‘Improved logistics can boost Bangladesh’s exports by 20%’

Bangladesh is failing to utilise 20 per cent of its export potential because of poor logistics services in ports, roads and clearance services in Chattogram port, an economist said today.

Had the efficiency of Bangladesh's logistics services been improved by 20 per cent, the last fiscal year's export value of $52 billion could have been around $63 billion, said Masrur Reaz, chairman of the Policy Exchange, a private research firm.

For instance, the transport cost of trailer trucks on roads is 12 cents per kilometre, in Indonesia it is 6 cents and India 2.4 cents, Reaz said referring a recent study of the World Bank (WB).

If the goods' clearance time on the port can be saved by one day, the overall export of the country will increase by 7.4 per cent, he said.

Moreover, the export will grow by an additional 7.4 per cent if the domestic logistics facilities like roads and warehousing facilities, inland container depots in the industry dense areas like Dhaka, Narayanganj, Gazipur and Chattogram areas can be improved by 15 per cent.

Reaz was speaking at a discussion on "Logistics sector of Bangladesh-opportunities and concerns" organised by the American Chamber of Commerce in Bangladesh (AmCham) at Sheraton Hotel in Dhaka.

Syed Ershad Ahmed, AmCham president, also spoke.