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45. Improving the Efficiency of Transport Logistics in the Dhaka-Chittagong Corrido r
       
  Country : Bangladesh
  Name of the client : Roads & Highways Department.
  Name of the Funding Agency : Asian Development Bank (ADB)
  Project Duration : June 2006- Nov. 2006
  Scope of the Project :

The study covers institutional and operational aspects of road, rail and inland waterways transport services in the Dhaka City Corporation. It analyzes and prepares proposals for the development of modern logistic chains, including an appropriate global framework involving transport, information flows, and logistic terminals.

  Services Provided :
  • Review and summarize existing policy, regulatory, and institutional frameworks; previous ADB studies, and all other relevant studies covering transport and logistics in Bangladesh and the sub-region; and highlight lessons learned from on-going and completed ADB and other donor projects.
  • Using appropriate statistical and econometric models, forecast demand for freight transport in the DCC for a 5 and 10-year horizons broken down by commodities, based on alternative scenarios. Scenario, may include : (a) economic growth; (b) export/import trends; (c) development of logistics facilities and logistic providers, (d) modern distribution channels, (e) private sector role in road, rail and IWT development, (f) private sector role in port operations.
  • Prepare detailed statistics on the cargo transported in the DCC, following different criteria: type, volume/tonnage, ton-km, origin-destination, modal distribution, etc. Prepare data on special types of transport along the corridor e.g. (a) dangerous goods by type; (b) reefer cargo by type; (c) exceptional load/dimension cargo, broken down by form of transport such as (a) containerized, (b) break bulk, (c) dry bulk, and (d) liquid bulk.
  • Collect and analyze movement patterns for main types of commodities– non-containerized -, including bulk cereal, ore, cement, fertilizers, POL and break bulk cotton, and determine potential for further containerization.
  • Conduct a comprehensive survey/analysis of the requirements of shippers and consignees in terms of transport services, location of ICDs, warehouses, equipment, etc.
  • Conduct a detailed survey/analysis of freight forwarders and other relevant players on the logistics supply side, including tariff structures, rules and regulations governing their operations, etc.
  • Analyze how information technology (e.g., EDI, internet, etc.) is presently used, and could be used to improve the logistic chain.
  • Examine institutional impediments to efficient operation of the logistic chain (such as imposition of restriction of ICD operation to export cargoes). Analyze the role played by Customs and other institutional entities on global corridor efficiency, including logistic terminals such as Chittagong port and ICDs.
  • Determine transport cost and time between selected origin-destination pairs in the DCC and vice-versa for different types of cargo.
  • Conduct a detailed analysis of total time and cost for container transport operations between Dhaka and main import/export destinations, or main transshipment ports in the region, with transit by Chittagong port. This analysis will include transport to/from: (i) Kolkata, (ii) Colombo , (iii) Singapore , (iv) Hong Kong, and (v) relevant commercial ports for Bangladesh external trade in Europe and the U.S. The analysis of total cost will be divided by different categories, including inland transport costs, shipping costs, port costs (by port and by categories), insurances, commissions and other. The analysis of total time will determine the different times for each leg/operation. A comprehensive matrix will be established and results will be compared with best practices in the region.
  • Describe the current operation for the entire chain of cargo movement between port and the final destinations or vice versa.
       
     
© HB Consultants Ltd., Dhaka, Bangladesh.