According to the industry insiders, logistic industries in Bangladesh is now one of the leading growing businesses. The logistic sector has also developed for years with steady growth along with export and import. During 1991-92, the logistic and export-import business started to form in our country. At that time, there was no policy or guideline regarding this industry. But at present, there are various logistic companies in Bangladesh successfully doing their business. Many foreign companies recently started joint ventures along with our local logistic company. This collaboration helps to increase our domestic logistic companies.
Market overview
In Bangladesh, the logistic industry suddenly broke down in 1991-92 without any policy, guideline, or even any government policy. Though there wasn’t any legal regulation, this industry sustained, and the new export importers continued their business facing all obstacles. Finally, Bangladesh Bank found that this sector started showing its profit. In 2017-18, it imported goods valued at about $52.84 billion and exported products valued at about $36.67 billion. During the past 30 years, the fantastic thing is that this sector has generated more than forty thousand jobs and has made a massive contribution to the national economy. In 2018, the AEMLI declared that Bangladesh is one of the 45 significant emerging markets globally. Currently, there are 20 to 30 international and about 1600 local logistic companies running their export-import business in Bangladesh.
Major challenges hampering the growth of logistic business in Bangladesh
• Lots of ministry and government agencies set regulations, policies, planning, providing services. As a result, the logistic sector faces coordination problems and a fundamental mismatch of instructions.
• The service quality is relatively low, and the provider cannot trace and track shipments properly. For this reason, many manufacturing companies use their own logistics for a smooth supply chain.
• The logistic sector of Bangladesh is entirely competition-free. So, there is no tradition of rewarding or providing any intensive for better performance. As a result, the service providers are not interested in increasing their service quality or innovates.
• Unprofessional behavior of the logistic service providers is another significant barrier to growing this sector. Most of the drivers are illiterate and unskilled.
Some logistics companies in Bangladesh
We have already said, lots of logistics companies in Bangladesh are running their business successfully. Some of them are-
- Vision logistic LTD
- Navana logistics ltd.
- Shikder freight & logistics
- Sardar enterprise
- Rapid trans freight limited
- Bengal Movers and Packers Dhaka
- Dipdoc logistic ltd. etc.
At present, the logistics sector in Bangladesh has become much more robust. However, the government has an important role to play in making this sector sustainable. Therefore, along with the logistics companies of Bangladesh, the government should also pay special attention to this sector.