Fashion
Bangladesh needs logistics upgradation to turn competitive: Think tank
Reaz made the observations while presenting a keynote paper titled ‘Integrated Port and Logistics Development for a Trade-Driven Bangladesh’ at a roundtable organised by the Dhaka Chamber of Commerce and Industry (DCCI).
Policy Exchange Bangladesh has called for urgent modernisation of the country’s port infrastructure, overhaul of trade facilitation systems, and activation of its dormant National Logistics Policy to stay globally competitive.
A 25-per cent cut in logistics costs could boost exports by 20 per cent, while cutting container dwell time by just a day at Chattogram would raise exports by 7.4 per cent, it said.
Bangladesh’s overdependence on the readymade garments (RMG) sector, which accounted for 81.49 per cent of total exports in fiscal 2024-25, combined with a deteriorating logistics ecosystem, poses serious risks to the country’s long-term economic resilience, particularly as it approaches graduation from the least developed country (LDC) status, he cautioned.
Bangladesh ranks 88th on the World Bank’s Logistics Performance Index, far behind India at 38th and Vietnam at 43rd, while Chattogram Port sits at 356th on the Container Port Performance Index, compared to Haiphong at 30th.
Container dwell times at Chattogram remain critically high, with vessel turnaround averaging 3.23 days against just 0.86 days at Colombo.
Chattogram Port handles 92 per cent of the country’s seaborne trade and 98 per cent of container trade, yet operates under an outdated ‘tool port’ model, relies heavily on manual processes and has a draft depth of only 9.5 metres, insufficient for large vessels and forcing costly transshipment via third countries, he was cited as saying by domestic media outlets.
Port tariffs have not been revised since 2008.
A 25-per cent reduction in logistics costs could boost exports by 20 per cent, while cutting container dwell time by just one day at Chattogram would increase exports by 7.4 per cent, Reaz said citing World Bank research.
He called for a comprehensive reform agenda built around eight priorities: activating and implementing the National Logistics Policy; transitioning to a landlord port model to attract private operators; fully operationalising the National Single Window for customs; accelerating the Matarbari Deep Sea Port and Bay Container Terminal projects; integrating road-rail-waterway multimodal networks; deploying artificial intelligence and digital cargo tracking systems; revising the port tariff structure on a performance-linked basis; and strengthening regulatory safeguards for foreign investment in strategic infrastructure.
Private sector participation, backed by strong legal and regulatory frameworks, is indispensable for Bangladesh’s port transformation he added.
Fibre2Fashion News Desk (DS)