Japan wants to link India’s northeast to Bay of Bengal through Bangladesh’s Matarbari port

Japan is planning an ambitious regional connectivity network centred on Bangladesh’s Matarbari deep-sea port, seeking to link India’s seven northeastern states with the Bay of Bengal and Southeast Asia through Bangladesh.

The proposal comes ahead of Prime Minister Tarique Rahman’s expected visit to Tokyo later this month, when Bangladesh is likely to seek fresh Japanese financing for major infrastructure and industrial projects.

Senior diplomatic sources in Japan’s Ministry of Foreign Affairs told Indian newspaper The Hindu that Tokyo wants to develop an “industrial value chain” around Matarbari, turning the Japanese-funded port into a regional manufacturing, logistics and trade hub.

The plan would connect Bangladesh with India’s northeast, Nepal, Bhutan and Myanmar, creating an economic corridor stretching from the Himalayan region to the Bay of Bengal.

A senior Japanese diplomatic source told The Hindu that Matarbari has the potential to transform Bangladesh into a regional industrial hub.

The proposed network would give India’s landlocked northeastern states greater access to maritime trade routes through Bangladesh while expanding the commercial importance of Matarbari.

Japan sees the port as a critical piece of infrastructure for the wider Bay of Bengal region.

Once completed, Matarbari is expected to become Bangladesh’s only deep-sea port capable of directly accommodating large ocean-going vessels.

Bangladesh currently relies heavily on transshipment facilities in Singapore, Colombo and Malaysian ports to handle cargo carried by larger ships.

The Japanese-funded project could reduce that dependence and strengthen Bangladesh’s position in regional shipping.

Tokyo looks to replicate Southeast Asia’s industrial corridor

Japanese diplomats are drawing inspiration from the Southern Economic Corridor linking Thailand, Cambodia and Vietnam.

That corridor, supported by Japanese financing and infrastructure planning, helped develop manufacturing and trade networks around Bangkok and neighbouring economies.

A senior Japanese official told The Hindu that Bangkok’s development through its ports and the Southern Economic Corridor offers a model for the Matarbari initiative.

Tokyo wants to replicate that approach in the Bay of Bengal, using Matarbari as the anchor for industrial development and cross-border trade.

The proposed network would bring together Bangladesh, India, Nepal, Bhutan and Myanmar.

The objective is not merely to improve transport links but to establish an integrated industrial value chain in which production, logistics and trade can operate across national borders.

Matarbari’s deep-sea port would serve as a maritime gateway for this network.

The Japan International Cooperation Agency (JICA) has been financing the port’s development.

Much of the project’s construction and planning progressed during Sheikh Hasina’s government, when Bangladesh maintained relatively stable relations with India and cross-border connectivity initiatives received political support.

One such initiative was the Maitri Bridge over the Feni River, connecting Bangladesh with India’s Tripura state.

The bridge was intended to improve access from northeast India to Chattogram and, eventually, Matarbari.

However, the bridge remains non-operational amid political uncertainty and strained relations between Dhaka and New Delhi.

The diplomatic tensions have complicated efforts to develop transport and trade links across the border.

Japanese officials nevertheless remain optimistic about the long-term prospects for cooperation between Bangladesh and India.

They believe improved connectivity between Bangladesh, India’s northeast and neighbouring countries would make Matarbari more commercially viable.

The proposed industrial corridor would also expand the port’s potential customer base beyond Bangladesh’s domestic economy.

Tarique’s Tokyo visit puts Matarbari financing in focus

The Japanese proposal comes as Dhaka and Tokyo prepare the agenda for Tarique’s expected four-day visit to Japan.

Bangladesh’s Foreign Ministry earlier announced that Japanese Prime Minister Sanae Takaichi had invited Tarique for the visit.

The trip is expected to take place toward the end of October, although The Hindu reported on October 17 that neither side had formally announced the final schedule.

Diplomatic sources told the newspaper that discussions were underway to finalise the bilateral agenda.

The Maheshkhali-Matarbari Integrated Infrastructure Development Initiative is expected to feature prominently in those talks.

Bangladesh is likely to seek Japanese financial assistance for several development projects covering the 2026–2031 period.

These include the Matarbari industrial, port and commercial hub.

Tarique visited Matarbari in August and received a briefing on the project’s progress and further development requirements.

The visit was part of the government’s preparations for advancing the infrastructure programme.

The proposed Japanese financing would support efforts to develop Matarbari beyond a standalone port into a wider industrial and commercial centre.

The initiative would require supporting infrastructure, including transport connections and industrial facilities, to make the port accessible to businesses across Bangladesh and neighbouring countries.

The discussions come at a sensitive moment in Bangladesh’s regional diplomacy.

Dhaka’s relations with New Delhi have faced repeated strains since Hasina’s removal from power in August 2024.