Home Business Local logistics sector eyes robust growth

Local logistics sector eyes robust growth

local logistics sector eyes robust growth

Local logistics sector, particularly transport service, is continuing to grow significantly, keeping pace with the rapid expansion of trade and economic activities in the country, insiders have said. According to them, this sector has been playing a crucial role in facilitating the growth of every sector of the country’s economy including industrialisation, agriculture, infrastructure and trade and commercial activities. “Currently, around 17,000 covered vans and 127,000 trucks and pickups are engaged across the country for transportation of goods including those of export-import items, construction materials, agri-produce, industrial products and essential items,” Secretary General of Bangladesh Truck & Covered Van Malik Samity Rustom Ali said. On the other hand, the numbers of covered vans and trucks and pickups were 9,500 and 85,000 respectively even five years back which also reflects profitability of the sector along with rapid growth of various industries and business activities in the country. According to the Bangladesh Truck and Covered Van Malik Samity, the numbers of covered vans, trucks and pickups are thus increasing by leaps and bounds as these are the only means of inland transport for ensuring smooth operation related to manufacturing and goods movement. President of Bangladesh Truck & Covered Van Drivers Union Talukdar Md Monir said the capacity of a standard-sized covered van or truck is 10 tonnes but it carries goods beyond its capacity. Everyday about 90 per cent covered vans and trucks constantly carry freights across the country and a small number of these remain stuck due to mechanical or other problems. “Actually, the fare is not fixed; it is determined through negotiation and it varies from time to time. The average fare of a truck running from Dhaka to Chittagong is Tk 12,000 to Tk 15,000”, Monir added. Mr Monir also said around 75 per cent of their trips are made for the RMG (readymade garment) sector and thus transport service is constantly playing a crucial role to ensure a competitive edge for the sector. The main highways, especially Dhaka-Chittagong, Dhaka-Mymensigh and Dhaka-Tangail, through which RMG products and the raw materials are transported from factories to the port, are being widened (from two lanes to four lanes) facilitating the transport sector to grow. However, when asked, some truck owners and drivers have said they often face various obstacles including extortion, robbery of vehicles and harassments by traffic police and political groups especially at different points of the highway. In addition, they also face problems in parking as there is scarcity of space at different parking points where they also have to confront with harassments. “We often fall victim to forced payment of tolls at many points and sometimes we are wounded due to attack of robbers. There is none to look after the matter. Even in the name of checking documents highway police claim illegal money though we have valid documents,” said Kamrul Hasan, a covered van driver. About robbery and other harassments Rustom Ali said although the Samity on some occasions wanted assistance from police, they couldn’t provide satisfactory response. “We firmly believe that the sector will also be flourishing to a great extent if these obstacles can immediately be overcome”, Rustom added. Following the growth of transport sector there has been import of different types of vehicles which has marked a significant rise over the years, he said adding that most of such vehicles are imported from India. On the other hand, a significant number of age-old trucks and oil tankers are also plying the roads posing a threat to accidents and causing increased air pollution, he added further.