Government monopolies in rail and air cargo, weak inter-ministerial coordination, and the absence of a central logistics authority have been flagged as major gaps in implementing Bangladesh’s National Logistics Policy.

Experts at a discussion held on Tuesday highlighted structural risks, particularly the heavy reliance on the Dhaka–Chattogram corridor, which handles around 70 per cent of national trade.

They called for greater private and foreign investment in cold chains and rail logistics, increased automation, and expert-led infrastructure planning.

Upcoming projects, including the Matarbari Deep Sea Port, Bay Container Terminal, and the third terminal of Hazrat Shahjalal International Airport, were identified as key opportunities to strengthen the country’s long-term logistics capacity.

M Masrur Reaz, Chairman of Policy Exchange Bangladesh, made the remarks while outlining the key challenges and opportunities in the country’s logistics sector, underlining its critical role in trade competitiveness through cost reduction, faster delivery, and efficiency gains, according to a statement.

The American Chamber of Commerce in Bangladesh (AmCham) organised the focus group discussion, titled ‘Framing the Logistics Sector Landscape: Challenges, Opportunities, and the Way Forward,’ on Tuesday at the Westin Dhaka.

US Embassy, Dhaka Commercial Counsellor Paul Frost and Agricultural Attaché Ms Erin Covert attended, alongside AmCham’s logistics sector members and key stakeholders from across the logistics ecosystem, including representatives from RMG, freight forwarding, inland container depots, shipping lines, airlines, courier services, and development partners, the statement said.

Masrur Reaz contrasted traditional cargo terminals with the cargo village concept and highlighted a significant regional knowledge gap in supply chain and logistics management.

Referring to the Chattogram port labour strike, he illustrated how logistics disruptions can severely affect the national economy, noting that logistics infrastructure and port capacity expansion will be crucial to supporting the projected GDP of $760 billion by 2030.

He said that a 1 per cent reduction in logistics costs could increase exports by around 7 per cent, particularly as Bangladesh approaches LDC graduation.

In his opening remarks, AmCham President Syed Ershad Ahmed underscored the fundamental role of logistics in sustaining supply chains, economic activity, and daily life.

‘While Bangladesh’s logistics sector has evolved, it continues to lag behind regional competitors and remains poorly understood domestically,’ he said, emphasising that the global logistics landscape is being rapidly reshaped by forces such as AI and automation, decarbonisation and fuel transitions, geopolitics, regionalisation, and supply chain resilience.

He stressed the need to bridge existing knowledge and capacity gaps to better support the country’s growing trade and investment needs.

Mahbubul Anam, Managing Director of CF Global, outlined key challenges in air logistics and express courier operations, highlighting the need for stronger public–private coordination, supportive policy frameworks, stakeholder-informed infrastructure planning, and adequate equipment.

He stressed the importance of cost rationalisation, capacity expansion, efficient courier services, and robust contingency arrangements to support time-sensitive shipments, particularly as e-commerce-driven demand for express logistics continues to grow.

Mahbubul said that logistics costs at Dhaka airport are 20-25 per cent higher than those of road transport and underscored that stronger public–private cooperation is essential to address these constraints.

He also pointed out the absence of direct cargo flights to the United States, noting that while clearance facilities exist for the European Union, US cargo clearance for Dhaka remains pending.

Nusrat Nahid Babi, Senior Transport Specialist, South Asia, The World Bank, highlighted that Bangladesh’s logistics reform momentum since 2022 must be reaffirmed by the new government through clear priorities and high-level consensus.

She outlined a phased reform agenda structured around five thematic pillars: policy and procedural simplification; multimodal logistics infrastructure and connectivity; skills and institutional capacity development; supply chain digitalisation; and investment in logistics.

Md Moinul Huq, Country Officer, Bangladesh Citibank, NA, noted the urgent need for customs authorities to operationalise provisions of the Customs Act 2023 by clearly defining electronic document submission and payment modalities.

He also highlighted Bangladesh’s continued heavy reliance on letters of credit and called for greater flexibility in import and export settlement mechanisms to enhance trade competitiveness.

Speakers expressed concern regarding heavy dependence on RMG exports, limited new infrastructure development, and weak implementation of electronic documentation despite enabling policies.

They emphasised the need to move decisively from policy intent to implementation, including ratification of the National Logistics Policy 2025, supported by a clear execution roadmap.

They further stressed the importance of structured private-sector engagement to resolve operational bottlenecks, targeted investment in multimodal logistics hubs, and accelerated implementation of digital trade and logistics initiatives.