In a bid to enhance port operations, business leaders and government officials have called for the inclusion of foreign operators at Bangladesh’s ports. The demand was voiced during a roundtable discussion on “Challenges and Opportunities in the Logistics Sector,” held at Lakeshore Heights hotel in Gulshan on Sunday.
Dr. Ahmed Ullah, Director General of the Chief Adviser’s Office, attended the roundtable as a special guest. The event was chaired by Shamsul Huq Zahid, Editor of The Financial Express, with Professor Md Mamun Habib from Independent University, Bangladesh delivering the keynote address.
Mohammad Hatem, President of Bangladesh Knitwear Manufacturers and Exporters Association, stressed the need for foreign operators to bring in modern technology and management practices. He criticized the 40 percent hike in charges at Chattogram Port, which he deemed unjustified due to the lack of consultation with stakeholders. Hatem also urged swift operationalization of the Bay Terminal and called for better utilization of Mongla and Payra ports to meet Bangladesh’s $100 billion export target.
Inamul Haq Khan, Senior Vice President of Bangladesh Garment Manufacturers and Exporters Association, pointed out that container handling at Chattogram Port currently takes five to six days, far above the global standard of one to two days. “To meet buyers’ deadlines, we often resort to air transport, which costs four times more than shipping by sea,” he said.
Kabir Ahmed, former President of Bangladesh Freight Forwarders Association, echoed the call for foreign operators, citing the continued resistance from certain vested groups. He also highlighted the need for improvements at Biman Bangladesh Airlines and Hazrat Shahjalal International Airport, mentioning that key equipment, like the Explosive Detection System (EDS) machines, remains inactive.
Md Shahriar, President of Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association, raised concerns about widespread bribes in metropolitan areas and increasing costs due to port delays. He noted, “Port officials behave as if managing Singapore Port, but the reality is far less efficient.”
Abdul Haq, President of Bangladesh Road Transport Owners Association, commented on higher infrastructure costs in Bangladesh compared to nations like Vietnam, which have successfully reduced logistics costs. He emphasized the need for better coordination among ministries responsible for transport.
Syed Mohammad Arif, Chairman of Bangladesh Shipping Agents Association, criticized the recent port charge hike, calling it a unilateral decision that has triggered a ripple effect of increased charges across services. He added that Chattogram Port has reached maximum capacity and stressed the need for alternative solutions to meet the $100 billion export target by 2030.
In response to the concerns, Senior Secretary of the Ministry of Shipping Mohammad Yousuf revealed plans to build a multi-modal logistics hub at Bay Terminal in Chattogram. The hub, which will integrate rail, road, and sea transport, is expected to improve port efficiency significantly. “The Bay Terminal Breakwater Project, funded by the World Bank, is progressing well,” he said, adding that the terminal will eventually handle 5.36 million TEUs by 2036.
Yousuf also announced that tender evaluation for the Bay Terminal would take place within one to two months, and one terminal is expected to be handed over to a contractor by December. He further explained that a Port Community System would be developed to integrate Mongla, Payra, and Chattogram ports, helping alleviate congestion.
Masrur Reaz, Chairman of Policy Exchange Bangladesh, emphasized that Bangladesh is “five decades behind” in logistics development. He called for a swift implementation of the National Logistics Policy, urging the government to open Chattogram Port to private operators for greater efficiency. “Without foreign operators, we will continue to lag behind,” he added.
In his keynote address, Professor Mamun Habib stressed that Bangladesh continues to fall behind South Asian peers in global logistics rankings. He pointed out that Bangladesh ranks 88th on the World Bank’s 2023 Logistics Performance Index, while India is at 38th and Sri Lanka at 73rd. He attributed the sector’s challenges to poor infrastructure, delayed logistics strategy implementation, and a lack of skilled manpower. To improve the sector, he called for greater adoption of automation, AI, and digital technologies.
The roundtable concluded with a consensus on the need for urgent reforms and a collective effort to enhance port efficiency and achieve the country’s export targets.
