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Bangladesh Regional Connectivity Project (BRCP)-1


Contents

About the project

Partner: Bangladesh Regional Connectivity Project-1 and Joint Secretary (Planning Cell), Ministry of Commerce.
Project duration: 25 March 2024 –12 August 2024.

To highlight the significance of global commerce, the Government of the People’s Republic of Bangladesh initiated a project titled “Bangladesh Regional Connectivity Project (BRCP)-1”. This is being funded by the International Development Association (IDA), - a member of the World Bank group. The Ministry of Commerce, Ministry of Shipping (BLPA), and Ministry of Finance (NBR) are jointly working to implement this project. The main goal is to reduce trade-related time and costs, enhance the efficiency of trade infrastructure, and foster favorable trade conditions along with key regional transport routes. In fiscal year 2023-24 three studies are being conducted under the BRCP-1, that are significant for export promotion and trade facilitation. Among these three studies, RAPID team is conducting the following two.
Study 1: Vehicle and Cargo Tracking System under the Free Trade Regime
Vehicle and cargo tracking has emerged as a significant element in facilitating global trade to stay ahead in logistics. Many countries have been using tracking and tracing mechanisms to monitor the movement of goods during trade. In Bangladesh, the government has taken a proactive step by mandating the use of GPS trackers in covered vans to mitigate cargo theft incidents on roads. RAPID is conducting research to propose recommendations on the effective implementation of vehicle and cargo tracking systems in Bangladesh. This study aims to address five board objectives to be examined. These objectives include identifying the gaps in the existing guidelines on the vehicle and cargo tracking systems, suggesting automated border management and customs procedures, analysing the impact of the cargo tracking system on the Logistics Performance Index (LPI), discussing Transports Internationaux Routiers (TIR) convention and Electronic Cargo Tracking System (ECTS), and analysing policies and regulatory measures.
Study 2: Needs Assessment Study on the Necessity of More Off-dock/Dry Ports
Chittagong port in Bangladesh is known as a vital hub for containerised cargo movement. Approximately 70 per cent of container cargoes passing through this port are either originating from or destined for the capital, Dhaka. The primary mode of transportation for these goods is road networks, which account for 67 per cent of the total container throughput volume. In contrast, rail transport, despite its potential for efficient bulk transport, accounts for the remaining 3 per cent. Currently, 18 separate off docks are operating near Chittagong Port. All of these terminals are led by private investors. The Dhaka Inland Container Depot (ICD) has been a key player in facilitating rail cargo transport. However, its capacity is currently constrained due to extensive urban development surrounding the terminal, leading to congestion issues. This situation underscores the urgent need for additional off-dock and dry port facilities to alleviate the pressure on existing infrastructure and enhance overall efficiency. This analysis aims to assess the needs for additional off-docks/dry ports in Bangladesh, considering the current logistical challenges and future growth prospects of the country’s trade and commerce.

Project activities

Validation Workshop: Vehicle and Cargo Tracking System under Free Trade Regime and Needs Assessment Study on the Necessity of More Off-Dock/Dry Ports
On 19 September 2024, Research and Policy Integration for Development (RAPID), in collaboration with the Ministry of Commerce, Bangladesh, hosted a validation workshop for the draft reports titled “Vehicle and Cargo Tracking System under Free Trade Regime” and “Needs Assessment Study on the Necessity of More Off-Dock/Dry Ports.” The workshop featured Mr. Md. Selim Uddin, Secretary of the Ministry of Commerce, as the chief guest, while Ms. Shaila Yasmin, Joint Secretary of the Ministry of Commerce, served as the chair. Dr. Md. Deen Islam, Research Director at RAPID, delivered the keynote presentation, and Dr. M Abu Eusuf, Executive Director of RAPID, also attended the event.



Focus Group Discussions (FGDs) and Key Informant Interviews (KIIs): Needs Assessment Study on the Necessity of More Off-docks/Dry Ports
On 21 May 2024, RAPID team hosted Focus Group Discussions (FGDs) and Key Informant Interviews (KIIs) with stakeholders from Bangladesh Shipping Agents' Association (BSAA), Marine Surveyors Association of Bangladesh (MSAB), Bangladesh Ship Handling & Berth Operators Association, and various representatives from the Chittagong Chamber of Commerce and Industry. The event was held at the Chittagong Chamber of Commerce and Industry office, World Trade Centre, Chittagong. The main purpose of this FGD was to assess the additional requirements for dry ports/off docks in Bangladesh and determine the best location for these facilities.



Focus Group Discussions (FGDs) and Key Informant Interviews (KIIs): Needs Assessment Study on the Necessity of More Off-docks/Dry Ports
On 20 May 2024, RAPID team organised Focus Group Discussions (FGDs) and Key Informant Interviews (KIIs) involving Off Dock Owners, Clearing, Forwarding Agents, Traders, and diverse stakeholders from the Chittagong Chamber of Commerce and Industry. The session took place at the Chittagong Chamber of Commerce and Industry office, World Trade Centre, Chittagong. The primary objective of this event was to evaluate and assess the additional needs of dry ports/ off docks in Bangladesh.



Key Informant Interviews: Needs Assessment Study on the Necessity of More Off-docks/Dry Ports
On 12 May 2024, RAPID team carried out a series of important discussions with the representatives from Bangladesh Live and Chilled Food Exporters Association. The primary goal of these in-depth interviews was to assess the necessity for additional off-docks/dry ports to alleviate export processing barriers, and to figure out crucial areas that require interventions for improving trade connectivity effectively.



Key Informant Interviews: Vehicle and Cargo Tracking Systems
On 8 May 2024, RAPID team conducted several key interviews with land port officials, customs officials, and traders at Akhaura Land Station. The main objective of these key informant interviews was to understand the current state of the Vehicle and Cargo Tracking System at the border, assess the automation process for vehicle cargo clearance, and identify critical areas that require support to enhance trade connectivity efficiently.



Inception Meeting: Study on Conducting Trade related 03 studies in FY2023-2024
On 30 April 2024, Research and Policy Integration for Development (RAPID) and Bangladesh Regional Connectivity Project-1, Ministry of Commerce, jointly organised an Inception event. Dr. Md. Deen Islam, Research Director, RAPID, delivered the keynote presentation. Ms. Shaila Yasmin, Project Director(BRCP-1), Joint Secretary(Planning), Ministry of Commerce, inaugurated the event. Dr M Abu Eusuf, Executive Director, RAPID, was also present at the event.



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