Experts call for rapid logistics reforms to stay competitive

Without rapid reforms, Bangladesh risks losing its competitive edge in global value chains, particularly as preferential trade agreements phase out in the coming decade, said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.

He made the remark speaking at a high-level business session titled, "Navigating the Future: The Evolving Landscape of Logistics in Bangladesh", jointly organised by HSBC Bangladesh, the Royal Norwegian Embassy, and the Nordic Chamber of Commerce and Industry (NCCI) recently.

The discussion, hosted at the residence of the Norwegian ambassador in Dhaka, Håkon Arald Gulbrandsen, brought together regulators, global operators, and economic experts. 

At the session, Bangladesh's logistics sector, widely recognised as the backbone of its global trade, took center stage, with Masrur Reaz providing a data-driven outlook on the sector's future.

He estimated that just a 1% reduction in transport cost can increase RMG exports by 7.4%. On the other hand, if logistics cost in Bangladesh can be reduced through some infrastructure and policy improvements by just 25%, exports of the country can increase by 20%. 

Masrur, during his keynote presentation, further noted that ensuring the minimum speed at just 40 km/hr in Bangladesh's national highway can increase exports by 3.7%. Reducing dwell time by just 1 day can boost national exports by more than 7%. 

The discussants also opined on how the country can ease persistent bottlenecks in trade facilitation, reduce logistics costs, and enhance its competitiveness as the country enters a new era of economic transformation.

According to the industry and policy leaders, Bangladesh's reliance on the Chattogram Port, handling over 90% of its trade, creates immense pressure on a single gateway. 

While megaprojects such as the Bay Terminal, Matarbari deep-sea port, and Mongla expansion are underway, they stressed that improvements in customs clearance, infrastructure, and policy support are equally urgent.

The session underscored that solving Bangladesh's logistics challenges will require a whole-of-ecosystem approach, combining regulatory reforms, private investment, public-private dialogue, and adoption of technology.

It identified five immediate priorities: Accelerating digitalisation of customs and clearance procedures; ensuring timely implementation of the Bay Terminal and Matarbari deep-sea port; promoting multimodal transport and regional connectivity (BBIN, BIMSTEC); attracting strategic investment into logistics infrastructure and technology; and embedding sustainability and decarbonisation into the future of trade.

Opening the session, Ambassador Gulbrandsen said, "As Bangladesh charts its path to middle-income status, an efficient logistics sector is not just a priority, it's a necessity. Norway stands ready to partner in this journey, combining our maritime expertise, green technology, and digital innovation to support a sustainable, interconnected future."

Speaking on behalf of the Nordic business community, NCCI President and CCAO of Grameenphone Tanveer Mohammad echoed the call for reforms, saying, "For Bangladesh to sustain its growth momentum and attract high-quality investment, logistics must move from being a bottleneck to being an enabler of trade. Nordic companies are eager to partner in this journey."

HSBC Bangladesh CEO Md Mahbub ur Rahman said, "As the leading international bank in Bangladesh, HSBC remains ready to connect the unique synergies that exist in the Bangladesh Nordic corridor. With the evolving global trade landscape, logistics will remain crucial for making our businesses competitive. 

"This competitiveness will also depend on national infrastructure – port and beyond that will require reform, selective privatisation, and better multimodal integration. Our bilateral trade agreements will also remain pivotal as we move towards LDC graduation – regardless of when it happens."

Rear Admiral Saleh Mohammad Moniruzzaman, chairman of Chittagong Port Authority, and Nikhil D Lima, managing director of Maersk Bangladesh, also joined the panel discussion.

The session concluded with a strong call to shift from aspiration to execution, with the organisers pledging to continue dialogue and collaboration to build a logistics ecosystem that is competitive, connected, and future-ready.