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Chittagong port © Asmtamanna |

Chaos has gripped Bangladesh’s supply chains, with strikes on rail networks and transport operators threatening another walkout – creating further opportunities for Indian companies.

Railway staff walked out this morning, leading to suspended passenger and freight services, compounding existing congestion at both Chittagong and Dhaka’s rail inland container depots (ICDs).

Following a meeting with the country’s rail secretary and the Bangladesh Railway director general, staff representative Saidur Rahman said “we could not reach a solution”.

Striking workers are demanding improved daily pay and added service benefits, including those related to pensions, following a 2021 decision by the government to scrap an arrangement rail workers had been operating under for 162 years.

The rail workers have staged frequent demonstrations and strikes, and the latest labour unrest is being felt up and down the country, already having a noticeable impact.

The number of Dhaka-bound idle containers at Chittagong’s ICD has hit 1,049 teu, against storage capacity of 876 teu, while more than 1,740 teu is plied up at at Dhaka’s ICD.

Without a swift resolution, those numbers are expected to multiply substantially, as “at least” one service a day is operating in each direction.

Seeking to push blame back onto workers, government finance adviser Salehuddin Ahmed said: “The logical demands of railway staff will be considered. We met some of their demands a few days ago, but now they are making more demands again.”

Failure to get hold of the situation swiftly could result in all-out supply chain catastrophe, it’s claimed, as the Prime Movers and Trailer Owners Association is also threatening walkouts.

The association has threatened to suspend services to and from the port of Chittagong unless its 11 demands are met, including the government scrapping the controversial Bangladesh Road Transport Act 2018.

Announcing plans for a 48-hour walkout on 10 February, association general secretary Mohammad Hossain said, “our back is to the wall”.

The association is also seeking a single registration for 5,000 prime movers and trailers, an end to what it claims is “police harassment”, the withdrawal of VAT and other fees imposed on permits, and a reduction in the advance taxes required.

Association president Abu Saleh Jewel said the members carried at least 85% of the cargo of transported by road and responsible for 95% of port-related vehicle operations.

“We gave services constantly during the challenging periods like the Covid-19 pandemic, natural disasters, and political unrest, but we have been continuously facing deprivation and injustice from the government,” said Mr Saleh Jewel.

He added that government would need to meet the demands by 9 February if it wanted to avoid walkouts.

All this labour unrest comes amid a difficult political period for Bangladesh, following the collapse of its government late last year, as buyers reportedly turn their attention towards alternative suppliers, leading to big wins for India.

As reported by our India correspondent today, the country is experiencing strong demand signals from major brands.

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