A catalyst for economic transformation in southern Chattogram

In the heart of Anwara upazila, Chattogram, along the scenic route from Chatri Chaumuhani to PAB Road, Md Masud Rana had opened the Tunnel Restaurant a year ago. Today, this local eatery stands as a testament to the transformative power of the Bangabandhu Tunnel, Bangladesh's first underwater tunnel.

For Rana, who had a catering business in Chattogram city, the decision to venture into this new enterprise was driven by the remarkable prospects that the tunnel brought to the region.

Rana's decision proved right, as his restaurant now serves 500-600 customers per day. He has even recently bought another shop in front of the Chinese economic zone.

"Industrial investment is increasing here because of the tunnel. Anticipating that possibility, I left the city to come to this rural area and started my business. This tunnel has transformed our destiny," he told The Business Standard.

Masud Rana's restaurant is just a small example of the economic activity surrounding the Bangabandhu Tunnel, a Tk10,690 crore underwater tunnel connecting the port city of Chattogram with Anwara upazila on the south bank of the Karnaphuli River. Over the past five years, hundreds of factories have been established in the region, and large industrial groups are buying land for future expansion.

The tunnel has been designed with the idea of 'One City, Two Towns', a model based on the 'One City, Nine Towns' idea of China's Shanghai. 

Masud Rana said everything is changing very fast in Anwara, with economic zones and industrial factories being set up everywhere. He is hopeful that his business will increase once the tunnel opens, as it will lead to a lot of employment opportunities in the area.

According to a 2013 feasibility report, the Bangabandhu Tunnel is expected to have a significant impact on the Anwara-Karnaphuli region, transforming its economy from one that is primarily dependent on agriculture to one with a thriving industrial sector.  The tunnel is also projected to contribute 0.166% to the GDP.

A Development Project Plan (DPP) for the tunnel estimates that the financial internal rate of return (FIRR) will be 6.19% and the economic internal rate of return (EIRR) will be 12.49%, ie, the tunnel is expected to generate significant financial and economic benefits.

Abul Bashar Mohammed Fakhruzzaman, deputy commissioner of Chattogram, said industrial establishments have bought up land on the south bank of the Karnaphuli River, driving up land prices eight to 10 times, depending on the location. The Bangladesh Economic Zone Authority (BEZA) has also requested land from the district administration, but none has been allocated yet.

Drive for industrialisation

Economic activities in the southeastern region of Bangladesh, from Mirsharai in Chattogram to Cox's Bazar, are already ramping up ahead of the opening of the Bangabandhu Tunnel. Multi-storied buildings have sprung up on both sides of the approaching road to the tunnel from the PAB road, as the government works to develop the region as an economic, logistics, and power hub.

Most of the industrial zones under implementation in Chattogram, including the Korean EPZ, Anwara Economic Zone, Chinese Economic Zone, Anwara-2 Economic Zone, Patia, Kazi Farms Economic Zone, Cox's Bazar Special Economic Zone in Maheshkhali, and Maheshkhali Economic Zone-3, are poised to benefit from the tunnel.

Syed Nazrul Islam, first vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told TBS that the Bangabandhu Tunnel will play a major role in expanding industrialisation in the future, given the region's import and export facilities, including the Chattogram Port, Deep Sea Port, and Bay Terminal. The tunnel will also help to transform Anwara and Karnaphuli upazilas into cities, attract domestic and foreign investment, create employment, and increase export income.

"With the region's full-fledged industrialisation, the Shah Amanat Bridge will not be sufficient to handle the increased traffic demand. The Bangabandhu Tunnel will play a major role in addressing this need," he added.

Mostafa Hakim Group, one of the largest industrial groups in the country, has launched a steel factory and an oxygen plant on the south bank of the Karnaphuli River at a cost of Tk1,500 crore centred on the Bangabandhu Tunnel. About 2,000 workers are currently working in these two factories.

Other industrial establishments, including Super Pharmaceutical Limited, Partex Petro Limited, Acorn Infrastructure Service Limited, and BN Lubricant, have built factories in Juldha of Karnaphuli upazila. Bellamy Textile, ATP International Limited, GSL Export, Benchmark Apparel, and USA Battery Factory have already started production in Khawaja Nagar and Ichanagar areas of Karnaphuli.

Apart from this, more than a hundred industrial companies, including Akij Group, Four H Group, Diamond Cement, S Alam Group, and Partex Group, have purchased land for setting up factories in Karnaphuli and Anwara upazilas.

Economist and former professor of Chittagong University Moinul Islam told TBS, "Through the tunnel, easy communication will be developed among the Matarbari Deep Sea Port, Chattogram port, Bay Terminal, and the Mirsharai Economic Zone. The impact will be far-reaching. It will act as a bridge to build the country's largest industrial corridor from Mirsharai to Cox's Bazar; it will also be a significant part of the Asian Highway."

On the other hand, many elite restaurants, modern hotels, and motels have been built in Anwara's Chatri Choumuhani and Bandar Centre areas around the new industrial factories that have been built alongside KEPZ, Karnaphuli Fertiliser Company Limited, DAP Fertiliser Company, and Chattogram Urea Fertiliser Limited.

Along with the industrialisation in Anwara and Karnaphuli upazilas centred on the Bangabandhu Tunnel, the housing sector is also expanding. Many multi-storied buildings are being constructed, and house rent signboards hang in front of houses.

Chattogram's housing sector company CPDL has taken up the plan of a satellite city in Anwara Sadar upazila. For this purpose, they are also establishing a separate company called CPDL Neer.

CPDL President Engineer Iftekhar Hossain told TBS, "We have eight acres of land. Besides, the process of buying more land is going on. We want to make a satellite city. There will be 800-1,000 flats in the initial phase. There are plans to have more open space. Its own shuttle bus service will be launched in that city. So that people can travel to the city in a short time through the tunnel. There are also plans to have cottages at Parki Beach."

Albion Group Chairman Raisul Uddin Saikat said, "Keeping in mind the economic potential of the south, we have built a distribution house next to the approach road of the tunnel from where raw materials are supplied to Unilever and Marico Company."

Urge for a master plan

Experts say that a master plan is needed for the planned urbanisation in the future in south Chattogram, including Anwara and Karnaphuli upazilas. Additionally, leading businessmen suggest building international standard roads and highways that can accommodate high-loaded vehicles to reap the full benefits of the tunnel.

Mohammed Amirul Haque, managing director and CEO of Premier Cement Mills Limited, said, "There should be proper planning for the new township to be developed on the southern side. There is a lot of barren land there, so there should be a precise master plan. If we can develop the twin city in a planned way, it will have a greater impact."

Aameir Alihussain, Managing Director of BSRM, said first, the connectivity should be quick. "If it takes hours to cross the tunnel, it will not work. Secondly, we have to evaluate if the transport cost is saved. Logistics costs in our country are very high, mainly because of infrastructure issues. So when we implement an infrastructure project, we must think of reducing the logistics cost," he added.

Abdul Qayyum Chowdhury, vice president of the Real Estate and Housing Association of Bangladesh (REHAB), told TBS that a master plan must be formulated now to develop South Chattogram on the model of China's Shanghai city, or else the southern end of the tunnel will be destroyed due to unplanned urbanisation, similar to Chattogram city.

Kazi Hasan Bin Shams, acting chief urban planner of the Chattogram Development Authority (CDA), said that the southern end of the tunnel will be added to the master plan that is currently being prepared for Chattogram.

"Permission is currently being given from the municipality or upazila to establish businesses and buildings there, but the CDA has informed the ministry that this will be controlled once the tunnel opens. In the future, everything, including buildings and designs, will be controlled by the CDA," he said.