Efficient transportation can boost business
Tuesday, 3 November 2009
K Alam
BUSINESS success to win more markets calls for reducing the cost of doing business. The economy of a country should aim at becoming more and more competitive, specially to promote its external trade. Bangladesh has many things to do for making its economy more and more competitive. A main requirement would be to drastically improve and expand its transportation infrastructure and solve the related ills.
According to a study by a multilateral capital donor, the Bangladesh economy can increase its economic output by one per cent and foreign trade by 20 per cent a year by making transportation on the Dhaka-Chittagong corridor more efficient. The study also points out that informal payments and other inefficiencies increase transport-related import costs by up to 40 per cent.
A drastic improvement in transportation on this corridor is overdue. A similar transportation improvement throughout the country would help boost nation economic output. But the improvement will call for building better highways, better maintenance of the infrastructure and other supportive action including the elimination of extortion.
Good transportation can boost business. The countries, which rapidly moved up the economic ladder in recent decades, developed communication quite fast. They developed their road, rail and waterway networks for efficient cargo transportation to reduce the cost of business.
The waterways could be a relatively cheaper mode of cargo transportation for Bangladesh's readymade garments (RMG) industry. Transportation using roads costs more time and money. Different users should have the option of using the mode suitable for them. The options would be available only when all the modes are efficiently run. Obviously, the challenge is to drastically improve all possible transportation mediums in the country.
The multilateral capital donor has recommended the improvement of port functionary and the establishment of more inland container depots (ICDs) at suitable locations. Undoubtedly, the ICDs would ease the pressure on the Chittagong port as well as traffic movement on the vital Dhaka-Chittagong corridor. A four-lane highway, it suggested, would speed up commercial cargo movements on this corridor. This efficiency would facilitate the movement of more in less time.
Similarly, double track railways on this corridor would boost business. Better waterways, with ICDs at convenient points, would increase business efficiency manifold.
All of the systems of transportation need to be developed, and pretty fast, to keep pace with business and economic development. Only a comprehensive master plan can develop the communication networks simultaneously. With the facilities in place, Bangladesh can emerge a regional business and transportation hub sooner than many would think.
BUSINESS success to win more markets calls for reducing the cost of doing business. The economy of a country should aim at becoming more and more competitive, specially to promote its external trade. Bangladesh has many things to do for making its economy more and more competitive. A main requirement would be to drastically improve and expand its transportation infrastructure and solve the related ills.
According to a study by a multilateral capital donor, the Bangladesh economy can increase its economic output by one per cent and foreign trade by 20 per cent a year by making transportation on the Dhaka-Chittagong corridor more efficient. The study also points out that informal payments and other inefficiencies increase transport-related import costs by up to 40 per cent.
A drastic improvement in transportation on this corridor is overdue. A similar transportation improvement throughout the country would help boost nation economic output. But the improvement will call for building better highways, better maintenance of the infrastructure and other supportive action including the elimination of extortion.
Good transportation can boost business. The countries, which rapidly moved up the economic ladder in recent decades, developed communication quite fast. They developed their road, rail and waterway networks for efficient cargo transportation to reduce the cost of business.
The waterways could be a relatively cheaper mode of cargo transportation for Bangladesh's readymade garments (RMG) industry. Transportation using roads costs more time and money. Different users should have the option of using the mode suitable for them. The options would be available only when all the modes are efficiently run. Obviously, the challenge is to drastically improve all possible transportation mediums in the country.
The multilateral capital donor has recommended the improvement of port functionary and the establishment of more inland container depots (ICDs) at suitable locations. Undoubtedly, the ICDs would ease the pressure on the Chittagong port as well as traffic movement on the vital Dhaka-Chittagong corridor. A four-lane highway, it suggested, would speed up commercial cargo movements on this corridor. This efficiency would facilitate the movement of more in less time.
Similarly, double track railways on this corridor would boost business. Better waterways, with ICDs at convenient points, would increase business efficiency manifold.
All of the systems of transportation need to be developed, and pretty fast, to keep pace with business and economic development. Only a comprehensive master plan can develop the communication networks simultaneously. With the facilities in place, Bangladesh can emerge a regional business and transportation hub sooner than many would think.