Adopt extensive plan to improve logistics: experts

The government should adopt a comprehensive plan to invest in the logistics sector as it would reduce the cost of doing business and attract more foreign investors to the country, experts said yesterday.

Bangladesh may become an attractive destination for foreign direct investment (FDI) if the country can overcome certain challenges, such as improving the overall logistics sector keeping in mind the country's projected increase in trade volume, they added.

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These comments came at a day-long seminar on "FDI in Logistics Sector", organised by the Nordic Chamber of Commerce and Industry (NCCI) in collaboration with the embassies of Denmark, Norway and Sweden, and an EU delegation at The Westin Dhaka.

Business leaders, foreign dignitaries, government regulatory bodies, policy makers and advocacy coalitions joined the event.

"Bangladesh lacks a comprehensive plan for logistics as our transportation and import-export services are not well-organised," said Ahsan H Mansur, an executive director of the Policy Research Institute.

"As such, we are lagging behind many of our competitor countries in logistics. So, if we want to attract more foreign investors, we have to ensure a conducive trade environment and ease the cost of doing business here," he added.

Mansur urged the government to make a comprehensive plan for investment and special arrangements to remove barriers in the logistics sector.

During one of four panel discussions held throughout the day, Mats Samuelsson, senior vice-president of Global Logistics (H&M), addressed the complexities of the country's aviation service.

Speaking at the event, Norwegian Ambassador Espen Rikter-Svendsen said they see a scope for increased cooperation between Nordic countries and Bangladesh when it comes to sustainability and sustainable growth.

"No doubt, diverse logistics infrastructure development, including ports and multi model sub-regional transport connectivity, is essential. However, it is also important to strengthen the underlying processes of governing logistics," he added.

NCCI President Tahrin Aman highlighted the fact that Bangladesh's graduation from a least developed country will bring about a new set of economic challenges.

"So, the support of Nordic countries will be instrumental in continuing the upward trend," Aman said.

Speaking as chief guest, Commerce Minister Tipu Munshi called upon foreign stakeholders to invest in Bangladesh's logistics sector.

"It is high time to invest in Bangladesh as we have a big market of about 17 crore people. There is a lot of skilled manpower here. There are all kinds of investment opportunities as well," he said.

 "As we are set to graduate from a least developed country, we are working relentlessly to address any new challenges," Munshi added.

The commerce minister went on to say that the government wants to invest in developing the country's infrastructure.

"A testament to that is the Padma Bridge. Additionally, the government is working on the upgradation of several ports," he said.

The four panel discussions were respectively titled "Capital", "Digitisation in Trade", "Processes" and "Policies and Roadmap Ahead".

"Investing in infrastructure and logistics is essential for Bangladesh's continued development to reach ambitious goals and avoid falling into the middle-income trap," said Winnie Estrup Petersen, ambassador of Denmark

Swedish Ambassador Alex Berg von Linde said updated systems of trade, such as digital, paperless transactions and upgraded technologies together with appropriate capacity development will play vital roles in ensuring efficient processes in the logistic sector.

"For a country like Bangladesh, efficient logistics will substantially enhance its competitive edge by reducing the cost of doing business with Nordic countries and the overall EU," she added.

Charles Whiteley, head of the EU delegation, Md Toffazal Hossain Miah, senior secretary of the Prime Minister's Office, Md Mahbub ur Rahman, chief executive officer of HSBC bank, and others spoke at the event.