Executive Summary

Bangladesh's maritime domain of 118,813 sq km EEZ and 354,000 sq km continental shelf, secured through landmark ITLOS (2012) and Annex VII Tribunal (2014) rulings, represents one of the country's most significant economic frontiers. The blue economy is currently largely unexploited: only 8 of 26 offshore blocks explored, MPA coverage at 4.0% vs the CBD 10% target, and no deep sea fishing fleet. Marine fisheries produce 350,000 MT annually, shrimp and seafood exports generate $400.0M, and Chittagong port handles 3,409,069 TEU. Yet only 8 of 26 offshore gas blocks have been explored, marine protected areas cover just 4.0% of the EEZ (below the CBD 10% target), and seaweed farming remains at pilot scale with 200 MT. The Blue Economy Index stands at 37.7/100.

Maritime Spatial Planning

The 2012 ITLOS judgment (Bangladesh vs Myanmar) and 2014 Annex VII Tribunal award (Bangladesh vs India) resolved long-standing maritime boundary disputes, giving Bangladesh sovereign rights over 118,813 sq km of exclusive economic zone and extended continental shelf rights over 354,000 sq km. This maritime territory, equivalent to 80% of Bangladesh's land area, requires comprehensive spatial planning to balance competing uses: fishing grounds, shipping lanes, port approaches, offshore energy blocks, conservation zones, and military operations. 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, and between proposed offshore wind sites and shipping corridors.

Sustainable Fisheries Management

Marine fisheries contribute 350,000 MT annually, supporting approximately 500,000 fishers and their families. Hilsa (Tenualosa ilisha), the national fish, accounts for roughly 12% of total fish production and has benefited from seasonal fishing bans (65-day Jatka protection and 22-day peak breeding ban). However, only 60% of the current catch is estimated to be within sustainable limits. Deep sea fishing beyond the 200m isobath remains negligible; Bangladesh lacks a modern deep sea fishing fleet. IUU fishing by foreign-flagged vessels costs an estimated $200-400M annually in lost revenue. The Navy's maritime patrol capacity has improved with the Forces Goal 2030 acquisition programme, but VMS (Vessel Monitoring System) coverage of the artisanal fleet remains minimal.

Deep Sea Mining and Offshore Energy

Of 26 designated offshore blocks, only 8 have seen meaningful exploration. Estimated offshore gas reserves of 5.0 Tcf could extend Bangladesh's declining onshore gas supply by 15-20 years, but exploration has stalled due to unfavourable PSC terms and lack of IOC interest. Offshore wind potential is estimated at 20+ GW (IRENA/SREDA), concentrated in the shallow-water zone off Kutubdia, Moheshkhali, and Sandwip. No offshore wind projects have commenced. Seabed mineral surveys (heavy mineral sands, polymetallic nodules) are at a preliminary stage.

Port Modernization

Chittagong port, handling 3,409,069 TEU, remains the dominant trade gateway but suffers from draft limitations (9.5m), congestion, and slow turnaround times. Mongla port serves the southwest region with limited capacity. Payra port (Patuakhali) is operational for bulk cargo but lacks container facilities. Matarbari deep sea port (Maheshkhali, Cox's Bazar), JICA-funded with an 18m draft, would be Bangladesh's first port capable of handling Panamax and post-Panamax vessels, planned capacity of 4M TEU. Scheduled for 2027, it would position Bangladesh as a regional transshipment hub competing with Colombo and Singapore for Bay of Bengal cargo.

Marine Biotechnology and Emerging Sectors

Seaweed production stands at 200 MT from pilot farms in Cox's Bazar (Nuniarchhara, Bakkhali). 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 Island, Kuakata) generates approximately $120.0M but remains constrained by infrastructure deficits and environmental degradation of coral and beach ecosystems.

Blue Carbon and Coastal Zone Management

The Sundarbans mangrove forest (6,017 sq km on the Bangladesh side) 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. Marine protected areas cover 4.0% of the EEZ, well below the CBD Kunming-Montreal Global Biodiversity Framework target of 30% by 2030. Coastal erosion in Bhola, Hatiya, and Sandwip displaces thousands annually.

Ship-Breaking Industry

Chittagong's ship-breaking yards (150 active yards) recycle approximately 3,500,000 MT of steel annually, accounting for roughly 50% of global ship recycling. The industry employs an estimated 25,000 workers and generates approximately $2,500M in annual revenue, supplying 50-60% of the domestic steel industry's raw material. However, the sector faces serious environmental and occupational safety concerns: hazardous materials (asbestos, heavy metals, PCBs), high worker injury and fatality rates, and coastal pollution. The Hong Kong Convention for Safe and Environmentally Sound Recycling of Ships (ratified by Bangladesh in 2023) and the Bangladesh Ship Recycling Act 2018 establish regulatory frameworks, but enforcement remains weak. Green ship recycling upgrades and worker safety investment are essential for the industry's long-term viability.

Regional Cooperation

BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and IORA (Indian Ocean Rim Association) provide multilateral frameworks for maritime cooperation. Priority areas include joint fisheries management with Myanmar and India, search and rescue coordination, anti-piracy patrols, marine pollution response (oil spills from Chittagong ship-breaking), and shared early warning systems for cyclones and tsunamis.

Policy Recommendations

• Enact a Maritime Spatial Planning Act: Establish a legal framework for zoning the EEZ, resolving conflicts between fisheries, shipping, energy, and conservation. Create a National Maritime Authority with regulatory power over all marine economic activities.
• Modernize the Deep Sea Fishing Fleet: Provide subsidized financing and training for 50-100 deep sea fishing vessels capable of operating beyond the continental shelf. Partner with established deep sea fishing nations (South Korea, Japan, Thailand) for technology transfer. This would reduce IUU fishing losses and increase marine catch sustainably.
• Launch an Offshore Wind Pilot: Commission a 100 MW offshore wind pilot in the Kutubdia-Moheshkhali corridor through a public-private partnership. Bangladesh's 20+ GW offshore wind potential is entirely untapped. A successful pilot would attract IOC investment in the Bay of Bengal.
• Establish Blue Carbon Credit Monetization: Register Sundarbans mangrove carbon stocks under VCS/Verra and negotiate blue carbon credit sales to developed nations. Allocate revenue to mangrove restoration, coastal community livelihoods, and marine research.

Data sources: ITLOS, DoF Bangladesh, Petrobangla, BAPEX, Chittagong Port Authority, JICA, IRENA, SREDA, IUCN, BBS, Export Promotion Bureau.