Teknaf Land Port Faces Revenue Crisis Amid Arakan Army Disruptions
The ongoing conflict in Myanmar is having a devastating impact on trade at the Teknaf land port, a crucial gateway between Bangladesh and Myanmar. Over the past two months, the Arakan Army, a rebel group in Myanmar, has seized three cargo vessels bound for Teknaf, leading to a dramatic decline in ship arrivals and a nearly complete collapse of revenue.
At its peak, the port welcomed over 20 vessels daily. Now, it struggles to see even one or two arrivals per week. Customs officials, who once collected more than Tk3 crore daily, are now grappling with near-zero revenue.
The crisis began in early 2024 when clashes erupted between Myanmar’s ruling junta and the Arakan Army. The situation worsened in December 2024 when the rebel group took control of Maungdaw city, a strategic location near the Bangladesh border. This move disrupted trade routes and led to the seizure of cargo vessels along the Naf River.
While two of the three seized ships were released earlier, the last vessel was freed on February 1, 2025. Despite this, the port remains in a state of paralysis, with import-export activities at a standstill.
Key Impacts of the Crisis
| Aspect | Before Crisis | Current Situation |
|————————–|—————————|—————————-|
| Ship Arrivals | Over 20 per day | 1-2 per week |
| Daily Revenue | Tk3 crore+ | Near zero |
| trade Activity 中心 | Robust | Paralyzed
The Teknaf land port, operated by United Land Port, has been a vital hub for trade between Bangladesh and Myanmar. However, the recent disruptions have left businesses and officials in limbo.
As the conflict in Myanmar shows no signs of abating, the future of trade at Teknaf remains uncertain. Stakeholders are calling for immediate diplomatic interventions to restore normalcy and safeguard the region’s economic interests.
A New Waterway Proposal to Bypass Arakan Army Control
Ehteshamul Haque Bahadur, General secretary of the Teknaf Land Port C&F Agents Association, highlighted the challenges faced by importers. He revealed that vessels traveling from Myanmar to Teknaf must navigate through the Arakan region, which is currently under the control of the Arakan Army. To circumvent this, Bahadur proposed the creation of a new 20-kilometer waterway via Teknaf Shah Peerir Island and Gholar Char.
“However, there is a navigation issue in a two-kilometer stretch of this route. If dredging is carried out in that area, it will make transportation of goods via this new route possible,” he added.
Cargo Detentions and Spoilage Risks
The Arakan Army’s recent actions have substantially disrupted trade. On January 16, a vessel carrying 30,000 sacks of goods (approximately 15,000 tonnes) was detained. The ship’s owner, a retired officer of Myanmar’s military regime, reportedly led to the detention. The cargo included dried fish, coffee, betel nuts, and cosmetics, with over 250 tonnes of dried fish at risk of spoilage.
Bahadur also noted that one importer had over 70 tonnes of pickles on board, destined for distribution in Cox’s Bazar, Chattogram, and other regions.
Earlier, on January 20, two cargo vessels carrying 1,500 tonnes of goods were released after being seized by the Arakan Army. These ships, en route from Yangon to Teknaf, had been detained on January 16.
Drastic Revenue Decline
The financial impact on the port has been staggering. According to data from Teknaf land port and customs, revenue dropped from Tk640 crore in FY 2022-23 to Tk407 crore in FY 2023-24. In the first six months of FY 2024-25, imports amounted to only 11,000 tonnes, generating a mere Tk87 crore, down from Tk257 crore a year ago.
BM Abdullah Al Masum, the port’s revenue officer, stated, “Under normal circumstances, the port used to generate about Tk3 crore a day in revenue. However, this has now dropped to almost zero.”
Operational Challenges
The ongoing situation poses significant operational challenges for the port.
Summary of Key Data
| Fiscal Year | Goods Imported (Tonnes) | Revenue Generated (Tk Crore) |
|——————|——————————————————|————————————————-|
| 2022-23 | 1,88,000 | 640 |
| 2023-24 | 68,000 | 407 |
| 2024-25 (6 months) | 11,000 | 87 |
The Road Ahead
The proposed new waterway could offer a solution to bypass the Arakan Army-controlled region, but dredging is essential to make it navigable. Simultaneously, the port’s stakeholders are urging immediate action to revive trade and restore revenue streams.
As the situation unfolds, the Teknaf land port remains a critical focal point for regional trade, with its future hinging on strategic interventions and geopolitical developments. For more updates on trade and regional developments, stay tuned to our coverage.