Logistics sector: Govt plans reforms to attract foreign investment

The government is set to undertake a series of policy reforms to attract foreign investment in off-dock and Inland Container Depot (ICD) operations, as well as air cargo services, aiming to upgrade Bangladesh’s logistics sector to international standards.

The measures, outlined in the budget speech of Finance Minister Amir Khosru Mahmud Chowdhury, include plans to remove the existing legal cap that limits foreign shareholding in private off-docks and ICDs to 49 percent. More than 24 private ICDs are currently operating in the country, some with foreign equity participation.

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The government will also amend the Customs Act to establish a legal framework for free trade zones. These zones will allow duty-free import of goods for export-oriented storage, packaging, manufacturing, and processing.

The plan comes as Bangladesh is preparing to develop its first free trade zone in Anwara, Chattogram, envisioned as an international trade hub modelled on Dubai’s Jebel Ali Free Zone in the UAE.

Industry stakeholders say the reforms could open the door to full foreign ownership and attract major global logistics firms.

In the port sector, the government has proposed a separate regulatory framework for private port and terminal operators to improve service quality and encourage investment. This aligns with efforts to involve international operators in managing key port infrastructure.

Discussions are ongoing with Dubai-based DP World to operate the New Mooring Container Terminal (NCT) at Chattogram Port.

The modernisation, operation and maintenance plan could attract around US $205 million in investment.

Meanwhile, Denmark-based APM Terminals, part of the AP Moller-Maersk Group, has secured a 30-year concession to develop and operate the Laldia Container Terminal at Chattogram Port, with an estimated $550 million investment. The project is expected to handle over 800,000 TEUs annually.

Swiss logistics company Medlog has been selected to operate the Pangaon Inland Container Terminal, with an estimated $40 million investment. Together, the Laldia and Pangaon projects are expected to bring nearly $590 million in foreign investment.

The government has also proposed regulations for air cargo operator stations, allowing international logistics companies to take part in cargo clearance.

Officials said this would help transform international airports in Dhaka, Chattogram, and Sylhet into full-scale logistics hubs and support the rapid growth of the e-commerce sector.