Poor logistics, weak coordination dent export competitiveness

Experts tell DCCI roundtable

FE REPORT | Published: May 09, 2026 22:29:52

Inadequate infrastructure and weak institutional coordination are undermining Bangladesh's export competitiveness, leaving the country lagging behind regional peers, experts said at a roundtable on Saturday.
They pointed out that lengthy cargo clearance processes, high business costs and the absence of modern cold-chain logistics are stifling the country's trade ambitions.
The Dhaka Chamber of Commerce & Industry (DCCI) organised the roundtable titled "Integrated port and logistics development for a trade-driven Bangladesh" at its auditorium in the capital.
In his welcome remarks, Razeev H Chowdhury, Senior Vice President of DCCI, said infrastructural limitations and a lack of coordination among institutions are severely affecting the country's logistics efficiency.
"Lengthy cargo clearance procedures at ports, slow transportation through road and rail networks, and limitations in modern cold-chain logistics are making the overall supply chain costly and inefficient," he said.
As a result, Bangladesh is falling behind its competing nations, he added.
He stressed the need for an efficient sustainable logistics ecosystem through paperless automated systems at ports, infrastructure development under Public-Private Partnership (PPP) initiatives and increased investment in cold-chain facilities to attract both local and foreign investment.
Md. Salim Ullah, Director General of the Bangladesh Institute of Management (BIM), who attended as special guest, said the country remains significantly behind in managing integrated port and logistics systems efficiently, driving up the cost of doing business.
He underscored the importance of coordinated efforts among all stakeholders to achieve desired development in the sector.
In his keynote presentation, Dr. M. Masrur Reaz, Chairman and CEO of Policy Exchange of Bangladesh, said the manufacturing sector contributes nearly 25 per cent to the country's GDP -- higher than many neighbouring economies -- but weak logistics and high business costs hinder a trade-supportive environment.
He noted that reducing logistics costs by 25 per cent could boost exports by 20 per cent, while a 1 per cent cut in transportation costs could increase exports by 7.4 per cent.
Md Habibur Rahman, former member (Admin and Planning) of the Chittagong Port Authority, said expanding railway connectivity is the only viable long-term solution, as there is limited scope for further widening the Dhaka-Chattogram highway.
He proposed establishing rail links with ports to ensure faster and cheaper cargo movement.
Dr. Md. Shamsul Hoque, Professor, Department of Civil Engineering, Bangladesh University of Engineering and Technology (BUET), said development planning in the country often lacks practicality, hindering expected outcomes.
S.K. Masadul Alam Masud, Managing Director of Shahariar Steel Mills Ltd., said entrepreneurs remain reluctant to use Pangaon Inland Container Terminal due to the absence of adequate scanning facilities.
Nusrat Nahid Babi, Senior Transport Specialist at the World Bank, observed that customs clearance procedures in Bangladesh have yet to be fully simplified and modernised.
Humayun Kabir, Senior Project Officer (Transport), Transport Sector Office, Asian Development Bank, said the ADB is currently working on developing the Dhirashram Inland Container Depot and a multimodal logistics hub to improve the country's trade infrastructure.
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