At a glance: National Logistics Policy 2025

The National Logistics Policy 2025, which is scheduled to be presented today (6 November) at a meeting of the Advisory Council Committee for approval aims to strengthen Bangladesh's trade and investment capacity while addressing the challenges arising from its post-LDC (least developed country) graduation.

In April last year, a logistics policy was also approved by the previous Awami League government, however, the interim government has scrapped that version and drafted a new one.

After Bangladesh's graduation from the Least Developed Country (LDC) category, which is scheduled for 24 November 2026, the country will gradually lose tariff-free and quota-free access to international markets. This will increase the prices of Bangladeshi products abroad. 

The new logistics policy is expected to help the export sector strengthen its competitiveness and adjust to higher costs and other post-graduation challenges.

Improving transport, warehousing, connectivity

The National Logistics Policy 2025 seeks to ensure efficient production, collection, storage, transport, shipment, clearance and distribution of goods in less time and at lower cost.

To achieve this, the government plans to upgrade infrastructure for roads, railways, bridges, inland waterways, seaports, airports and toll systems.

The draft states that all economic zones, industrial areas, airports, seaports, land ports, warehouses, inland container depots (ICDs) and air freight stations will be connected through the national highway network. Cross-border economic corridors will be identified and linked with domestic road networks. A traffic information system will also be introduced to help road users receive real-time updates.

The policy also proposes enhancing the rail network's freight capacity and coverage. All major economic and industrial areas, ports and warehouses will be linked to the railway network. 

For waterways, the plan includes year-round navigability through dredging and the construction of suitable vessels, alongside the modernisation of river and seaport infrastructure.

In air transport, specialised cargo services will be launched and new air cargo terminals established to increase air freight capacity.

According to Bangladesh's Perspective Plan 2021-2041, in 2018, about 77% of goods were transported by road, 16% by waterways, 6% by rail, and 1% by other means. 

With the country's steady economic progress, passenger traffic, freight traffic, port container movement, and seaborne cargo traffic are expected to grow several times in the coming years – making the development of the logistics sector crucial for Bangladesh.

Enhancing competitiveness

Following LDC graduation, Bangladesh will lose several international trade preferences – such as tariff and quota exemptions, GSP benefits, flexible rules of origin, and intellectual property waivers. The country will also face new obligations under World Trade Organization (WTO) agreements and reduced special and differential treatment (S&DT) privileges.

In addition, the special and differential treatment (S&DT) benefits that Bangladesh currently enjoys under various World Trade Organization (WTO) agreements will gradually diminish, while the country will also face several new obligations in the post-LDC graduation phase.

These changes are likely to raise trade and investment costs, increasing export prices in destination countries. In this context, improving logistics systems will be crucial to offset these costs and maintain the competitiveness of Bangladeshi products and services in global markets.