Bangladesh is poised to strengthen its position in global trade through comprehensive reforms in its logistics sector, according to industry leaders who participated in a high-level discussion hosted by the Norwegian Ambassador.
The event, titled Navigating the Future: The Evolving Landscape of Logistics in Bangladesh, was organised jointly by the Royal Norwegian Embassy, HSBC Bangladesh, and the Nordic Chamber of Commerce and Industry (NCCI) on 1st September. It assembled key stakeholders including regulatory authorities, port officials, and industry specialists to explore strategies for reducing trade bottlenecks and lowering logistics expenses.
M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, cautioned that if prompt reforms are not implemented, Bangladesh risks losing its competitive edge in global value chains as preferential trade agreements are phased out over the coming decade.
Rear Admiral Saleh Mohammad Moniruzzaman, Chairman of Chittagong Port Authority, and Nikhil D Lima, Managing Director of Maersk Bangladesh, identified critical challenges, notably that over 90% of the country’s trade transits through Chittagong Port. They pointed out that logistics costs remain high and infrastructure development is urgently needed to facilitate smoother trade operations.
Reaz highlighted the potential benefits of modest improvements, noting that a 1% reduction in transportation costs could lead to a 7.4% increase in ready-made garment exports. Additionally, a 25% decrease in overall logistics expenses could boost exports by 20%, while cutting dwell time by a single day might raise national exports by more than 7%. He also suggested that raising highway speeds to 40 km/h could further support export growth.
Ambassador Gulbrandsen emphasised that an efficient logistics system is vital for Bangladesh’s progression towards middle-income status and expressed Norway’s willingness to share expertise in maritime solutions, green technology, and digital innovation. Tanveer Mohammad, President of NCCI and Chief Commercial and Administrative Officer of Grameenphone, stressed the importance of sustainable supply chains and the need for enhanced private-public partnerships to accelerate reform efforts.
Md Mahbub ur Rahman, CEO of HSBC Bangladesh, underscored the interconnectedness of infrastructure development, multimodal integration, and the country’s global competitiveness, especially as Bangladesh approaches graduation from the Least Developed Countries (LDC) status.
