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Yesterday’s opening of the Padma Bridge gave connectivity a shot in the arm since it is going to cut the time needed to move goods between the southwestern region of Bangladesh and the capital city by two to four hours, thus cutting the cost of doing business.
And businesses say the longest bridge over the mighty river will emerge as an economic game-changer if $7 billion is invested in the logistics sector in the southwestern districts.
The greater connectivity will improve the activities of three ports, namely Benapole, Payra and Mongla. As a result, the pressure on Chattogram port, which handles more than 90 per cent of Bangladesh’s seaborne trade, and the Dhaka–Chattogram economic corridor will reduce nearly by 15 per cent, they said.
It is estimated that an investment amounting to $20 billion is needed in Bangladesh to elevate the country’s poor logistics services to the global standard.
At least a third, or nearly $7 billion, should be invested in the southwestern part to improve the logistics sector so that the region’s economic lifeline gets a fillip, according to M Masrur Reaz, chairman of the Policy Exchange, Bangladesh, a private think-tank.
“Following the opening of the Padma Bridge, a great stride has already been made towards improving the connectivity.”
The region, which consists of 21 districts, is a producer of agricultural products such as vegetables and agro-processed foods.
So, the construction of inland container depots, storage facilities, cold-chains, goods transportation facilities and better terminals are important, according to Reaz.
The region is set to go through a major transformation in the coming years.
For example, industrial units could be set up there. So, a mega project for logistics development may be taken for further improvement, Reaz said.
He thinks an immediate investment of $7 billion in logistics is needed to utilise the economic potential of the region by using the connectivity of the Padma Bridge.
The Dhaka–Chattogram corridor, which consists of roads and highways, is already overburdened since it controls more than 85 per cent of Bangladesh’s $160 billion international trade.
“The Padma Bridge has opened another economic corridor and we need to utilise it by improving the logistics services as soon as possible,” Reaz said.
For instance, farmers in Munshiganj produce a lot of potatoes but many of them don’t get fair prices. If the farmers get the chance to store them for a few months in cold storage at a cheaper rate, they may get a better price.
Both AK Azad, chairman of Ha-Meem Group, an exporter and importer of garment and textile goods, and Md Fazlul Hoque, managing director of Plummy Fashions Ltd, said the use of the Mongla port will reduce the turnaround time.
But the port needs to be readied, Hoque added.
Chowdhury Zafar Ahmed, secretary-general of the Bangladesh Covered Van, Truck, Prime Movers Goods Transport Owners Association, thinks the use of any port depends on the importers and exporters.
There is no doubt that the use of the Mongla port will reduce the transportation time, he said.
Abul Kasem Khan, a former president of the Dhaka Chamber of Commerce and Industry, says nearly 40 per cent of perishable goods go to waste because of the delay in transportation.
“So, the establishment of cold chains in the southwestern region is important in order to extend the shelf life of perishable goods.”
Cold chains are even more important for the southwestern districts since the region is one of the hubs of agriculture products and related businesses.
Md Rezaul Alam, chief operating officer of Nippon Express Bangladesh, a joint venture logistics company of Bangladesh and Japan, is hopeful that his company may invest in logistics in the region as road connectivity has been established thanks to the Padma Bridge.
“If the proposed airport is built on the other side of the bridge, international logistics companies will go there.”
He urged the government to allocate land to logistic companies so that they can build large warehouses and other facilities for the storage and transportation of goods.
Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh, suggested using the potential of Benapole, Mongla and Payra ports to attract international logistics companies.
He says Jashore produces a lot of flowers, which have export potential. But foreign sales have remained at a negligible level.
“If cold chains can be constructed, the flowers can be preserved for exporting later. So, setting up of infrastructures is very important now,” said Ahmed, who is involved in the logistics business.
(TDS)
