25% logistics cost reduction could drive 20% export growth: Expert
National Logistics Policy aims to lower business costs, boost exports, integrate into Global Value Chain
Reducing logistics costs by 25% could boost the country's exports by 20%, said Barrister Nihad Kabir, former president of the Metropolitan Chamber of Commerce and Industry (MCCI), on Tuesday.
Speaking at a seminar organised by the Foreign Investors Chamber of Commerce and Industry (FICCI), she said even a 1% reduction in transportation costs could lead to a significant 7.4% increase in exports, and reducing dwell times by a day could similarly enhance exports by 7.4%.
During her keynote presentation at the event held at a Dhaka hotel, she underscored the National Logistics Policy 2024 as pivotal for attracting private investment in critical sectors such as ports and railways.
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She said the policy aims to stimulate capital inflows, generate employment, and foster new skill demands through collaborative efforts between the public and private sectors.
Nihad Kabir expressed optimism that the policy would improve logistics efficiency, enhance competitiveness, and bolster productivity.
According to the Global Logistics Performance Index 2023, Bangladesh ranks 88th out of 139 countries.
Mohammad Tofazzel Hossain Miah, principal secretary to the prime minister, said, "The National Logistics Policy 2024 is a pivotal step for Bangladesh to enhance its position in the global market and spur economic development."
He said, "It's aligned with our ambition to become a high-income country and evolve into Smart Bangladesh by 2041. The policy aims to lower business costs, boost exports, and integrate into the Global Value Chain (GVC), which are essential for building a Smart Bangladesh."
Rear Admiral Mohammad Sohail, chairman of Chattogram Port Authority, praised the initiative of formulating first-ever National Logistics Policy of the country.
FICCI President Zaved Akhtar said the new monitoring mechanisms and councils will ensure the policy's success.
He said the establishment of the National Logistics Development Council and the National Logistics Development and Coordination Committee (NLDCC) will provide essential guidance and coordination, ensuring that our logistics policy is implemented effectively and efficiently.
He also highlighted the 2025-2035 decade as a key period for infrastructure development. This period will be marked by the roll-out of a reform plan to overcome sector challenges, the development of a skilled workforce, and the creation of an investment-friendly environment to attract both local and foreign investments, he said.
"We are on the edge of a new era of efficiency and competitiveness, and I am confident that these recommendations will lead us to success," he added.
The seminar brought together dignitaries from the government, industry, and academia to discuss the National Logistics Policy 2024 to achieve sustainable economic growth and expand both local and global trade and investment by building a top-notch logistics network.
