DCCI calls for integrated logistics ecosystem to boost exports

Bangladesh’s export competitiveness is being hampered by weak logistics infrastructure, poor institutional coordination, and high business costs, the Dhaka Chamber of Commerce and Industry (DCCI) said today.

The chamber called for an integrated and efficient logistics ecosystem to support trade and investment at a roundtable titled “Integrated port and logistics development for a trade-driven Bangladesh” held in Dhaka.

DCCI Senior Vice President Razeev H Chowdhury said lengthy cargo clearance procedures, slow transportation through road and rail networks, and the lack of modern cold-chain logistics are making the country’s supply chain costly and inefficient.

He stressed the need for paperless and automated systems at ports, PPP-based infrastructure development, and greater investment in cold-chain logistics.

Presenting the keynote paper, M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, said the country’s manufacturing sector contributes nearly 25 percent to GDP, which is higher than that of many neighbouring countries.

However, he said attracting more local and foreign investment is essential to further expand the manufacturing sector and diversify exports.

Although Bangladesh’s export sector has transformed remarkably over the past four decades, exports remain concentrated in a limited number of products and markets, he added.

Reaz identified weak logistics infrastructure and high business costs as key barriers to creating a trade-supportive environment.

He said reducing logistics costs by 25 percent could increase exports by 20 percent, while a 1 percent reduction in transportation costs could raise exports by 7.4 percent.

He also emphasised the need for effective implementation of the national logistics policy, the involvement of international-standard foreign operators and domestic private companies in port management, reduced container clearance time at Chattogram Port, and the removal of policy barriers.

Md Habibur Rahman, former member (admin and planning) of the Chittagong Port Authority, said railway connectivity is the only viable long-term solution for cargo transportation, as there is limited scope to further expand the Dhaka-Chattogram highway.

Md Shamsul Hoque, a professor of civil engineering at the Bangladesh University of Engineering and Technology (Buet), criticised the country’s fragmented infrastructure planning process and stressed the need for integrated multimodal transport systems and institutional reforms in the logistics sector.