Akhlaqur Rahman Sachee, Team MBR

Wahid Hasan Kutubuddin is currently working as the director of the Institute of Bay of Bengal and Bangladesh Studies at Bangabandhu Sheikh Mujibur Rahman Maritime University. He served as a defence officer for 35 years and retired as commodore of the Bangladesh Navy in 2021. Before joining Bangabandhu Sheikh Mujibur Rahman Maritime University, he served in the blue economy cell of the government of Bangladesh. He has expertise and research interests in the fields of ocean governance, blue economy, maritime security, and maritime cooperation. Team MBR was in a conversation with Mr. Kutubuddin and was fortunate enough to receive his take on Bangladesh’s blue economy.

Akhlaqur Rahman Sachee: Bangladesh has 200 nautical miles of economic zone in the ocean area, which surely indicates a great potential for the blue economy. How much of the opportunity has, in your opinion, been explored so far?

Wahid Hasan Kutubuddin: Only a few of the blue economy’s potential industries have been explored by Bangladesh so far, including fisheries, shipbuilding, shipbreaking, salt production, and port infrastructure. Even so, most of these industries continue to use outdated practices, and there is potential to expand further by adding innovation and technology. At present, Bangladeshi trawlers catch fish within 35 to 40 nautical miles of the coast. But our economic zone is 200 nautical miles. There is a special opportunity to strengthen the blue economy by acquiring deep-sea fishing technology. There are a good number of seaweeds in the Bay of Bengal. These weeds can be processed to make food, medicines, and nutritional supplements. People also eat seaweed as food in China, Japan, and different countries in Europe. So, there is a huge prospect for exporting these seaweeds. In addition, Bangladesh has little to no exposure to a variety of blue economy sectors with significant economic potential, including desalination, blue carbon, marine biotechnology, oil, gas, renewable energy, and mineral exploration. Due to the lack of innovation, and efficient and skilled manpower, those potential sectors remain untapped.

Akhlaqur Rahman Sachee: The gas reserves of our country are depleting fast, and the reserves can meet the demand for roughly 10 years at the current rate of consumption. Do you think the Bay of Bengal has a role to play here in meeting the demand for gas in the upcoming days? What is your opinion regarding the prospect of gas extraction from the Bay of Bengal?

Wahid Hasan Kutubuddin: Bangladesh has yet to determine the actual value of its offshore gas potential. So far, we have discovered some gas reserves in Cox’s Bazar, Sangu, Kutubdia, Magnama, and Hatia in shallow waters in the Exclusive Economic Zone (EEZ) of Bangladesh. We have also discovered the presence of gas in deep water near Myanmar’s found gas reserves, but the government’s financial terms are not suitable for foreign investors. At this moment, a 2D multiclient seismic survey is ongoing under PetroBangla to identify prospects for gas reserves in our EEZ. There are also prospects of gas extraction from gas hydrates located within the EEZ of Bangladesh, as revealed by various research. At the preliminary stage, it is not economically viable to extract gas from gas hydrates in the EEZ. But the gas reserves of our EEZ can play a vital role in meeting the country’s demand if we harness the existing resources properly through appropriate policy decisions, which are so far not very conducive for foreign investors. Side by side, our local gas exploration company, BAPEX, should also acquire the technological know-how to operate in the offshore area within the EEZ of Bangladesh.

Akhlaqur Rahman Sachee: Tourism is one of the top foreign exchange earners in many developed countries. Bangladesh, having the longest seashore in the world, has much more room to excel in this sector. What suggestions do you have for the tourism sector to flourish to its fullest?

Wahid Hasan Kutubuddin: In Bangladesh, so far, relatively limited maritime tourism has been developed in spots like Cox’s Bazar, Teknaf, and St. Martin’s Island. In addition, in the western part, Sundarbans-based tourism has flourished for the last few years. Although little success has been achieved in coastal tourism, sea cruises have largely remained ignored. However, we should all be aware that the tourism sector is heavily dependent on the ocean ecosystem, and any investment in a waste disposal system would benefit maritime tourism through improved sanitation and the preservation of the ecosystem. In this regard, my suggestions to encourage the growth of the marine tourism sector in Bangladesh are as follows:

1. Various water sports facilities and other facilities like camping, floating hotels, and restaurants can be introduced.
2. Entertainment zones with the inclusion of casinos, nightclubs, bars, modern cinema theatres, spa and massage centres, and bar-b-q facilities can be established.
3. The government of Bangladesh as well as private tour operators, need to be more proactive in attracting famous cruise lines to add stops in the Bangladeshi ports.
4. Participation by the private sector is necessary and should be encouraged to improve the marine tourism sector, both in terms of infrastructure development and providing tourism services.
5. The highest priority should be given to ensuring a safe and secure environment for the tourists round the clock.
6. Finally, the establishment of specialised academic and training centres is needed to create skilled manpower for tourism across the country.

Although the tourism industry makes a significant contribution to the blue economy, it also has adverse consequences for the environment and natural resources, including pollution, an overabundance of visitors, coastline erosion, and improper management of tourist destinations. Thus, all stakeholders, including the government, should give emphasis to investment in environmental protection because a study reveals that a one-dollar investment in environmental protection will give a dividend of ten dollars to the tourism industry. So, we all should strive for eco-friendly, planned maritime tourism.

Akhlaqur Rahman Sachee: Exports of fisheries, prawns, and shrimp significantly contribute to our export earnings. However, marine capture is responsible for 15.31% of total fish production. How can we maximise earnings from marine capture?

Wahid Hasan Kutubuddin: The marine fishery is an essential component of Bangladesh’s blue economy and has increased by more than 140,043 lakh tonnes in the last decade, according to the Marine Fisheries Department. Bangladesh ranks 3rd in inland fish production, 5th in aquaculture, and 11th in marine fish production. Our fishermen can mainly cover distances of up to 50 nautical miles and with the present conventional and motorised fishing methods, they cannot fish on the high seas. In the Bay of Bengal, 8 million tons of fish are caught by other countries, whereas Bangladesh’s share is only 93,000 tons. Bangladesh must now introduce deep sea fishing for marine capture components, as other countries have done, to meet the country’s demand for marine capture fish in the future. However, the government is now actively considering giving licences to foreign vessels to fish in the deep sea, where local vessels do not go. By providing this opportunity, deep-sea fishing will be possible. In that case, local firms will work jointly with foreign firms to catch fish using modern vessels and state-of-the-art technology. Moreover, to maximise earnings through marine capture, the government should allow direct export of fish caught at deep sea beyond 150 nautical miles from our coast using factory 18 of 36 ships by charging necessary export duties. We should also establish an ample number of fish processing plants so that all parts of the fish can be utilised properly.

On the other hand, mariculture, or marine farming, is a specialised branch of aquaculture and will continue to be a major producer of marine fisheries in many coastal countries. Its future growth must take place in Bangladesh’s coastal waters, backed up by effective policy and planning initiatives and regulations. It will not be easy to introduce mariculture, but constant training, technology, and feeding depending on the species selected, would be necessary. For this, a specific project may be undertaken to build capacity with appropriate technology for certain species, such as grouper, millet, sea bass, and abalone, among others, with interested fishermen in the appropriate coastal waters south of the Sundarbans.

Akhlaqur Rahman Sachee: As per a report published recently, effective logistics can enhance the volume of exports from Bangladesh by 20%. How can marine transportation play its role in contributing to this projection?

Wahid Hasan Kutubuddin: In Bangladesh, marine transportation is the most cost-effective way to transport goods over long distances, especially bulk cargo. Thus, marine transportation can play a significant role in enhancing the volume of exports from Bangladesh by providing efficient and cost-effective transportation of goods to global markets, enhancing the competitiveness of Bangladesh’s exports. Here, the country’s proximity to major shipping lanes and access to ports can be leveraged to facilitate the flow of goods, reducing transportation time and costs. Furthermore, the ongoing development of port infrastructure (in all seaports of Bangladesh, including Matarbari) and the implementation of modern shipping practices, including direct service and short sea routes agreements, can enhance the reliability and speed of marine transportation, making it a more attractive option for exporting goods from Bangladesh. For example, European shipping companies are going to link Chittagong directly with Europe, giving Bangladesh’s major export market for apparel a boost. Meanwhile, another foreign shipping company is constructing a 200,000-square-foot custom bonded warehouse in Chittagong in partnership with a local organisation to ease congestion and improve the flow of cargo into and out of Bangladesh. Additionally, intellectual capital can play a crucial role in helping Bangladesh achieve the 20% projected export growth through the maritime transportation sector. Some ways in which it can do so include,

Skilled Workforce: Investing in training and development programmes for workers in the sector can help Bangladesh develop a highly skilled and knowledgeable workforce. This can improve operational efficiency and competitiveness.

Adoption of Technologies: Adopting new technologies and digital solutions in the sector can help improve cargo handling, reduce costs, and enhance overall productivity.

Market Intelligence: Utilising market intelligence to better understand the needs of customers and stay ahead of industry trends can help Bangladesh position itself as a reliable provider of maritime transportation services.

Strategic Partnerships: Building strategic partnerships with other players in the industry can help Bangladesh leverage its expertise and resources to expand its footprint in the market and achieve greater growth.

In addition, we must give a lot of importance to maritime transportation via the river routes of Bangladesh. The full potential of river routes has not yet been used. Similarly, given an average import growth rate and export growth rate of 15.75% and 15.43%, respectively, during the past ten years, the predicted freight value for the next ten years is roughly USD 435 billion. To keep a portion of the USD 400 billion in the country over the next ten years, Bangladesh must provide sufficient incentives to local shipping companies to add more ships to the existing fleet, as well as to freight operators to establish freight services, including container liner services, to transport goods to and from Bangladesh using our own as well as chartered ships and freighters.

Akhlaqur Rahman Sachee: The Bangladesh Freight Forwarders Association (BAFFA) raised the fees for freight forwarding, which has resulted in an astonishing 57% rise in freight forwarding expenses for Bangladeshi firms. How can the government, in your opinion, intervene to reduce the burden on the firms?

Wahid Hasan Kutubuddin: The BAFFA has increased the freight forwarding fees on each import bill, blaming the high price of fuel in Bangladesh. In this regard, first, we need to have a national logistics policy following other regional countries like 19 of 36 Indonesia, Thailand, and India that will dictate how the logistics process in Bangladesh, such as infrastructure development, customs, transportation, and trade policy, will efficiently operate. Then, the government can facilitate a negotiation meeting among the National Board of Revenue, the Ministry of Shipping, Chittagong Port, the Commissioner of Chittagong Customs, and the BAFFA president to clearly understand why freight forwarding fees have increased and how they can be reduced. The government should note that if transportation costs increase, it will also impact the cost of imported goods at the consumer level, while the export industry will also suffer as sourcing raw materials will cost more. At the same time, the government may give more importance to the digitalisation and adoption of technologies in the overall transport sector and finalise the National Single Window Project with the aim to further ease and speed up the process of export and import under one roof. The government should also further arrange stakeholder consultation to reduce the price of fuel in the domestic market to avoid the high cost of export and import in Bangladesh.

Akhlaqur Rahman Sachee: To reap the benefits of the blue economy in the long term, sustainable usage of marine resources is required. What initiatives can the stakeholders undertake to ensure sustainability?

Wahid Hasan Kutubuddin: First, all stakeholders must understand the concept of a sustainable blue economy. Then they should pursue the government to establish a proper apex body equipped with sufficient resources and manpower to govern the blue economy of Bangladesh. Here, they should actively consider using a satellite-based monitoring system for the fish stocks of our EEZ to increase the capability of marine fish capture and protect the available resources. A long-term spatial plan for fishing will have to be prepared by considering the military strategy, security, and commercial use of our EEZ. The preparation of the spatial planning is going to be very crucial considering fisheries and conservation areas, shipping, strategic military areas, subsea mineral resources, mining and mining sites, cables and pipelines, coastal security, nature conservation, research, etc. Foreign vessels must not be allowed to fish in areas where local boats can go fishing. They should also promote the determination of the true potential of marine renewable energy through appropriate mapping projects. They should also be encouraging seafood-based restaurants and seafood-based trade. Similarly, they must invite the government to determine the true potential of hydrocarbon reserves in the EEZ and formulate related policies that would attract further foreign investment in this sector. The government should work on capability building of three existing seaports besides promoting eco-tourism. Additionally, the capability enhancement of maritime educational research and enhancing maritime institutions and research centres should also get priority.

Akhlaqur Rahman Sachee: It is beyond any doubt that our blue economy is largely untapped. What are the challenges we are facing to reap its true potential? What do you suggest to overcome these challenges?

Wahid Hasan Kutubuddin: A key challenge is governance. We need a proper governing body with proper authority. The lack of proper policy and resource personnel at the national policy level in the relevant ministry or department is a major challenge for the sustainable development of the blue economy in Bangladesh. Assuring the sovereignty of the entire coastal region as well as maintaining security in the EEZ, is a challenge. Further, the construction of eco-friendly marine infrastructure for the purpose of maritime tourism can be another challenging task, as we are yet to adopt world-class marine tourism. For the development of the blue economy, the government must maintain an investment-friendly environment within the EEZ. Moreover, the protection of coastal ecosystems, including mangroves and marine grass, will also be necessary. As we know, the sea level is rising due to climate change, and maintaining the sea level and managing the temperature difference in the environment will be difficult. The local tourists in Bangladesh are not concerned about the environment. Hence, keeping the sea clean of pollution and waste will be very difficult. Bangladesh has a lot to gain in terms of its natural resources, but due to the lack of implementation and enforcement of management measures, many opportunities remain untapped. The lack of proper knowledge and infrastructure may hinder the further progress of the blue economy in Bangladesh. To help overcome the above challenges, I suggest establishing an apex body, for example, the Blue Economy Authority, with ministerial power to coordinate the blue economy activities of related public and private entities. At the same time, the government should strongly consider allocating its annual development budget to implement the blue economy activities of all stakeholders.