Maritime and Logistics
Bangladesh is located in the Bengal Delta, the largest delta in the world. It is criss-crossed by rivers and tributaries and has a few river ports and four seaports. Of the four seaports, two are in the process of being developed. The oldest and most important is the Chittagong Sea port. It is the lifeline for exports and imports of the country.
Bangladesh's comprehensive network of ports, river terminals, and inland waterways supports the efficient movement of goods both domestically and internationally. As an essential link in global supply chains, the industry plays an important role in supporting key industries such as textiles and manufacturing. Bangladesh has undertaken major infrastructure initiatives to develop and modernise its port facilities, while also focusing on improving connectivity with other nations through bilateral trade agreements. With the expanding economy and projected export-import requirements, the future growth of this sector is definite with particular areas of attention being sustainability, digitization, efficiency and productivity.
Market Insights:
• The coastline zone covers an area of around 36,000 sq. km or close to 25% of the entire land area of the nation. Three major rivers flows from the Himalayas through Bangladesh to the Bay of Bengal and the Indian Ocean.
• The Exclusive Economic Zone (EEZ) covers around 164,000 square kilometres, and the continental shelf is roughly 37,000 square kilometres. Nearly 700 rivers may be found across the nation, with a total length of 22,155 km and an area of 11% of the nation’s total land.
• There are three seaports in Bangladesh: Chittagong, Mongla, and Payra. The deep sea port under development is the Matarbari seaport.
• With Bangladesh on its way to reach the middle income status, its projected expanding economy needs support from a well-functioning and efficient logistics sector.
• Effective logistics is vital to Bangladesh to determine its global commercial competitiveness and increasing global market share in textiles and clothing. It is the second largest exporter of apparel and textiles in the world. Of Bangladesh’s total exports, 84 percent accounts for apparels and textile.
• Bangladesh's location to the north of the Bay provides access to the vital sea lines of communication (SLOCs) that cross these waters. Its seaports serve as key maritime gateways for surrounding nations, particularly those that are landlocked, with the potential for boosting trade. The developing land and river connectivity only confirms the commercial importance of the country.
• Bangladesh’s seaports have the potential to increase trade and connectivity in six of the seven Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) member countries.
• Ports being connected to rail lines and highways amplifies the logistics sector significantly. Currently over 1,600 local and more than 20 international logistics, and freight forwarding companies assist Bangladesh's export and import sectors.
• The Bay of Bengal may be a developing source of the marine economy. Bangladesh might benefit from its marine resources by prospecting for oil and gas, fishing, breaking and building ships, and mining minerals.
• Bangladesh is one of the top destinations for ship breaking and re-cycling. Its ship building industry is also developing as they export vessels globally.
Opportunities:
• Currently Bangladesh is still in the initial phase of exploring its opportunities in the maritime sector beyond logistics, shipbreaking and shipbuilding.
• More areas such as deep-sea gas exploration and offshore wind (OSW) are just initiating.
• According to the 2023 Agility Emerging Markets Logistics Index, Bangladesh has risen four places to 35th among the world's 50 most promising emerging logistics markets, owing to the country's performance in both local and international logistics prospects.
• Bangladesh has several subsectors which will benefit with further development, including wholesale trade services, retail trade services, freight transport services, cargo handling services, storage and warehousing services, and postal and courier services.
• The Chattogram port handles over three million TEUs. Given that Chattogram is a feeder port for container traffic rather than a primary port, this is an exceptional achievement.
• To support this growth, container terminals are being upgraded and the government is engaging with international companies for building and operating world class container terminals.
• With the resolution of the lawsuit involving more than 1,18,813 square kilometres of ocean territory, including 200 nautical miles, a spectacular new door has been opened for Bangladesh to develop its Blue Economy.
• Bangladeshi maritime sector has the potential to be the gateway port for South Asia.