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POST TIME: 14 November, 2019 00:00 00 AM
Better logistics key to boosting Bangladesh exports: WB
UNB, Dhaka

Better logistics key to boosting Bangladesh exports: WB

Bangladesh needs to improve its transport and logistics systems to meet the needs of its growing economy and boost export growth, said a new World Bank report launched yesterday.

The report – Moving Forward: Connectivity and Logistics to Sustain Bangladesh’s Success – was launched at a hotel in the capital.

It points out that by making logistics more efficient, Bangladesh can significantly boost export growth, maintain its position as a leading ready-made garments and textile producer, and create more jobs.

The report notes that congestion on roads and seaports, high logistics cost, inadequate infrastructure, distorted logistics service markets and fragmented governance hamper manufacturing and freight, further eroding Bangladesh’s competitive edge and putting its robust growth path at risk.

“Bangladesh’s congested transportation and often unsophisticated logistics systems impose high costs to the economy,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.

“By making its logistics more efficient, Bangladesh can significantly optimise its connectivity, business environment, and competitiveness, putting the country on the right path to become a dynamic upper middIe-income country,” she added.

The report argues that efficient logistics has become one of the main drivers for global trade competitiveness and export growth and diversification. For Bangladesh, improving its logistics performance provides an opportunity to increase its world market share in garments and textiles, which account for 84 per cent of its total exports, expand into new markets, and diversify its manufacturing and agriculture into high-value

products.

It notes that improving Bangladesh’s logistics requires a system-wide approach based on greater coordination among all public institutions involved in logistics and with the private sector, increasing the effective capacity of core infrastructure, and removing distortions in logistics service markets to reduce costs and improve quality.