{"id":12329,"date":"2026-03-31T13:33:49","date_gmt":"2026-03-31T13:33:49","guid":{"rendered":"https:\/\/inspira-bd.com\/?p=12329"},"modified":"2026-03-31T14:12:41","modified_gmt":"2026-03-31T14:12:41","slug":"last-mile-logistics-bangladesh","status":"publish","type":"post","link":"https:\/\/inspira-bd.com\/zh\/last-mile-logistics-bangladesh\/","title":{"rendered":"The Last-Mile Problem: Why Goods Move to Dhaka, But Struggle to Reach the Rest of Bangladesh\u00a0"},"content":{"rendered":"

Bangladesh has built bridges, expanded ports, and opened expressways. It still cannot reliably move a mango from farm to consumer.<\/em> <\/p>\n\n\n\n

Before dawn in Chandpur, a fisherman named Alam loads 400 kilograms of hilsa into a truck with no refrigeration. The catch came out of the Meghna hours ago, still iridescent. The truck pulls onto a highway still dark and quiet. Six hours later, snarled in the outskirts of Dhaka with the engine idling and the air already thick with heat, a third of his catch is already unsellable. The fish reached the city. It just never reached the market. <\/p>\n\n\n\n

This is not an unusual morning. It is the ordinary, unreported cost of doing business in Bangladesh’s domestic economy: a cost paid not in port dwell-times or container tariffs, but in spoiled fish, rotting fruit, delayed medicine, and market prices that consumers pay and farmers never see. <\/p>\n\n\n\n

Bangladesh’s logistics narrative has long been dominated by highways, ports, and megaprojects. But the country’s most consequential logistics failure lies elsewhere: in the stretch between Dhaka and the rest of the country. It is here, in the last-mile and regional distribution layer, that value is lost, costs rise, and growth is quietly constrained. <\/p>\n\n\n\n

A Nation Connected to the World, Disconnected From Itself <\/strong><\/p>\n\n\n\n

Bangladesh’s freight and logistics sector is estimated at USD 32.92 billion in 2026, projected to reach USD 38.13 billion by 2031 at a compound annual growth rate of 2.98% [1]. The country has invested heavily in ports, bridges, and trade corridors, positioning itself as a regional connectivity hub. <\/p>\n\n\n\n

Yet scale is masking structural imbalance. The system has been optimised to pull goods into Dhaka and Chattogram, not to distribute them efficiently across the country. <\/p>\n\n\n\n

Bangladesh is increasingly connected to global trade flows, yet unevenly connected within its own domestic market.<\/em> <\/p>\n\n\n\n

Dhaka and Chattogram together account for roughly 70% of national warehousing capacity, while regional hubs including Khulna, Sylhet, Barishal, Bogura, and Rangpur remain comparatively underdeveloped and weakly integrated [2]. As the bubble chart below shows, this is not a modest imbalance. It is a structural concentration that leaves the majority of the country logistically marginalised. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Figure 1: Warehousing Concentration by Region. Circle size reflects share of national capacity. Source: World Bank Logistics Analysis, 2019.<\/em> <\/p>\n\n\n\n

The consequences extend far beyond logistics companies. They ripple across the entire economy: higher costs for manufacturers, lower farm-gate prices for farmers, inconsistent supply for retailers, and higher prices for consumers. <\/p>\n\n\n\n

Critically, this is not a tax imposed by regulation or tariffs. It is embedded in the system itself. <\/p>\n\n\n\n

The Hidden Tax on the Economy <\/strong><\/p>\n\n\n\n

Bangladesh spends as much as 16% of its GDP on moving goods from factories to customers, far above the global average of roughly 10%, according to a World Bank official speaking at a Dhaka roundtable in August 2025 [3]. Between 35% and 54% of those costs are linked to inefficient transport systems. <\/p>\n\n\n\n

The World Bank’s 2019 report, Moving Forward: Connectivity and Logistics to Sustain Bangladesh’s Success, quantified the damage: the national logistics system effectively doubles standard trucking costs, roughly 35% of truck trips run empty due to poor coordination and return-load mismatches, and average truck speeds hover around 17 kilometres per hour, roughly half what they would be on uncongested roads [4]. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Infographic: Key logistics inefficiencies and their scale. Sources: World Bank 2019 and 2025; Policy Exchange Bangladesh \/ TBS News, 2022.<\/em> <\/p>\n\n\n\n

These inefficiencies are not abstract. A trailer truck costs USD 0.12 per kilometre in Bangladesh. In India, the equivalent is USD 0.02. In Indonesia, USD 0.06 [5]. Bangladesh’s garment exporters, who already operate on tight margins, absorb this penalty with every shipment. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Figure 2: Trailer Truck Cost per Kilometre (USD). Source: Policy Exchange Bangladesh \/ TBS News, 2022.<\/em> <\/p>\n\n\n\n

What makes this particularly damaging is the geography of the problem. Bangladesh’s logistics infrastructure has evolved around a Dhaka and Chattogram axis, reflecting decades of export-oriented growth. But as the economy diversifies into agro-processing, domestic retail, pharmaceuticals, and e-commerce, this structure is increasingly misaligned with demand. Regional cities are no longer peripheral markets. They are growing consumption centres, yet the logistics system still treats them as extensions of Dhaka rather than independent nodes. <\/p>\n\n\n\n

When Companies Build Their Own Logistics System <\/strong><\/p>\n\n\n\n

Nowhere is the system’s failure more clearly illustrated than in what Bangladesh’s pharmaceutical industry has been forced to do about it. <\/p>\n\n\n\n

Pharmaceutical firms, whose products require temperature control, reliable transit times, and documented cold chains, have built parallel private distribution networks from scratch. These companies maintain central warehouses in Dhaka, supported by regional depots in Sylhet, Rajshahi, Rangpur, and Barishal, along with dedicated delivery fleets including temperature-controlled vehicles. <\/p>\n\n\n\n

These private systems exist not because they are efficient. They exist because the broader logistics ecosystem cannot reliably perform this function. Firms are compensating for a missing national distribution layer, absorbing costs that, in a functioning logistics market, would be shared. <\/p>\n\n\n\n

It is worth pausing on what this means. A well-resourced industry has effectively given up on the national system and built its own. Smaller industries including agro-processors, rural retailers, and small-scale exporters have no such option. They simply absorb the losses, pass them on in higher prices, or exit the market. <\/p>\n\n\n\n

And there is a structural reason this situation persists: brokers and intermediaries who match loads to vehicles profit from fragmentation. A more consolidated, platform-based trucking market would threaten their role. The dysfunction is not simply a market failure. It is also a market that, for some participants, is working exactly as designed. <\/p>\n\n\n\n

Cold Chain: The Most Visible Gap <\/strong><\/p>\n\n\n\n

If the trucking market illustrates fragmentation, the cold chain illustrates absence. <\/p>\n\n\n\n

Bangladesh’s cold storage capacity is overwhelmingly concentrated in potato storage, with more than 400 cold storage facilities and a combined capacity of 60 lakh tonnes, yet negligible coverage for fruits, vegetables, dairy, meat, or pharmaceuticals [6]. The consequences are measurable and severe. <\/p>\n\n\n\n

According to the Food and Agriculture Organization (FAO), roughly one-third of Bangladesh’s fish catch is lost before reaching consumers, with an additional 15% suffering quality deterioration [7]. For fruits and vegetables, post-harvest losses range from 26% to 43% depending on the crop and season [8]. One-third of Bangladesh’s horticultural produce goes to waste due to the absence of storage infrastructure and reliable transportation, according to the SAARC Agricultural Centre [9]. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Infographic: A fish\u2019s journey from Chandpur to market. Tracking loss at each stage of an unrefrigerated supply chain. Sources: FAO Bangladesh; Bangladesh Agricultural University.<\/em> <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Figure 3: Post-Harvest Food Losses in Bangladesh. Sources: FAO Bangladesh; FAO Research 2010 (Prothom Alo, 2023); SAARC Agricultural Centre.<\/em> <\/p>\n\n\n\n

Consider what this means for a supply chain moving fresh hilsa from Chandpur toward Dhaka. Without reliable temperature control, a delay of even a few hours can degrade quality beyond recovery. By the time the product reaches end consumers in Rajshahi or Rangpur, both commercial value and nutritional quality have been compromised. These are not marginal inefficiencies. They represent systemic value destruction, occurring daily, across every district in the country. <\/p>\n\n\n\n

E-Commerce and the Ceiling on Digital Growth <\/strong><\/p>\n\n\n\n

These structural failures feed directly into a sector that many had hoped would bypass them altogether. Bangladesh’s e-commerce sector is often described as high-growth and high-potential. But growth is increasingly constrained not by demand, but by logistics. <\/p>\n\n\n\n

Within Dhaka, delivery timelines are relatively predictable. Outside Dhaka, they are not. Consumers in secondary cities regularly experience delays, inconsistent service quality, and higher delivery costs. Policy guidelines have historically allowed longer delivery windows for inter-city shipments, reflecting the reality of slower distribution. <\/p>\n\n\n\n

This creates a ceiling on market expansion that digital investment alone cannot lift. Bangladesh’s digital economy is being limited by its physical infrastructure, a constraint that becomes more binding the further from Dhaka a consumer lives. <\/p>\n\n\n\n

A Policy Exists. The Hard Part Remains. <\/strong><\/p>\n\n\n\n

Policymakers are beginning to recognise these challenges, with significant caveats. <\/p>\n\n\n\n

The National Logistics Policy (NLP) 2025, approved by the Council of Advisers under Chief Adviser Professor Muhammad Yunus in November 2025, sets out an ambitious vision: to transform Bangladesh into a leading regional logistics hub by 2050 [10]. It scrapped an earlier logistics policy approved by the ousted Awami League government in April 2024 and emphasises cost reduction, efficiency gains, and multimodal transport integration. <\/p>\n\n\n\n

The economics of reform are compelling. A mere 1% reduction in logistics costs could increase national export demand by approximately 7.4%, according to World Bank estimates [4]. Eliminating congestion alone could reduce logistics costs by 35% and boost exports by 20%. <\/p>\n\n\n\n

Announcing a policy is only a starting point. Bangladesh’s past record in implementation has not been satisfactory.<\/em> <\/p>\n\n\n\n

That cautionary note comes not from an outside critic but from Masrur Reaz, chairman of Policy Exchange Bangladesh, one of the country’s most respected economists on logistics reform. He has been consistent: the ambition is right, but ambition without execution is a pattern Bangladesh has repeated before [11]. <\/p>\n\n\n\n

The NLP 2025 is not a law. It is a policy framework. Bangladesh’s logistics sector is administered by nine ministries and more than 20 government agencies, each with its own budget, statute, and administrative hierarchy. Without a unified institutional authority with a real mandate, the policy risks becoming another document that sits on shelves while the roads remain congested and the fish continues to rot. <\/p>\n\n\n\n

What Reform Actually Requires <\/strong><\/p>\n\n\n\n

What Bangladesh needs is not simply more infrastructure, but a different kind of infrastructure and a different governance logic to build it. <\/p>\n\n\n\n

The next phase of logistics development must prioritise decentralised regional distribution hubs that enable faster inter-city movement, not just improved corridors into Dhaka. It requires integrated trucking platforms that reduce broker-driven fragmentation and improve asset utilisation. It demands scalable cold-chain systems extending beyond Dhaka into secondary markets. It requires digital logistics tools that provide real tracking, scheduling reliability, and accountability. And it requires genuine intermodal connectivity linking road, rail, and inland waterways to regional nodes. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Figure 4: Freight Transport Modal Share in Bangladesh. Source: Bangladesh Perspective Plan 2021-2041 \/ TBS News, 2025.<\/em> <\/p>\n\n\n\n

Bangladesh has over 3,000 kilometres of navigable waterways; in 2018, they carried only 16% of freight while roads carried 77% [12]. Shifting even a fraction of freight to waterways would reduce road congestion, lower costs, and cut emissions simultaneously. <\/p>\n\n\n\n

None of this is incremental. It represents a structural shift from a corridor-based model, which moves goods efficiently between two cities, to a network-based model, which moves goods efficiently across a country. <\/p>\n\n\n\n

As Bangladesh approaches LDC graduation in November 2026, the urgency of that shift is intensifying. The duty-free and quota-free market access that has underpinned export growth for decades will gradually disappear. Export competitiveness will depend increasingly on domestic efficiency, and domestic efficiency begins with the logistics system. <\/p>\n\n\n\n

Bangladesh has already demonstrated it can build gateways. The Padma Bridge, the Bay Terminal in Chattogram, the expanded port facilities: these are real achievements. But they are not sufficient. <\/p>\n\n\n\n

The country’s next logistics breakthrough will not come from another headline infrastructure project. It will come from building the systems that ensure goods move not just into Dhaka, but across Bangladesh reliably, efficiently, and at scale. <\/p>\n\n\n\n

The fish in Alam’s truck will not wait.<\/em> <\/p>\n\n\n\n

Sources<\/strong> <\/p>\n\n\n\n

    \n
  1. Mordor Intelligence. Bangladesh Freight and Logistics Market Size and Share, 2026. mordorintelligence.com\/industry-reports\/bangladesh-freight-and-logistics-market <\/li>\n\n\n\n
  2. World Bank \/ TBS News. “High logistics costs reduce profits for businesses in Bangladesh.” tbsnews.net, November 13, 2019. (Warehousing concentration, Dhaka and Chattogram.) <\/li>\n\n\n\n
  3. The Daily Star. “Logistics costs eat up 16% of GDP.” thedailystar.net, August 18, 2025. (World Bank senior transport specialist Nusrat Nahid Babi, Dhaka roundtable.) <\/li>\n\n\n\n
  4. World Bank. Moving Forward: Connectivity and Logistics to Sustain Bangladesh’s Success. Washington, D.C.: World Bank, 2019. worldbank.org\/en\/news\/press-release\/2019\/11\/13\/bangladesh-can-boost-its-exports-with-better-logistics <\/li>\n\n\n\n
  5. TBS News \/ Policy Exchange Bangladesh. “Bangladesh can add $20b to exports a year with better logistics.” tbsnews.net, July 27, 2022. (Dr. Masrur Reaz; comparative trucking cost data.) <\/li>\n\n\n\n
  6. BSS News \/ Department of Agricultural Marketing. “Post-harvest losses are a major threat to food security.” bssnews.net. (Cold storage capacity, potato storage concentration.) <\/li>\n\n\n\n
  7. FAO Bangladesh. “A third of fish in Bangladesh goes to waste.” fao.org\/bangladesh. (FAO \/ Bangladesh Agricultural University study: one-third fish loss, 15% quality deterioration.) <\/li>\n\n\n\n
  8. FAO \/ Prothom Alo. Post-harvest loss in fruits and vegetables: 26%-43%. en.prothomalo.com, February 24, 2023. (Citing FAO research, 2010.) <\/li>\n\n\n\n
  9. SAARC Agricultural Centre (SAC) \/ GFM Dhaka. “Post-harvest losses are a major threat to food security in Bangladesh.” (Director Dr. Md. Harunur Rashid: one-third of horticultural produce wasted.) <\/li>\n\n\n\n
  10. The Daily Star. “New logistics policy positions Bangladesh as a 2050 trade hub.” thedailystar.net, November 2025. (NLP 2025 approval; history of prior Awami League policy.) <\/li>\n\n\n\n
  11. New Age BD. “Experts for speedy implementation of National Logistics Policy.” newagebd.net, February 4, 2026. (Masrur Reaz, Policy Exchange Bangladesh, on implementation risk.) <\/li>\n\n\n\n
  12. Bangladesh Perspective Plan 2021-2041 \/ TBS News. Modal share of freight transport (road 77%, waterways 16%, rail 6%). tbsnews.net, November 2025. <\/li>\n<\/ol>\n\n\n\n

    <\/p>","protected":false},"excerpt":{"rendered":"

    Bangladesh has built bridges, expanded ports, and opened expressways. It still cannot reliably move a mango from farm to consumer.  Before dawn in Chandpur, a fisherman named Alam loads 400 kilograms of hilsa into a truck with no refrigeration. The catch came out of the Meghna hours ago, still iridescent. The truck pulls onto a highway still dark and quiet. Six hours later, snarled in the outskirts of Dhaka with the engine idling and the air already thick with heat, a third of his catch is already unsellable. The fish reached the city. It just never reached the market.  This is not an unusual morning. It is the ordinary, unreported cost of doing business in Bangladesh’s domestic economy: a cost paid not in port dwell-times or container tariffs, but in spoiled fish, rotting fruit, delayed medicine, and market prices that consumers pay and farmers never see.  Bangladesh’s logistics narrative has long been dominated by highways, ports, and megaprojects. But the country’s most consequential logistics failure lies elsewhere: in the stretch between Dhaka and the rest of the country. It is here, in the last-mile and regional distribution layer, that value is lost, costs rise, and growth is quietly constrained.  A Nation Connected to the World, Disconnected From Itself  Bangladesh’s freight and logistics sector is estimated at USD 32.92 billion in 2026, projected to reach USD 38.13 billion by 2031 at a compound annual growth rate of 2.98% [1]. The country has invested heavily in ports, bridges, and trade corridors, positioning itself as a regional connectivity hub.  Yet scale is masking structural imbalance. The system has been optimised to pull goods into Dhaka and Chattogram, not to distribute them efficiently across the country.  Bangladesh is increasingly connected to global trade flows, yet unevenly connected within its own domestic market.  Dhaka and Chattogram together account for roughly 70% of national warehousing capacity, while regional hubs including Khulna, Sylhet, Barishal, Bogura, and Rangpur remain comparatively underdeveloped and weakly integrated [2]. As the bubble chart below shows, this is not a modest imbalance. It is a structural concentration that leaves the majority of the country logistically marginalised.  Figure 1: Warehousing Concentration by Region. Circle size reflects share of national capacity. Source: World Bank Logistics Analysis, 2019.  The consequences extend far beyond logistics companies. They ripple across the entire economy: higher costs for manufacturers, lower farm-gate prices for farmers, inconsistent supply for retailers, and higher prices for consumers.  Critically, this is not a tax imposed by regulation or tariffs. It is embedded in the system itself.  The Hidden Tax on the Economy  Bangladesh spends as much as 16% of its GDP on moving goods from factories to customers, far above the global average of roughly 10%, according to a World Bank official speaking at a Dhaka roundtable in August 2025 [3]. Between 35% and 54% of those costs are linked to inefficient transport systems.  The World Bank’s 2019 report, Moving Forward: Connectivity and Logistics to Sustain Bangladesh’s Success, quantified the damage: the national logistics system effectively doubles standard trucking costs, roughly 35% of truck trips run empty due to poor coordination and return-load mismatches, and average truck speeds hover around 17 kilometres per hour, roughly half what they would be on uncongested roads [4].  Infographic: Key logistics inefficiencies and their scale. Sources: World Bank 2019 and 2025; Policy Exchange Bangladesh \/ TBS News, 2022.  These inefficiencies are not abstract. A trailer truck costs USD 0.12 per kilometre in Bangladesh. In India, the equivalent is USD 0.02. In Indonesia, USD 0.06 [5]. Bangladesh’s garment exporters, who already operate on tight margins, absorb this penalty with every shipment.  Figure 2: Trailer Truck Cost per Kilometre (USD). Source: Policy Exchange Bangladesh \/ TBS News, 2022.  What makes this particularly damaging is the geography of the problem. Bangladesh’s logistics infrastructure has evolved around a Dhaka and Chattogram axis, reflecting decades of export-oriented growth. But as the economy diversifies into agro-processing, domestic retail, pharmaceuticals, and e-commerce, this structure is increasingly misaligned with demand. Regional cities are no longer peripheral markets. They are growing consumption centres, yet the logistics system still treats them as extensions of Dhaka rather than independent nodes.  When Companies Build Their Own Logistics System  Nowhere is the system’s failure more clearly illustrated than in what Bangladesh’s pharmaceutical industry has been forced to do about it.  Pharmaceutical firms, whose products require temperature control, reliable transit times, and documented cold chains, have built parallel private distribution networks from scratch. These companies maintain central warehouses in Dhaka, supported by regional depots in Sylhet, Rajshahi, Rangpur, and Barishal, along with dedicated delivery fleets including temperature-controlled vehicles.  These private systems exist not because they are efficient. They exist because the broader logistics ecosystem cannot reliably perform this function. Firms are compensating for a missing national distribution layer, absorbing costs that, in a functioning logistics market, would be shared.  It is worth pausing on what this means. A well-resourced industry has effectively given up on the national system and built its own. Smaller industries including agro-processors, rural retailers, and small-scale exporters have no such option. They simply absorb the losses, pass them on in higher prices, or exit the market.  And there is a structural reason this situation persists: brokers and intermediaries who match loads to vehicles profit from fragmentation. A more consolidated, platform-based trucking market would threaten their role. The dysfunction is not simply a market failure. It is also a market that, for some participants, is working exactly as designed.  Cold Chain: The Most Visible Gap  If the trucking market illustrates fragmentation, the cold chain illustrates absence.  Bangladesh’s cold storage capacity is overwhelmingly concentrated in potato storage, with more than 400 cold storage facilities and a combined capacity of 60 lakh tonnes, yet negligible coverage for fruits, vegetables, dairy, meat, or pharmaceuticals [6]. The consequences are measurable and severe.  According to the Food and Agriculture Organization (FAO), roughly one-third of Bangladesh’s fish catch is lost before reaching consumers, with an additional 15% suffering quality deterioration [7]. For fruits and vegetables,<\/p>","protected":false},"author":12,"featured_media":12347,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[247],"tags":[],"ppma_author":[374],"class_list":["post-12329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"yoast_head":"\nThe Last-Mile Problem: Why Goods Move to Dhaka, But Struggle to Reach the Rest of Bangladesh\u00a0 | Inspira Advisory and Consulting Ltd.<\/title>\n<meta name=\"description\" content=\"Why goods reach Dhaka efficiently but struggle beyond it, exposing Bangladesh\u2019s last-mile logistics bottlenecks, distribution gaps, and regional growth constraints.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/inspira-bd.com\/zh\/last-mile-logistics-bangladesh\/\" \/>\n<meta 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