including mother vessels, directly, bypassing the need for smaller feeder vessels that currently transport goods to India, Sri Lanka, and Singapore for re-export (Sinha, 2023). The direct access to mother vessels will bring significant cost benefits, reducing transportation expenses by about 15%. In addition, the costs per container could drop by $131 for 20-foot containers and by $200 for 40-foot containers, benefiting Bangladesh’s export-driven industries (Hossan, 2022).
To ensure smooth inland connectivity with Matarbari, Bangladesh’s Roads and Highways Department is constructing a 20.65-kilometer road from Fansiakhali on the Dhaka-Chittagong highway through Chakaria’s Badarkhali market to Matarbari port in Maheshkhali. The project will include 17 bridges, road elevations, and embankments designed to withstand floods and cyclones, allowing for uninterrupted transportation of goods to and from the Dhaka-Chittagong corridor. Additionally, Matarbari port will be connected to the Dohazari-Cox’s Bazar railway line, funded by the Asian Development Bank (ADB). Plans for a dual-gauge railway route on this line will link Matarbari to Cox’s Bazar, facilitating easier distribution of goods across Bangladesh.
Beyond road and rail infrastructure, Bangladesh’s extensive river network will allow goods to be transported from Matarbari to other domestic ports, such as Pangaon in Narayanganj, via small feeder vessels. The port’s design also includes specialized jetties and terminals for importing coal, LNG, cement, steel, and other industrial materials, making it a versatile logistics hub. By 2026, Matarbari’s Coal Transmission Terminal will be capable of handling up to 9 million tons of coal annually, with expected increases to 14 million tons by 2031 and 41 million tons by 2041. An FSRU terminal will also support LNG imports, with a projected capacity of up to 4,700 million cubic feet per day. Additionally, a Single Point Mooring (SPM) terminal is under construction to facilitate the import of crude oil by large tankers, further enhancing Matarbari’s strategic importance.
Beyond the short-term advantages of trade, Matarbari has significant economic potential. A 3,500-acre Maheshkhali Economic Zone is being developed only four kilometers from Matarbari. Both domestic and foreign businesses are expected to be drawn to this area, creating new job opportunities and stimulating the economy. Businesses operating in Maheshkhali will benefit greatly from the logistical advantages of the economic zone’s close vicinity to Matarbari port, which will facilitate the import of manufacturing supplies and speed up the export of completed items.
Furthermore, the strategic location of Matarbari port offers opportunities for regional trade, drawing in nearby nations like China, India, Nepal, Bhutan, Myanmar, and Indonesia. India and Bangladesh share 23 land ports, 11 of which are in use. India and other nearby nations could gain from effective land port cargo transportation by using Matarbari as a docking and unloading location. Myanmar could potentially benefit from this seaport, strengthening regional commercial ties, as it has a land port at Teknaf, which is only 108 kilometers from Matarbari. These changes increase Bangladesh’s economic resilience by providing a new source of income through transit fees.
In summary, the Matarbari Deep Sea Port promises to become a cornerstone of Bangladesh’s trade infrastructure. With its capacity to accommodate large vessels, streamlined inland connectivity, and strategic location for regional trade, Matarbari is poised to bolster Bangladesh’s economy and position the country as a vital shipping hub in South Asia (Barai, 2020).
Environmental Considerations
Large-scale dredging required for port construction impacts marine life, local fisheries, and mangrove ecosystems. Thus, the use of advanced dredging techniques to minimize sediment dispersal, reduce impact on marine biodiversity, and prevent excessive turbidity. Wastewater treatment facilities were built to treat construction runoff and prevent contaminants from entering local waters. Sediment control measures, such as silt curtains and sediment traps, were employed to limit turbidity and prevent harmful substances from spreading. There were also restrictive dredging schedules to avoid critical breeding seasons for marine species, protecting local fish populations. The development of breakwaters and sediment traps along the port’s artificial channel was critical for reducing water flow disruption and minimizing sedimentation, which can harm local marine ecosystems (Japan International Cooperation Agency – JICA, 2018).
In areas surrounding the project site, habitats of sea turtles are confirmed in the southern part of Dhalghata. However, the area is not defined as an important habitat for them as there are surveys that the frequency of the turtles’ nesting is very rare compared to the frequency in Sonadia Island. Sonadia island is 15 km away from the project site and the influence of various constructions and operations is considered to be minor, but it is a critical natural habitat for rare species and it needs special consideration. Since the Sonadia site and surrounding project site, where various valuable species exist are thus located, it is proposed to implement awareness programs for construction workers and neighboring residents to deepen their understanding of rare species.
An Environmental Impact Assessment (EIA) was completed; the recommended measures include green buffer zones, water quality monitoring, and climate-resilient port infrastructure. These assessments alarmingly signal failure to meet energy and clean air standards. There needs to be a visible improvement in this case otherwise it might significantly raise the risk of acute and chronic diseases and symptoms (Centre for Research on Energy and Clean Air (CREA), 2022).
Challenges and Solutions
Environmental Sensitivities
Challenge: The construction site is in an ecologically sensitive area with rich marine biodiversity, nearby mangrove ecosystems, and local fish populations. Activities like dredging risked damaging these ecosystems.
Solution: Environmental Impact Assessments (EIA) were conducted before construction to design appropriate mitigation plans. Environmentally sensitive dredging techniques, along with barriers and turbidity screens, were used to limit sediment spread. Construction schedules were adjusted to avoid critical breeding seasons for marine life.
Water Pollution and Sediment Control
Challenge: Dredging and construction activities posed risks of water pollution and increased turbidity, potentially impacting local fisheries and water quality.
Solution: Wastewater treatment facilities were built to treat construction runoff and prevent contaminants from entering local waters. Sediment control measures, such as silt curtains and sediment traps, were employed to limit turbidity and prevent harmful substances from spreading.
Air Quality and Emissions
Challenge: Increased emissions from construction machinery and transport threaten air quality in the local area, which could affect both residents and ecosystems.
Solution: Low-emission machinery and equipment were prioritized, and dust suppression methods, such as water sprays, were used to reduce air pollution. Regular air quality monitoring was set up to ensure compliance with environmental standards.
Soil Erosion and Coastal Stability
Challenge: Coastal erosion posed a risk to the stability of the construction site and nearby communities. Soil disturbances from construction increased erosion potential, impacting the coastline.
Solution: Coastal protection structures, such as revetments and seawalls, were built to prevent erosion. Re-vegetation and soil stabilization techniques, like planting grass and using erosion control mats, were implemented in disturbed areas to improve stability.
Noise Pollution and Impact on Wildlife
Challenge: Noise from construction activities disturbed both local communities and wildlife, particularly during nighttime work.
Solution: Noise-reducing technologies were used, and strict working hours were enforced in sensitive areas. Sound barriers were installed near noise-sensitive zones to minimize disruption, and work schedules were adjusted to avoid peak activity times for wildlife.
Community Displacement and Livelihood Impact
Challenge: Local communities, especially those reliant on fishing, faced the risk of displacement or loss of income due to changes in the marine environment and restricted access to certain areas.
Solution: Compensation packages and livelihood support programs were offered to affected communities, including skill development and alternative employment opportunities. Community engagement initiatives ensured ongoing consultation, allowing local voices to influence decisions.
Logistical and Infrastructure Limitations
Challenge: The remote location of Matarbari required extensive logistical planning to transport equipment, materials, and personnel, adding costs and delays.
Solution: Improved transport infrastructure, including temporary access roads, was developed to facilitate the movement of materials. A project staging area was established nearby to streamline logistics and reduce transportation time.
Climate and Weather-Related Challenges
Challenge: Bangladesh’s susceptibility to extreme weather, such as cyclones and heavy monsoons, posed construction delays and infrastructure risks.
Solution: Climate-resilient construction practices were incorporated, including the use of cyclone-resistant materials and elevated structures. The project timelines were adjusted to avoid peak monsoon and cyclone seasons.
Waste Management Challenges
Challenge: The construction phase generated significant waste, including hazardous materials, which required effective disposal to avoid contamination.
Solution: A comprehensive waste management plan was implemented, featuring dedicated waste disposal facilities, recycling programs, and regular audits. Training programs for staff on waste handling helped ensure compliance with environmental standards.
Regulatory Compliance and Bureaucratic Hurdles
Challenge: Navigating regulatory requirements and obtaining permits involved complex bureaucratic processes, leading to potential delays.
Solution: A dedicated project management team worked closely with government agencies to expedite the approval process and ensure compliance. Continuous documentation and reporting were maintained to meet regulatory standards efficiently (Invest Bangladesh, 2024).
Future Prospects
The Matarbari Deep Sea Port is a key component of Bangladesh’s broader infrastructure development plan, designed to support the nation’s growing trade and energy needs. It is set to play an essential role in both international shipping and the Matarbari coal-based power plant, which is a significant energy project for the country.
The port’s development is slated for completion in December 2026. By that time, the port will be fully operational and capable of handling larger vessels, offering enhanced capacity for bulk cargo, containerized goods, and energy resources, particularly coal, which is central to Bangladesh’s expanding energy sector. A specialized facility will handle the importation of coal for the power plant, making it an integral part of the power generation process. The port will accommodate bulk coal shipments, which will be offloaded and transported to the power plant for processing. The coal-based power plant is planned in phases, with the first unit expected to start operation in the coming years. The port will provide direct support for the plant by enabling the efficient import of large volumes of coal, ensuring a steady and cost-effective fuel supply. It will also help strengthen Bangladesh’s maritime trade position in the region (PressXpress, 2023).
Community Impact
Employment Opportunities
The Matarbari Deep Sea Port project is poised to significantly impact the local community in Maheshkhali and surrounding areas, especially through job creation and infrastructure development. Given the scale and long-term nature of the project, these effects are expected to be transformative for both the economy and the daily lives of residents. The port development and the related projects—such as the Matarbari coal-based power plant—are expected to generate a significant number of direct and indirect jobs in the following areas:
Construction Jobs: During the construction phase, which spans several years, thousands of workers will be required for various tasks such as building port infrastructure, roads, bridges, and terminals. This will include skilled workers, laborers, engineers, and project managers.
Port Operations: Once operational, the port will require staff for day-to-day management, including port handlers, customs officers, security personnel, administrative staff, and management roles. These jobs will support long-term employment for residents.
Power Plant Employment: The nearby coal-based power plant also offers a substantial number of jobs for the local community. It will require a workforce for plant operation, maintenance, logistics, and environmental monitoring.
Indirect Employment: In addition to direct jobs at the port and power plant, the project will stimulate demand for supporting industries. This includes local businesses such as restaurants, hotels, transportation services, and construction material suppliers, further boosting employment in the region (Islam, 2023).
Infrastructure Improvements
The Matarbari Deep Sea Port project is accompanied by a massive overhaul and development of local infrastructure, which will improve the quality of life for residents and foster further economic growth in the area. Key infrastructure improvements include:
Roads and Transport: New roads and transportation links will be constructed to connect the port with the rest of the country, enhancing connectivity with major cities like Chittagong (Chattogram). The roads will also serve residents, improving access to markets, education, healthcare, and other services.
Electricity and Utilities: With the development of the port and power plant, there will be a greater need for reliable electricity supply and improved water and sanitation services in the region. This will benefit both the local population and the industries in the area.
Housing and Local Amenities: To accommodate the influx of workers and their families, there will be investments in housing development. This may include both temporary housing for construction workers and permanent housing for staff working at the port and power plant. Improved amenities like schools, healthcare facilities, and recreational spaces are also likely to be part of the development plan (Rodrigue, 2024).
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