Bangladesh 12 notches up in World Bank’s Logistics Performance Index
Bangladesh has climbed 12 notches in the World Bank's Logistics Performance Index 2023 thanks to competent and high-quality logistics services, timely shipments, and effective customs and border management.
According to the seventh edition of the "Connecting to Compete" report released on 21 April, the country's rank has improved to 88th out of 139 countries, from 100th in 2018.
The country was 87th among 160 economies in 2016 and 108th in 2014.
With a score of 2.6 on a 5-point scale, Bangladesh came in third among the five South Asian economies assessed in the 2023 index, behind India (38th) and Sri Lanka (73rd).
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Afghanistan placed at the bottom of the index, while Bhutan ranked 97th.
Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh, said, "It's really a positive sign for Bangladesh. Both Mongla and Chattogram ports showed improvement in operations.
"Still, our customs clearance performance is not satisfactory, but for the last six months, cargo volume has been low; otherwise, due to the poor performance of customs, congestion could build again."
Ershad Ahmed stressed the importance of introducing automation in customs clearance in all ports.
"Warehousing at all ports, including airports and land ports, is inadequate and traditional. We have to focus more on the overall country's logistics sector to bring improvements and be competitive in international trade," he added.
Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association, has echoed the AmCham president. "The progress is undoubtedly a matter of pride for us."
He said bigger ships can now anchor at Chattogram, Matarbari, and Payra ports, and that major projects such as the Karnaphuli Tunnel and the Rooppur Nuclear Power Plant are currently under implementation. Furthermore, he added that improvements have been made in the communication systems.
"Its benefits have been reflected in the World Bank's Logistics Performance Index," he added.
Top performers
The top 12 scorers are high-income economies, and most of them have for years been dominant players across international supply chain networks.
Singapore and Finland are in the lead with scores of 4.3 and 4.2, respectively. Denmark, Germany, the Netherlands, and Switzerland scored 4.1 to rank third jointly.
The survey-based LPI provides country-wide assessments of six aspects of logistics performance: trade- and transport-related infrastructure, customs and border management, logistics service quality, timeliness of shipments, ability to track and trace, and the availability of competitively priced international shipments.
The 2023 survey, conducted from 6 September to 5 November 2022, included 4,090 assessments of 139 countries by logistics professionals.
The survey asks a given country's partners to assess how easy or difficult it is to trade in manufactured products transported in unit forms such as shipping containers.
Bangladesh's performance in the six components
Bangladesh's overall performance was backed by its better performance in "Logistics competence and quality", "Timeliness", and "Customs" components.
According to the report, Bangladesh's rank moved up 21 places in the "Logistics competence and quality" component to rank 81st in 2023 from 102nd in 2018.
With a jump of 20 places, Bangladesh ranked 87th in "Timeliness" this year from its previous position of 107th in 2018. This component measures the frequency with which shipments reach consignees within the scheduled or expected delivery time.
The country climbed 20 notches in the Customs category, which measures the efficiency of customs and border management clearance, to rank 101st in 2023 from 121st in 2018.
In "International Shipments", Bangladesh witnessed a 13-place jump in rankings, from 104th in 2018 to 91st in 2023. This component measures the ease of arranging competitively priced international shipments.
Meanwhile, Bangladesh slipped 26 notches in "Tracking and Tracing" – which measures the ability to track and trace consignments – to rank 105th this year from 79th in 2018.
The country also moved down eight spots in "Infrastructure" – which measures the quality of trade and transport infrastructure – to rank 108th in 2023 from 100th in 2018.
"Logistics are the lifeblood of international trade, and trade in turn is a powerful force for economic growth and poverty reduction," said Mona Haddad, Global Director for Trade, Investment, and Competitiveness at the World Bank.
"The Logistics Performance Index helps developing countries identify where improvements can be made to boost competitiveness," she added.
