In 2003, I had the opportunity to spend 55 days in Japan as part of a Japan International Cooperation Agency (JICA)–sponsored Group Training Course focused on Container Terminal Development in Tokyo and Yokohama. During the visit, we explored various container terminals and logistics centers, with Nippon Express Bonded Warehouse standing out due to its innovative Hozei Area System. This system allowed importers to swiftly transfer cargo from full-container-load (FCL) units to bonded warehouses under customs supervision, enabling them to unpack, repack, or store goods duty-free until clearance. This efficient process significantly reduced container dwell time, keeping Japan’s ports operationally smooth.
Japan’s logistics success story was centered around the effective management of container flow, leading to faster vessel turnaround, optimized yard capacity, and reduced storage costs. Conversely, Bangladesh faces a starkly different scenario at its busiest maritime gateway, Chittagong Port, where FCL imports can languish for over 11 days before clearance. This prolonged dwell time results in substantial financial losses for importers in demurrage, port storage fees, and detention charges, hindering economic growth and potential investment.
The bottleneck at Chittagong Port is not a capacity issue but an efficiency challenge. Containers occupy terminal space for extended periods, transforming the terminals into congested parking lots. This inefficiency causes vessels to queue offshore, disrupts berth schedules, and frustrates shipping lines, labeling Bangladesh as a “slow port.” The ripple effects of delays impact freight rates, supply chains, and the overall economy.
Addressing dwell time reduction should be a strategic national priority to enhance port efficiency and boost trade. By shortening the average dwell time at Chittagong Port from 11 days to 4 days, the container handling capacity could surge by over 60%, alleviating congestion and expediting trade processes.
Emulating Japan’s successful Hozei system, where private operators manage bonded warehouses licensed by customs, could offer a viable solution for Bangladesh. Implementing bonded logistics centers similar to those in Indonesia, India, Vietnam, and Malaysia has shown promising results in streamlining port operations and enhancing global competitiveness.
Bangladesh has initiated limited transfers to Inland Container Depots (ICDs) but needs to expand these efforts to unclog the port arteries. The proposed National Logistics Policy presents a pivotal opportunity to revamp the logistics framework by prioritizing bonded warehouse development, supported by modernized supervision tools from the National Board of Revenue (NBR) and customs.
Collaboration among government bodies, private sector entities, and NGOs can establish bonded-logistics zones around key port areas, fostering efficient cargo movement and elevating Bangladesh’s trade standing. Enhancing port management efficiency is crucial for economic growth, emphasizing the significance of reducing dwell time to bolster the economy and attract global maritime players.
The time has come for concerted efforts from policymakers, industry stakeholders, and thought leaders to embrace bonded logistics as a catalyst for transforming Bangladesh’s ports and economy. The choice lies between remaining constrained by bureaucratic hurdles or unlocking economic potential by embracing efficient cargo flow practices.