The region is Ctg's oyster

Experts want deep-sea port to turn the city into economic hub in south, south-east Asia

Staff Correspondent

Chittagong has immense potential for becoming a regional economic hub but delays in building a deep sea port may mar the chance with Myanmar's move to do that.

Business and trade experts shared the concern at the economic conference “Future Chittagong: Future Bangladesh”, organised jointly by The Daily Star and the Chittagong Chamber of Commerce and Industry (CCCI) at the Chamber House of the port city yesterday.

The conference was part of the Odommo Chattagram festival, an initiative of The Daily Star to project the history, culture and economic prospect of Chittagong.

Participants of the discussion said Chittagong, which lies between China, Myanmar and Northeast India, could become a regional economic zone and contribute to the overall development of Bangladesh.

So, a regional economic zone should be set up in the port city to take advantage of its geographical position -- in South and Southeast Asia, said Salahuddin Kasem Khan, trustee secretary of AK Khan Foundation.

Citing example of China's success through establishing a Special Economic Zone (SEZ), he said India followed the model and is now building an SEZ in Mumbai port with a view to making the zone a vehicle for transformation of regional economy.

“This could also be out model as SEZ has been identified as an engine of growth,” he said, adding that the Indian authorities are building the zone under public private partnership (PPP).

According to Khan the SEZ could be built on the bank of the Karnaphuli River and extended to Cox's Bazar and thereon to the proposed deep sea port at Sonadia.

“It would be much beneficial for us,” he said suggesting that a tunnel be build under the Karnaphuli.

In 1995, Japan International Cooperation Agency (Jica) identified Chittagong as an area with great potential for an economic zone and its prospects to emerge as a major regional economic hub serving China, Myanmar and north-east India.

Citing Japanese investors' attempt to relocate factories from Thailand and China, he said a Japanese SEZ should be allowed to set up Chittagong.

“Japan can be a real development partner for Bangladesh in terms of factory relocation,” he said, suggesting further to take measures to develop the coastal belt.

Prof Muinul Islam of economics department at Chittagong University said Chittagong and the coastal belt were the golden goose for Bangladesh.

Citing China's interest to help Bangladesh build the deep sea port, he said India does not take this positively due to the geo-political reasons. “We have to handle the two countries carefully,” he added.

“Chittagong can serve the whole region -- South China, Myanmar, northeast India, Nepal and Bhutan. But an infrastructure and the deep sea port were needed to be built for this,” said Prof MA Taslim, chairman of Department of Economics at Dhaka University.

“There is no city in the region having the potential like Chittagong has. If we miss the chance Myanmar will snatch it,” said Prof Taslim, citing that after the election in Myanmar, foreign investors had been keen on investing in that country.

“If we can start building the deep sea port now, we can take the advantage,” he said.

Prof Taslim said Bangladesh needs big market for its growth and that is why, trade is a priority. Establishment of connectivity is necessary so that goods and services can move and thus boost trade.

“Connectivity creates the opportunity for trade and free movement of goods and services,” he said, adding that the lack of understanding on connectivity had created confusion over transit and connectivity.

As per international norms, Bangladesh does not required to give transit to India for carrying goods between its mainland and northeast states, Prof Taslim continued, but for a country such as Bhutan, it is obligatory to give the country access to the sea.

“If Bangladesh fails to build the deep sea port within five to 10 years, Myanmar is likely to take the geographical advantage,” said M Shahidul Islam, visiting research fellow of the Institute of Governance Studies at Brac University.

Referring to a study, he said the global growth would take place somewhere between India and China in the next 30 years and Chittagong also has the potential.

Syed Mahmudul Huq, chairman of Bangladesh-Myanmar Business Promotion Council, said the port city used to be known as the big port in the 14th century in China.

The deep sea port would not be viable only through facilitating overseas trade of the northeast India.

“We need China and Myanmar,” he said, adding that SEZ would have to be built centring the deep sea port. Huq favoured improvement in bilateral ties with Myanmar.

Former commerce minister Amir Khasru Mahmud Chowdhury said before framing any plan, priority should be given on land utilisation as land has become scarce in the country.

On SEZ, he said study should be done on whether SEZ would be beneficial if it is set up under the PPP or solely by the government.

The BNP leader also criticised the Dhaka centric development of industrialisation, and economic growth. Prospects of each district should be considered in economic planning.

On Myanmar, he said a holistic approach was needed to build stronger ties with the neighbouring country.

Posted in: Bangladeshi News