Businesses, particularly exporters and those involved in the logistics industry, have called on authorities to take firm steps in implementing the National Logistics Policy 2025 by providing a clear roadmap for execution. This appeal was voiced during a focus group discussion on challenges and opportunities in the logistics sector, hosted by the American Chamber of Commerce in Bangladesh (AmCham) at the Westin Dhaka recently.
Various key players in the logistics sector, such as representatives from the apparel industry, freight forwarding companies, inland container depots, shipping companies, airlines, and courier services, participated in the event. M Masrur Reaz, chairman of Policy Exchange Bangladesh, highlighted that even a modest 1 percent reduction in logistics expenses could boost exports by approximately 7 percent, especially as Bangladesh nears its transition out of the least developed country (LDC) classification.
Discussing the recent labor strike at the Chattogram port, Reaz emphasized the significant economic repercussions of logistics disruptions. He underscored the critical importance of enhancing logistics infrastructure and expanding port capacity to align with the envisioned gross domestic product (GDP) target of $760 billion by 2030. He also pointed out key deficiencies in the implementation of the National Logistics Policy, citing issues like government monopolies in rail and air cargo, inadequate inter-ministerial coordination, and the absence of a central logistics authority.
Syed Ershad Ahmed, President of AmCham Bangladesh, noted that while the country’s logistics sector has progressed, it still lags behind regional counterparts and lacks thorough understanding domestically. He stressed the evolving global logistics landscape driven by factors like artificial intelligence (AI), automation, decarbonization, geopolitical shifts, regionalization, and supply chain resilience. Ahmed emphasized the urgency of addressing knowledge and capacity gaps to better facilitate Bangladesh’s expanding trade and investment requirements.
Nusrat Nahid Babi, a senior transport specialist for South Asia at the World Bank, emphasized the need for the new government to uphold Bangladesh’s momentum in logistics reform initiated since 2022, highlighting the importance of setting clear priorities and securing high-level consensus. She proposed a structured reform agenda around five core themes: simplification of policies and procedures, development of multimodal logistics infrastructure and connectivity, enhancement of skills and institutional capacities, digitalization of supply chains, and increased investment in logistics.
Md Moinul Huq, a country officer at Citibank NA Bangladesh, stressed the immediate necessity for customs authorities to enforce the provisions of the Customs Act 2023 by defining electronic document submission and payment methods clearly. Mahbubul Anam, managing director of CF Global, emphasized the significance of optimizing costs, expanding capacities, ensuring efficient courier services, and establishing robust contingency plans to support time-sensitive shipments, particularly with the escalating demand for express logistics fueled by e-commerce growth.
Representatives from the US embassy in Dhaka, including Commercial Counsellor Paul Frost and Agricultural Attaché Erin Covert, were also in attendance at the event.