Faced with severe warehousing shortages in Bangladesh, DHL Global Forwarding, the freight specialist arm of Deutsche Post DHL Group, has invested over US$2.2 million to expand its own Container Freight Station (CFS) facility in the country.
The newly built facility in Chittagong, the main port city, will mainly serve the country’s ever-growing ready-made garments (RMG) industry.
Bangladesh has 19 CFSs across the country where the construction of large numbers of ICDs or off-docks is required to meet the growing demands. The country’s clothing manufacturers, the main users of the port and port facilities, had long demanded that the government allow the construction of more port facilities.
Two container depots with a capacity of 12,000 TEU are currently under construction.
On May 2, DHL announced that the expansion to the site of the 21,336 m² facility will provide faster access to the Port of Chittagong, where goods can be immediately shipped by sea freight.
“The dedicated facilities also feature eco-friendly operation to reduce carbon emissions,” the company said.
In Bangladesh, cargoes are first transported from the factories to the CFSs, which are mainly located in Chittagong, by truck or curtain wagon, where they are stuffed into containers. Later, the crates are transferred to the ships for shipment. The 19 CFS in Bangladesh can handle a total of 78,000 TEU containers.
The CFS handle almost 100% export containers in addition to 37 types of import boxes loaded with goods and empty containers.
Bangladesh’s exports for FY2022 hit a record high of US$52 billion for the first time in history as its exports continue to show steady growth due to its strong RMG sector, with export earnings up 34.3% compared to the previous year Fiscal year 2021, DHL said.
The RMG industry plays a significant role in the country’s exports, accounting for more than 80% of all exports. The leading markets for RMG include the USA, Germany, Great Britain, Spain and France.
“The expansion of DHL Global Forwarding’s CFS facilities will meet the growing demand for Bangladeshi ready-made garments worldwide,” said Fabian Rybka, Cluster Head Bangladesh, Sri Lanka, Maldives, Nepal, Bhutan, DHL Global Forwarding.
“With an export volume of a whopping US$42.6 billion, Bangladesh’s ready-made garment industry has grown significantly due to its strong manufacturing capabilities and competitive labor costs. Improved security, warehousing and sorting processes at these CFS facilities allow us to offer our customers a high quality of service while ensuring they meet EU/US quality standards,” he said.
“By operating from these facilities, we can further strengthen our environmental, social and governance foundation, which is an integral part of our corporate sustainability agenda,” he added.
Feroz Jahangir, COO and Head of Value Added Services, DHL Global Forwarding Bangladesh, said that with Bangladesh being the second largest exporter of ready-made clothing globally, companies need to ensure they are employing the right supply chain solutions to ensure their exports can reach consumers cost-effectively and timely.
“These facilities will support the growth of sub-containerload shipments, particularly due to rising e-commerce demand,” he added.
DHL Global Forwarding’s dedicated CFS is located in Chittagong, a port city with Bangladesh’s largest seaport, Chittagong Port, which handles more than 92% of Bangladesh’s import-export trade.