Exploring the Logistics Sector in Bangladesh Opportunities, Threats and Practical Information

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Exploring the Logistics Sector in Bangladesh Opportunities, Threats and Practical Information Exploring the Logistics Sector in Bangladesh Opportunities, Threats and Practical Information NETHERLANDS BANGLADESH Nyenrode Business Universiteit BUSINESS PLATFORM January 2014 List of Figures List of Tables List of Boxes Executive summary 1 Introduction ..................................................................................................................................... 1 2 Research design ............................................................................................................................... 2 2.1 Defining the logistics sector .................................................................................................... 2 2.2 Research question ................................................................................................................... 4 2.3 Research objectives ................................................................................................................. 5 2.4 Research approach .................................................................................................................. 5 3 Bangladesh general overview.......................................................................................................... 7 3.1 Introduction ............................................................................................................................. 7 3.1.1 Geography ....................................................................................................................... 7 3.1.2 Population ....................................................................................................................... 7 3.1.3 Education ......................................................................................................................... 8 3.1.4 Current political situation ................................................................................................ 8 3.2 Economic situation .................................................................................................................. 8 3.3 Trade and investment relation ................................................................................................ 9 3.3.1 Investment climate .......................................................................................................... 9 3.3.2 Ease of doing business in Bangladesh ........................................................................... 10 3.3.3 Bilateral trade between Bangladesh and the Netherlands ........................................... 11 4 The Bangladeshi logistics sector .................................................................................................... 13 4.1 Overall performance Bangladeshi logistics sector ................................................................ 13 4.2 Sector-wide related opportunities and threats ..................................................................... 14 4.3 Freight transport services ...................................................................................................... 15 4.3.1 Land transport services of freight ................................................................................. 16 4.3.2 Water transport services of freight ............................................................................... 23 4.3.3 Air and space transport services of freight ................................................................... 32 4.3.4 Freight transport agency services and other freight transport services ....................... 35 4.4 Cargo handling services and storage and warehousing services .......................................... 35 4.4.1 Cargo handling ............................................................................................................... 35 4.4.2 Storage and warehousing facilities................................................................................ 35 4.4.3 Opportunities and threats ............................................................................................. 36 5 Policies, laws, regulations, and initiatives of the GOB in the logistics sector ............................... 39 5.1 Introduction ........................................................................................................................... 39 5.2 Logistics and freight transportation services ........................................................................ 39 5.3 Transportation by railway ..................................................................................................... 40 5.4 Inland water transportation .................................................................................................. 41 5.5 Water transport services of freight ....................................................................................... 41 5.6 Road transport services of freight ......................................................................................... 42 5.7 Air transport services of freight ............................................................................................ 43 5.8 Trade facilitation in Bangladesh ............................................................................................ 44 5.9 Operational improvement of cargo handling in the ports and airports of Bangladesh ........ 46 5.10 Storing and warehousing ....................................................................................................... 48 5.11 Wholesale and retail trade .................................................................................................... 50 5.12 E-commerce ........................................................................................................................... 51 5.13 Postal and courier services .................................................................................................... 52 5.14 PPPs and Private Sector Participation Policy and Regional Connectivity Policy ................... 54 5.15 Donors, BSOs and NGOs which are active in the logistic sector in Bangladesh .................... 56 5.15.1 Donors ........................................................................................................................... 56 5.15.2 BSOs ............................................................................................................................... 57 5.15.3 NGOs .............................................................................................................................. 58 6 Towards the improvement of the Bangladeshi logistics sector .................................................... 60 6.1 The objectives and the focus of the survey ........................................................................... 60 6.2 The perspective of Bangladeshi companies on doing business in Bangladesh ..................... 60 6.2.1 Size ................................................................................................................................. 60 6.2.2 Turnover ........................................................................................................................ 61 6.2.3 Subsectors and type of goods ....................................................................................... 62 6.2.4 Location ......................................................................................................................... 63 6.2.5 Cooperation between Dutch and Bangladeshi logistics companies ............................. 63 6.2.6 Opportunities and threats in the Bangladeshi logistics sector ...................................... 64 6.3 The perspective of Dutch companies on doing business in Bangladesh ............................... 67 6.3.1 Size ................................................................................................................................. 67 6.3.2 Turnover ........................................................................................................................ 68 6.3.3 Subsectors and type of goods ....................................................................................... 69 6.3.4 Location ......................................................................................................................... 70 7 Conclusions and Recommendations ............................................................................................. 75 Appendices ............................................................................................................................................ 85 Appendix 1: The EKN and NBU .......................................................................................................... 85 Appendix 2: The research union ........................................................................................................ 86 Appendix 3: Diplomatic relations ...................................................................................................... 87 Appendix 4: Bilateral Trade in Figures............................................................................................... 88 Appendix 5: Dutch logistics companies in Bangladesh ..................................................................... 90 Appendix 6: Logistic sector maps ...................................................................................................... 92 Appendix 7: Practical and statistical information about the port of Chittagong ............................ 103 Appendix 8: Practical and statistical information about the port of Mongla ................................
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