Bangladesh opens door to private air cargo operators in logistics push
In a move designed to tackle chronic congestion and delays in airfreight exports, Bangladesh will ...
© Rudmer Zwerver
MSC-owned logistics arm Medlog will slash barge transport rates by around 50% when it begins operating Dhaka’s Pangaon Inland Container Terminal this weekend, aiming to divert cargo from congested road and rail links to inland waterways.
The Switzerland-based company will formally inaugurate operations at the terminal on Saturday following a deal with Chittagong Port Authority in November.
Medlog Bangladesh MD ATM Anisul Millat told The Loadstar the sharp reduction in barge fares was designed to make inland water transport significantly more competitive and reduce logistics costs in Bangladeshi trade.
Under the new tariff, the cost of shipping an export-laden 20ft box from Pangaon to Chittagong will fall from $175 to $70, while the rate for an 40ft will drop from $220 to $140.
Import rates will also be reduced sharply. The cost of carrying a 40ft hi-cube container from Chittagong to Dhaka will fall from $445 to $282, while the barge fare for an import-laden 20ft will be cut from $324 to $190.
By comparison, road transport between Chittagong and Dhaka currently costs about $500 per trailer, regardless of whether it carries a 20ft or 40ft container.
Mr Millat said Medlog had already hired local barges to carry boxes between Chittagong port and the Pangaon terminal in Dhaka and industry figures have welcomed the move, saying lower inland transport costs could ease pressure on Bangladesh’s overstretched road network.
Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, said the initiative would encourage greater use of the terminal, and he urged Medlog to increase barge frequency on the Dhaka–Chittagong route to ensure faster transit times.
“There are many factories close to the Pangaon terminal that will benefit immediately from the fare cut. And if cargo volumes increase, pressure on road transport will be reduced.”
Importers have also signalled interest, provided service levels improve alongside pricing.
Alamgir Hossain, a Dhaka-based importer of electronic goods, regularly ships cargo from China. He said: “If Medlog can offer competitive transport rates and faster delivery, we will definitely use the terminal.”
Medlog’s entry into Pangaon is seen as part of a broader push to shift containerised cargo onto inland waterways, easing congestion and lowering logistics costs in Bangladesh’s fast-growing tradelanes.
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