Flagship Research

Bangladesh's Blue Frontier

Maritime Economy, Resources, and Strategy for the Bay of Bengal

BDPolicy Lab · Last updated 2026-03-30

EEZ Area

118,813 sq km

Marine Catch

670,000 MT

Port Throughput

3,200,000 TEU

Ship-Breaking Yards

150

Blue Economy Index

37.7/100

Chapter 1: Maritime Domain

118,813 sq km EEZ: Bangladesh's Sovereign Maritime Territory

Bangladesh's exclusive economic zone of 118,813 sq km and continental shelf of 354,000 sq km, secured through the 2012 ITLOS ruling (vs Myanmar) and 2014 Annex VII Tribunal award (vs India), represent a maritime territory equivalent to 80% of the country's land area.

The Bay of Bengal is one of the world's least explored large marine ecosystems. Bangladesh's maritime jurisdiction spans 580 km of coastline, encompassing territorial seas of approximately 18,000 sq km, an EEZ of 118,813 sq km, and extended continental shelf rights over 354,000 sq km. The 2012 ITLOS judgment (Bangladesh v. Myanmar, Case No. 16) established the maritime boundary in the Bay of Bengal, awarding Bangladesh a substantial EEZ. The 2014 Annex VII Tribunal award (Bangladesh v. India) further clarified the western maritime boundary, completing Bangladesh's sovereign claim over its maritime domain.

Maritime Spatial Planning Gaps

Despite these landmark rulings, Bangladesh has yet to enact a Maritime Spatial Planning Act. The absence of a legal framework creates conflicts between trawler fishing grounds and artisanal fisher zones, between proposed offshore wind sites and shipping corridors, and between conservation areas and extractive activities. Only 8 of 26 designated offshore blocks have been meaningfully explored.

Bay of Bengal Resources

The Bay of Bengal contains significant hydrocarbon reserves (estimated 5.0 Tcf of natural gas), heavy mineral sand deposits along the continental shelf, and one of the world's largest mangrove ecosystems (the Sundarbans, 6,017 sq km). Marine protected areas currently cover 4.0% of the EEZ, far below the CBD Kunming-Montreal target of 30% by 2030.

Chapter 2: Marine Fisheries & Aquaculture

Catch Volumes, Shrimp Exports, and Sustainable Management

Marine fisheries produce 670,000 MT annually, supporting approximately 500,000 fishers. Shrimp and seafood exports generate $400.0M, but only 60% of the current catch is estimated to be within sustainable limits.

Hilsa: The National Fish

Hilsa (Tenualosa ilisha) accounts for roughly 12% of total fish production (570,000 MT). Seasonal fishing bans, including the 65-day Jatka protection period and 22-day peak breeding ban, have contributed to stock recovery. However, enforcement gaps persist, and cross-border migration patterns (shared stocks with Myanmar and India) require regional management frameworks.

Shrimp and Seafood Exports

Bangladesh's shrimp exports ($400.0M) face increasing competition from Vietnam, India, and Ecuador. Black tiger shrimp (Penaeus monodon) from extensive farming in Khulna and Satkhira, and white-leg shrimp (Litopenaeus vannamei) from semi-intensive systems, dominate exports. Key challenges include antibiotic residue compliance, EU food safety standards, disease outbreaks (white spot syndrome, EHP), and the environmental cost of mangrove conversion for shrimp ponds.

IUU Fishing and Deep Sea Gap

Illegal, unreported, and unregulated (IUU) fishing by foreign-flagged vessels costs an estimated $200-400M annually. Bangladesh lacks a modern deep sea fishing fleet capable of operating beyond the 200m isobath. Vessel Monitoring System (VMS) coverage of the artisanal fleet remains minimal. The Navy's maritime patrol capacity has improved under the Forces Goal 2030 programme, but enforcement remains insufficient for the scale of the EEZ.

Chapter 3: Ports & Maritime Trade

Chittagong, Mongla, Payra, and the Matarbari Deep Sea Port

Bangladesh's port infrastructure handles 3,200,000 TEU annually through Chittagong port alone. The JICA-funded Matarbari deep sea port (18m draft, 4M TEU planned capacity) will be the country's first facility capable of handling Panamax and post-Panamax vessels.

Chittagong Port

Chittagong port handles over 90% of Bangladesh's international trade. With a throughput of 3,200,000 TEU, it is the dominant gateway but faces chronic limitations: 9.5m draft restricts vessel size, average turnaround time exceeds 4 days, and road connectivity to the port is constrained. The ongoing Bay Terminal project aims to add container capacity, but structural congestion persists.

Mongla and Payra

Mongla port serves the southwest region (Khulna division) with approximately 100,000 TEU capacity, primarily handling bulk cargo, jute, and frozen food exports. Payra port (Patuakhali) is operational for coal and bulk cargo (10,000,000 MT capacity) but lacks container handling facilities. Both ports require channel dredging and improved hinterland connectivity.

Matarbari Deep Sea Port

The Matarbari deep sea port at Maheshkhali, Cox's Bazar, funded by JICA (estimated cost $3.5B+), will feature an 18m draft capable of receiving Panamax-class vessels. Planned capacity of 4,000,000 TEU would transform Bangladesh into a regional transshipment hub competing with Colombo and Singapore for Bay of Bengal cargo. Completion is targeted for 2027. The port will serve the adjacent Matarbari coal power plant and the proposed Maheshkhali economic zone.

Chapter 4: Ship-Breaking & Marine Industry

150 Yards, 3.5M MT Recycled, Environmental Standards

Chittagong's 150 ship-breaking yards recycle 3,500,000 MT of steel annually, accounting for roughly 50% of global ship recycling. The industry employs 200,000 workers and generates $2,500M in revenue, supplying 50-60% of domestic steel raw material.

Economic Contribution

The ship-breaking industry at Sitakunda (Chittagong) is a critical link in Bangladesh's industrial supply chain. Recycled steel from ship-breaking feeds the construction sector through re-rolling mills, making it one of the largest sources of ferrous scrap in the country. The 150 active yards process vessels ranging from small coastal cargo ships to Very Large Crude Carriers (VLCCs), with average annual revenue of approximately $2,500M.

Environmental and Safety Challenges

The sector faces serious environmental and occupational safety concerns. Hazardous materials, including asbestos, heavy metals, PCBs, and TBT-based anti-fouling paints, pose risks to workers and the coastal ecosystem. Worker injury and fatality rates remain high despite regulatory efforts. Coastal sediment contamination from decades of uncontrolled beaching operations has affected marine biodiversity in the Sitakunda area.

Regulatory Framework

The Bangladesh Ship Recycling Act 2018 and the country's ratification of the Hong Kong Convention (2023) for Safe and Environmentally Sound Recycling of Ships establish regulatory frameworks. The Hong Kong Convention, which entered into force in June 2025, requires Ship Recycling Plans, Inventory of Hazardous Materials, and facility certification. Bangladesh's compliance trajectory will determine whether its ship-breaking industry maintains access to EU-flagged vessels under the EU Ship Recycling Regulation.

Green Ship Recycling Transition

Several yards have begun transitioning to dock/slipway methods from beach beaching, investing in impermeable floors, drainage systems, and worker protective equipment. The cost of upgrading a yard to Hong Kong Convention standards is estimated at $5-15M per yard. International financing (IFC, ADB) and buyer-side incentives (EU Ship Recycling List) are critical enablers for this transition.

Chapter 5: Blue Growth Strategy

Offshore Energy, Blue Carbon, Marine Biotech, and Policy Priorities

Bangladesh's blue economy contributes approximately 3.0% of GDP and supports 5,000,000 coastal livelihoods. The Blue Economy Index stands at 37.7/100, indicating significant untapped potential across offshore energy, marine biotech, and blue carbon.

Offshore Energy Potential

Offshore wind potential in the Bay of Bengal is estimated at 20+ GW (IRENA/SREDA), concentrated in the shallow-water zone off Kutubdia, Moheshkhali, and Sandwip. No offshore wind projects have commenced. A 100 MW pilot in the Kutubdia-Moheshkhali corridor through public-private partnership would demonstrate feasibility. Offshore gas exploration remains stalled: only 8 of 26 blocks explored, with unfavourable PSC terms deterring IOC interest. Estimated reserves of 5.0 Tcf could extend declining onshore supply by 15-20 years.

Blue Carbon

The Sundarbans mangrove forest (6,017 sq km) is a globally significant blue carbon asset. Mangroves sequester 3-5x more carbon per hectare than terrestrial tropical forests. Bangladesh could monetize this through verified blue carbon credits (VCS/Verra), potentially generating $50-100M annually. Additional blue carbon sinks include seagrass beds and coastal wetlands, though inventory data is limited.

Marine Biotechnology

Seaweed production stands at 200 MT from pilot farms in Cox's Bazar. The sector has potential for food ingredients, animal feed, agricultural bio-stimulants, and biofuel feedstock. Marine pharmaceutical research (bioactive compounds from Bay of Bengal organisms) is negligible despite the region's biodiversity. Coastal tourism (Cox's Bazar, St. Martin's, Kuakata) generates approximately $120.0M but remains constrained by infrastructure deficits.

Policy Priorities

Enact a Maritime Spatial Planning Act: Establish legal framework for EEZ zoning, resolving conflicts between fisheries, shipping, energy, and conservation. Create a National Maritime Authority with regulatory power.
Modernize Deep Sea Fishing Fleet: Subsidized financing for 50-100 deep sea vessels. Partner with South Korea, Japan, Thailand for technology transfer. Reduce IUU losses of $200-400M annually.
Launch Offshore Wind Pilot: Commission 100 MW in Kutubdia-Moheshkhali corridor via PPP. Demonstrate viability of 20+ GW potential.
Monetize Blue Carbon: Register Sundarbans carbon stocks under VCS/Verra. Allocate revenue to mangrove restoration and coastal livelihoods.
Green Ship Recycling Transition: Finance yard upgrades to Hong Kong Convention standards. Maintain access to EU Ship Recycling List. Target $5-15M per yard through IFC/ADB financing.
Expand Marine Protected Areas: Increase MPA coverage from 4.0% toward 30% CBD target. Prioritize Swatch of No Ground, St. Martin's coral reef, and Sundarbans buffer zones.

Sources

ITLOS (Case No. 16, 2012) · Annex VII Tribunal (BD v. India, 2014) · Department of Fisheries (DoF) Yearbook 2022-23 · Bangladesh Export Promotion Bureau · Chittagong Port Authority · Mongla Port Authority · Payra Port Authority · JICA · Petrobangla / BAPEX · IRENA / SREDA · IUCN / MoEFCC · BBS National Accounts · SBRA / IMO · ILO · Hong Kong Convention (IMO) · EU Ship Recycling Regulation

Generated on 2026-03-30. Analysis by BDPolicy Lab.