The proposal to build a high-capacity corridor between the capital and the largest port city is being touted as transformational, investors are watching closely, and planners see it as a spine for industrial growth. The Dhaka Chattogram Expressway is more than a road, it is a potential game changer for logistics, trade and regional development in Bangladesh.

A long-standing national priority with clear economic logic

The notion of an expressway linking Dhaka and Chattogram has been under study for decades, because the corridor carries the lion’s share of Bangladesh’s freight and passenger traffic. Early feasibility work undertaken with support from international partners established that a controlled access, high speed link would reduce travel time, lower vehicle operating cost and improve road safety, while also supporting industrial clusters and port efficiency. The Asian Development Bank financed technical assistance for detailed design and a PPP framework for the Dhaka-Chattogram Expressway,  and national agencies have produced multiple development project proposals and prequalification documents outlining technical parameters and expected benefits. (Asian Development Bank)

Estimates of scale vary, but a commonly cited figure for a full length expressway of around 217 kilometres is a multibillion dollar project, with earlier independent studies pointing to an upfront cost in the order of US$2 to 4 billion excluding land acquisition, and higher once land is priced into the calculation. Land acquisition and right of way have been repeatedly noted as the main cost driver. A 2019 economic analysis concluded a positive benefit cost ratio and substantial net present value for a delivered expressway, reinforcing the economic rationale.

Existing capacity constraints are already costing the economy

Traffic and freight data show that the Dhaka to Chattogram corridor is critically important, because Chattogram port handles the majority of Bangladesh’s seaborne trade. The current National Highway experiences chronic congestion, frequent accidents and unpredictable travel times, undermining logistics reliability for exporters and importers. The Roads and Highways Department and development partners have already invested in staged upgrades, including conversion of many segments to four lanes and construction of flyovers, yet demand growth has outpaced supply.

Government plans announced in 2025 envisage upgrading the existing highway to 10 lanes in places, a reflection of how intense traffic growth has been, but those plans underscore that piecemeal widening alone will not deliver an access controlled, high speed corridor.

These limitations can be quantified. Studies estimate that an expressway will trim journey time by several hours compared with the existing 4-lane route, with earlier project documents citing reductions in travel time of around three hours under full expressway operation, savings that translate into measurable gains in productivity, lower fuel consumption and fewer vehicle operating costs.

That time saving is particularly important for time sensitive cargoes, containerised freight and for firms that rely on fast turnarounds to reduce inventory and working capital. (RHD)

Five transformative impacts on growth and competitiveness

Faster trade and lower logistics costs will raise competitiveness

A controlled access expressway will reduce transit times and increase predictability for freight movements to and from Chattogram port. Reduced direct logistics costs and lower uncertainty often lift export competitiveness, especially for time sensitive sectors such as ready-made garments, perishable goods and high value manufacturing. The Dhaka-Chattogram Expressway is therefore likely to lower door-to-door transit costs, improve vessel turnaround through more reliable hinterland connections and unlock modal complementarities with rail and inland waterways. Economic analyses included in planning documents place travel time benefits as the largest share of project benefits, typically over 60 per cent, underscoring the direct economic payoff. (bba.portal.gov.bd)

Industrial decentralisation and corridor development will stimulate investment

Large infrastructure projects frequently provoke clustering of industrial activity along the corridor. Lower transportation cost and faster market access tend to attract investors to land that becomes more commercially viable when connected to a high speed spine. The Dhaka-Chattogram Expressway would create new opportunities for logistics parks, bonded warehouses, export processing zones and light manufacturing clusters beyond core urban areas, relieving pressure on congested urban land and supporting balanced regional development. Projections for corridor induced investment in other countries suggest that transport infrastructure can have multiplier effects across local economies, a pattern Bangladesh could replicate if land use planning and investment incentives are aligned. (Open JICA Report)

Job creation and urban transformation

Construction and subsequent operation of a major expressway generate direct employment in construction, engineering and maintenance, and indirect jobs through supply chains and services. Over the medium term, new industrial estates and logistics activities along the route can create substantial employment opportunities, particularly if workforce skills and vocational training are developed in parallel.

The Dhaka-Chattogram Expressway therefore holds potential to ease urban unemployment pressures by dispersing job creation along the corridor, but realisation depends on policies to attract investors and to provide utilities and services near the expressway.

Safety improvements and reduced accident costs

Access controlled expressways significantly reduce conflict points between fast through traffic and local movements, lowering accident rates and severity. Studies of the proposed corridor have identified accident cost savings as a notable benefit, part of the economic case for the Dhaka-Chattogram Expressway. Safer roads reduce human and economic costs, they improve insurance outcomes and they create a more reliable business environment for haulers and passengers. (RHD)

Catalysing modal shift and environmental gains

An expressway that integrates with rail and inland waterway investments can encourage more efficient multimodal logistics solutions, potentially reducing fuel intensity per tonne moved and lowering greenhouse gas emissions relative to business as usual. Research that examined emissions impacts concluded that expressway induced travel time reductions and smoother speeds could yield net emission savings, provided the corridor is part of a broader modal strategy. The Dhaka-Chattogram Expressway therefore offers an opportunity to reduce per unit freight emissions, but those gains are conditional on policy choices and complementary investments. (ResearchGate)

Economic numbers that matter

Project cost estimates in public discussion range from about US$2 billion to US$4 billion for a full length expressway excluding land, with land acquisition potentially adding substantially to the total depending on route alignment and compensation frameworks. Independent feasibility work from consultants suggested a US$4.1 billion design as one economically viable option, while other reports estimated a lower construction cost that excludes right of way. Benefit cost analyses produced by academic and government affiliated researchers have found positive BCRs, for example a 2019 study reported a BCR of approximately 1.23 and an economic internal rate of return above standard thresholds, signalling that, on conventional metrics, the expressway can be economically justified.

The Dhaka-Chattogram Expressway should therefore be seen as a high cost, high impact investment, where the returns arise mainly through travel time savings, vehicle operating cost reduction and accident cost savings, together with induced economic activity. (Castalia)

Traffic forecasts underpinning planning scenarios show steady growth in freight demand tied to rising exports and domestic consumption, projections incorporated into multimodal transport studies to 2040 and beyond indicate that without new high capacity links, congestion will worsen and logistics inefficiency will rise.

Therefore the economic case depends not only on construction cost but also on timely delivery and on capturing the projected demand through tolling or other revenue mechanisms that make PPP structures viable. The Dhaka-Chattogram Expressway (9) is frequently discussed in PPP terms in government and ADB documentation for precisely this reason. (Asian Development Bank)

The main obstacles that could blunt benefits

Land acquisition and social impact

The biggest hurdle is land acquisition, because the corridor traverses populated rural and peri-urban areas with competing land uses. Rising land prices and compensation expectations have inflated project estimates in recent years, official and media reports note that land cost has pushed the price tag up significantly for a full 217 km expressway. Careful, transparent and timely compensation mechanisms are essential, otherwise delays and litigation will increase costs and postpone benefits.

The Dhaka-Chattogram Expressway will only deliver if social safeguards, resettlement and livelihood restoration are managed professionally and budgets account for realistic market prices. (World Highways)

Financing and fiscal risk

With price tags in the multiple billions, securing financing without imposing undue fiscal risk is challenging. Public-private partnerships are attractive because they transfer risk to the private sector, but they also require credible revenue streams. Toll revenue forecasts must be realistic, and contracts should avoid creating contingent liabilities that the state would later have to absorb. If the Dhaka-Chattogram Expressway is designed without sustainable financing, the state may shoulder long term costs that crowd out other investments.

Environmental and biodiversity impacts

Large linear infrastructure can fragment habitats, alter hydrology and increase pollution in sensitive areas if not carefully routed and mitigated. Environmental impact assessments must be robust, locally specific and enforce mitigation measures, otherwise ecological damage will produce long term costs, and opposition from communities and environmental stakeholders can delay projects.

The Dhaka-Chattogram Expressway must therefore be planned in concert with detailed environmental studies and enforceable mitigation commitments.

Operational governance and maintenance

An expressway’s value depends on consistent maintenance and operational governance. If maintenance is underfunded, deterioration accelerates and the initial benefits erode, transfers to private operators often include performance requirements but enforcement capacity is key. The Dhaka-Chattogram Expressway will require institutional arrangements for toll collection, emergency response and long term pavement management to sustain benefits across decades. (Asian Development Bank)

Equity concerns

High quality toll roads can create winners and losers. Users who can pay will enjoy faster travel while poorer communities may face displacement or restricted access. Policies to ensure alternative local access roads, social protection for displaced households and equitable distribution of corridor benefits will be crucial if the Dhaka-Chattogram Expressway is to support inclusive growth rather than deepen spatial inequality.

Options to maximise outcome while minimising harm

Improve existing highway with smart upgrades

Upgrading segments of the existing National Highway to expressway standards, combined with targeted bypasses and grade separations, can deliver many benefits with lower land take and cost. The government has already implemented four-laning and flyover works on long stretches, and a strategic programme of incremental upgrades, linked to better traffic management and freight scheduling, may relieve pressure while the larger expressway is developed. The Dhaka-Chattogram Expressway could be phased so that early segments open as soon as feasible, capturing benefits sooner.

Invest in multimodal logistics

Complementing road investment with rail upgrades and inland waterway development can reduce the need to build excessively large road capacity, spreading freight across modes and lowering environmental externalities. Japan International Cooperation Agency and other partners have emphasised multimodal planning for the corridor, suggesting that a corridor strategy that includes rail and ports will yield better long term outcomes. The Dhaka-Chattogram Expressway is most effective when embedded in a multimodal transport plan.

Adopt land value capture and corridor planning

To reduce fiscal strain and align incentives, land value capture mechanisms, such as betterment levies, development rights sales and special economic zones linked to the expressway, can mobilise revenue and share gains with local governments. Corridor planning that designates areas for logistics parks and industrial estates, with prearranged utility provision, reduces speculative pressures and streamlines land assembly, improving the feasibility of the Dhaka-Chattogram Expressway.

Phase construction and pilot PPP models

A phased approach, with pilot PPP concessions on less contentious segments, permits learning and risk calibration. Early operational sections can demonstrate viability, build toll collection capacity and attract private investment for subsequent phases. The expressway’s PPP design has been supported by ADB technical assistance, and carefully staged contracting could improve outcomes for the Dhaka-Chattogram Expressway.

Institutional and policy actions

Strengthen land acquisition frameworks and grievance redress

Speed and fairness in land acquisition will determine project timelines and social acceptability. Transparent valuation, timely compensation and robust grievance redress mechanisms reduce litigation and social conflict. Authorities must commit to clear policy, backed by adequate budgets, if the Dhaka-Chattogram Expressway (19) is to stay on schedule.

Design realistic PPP contracts and independent regulation

Contracts must allocate risks to the party best placed to manage them, ensure performance standards and provide for independent regulation to protect public interest. Toll setting should be transparent and indexed to reasonable parameters to avoid revenue shortfalls that could trigger state bailouts. The ADB and other advisors have recommended PPP frameworks and regulatory oversight for expressway projects, recommendations relevant for the Dhaka-Chattogram Expressway.

Integrate land use, environmental mitigation and local development plans

Coordinated planning between transport, urban development and environmental agencies is crucial. Corridor planning should identify zones for logistics, industry and housing, while environmental safeguards must be built into contracts and monitored by independent bodies to ensure compliance. When integrated, the Dhaka-Chattogram Expressway can be a catalyst for orderly development rather than chaotic sprawl.

Risks and mitigation

Delays and cost escalation are likely without disciplined project management

Given complex land issues and financing negotiations, delays and cost overruns are realistic risks. Mitigation includes realistic budgeting for land, contingency funding, early stakeholder engagement and strong project management units with technical competence. If these measures are applied, the risks to the Dhaka-Chattogram Expressway can be contained.

Environmental opposition and litigation can be anticipated

Engaging environmental groups, conducting high quality impact assessments and committing to measurable mitigation, such as wildlife crossings and storm water management, reduces the chance of legal challenges. Transparency in environmental studies for the Dhaka-Chattogram Expressway will build public trust and speed approvals.

Revenue shortfalls for PPP models can be handled through blended finance

Blended finance instruments, viability gap funding and careful demand modelling can make toll-based PPPs bankable without exposing the state to open ended liabilities. Early use of technical assistance from multilateral agencies to structure the Dhaka-Chattogram Expressway will improve investor confidence.

The proposed Dhaka-Chattogram Expressway sits at the intersection of mobility, trade and regional development for Bangladesh. The case for a high speed, access controlled corridor is strong, driven by the need to link Dhaka with the main seaport efficiently, to reduce travel time and logistics cost, to improve safety and to stimulate corridor development.

Evidence from feasibility studies, government planning documents and independent research points to positive economic returns, albeit contingent on resolving the hard problems of land acquisition, financing and environmental management. The alternative of endless incremental widening of the existing highway is unlikely to yield the same quality of service or the same catalytic effect on regional investment.

If policymakers combine disciplined project management, realistic financing, strong social and environmental safeguards and integrated corridor planning, the expressway can be a transformational investment for Bangladesh.

Conversely, if the project is delayed by avoidable disputes, or organised without robust financing and maintenance arrangements, the country risks a costly white elephant. The right approach is not simply to build a road, it is to build a corridor of opportunity that spreads benefits widely, protects vulnerable communities, and integrates seamlessly with rail and inland water investments to create a competitive, sustainable logistics backbone for the next half century.