Smart logistics key to BD’s post-LDC competitiveness
Business Report :
Bangladesh is set to graduate from the least developed country (LDC) category in November 2026. Experts have warned that if the country does not fix its logistics weaknesses, export competitiveness could face major setbacks.
At a virtual roundtable titled “Smart logistics for a competitive private sector” organised by The Daily Star, business leaders and policymakers said logistics reform will be critical for Bangladesh once it loses the trade benefits it currently enjoys as an LDC.
Right now, Bangladesh gets duty-free market access, relaxed rules of origin, and other trade facilities as an LDC. These will end after graduation, meaning exporters will face higher tariffs, tougher rules, and more competition in global markets.
Analysts said that if logistics systems are not modernised quickly, the added costs and delays will hurt key industries like garments, cement, and pharmaceuticals.
Speakers, including Mohammad Iqbal Chowdhury of LafargeHolcim Bangladesh, Shakil Meraj of Biman Bangladesh Airlines, Md Mahbub ur Rahman of HSBC Bangladesh, Ziaur Rahman of H&M, Syed Tavir of Pacific Jeans, Mahbubul Anam of the Freight Forwarders Association, and policy analyst M Masrur Reaz, pointed to long customs clearance times, poor transport integration, lack of digitalisation, and high freight charges as key barriers.
“Logistics is no longer a side issue-it is central to Bangladesh’s economic future,” said Reaz. He suggested five priority steps: faster port digitalisation, better coordination among agencies, more use of waterways, investment in rail, and cutting red tape through transparent regulations.
Chowdhury explained how logistics raises costs in the cement industry, worth about $3 billion. Around 16-17 percent of total costs in the sector come from logistics. With 80percent of transport relying on roads, costs remain high.
“Water transport costs only Tk 2 per tonne compared to Tk 8 by road. A shift could reduce expenses by up to 75percent,” he said.
Mahfuz Anam, editor and publisher of The Daily Star, said logistics will decide whether Bangladesh can stay competitive after graduation.
He stressed that the private sector will play the key role, but strong cooperation with government is essential.
Experts agreed that with just 14 months left, Bangladesh must act fast. They called for a broad strategy involving infrastructure upgrades, customs automation, public-private partnerships, and clear policy reforms. Otherwise, they warned, Bangladesh risks losing export markets to competitors like Vietnam and India, which already have more advanced logistics systems.
