State Minister for Shipping Khalid Mahmud Chowdhury MP has urged investors to invest in Bangladesh. He said, ‘The Government of Bangladesh won’t take any unexpected policy actions that can go against your investment. Your investment will be protected by the laws of this country.’
He spoke as the chief guest at the technical session titled ‘Transport and Logistics’ of the International Investment Summit-2021 organised by Bangladesh Investment Development Authority (BIDA) at Radisson Blu Hotel in Dhaka on 29 November.
Abul Kashem Khan, Co-Chair of Logistics Infrastructure Development Working Committee, Bangladesh, presented the keynote address.
President of American Chamber of Commerce Bangladesh Syed Ershad Ahmed, Chairman of Chittagong Port Authority Rear Admiral M Shahjahan, Director General of PPP Authority of the Prime Minister’s Office Md. Abul Bashar, Regional CEO of PSA International Pvt Ltd Singapore Wan Chi Fung, President of Chattogram Chamber of Commerce and Industry Mahbubul Alam, International Finance Corporation’s delegate Victoria Rigby Delmon and others spoke on the occasion. The event was hosted by Naqib Khan, President of Bangladesh Supply Chain Management Society.
The State Minister said the Government of Bangladesh has already taken various incentive measures for the overall development and growth of the logistics sector. The 8th Five Year Plan and the Perspective Plan for Bangladesh 2041 have identified the logistics sector as an authoritative sector. The target of achieving 8% growth by 2023 is based on two strategies set out in the 8th Five Year Plan. These are to attract more foreign direct investment and private sector growth and export diversification. A dynamic logistics sector is needed to successfully implement these two strategies. The government is committed to bringing more private investment in the development of the logistics sector and all necessary steps are being taken for this.
Khalid Mahmud Chowdhury said that the logistics sector includes all types of transport, warehousing, storage, cold chain, freight and forwarders, clearing and forwarding agents and port services. To become an upper-middle-income country by 2031 and a developed country by 2041, there is no alternative but to increase investment in physical infrastructure and logistics from 2-3% of the GDP to 8-10%. The government is encouraging both private investment and public-private partnerships in this sector. In addition, various initiatives are being taken to make this sector investment-friendly. What is worth mentioning is the increasing participation of foreign investors in joint ventures in the logistics sector.
The State Minister said there is immense potential for investment in the logistics sector. By 2040, Bangladesh will need to invest about USD 285 billion in the transport and infrastructure sectors, and there is a market of about USD 15 billion a year for services provided by these sectors. As the size of the business grows, so will the market.
He said the value of Bangladesh’s exports would soon increase from the current USD 33.7 billion to about USD 56.3 billion in 2025. In addition, the value of imported goods is expected to increase from the current USD 51 billion to USD 83.90 billion. With the growth of business and economic activities, the activities of warehouses, storage, cold chain businesses, roads, sea, sea and air transport, shipping, air and land ports will increase proportionately. By 2022, this business will grow by about 64%. For this reason, the capacity of Hazrat Shahjalal International Airport is being enhanced to facilitate the landing and take-off of F class aircraft, such as A-380, B747-8F.
He went on to say that in the case of seaports, projects such as the construction of a state-of-the-art Bay Terminal and Patenga Terminal, the enhancement of interconnection between inland container depots, and the construction of a seaport with a minimum draft of 16 metres at Matarbari are all going on. To make the Payra port operational by 2022, steps have been taken to expedite the completion of all physical and ancillary works.
