Policy Formulations to Establish More Dry Port Infrastructures to Increase Seaport Efficiency, Productivity, and Competitiveness in Bangladesh

Abstract

Maritime trade in Bangladesh is growing significantly, as observed by UNCTAD, which reported 3.20 mTEUs throughput in 2022. Additionally, the principal seaport, Chattogram Port, reported a port throughput of 3.27 mTEUs in 2024, the historical record for any port in Bangladesh. More than 50% of imports and exports, including empty containers, were handled in 2024 through 19 nos close dry ports in Chattogram City by applying small-scale intermodal systems, where the performance of pure intermodal from/to mid-range dry ports (3 Nos) to Chattogram Port is 2.53%. By 2030, the government wants all import and export operations to be conducted through dry ports. Furthermore, the current volume of international goods freight cannot be handled by the dry ports that are currently in place. This research applied mixed methods to explore the opportunities to set more dry ports and the application of intermodal systems for increasing the seaport’s efficiency, productivity, and competitiveness. The Focus Group Discussion (FGD) method was used to know the dry port location, investment, and policy in creating the opportunity to set up more dry ports in Bangladesh. In the findings, 82.50% of participants agreed that existing facilities are not enough and need to establish more dry ports to handle current and future volumes of containers. Moreover, the responses reveal a division of opinion on establishing a dry port outside of Chattogram, with a notable inclination towards opposition. According to 62% of respondents, dry ports outside Chattogram are necessary. To enhance intermodal connectivity and facilitate easier cargo transfers between ports and hinterland regions, integrated infrastructure development would be in line with national economic objectives. The research aims to investigate the possibilities for establishing additional dry ports across the country to boost seaport productivity, efficiency, and competitiveness by utilizing intermodal freight transportation systems to cut costs and time while also considering environmental factors like CO₂ emissions.

1. Introduction

Maritime [1] trade in Bangladesh is growing significantly, as observed by UNCTAD (United Nations Conference on Trade and Development) statistics, where they reported 3.20 mTEUs (million twenty-foot equivalent units) throughput in 2022. Additionally, the Chattogram Port Authority-CPA [2] reported a port throughput of 3.27 mTEUs, which is the record for 2024 container handling at the top seaport. The dry port [3] concept has received more attention in business processes as it is claimed to rationally organize freight movement in a globalized system. According to a group of researchers [4], a dry port is a kind of inland intermodal terminal that is usually immediately connected to seaports via high-capacity road, rail, or inland barges for speedy container transfers from and to the hinterland. Seaports [5] have been looking for ways to improve and expand their operations over the past few decades, and they have discovered that linking to their hinterlands through dry ports to transfer directly from to seaports. Port operators [6] and liner shipping companies attempt to obtain cost and competitive advantages by offering services in complementary maritime-related areas that are not limited to the port-protected areas. It expanded to the last mile of the seaport’s hinterland to provide a logistics solution for international traders efficiently and economically. New dynamics [7] regarding the revolution of industrial 4.0 and the impact of operational efficiency linked to ecological sustainability have come into existence due to the challenges involved in optimizing logistical operations in all supply chain links. This section delivered the preliminary status of the dry port concept and its application to Bangladesh, with the features of intermodal freight transportation systems. After that problems are stated in Section 2 to outline the objectives of this study in the next Section 3.

Logistics [8] value chains are now complicated networks made up of innumerable non-standard services from suppliers that were constructed at the price of laborious cascade integration procedures. International shipping [9] and transportation companies are drawn to countries with business-friendly regulations, efficient customs, and efficient services. The amazing expansion of globalization and the boost in container shipping have made container terminal capacity a key issue at many ports worldwide. The effect [10] of growing shipping lines’ demand on ports pushes them to expand their hinterland territories and construct inland terminals like dry ports to get around the capacity issue and keep their competitive edge. The international [11] freight transport industry, which is fueled by the long-term stimuli of growing globalization and international trade, lives on ongoing change and development, as evidenced by advancements in technology, management, and regulations. Effectively [12] managing and enhancing the efficiency of the port logistics system, which begins at the port yard and ends at the final mile, involves several difficulties and problems. A study [13] examined how vessel expansion affects port competitiveness and how seaports and dry ports can work together to offset the massive increase in ship size at seaports, which will drastically lower ocean freight. Practitioners and scholars [14] have shown a great deal of interest in the concept of dry ports to set an integrated freight transport connectivity between seaports and inland intermodal nodes for efficient port logistics services to port users. Lastly, sustainable [15] port development is a critical issue from an economic and environmental perspective, affecting not only the government as a port management agency but also port authorities and terminal operators.

According to a group of researchers [16], dry ports can be classified as close, mid-range, and distant (see Figure 1). Close dry ports can be found all over the world to help seaports handle vessels and fill space gaps because most seaports are crowded and located in city areas. Bangladesh’s principal seaport, Chattogram Port, is not an exceptional one, as its maximum support is given by 19 nos close dry ports in Chattogram city areas, also connected to the three mid-range dry ports near the capital city, Dhaka. To date, there is no presence of a distant dry port in Bangladesh. Bangladesh Inland Container Depot Association -BICDA [17] reported that at least 50% of imports and exports, including empty containers, were handled in 2024 through 19 nos close dry ports in Chattogram City (See more in Appendix C and Appendix D)

The structure of this paper is to classify dry ports to a global extent in this section. After that, the necessity of setting up more dry ports, what problems faced by freight transportation systems, and understanding the importance of dry ports as per existing port throughput and future forecasting are discussed in Section 2 and Section 3. After that, Section 4 and Section 5 state the research method that was applied in this study and the existing dry port facilities for freight transport, respectively. The literature review was conducted just before the data analysis and research results. The discussion Section was articulated and followed by future directions or recommendations before conclusions. Most importantly, this study included numerous recommendations for further research and advised the relevant ministry and port authorities to take the lead in developing policies for the establishment of more dry port infrastructure in Bangladesh. Overall, this research aims to investigate the possibilities for establishing additional dry ports across the country to boost seaport productivity, efficiency, and competitiveness by utilizing intermodal freight transportation systems to cut costs and time while also considering environmental factors like CO₂ emissions.

2. Problem Statement

ESCAP [15] explored that severe traffic congestion is caused by inadequate and badly maintained road infrastructure, where rail appears to occasionally compete with the road network; the overall network plan needs to be improved to make it more comprehensive. Additionally, there is still a significant reliance on outside assistance for the advancement of large-scale projects like ports and dry ports. Regarding dry ports and hinterland connectivity, there is currently a lack of an integrated intermodal transportation network and ineffectively managed transportation hubs.

According to Figure 2 and the port throughput prediction for Bangladesh, it might reach 4.7 mTEUs by 2030 and 8.39 mTEUs by 2050 (detailed data in Appendix B). Conversely, the 22 nos dry ports that are currently in operation have a 2.81 mTEUs capacity (see Appendix C). During the field visit and focus group discussion, Bangladesh Railway (BR) disclosed that they have a new dry port project at Ghorasal that will add over 150,000 TEU yearly. As of right now, there has been no positive news regarding the Dhirasram dry port project, which is a long-standing problem in Bangladesh’s freight transport industry. Bangladesh Regional Connectivity Project-1 (BRCP-1) [18] disclosed that by 2030, the government wants all import and export operations to be conducted through dry ports. Furthermore, the current volume of international goods freight cannot be handled by the dry ports that are currently in place. Therefore, more dry ports are required to handle the current and future volume of containerized cargo and containers all over Bangladesh. As a result, additional dry ports are needed to manage the volume of containerized cargo and containers in Bangladesh, both now and in the future.

According to the Public Private Partnership Authority (PPPA) [19], only 17% of the containers at the Chittagong Port is transported by road and rail; the remaining 70% of the containers are either destined for or originating in Dhaka. Trucks and covered vans are used to deliver the remaining containers to and from the Dhaka region. As per the CPA [2] report, two dry ports in Dhaka (Dhaka Rail Inland Container Depot-DICD and Pangaon Inland Container Terminal-PICT) handled only 2.53% of the containers of Chattogram Port (See Appendix C). So, handling containers that desalinated or originated in Dhaka but performing in 19 nos dry ports in Chattogram, is not adding value because they are creating the opportunity for multiple handling and utilizing unhealthy trucks and covered vans, and causing excessive CO₂ emissions from the freight transport.

Dry ports [20] continue to be a significant milestone in regional transport cooperation in Asia, but they are not evident in South Asia among the numerous regional and subregional transport efforts. Existing land ports of Bangladesh surrounded by India and Myanmar are not performing as distant dry ports to do cross-border trade and provide inland intermodal transport services to the neighboring countries India, Nepal, Bhutan, and Myanmar in South Asia. However, Chattogram Port, the main port, handles solely domestic traffic and containers. Bangladeshi seaports are not in competition with one another or with seaports in neighboring nations.

3. Objectives of the Study

This study’s primary goal is to investigate the possibilities for establishing additional dry ports across the country to boost seaport productivity, efficiency, and competitiveness by utilizing intermodal freight transportation systems to cut costs and time while also considering environmental factors like CO₂ emissions. However, the following sub-objectives are explored to develop qualitative research questionnaires for focus group discussion (Appendix A) and identify lucrative locations for new dry ports that will comply with the existing dry port policies in Bangladesh.

• To analyze the existing port throughput of Bangladesh and general forecasting up to 2050 based on the UNCTAD data from 2010–2022 and compare and contrast with Chattogram Port’s data and intermodal data of Bangladesh for 2024.
• To assess Bangladesh’s existing dry ports located in Chattogram City and other areas of Bangladesh.
• To identify new locations to set more dry ports out of Chattogram and apply of pure intermodal system to reduce costs and time while also considering environmental factors like CO₂ emissions and water pollution.
• To assess the requirements of dry port infrastructures and their investment opportunity as a source of funding in Bangladesh.
• Review of the existing dry port policies that need to be incorporated with other country policies to establish dry ports easily and invest at a minimum level by utilizing government resources.

The significance of this research lies in the establishment of more dry ports throughout the entire country to build inland intermodal systems that will facilitate seamless connectivity with seaports and boost seaports’ competitiveness, productivity, and efficiency in Bangladesh. A dry port [21] is an efficient bridge that links the mainland and overseas and not only revitalizes the regional economy but also promotes the growth of seaport throughput, enhances the port’s competitiveness, and development of social welfare. Given Bangladesh’s port geography, landlocked nations Nepal, Bhutan, and Northeast India can profit from using the Bay of Bengal’s resources, but no one is doing so, which has led to the development of a specific policy for the country’s dry port infrastructure.

4. Research Methodology

Dry ports are replacing seaports to fortify the port’s hinterland. Investigating the emerging field of maritime logistics research requires the use of the proper methodology. The use of mixed-methods research is appropriate for analyzing and verifying study findings, particularly in dry port research. This research applied mixed methods to explore the opportunities to set up more dry ports and the application of intermodal systems in Bangladesh. In the quantitative part, port throughput also includes inland intermodal data, where in 2024, inland dry ports DICD and PICT handled 80,015 and 2911 TEUs, respectively, while Chattogram Port handled 3.27 mTEUs, a historical record since it began container operations. In maritime logistics and management, research methods are essential for helping researchers examine intriguing themes and topics in a specific field, like transportation and logistics. Three steps of qualitative research methodology were applied, where the first step was to perform a rigorous review of related and available literature on dry port policies, dry port infrastructures, and intermodal freight transportation systems. In the second step, we visited major seaports, Chattogram Port and Mongla Port, all dry ports (close and mid-range), and rail infrastructures in Pabna, Dinajpur, and Khulna. Based on the field visits, we collected port throughput of seaports and inland nodes data, existing policies for dry ports in Bangladesh, UNCTAD statistics, and Economic and Social Commission for Asia and the Pacific (ESCAP) policies and guidelines on dry ports, focus group discussion (FGD) research questionnaires were developed accordingly. The last or 3rd step was to conduct FGDs in the port cities of Chattogram, Mongla, and the capital city Dhaka, where a total of 80 participants attended and provided their valuable opinions on dry port policy and infrastructure in Bangladesh. All participants who wanted to participate in the interviews or focus group discussions were given an ethical consent letter by the university.

Figure 3 shows the number of participants for 5 FGDs that were conducted in different places in Bangladesh from May to July 2024 to identify locations and policy review for more dry port infrastructures of Bangladesh. FGD-1 was conducted in Chattogram with all operating and management employees of existing dry ports under the category of Close Dry Ports within Chattogram City and its adjacent area. FGD-2 was also in Chattogram, where container shipping association members, clearing and forwarding agents, and others were present to explore the opportunities in setting up dry ports in Bangladesh. Lastly, in Chattogram, FGD-3 was conducted where related business associations and chambers provided valuable opinions. Furthermore, FGD-3 discussions were extended to the office of the CPA and the Chattogram Customs House (CCH), and they provided their valuable opinions by following the same research questionnaires in Appendix A. After completing the Chattogram part, FGD-4 was steered in Dhaka with port users, associations, and others that also extended to the office of the Road and Highways Division (RHD), Bangladesh Railway (BR), and Bangladesh Inland Water Authority (BIWTA). Lastly, FGD-5 was conducted in Khulna City with associations and others that also extended to the office of Mongla Port Authority (MPA) and Mongla Customs House (MCH).

5. Existing Dry Port Systems in Bangladesh

Chattogram Port [22] is the dedicated institution in the port sector of Bangladesh that covers all dry ports and is connected via rail, road, and inland waterways. There are currently 19 nos dry ports in the port city of Chattogram that fall under the purview of the Chattogram Port Authority and are classified as “Close Dry Ports”. According to Figure 4 (Part B), nine of these dry ports are located outside of the city limits and along the Dhaka-Chattogram highway, which passes through Chattogram’s industrial zones. The remaining 10 dry ports are very near Chattogram Port and within 8 km. Both policies of the National Board of Revenue (NBR) and CPA guided us to a set of a dry ports after 20 km of the port, but the maximum of them was established before this circular (See Figure 4, Part C). The port’s population grew, and all roadways in Part C were crowded due to Chattogram City’s rapid growth, due to port throughput in terms of cargo and containers (Figure 4).

Four mid-range dry ports that are well connected to Chattogram Port by rail (DICD and Ghorasal) and inland waterways (Summit Alliance Port Limited (SAPL) and PICT) are portrayed in Figure 4 (Part A—Main Map of Dry Ports other than Chattogram City). The Bangladesh Railway has proposed and is now building Ghorasal as one of them. The second-largest seaport, Mongla Port, which also handles container vessels like Chattogram Port, is not connected to any kind of dry port in Bangladesh. During the field visit, it was observed that SAPL has suspended its container handling operation due to less interest from port users and non-availability of international shipping cargo (imports and exports) via this environmentally friendly riverine inland container terminal. Furthermore, DICD is located in the center of Dhaka, the capital, and only permits city vehicles to move at night. Nearly 20 years ago, plans were made to build one ICD on a 154-acre tract of land in Dhirasram, Gazipur city, as an alternative to DICD. The proposal to build the largest inland container depot in the nation is currently having trouble deciding where to put it, even after the feasibility study was finished and funding was obtained from financiers. Now, BR is proposing to develop another ICD in Ghorasal that will leverage the growing demand for rail transportation from the Chattogram port.

6. Literature Review

Studies that have involved a thorough scientific evaluation of the literature on dry port systems and their relationship to seaports are conspicuously lacking, despite the topic’s undeniable importance.

The dry port [23] concept, which redistributes operations to less expensive hinterland areas, is supported by the lack of space and the poor seaport transportation chain. The dry port [24] concept primarily allows seaports to secure a market in the hinterland, increase throughput without physically expanding the port, and provide better services to shippers and transport operators, in addition to the general benefits to the ecological environment and the quality of life of people living near major roads by shifting flows from road to rail. In addition to lowering [25] tariffs and promoting global trade, researchers explored that increasing competition between sea and land corridors is forcing governments to reevaluate established maritime linkages to the hinterland. Generally, research [26] has treated dry ports as a component of maritime logistics operations in the hinterland that are actively operating in developed countries and suggested developing countries, including China, because seaports have had to be competitive in all areas, including their hinterland operations.

For example, the Croatian [5] government created the “National Development Strategy 2030” with the goals of lowering emissions, bolstering air, road, rail, and maritime transportation, and promoting the growth of multimodal transportation as much as feasible. The ESCAP [3] secretariat developed a plan to assist member countries in addressing the development of dry ports and undertook a series of fact-finding missions to selected countries to review the policies and approaches that have been adopted in the development and operation of facilities in dry ports. A group [27] of researchers examined Malaysia’s national transport policy and found that the strategy recommendation was to improve hinterland connectivity to gateways and connect corridors to improve economic distribution, as the roadside has a much larger share than the rail side, and dry ports need to get more involved to balance it. By managing [28] containers and facilitating international trade, dry ports also contribute significantly to the national economy while adhering to the general policies of the state. The government [11] must adopt proper policies and regulatory measures to support and promote appropriate “dry port” developments while meeting environmental objectives, regardless of the degree of its direct engagement.

The right [29] choice of dry port locations helps to reduce costs and lead times while also improving logistics performance because the dry port has emerged as a crucial node in marine logistics, linking all parties involved in the network. Furthermore, the choice of dry port locations has a big influence on the port city’s urban and natural environment because it serves as a coordinating element at the port and hinterland interfaces. Inland [27] transport facilities connected to seaports from/to dry ports should be adequate to handle a large number of containers and have effective road and rail transport connections to destinations. These facilities should also benefit customers in terms of service, including time, cost, and capacity. The construction of dry ports in key cities and special economic zones, as well as the creation of an urban freight transport strategy, are the top priorities for Bangladesh’s recovery phase, according to an ESCAP [30] study.

The government’s [9] investment in infrastructure, such as roads, transportation, and communication networks, has provided enterprises with more convenient transportation and logistics conditions, helping to reduce operating costs. The construction [11] of transportation corridors and related infrastructure to make ports easier to reach lags behind the ports’ reactions to the challenges they occasionally face, in particular, the availability of adequate container storage space within ports is a matter of great concern for those ports in traditional locations and close to, or even within, suburban or urban areas. The dry port [13] model depends on a seaport that is directly connected to inland intermodal nodes and pure freight rotation of intermodal containers immediately to seaports for connecting to ocean vessels timely. Therefore, dry port infrastructures will enhance the capacity of freight handling of a country and will avoid delays in the passage, also avoid multiple handlings of cargo before reaching the seaport or vice versa.

Logistics and transportation [31] have changed as a result of containerization, yet variables including product type, volume, quantity, vessel capacity, and available infrastructure continue to be important. The smooth [23] functioning of the whole, integrated transportation system is essential to the success of intermodal freight transportation. The port [32] performance analysis is being used not only for productivity and financial control but also as an interactive process allowing for the integration of multidimensional metrics, such as evaluating competitiveness in terms of ports’ intermodal integration capacity. In addition to enhancing [28] the rail-focused port service, dry port, and intermodal transportation may be viable alternatives to seaport congestion. In a new study [33], intermodal development will support the port users for free mode choice at the intermodal nodes or dry ports, also known as “synchromodality”, which is currently in the early phases of modeling development and is an extension of intermodal service network architecture. According to ESCAP’s [20] assessment of current trends, there are new chances for intermodal transportation to play a significant role in promoting sustainable development by enabling each mode to play to its own advantages while enhancing others to provide seamless transportation options. Intermodal transportation allows for better utilization of current infrastructure and capacity, better meeting the needs of global supply chains, and improved mode balance.

Driven specifically by technological advancements that produce high-quality logistical and operational solutions, smart ports [7] are a strategy to address customer expectations that stem from worldwide requirements. There is a shortage [23] of space in the seaport terminals for transshipment between vehicles and traffic modes, sorting, consolidation, and storage. Research [34] found that vessel movement efficiency (container loading and unloading) and container discharge from port facilities to the final destination were the two primary elements influencing port productivity. A study [29] revealed that to maintain effective port-city interactions and guarantee the seamless flow of containerized cargo, container ports around the world are establishing dry ports in their extended hinterlands as a result of growing throughput and expansion. Reference [9] requested government assist because organizational support makes it evident how crucial collaborative networks are to increasing port competitiveness; this network is intended for the development of dry ports. To meet the global requirements for providing maritime logistics services efficiently and boosting port productivity and competitiveness, two researchers 12] advised taking strategic action that must be prioritized first, followed by operational and infrastructure development and technology upgrades.

7. Research Results

This section is developed as per findings or results from the field visits to selected dry ports (close) in Chattogram and all mid-range dry ports in Dhaka also visited the potential locations for setting up more dry ports in Bangladesh, In this connection, Section 7.1 is derived from the quantitative data analysis that resulted in more dry ports requirements in Bangladesh. After that, FGD analysis is guided to explore the dry port concept and its relation to intermodal, as well as policy requirements to establish more dry port infrastructures for increasing seaport efficiency, productivity, and competitiveness in Bangladesh (From Section 7.2, Section 7.3, Section 7.4, Section 7.5, Section 7.6, Section 7.7, Section 7.8, Section 7.9, Section 7.10 and Section 7.11).

7.1. Quantitative Data Analysis Results

In Bangladesh, dry port systems are available at three inland freight transit hubs that use pure intermodal. One of the most well known of them is the Dhaka rail ICD; however, because of its central location in the capital city, it is not allowed to transport vehicles to shippers or consignees during the day. The other two dry ports (SAPL and PICT) are underutilized as a result of the cargo source’s rearward location. During the field visit, it was observed that the operations of SAPL are closed already, and PICT noted the lowest number of 2911 TEUs only [2].

Figure 5 displays the port throughput handled in the seaport Chattogram Port and 22 nos dry ports all over the country. CPA [2] remarked that they have handled 3.27 mTEUs, which is a historical record after starting their container operations. Due to the rail construction of Padama Bridge, DICD’s container operation is hampered and showed a lower figure in 2024, but in the last couple of years, it was overutilized. Only 38 items are allowed to transfer from Chattogram Port to all dry ports in Chattogram Port as a consequence of lower utilization (64.23% only) of the capacity of dry ports in Chattogram (See Appendix D). Since most cargo is produced in the hinterland, which is roughly 300 km from Chattogram Port, small-scale intermodal transit works well to close Chattogram’s dry ports, but it is not a sustainable solution. Because of the poor state of road infrastructure and safety issues when traveling between seaports and dry ports, intermodal road transport is banned by the government. It is worth mentioning that only 38 imported items are allowed to be transferred from Chattogram Port to all dry ports in Chattogram, which leads to a lower yearly capacity utilization rate. Given that the operators have expertise in managing all import items during COVID-19, more items will be permitted to boost the volume.

Heavy [19] traffic on the Dhaka–Chattogram expressway causes significant delays in shipment deliveries. The nation’s Inland Water Transport (IWT) infrastructure presents a promising option because there is just one Inland Container Depot (ICD) in Dhaka that is rail-connected to Chattogram Port. Figure 5 shows the bad performance of ICTs, but they are promising to support climate change and reduce CO₂ by avoiding road transport, importantly.

7.2. Involvement of Dry Port Uses, Operations, and Management in Bangladesh (See Appendix A-FGD Q1)

Figure 6 indicates the involvement of dry port management; the funnel shows a clear predominance of direct involvement. The vast majority of respondents, representing 49 respondents, are directly involved in dry port management, indicating that many of them have first-hand experience and are actively involved. The indirect involvement of 26 respondents suggests that these individuals play a role in related activities or have a peripheral connection to dry ports.

There were only two respondents who stated that they were not involved in dry port management, which is a minimal percentage of the total respondents. This indicates that the discussion reached individuals who had an interest in dry port operations. One interesting finding is that three participants fall into the group “Not to disclose”, which indicates a high level of transparency and willingness to share involvement in this area. According to the graph, the majority of respondents are directly involved in managing dry ports in Bangladesh, followed by a smaller group that is involved indirectly, and very few without involvement. These data reflect a well-informed and active respondent base.

7.3. The Capacity of Seaports and Dry Ports to Handle Port Throughput of Bangladesh (See Appendix A-FGD Q2)

Figure 7 below demonstrates the consent of participants about the container handling facilities in Bangladesh. Evidently, 82.50% of participants agreed that existing facilities are not enough and need to create more dry ports to handle current and future volumes of containers in Bangladesh. On the contrary, 10% of participants are confident in the existing seaport and dry port performance, creating the opportunity for the existing dry port owners to upgrade their ports and handle more TEUs by investing in equipment and digitization. However, 7.5% of participants said they had no views or ideas since they were still in the middle of the FGD conversation and needed more clarification on the questions to determine if commerce in Bangladesh was increasing or decreasing.

7.4. The Capacity Status of Existing Dry Ports to Manage the Container Port Throughput of Chattogram Port in Bangladesh (See Appendix A-FGD Q3)

Figure 8 represents the sufficiency of the 19 nos operational dry ports that show a diverse set of opinions, with a significant leaning towards insufficiency. “Yes” was answered by 12 respondents who believe that the 19 nos operational dry ports are sufficient to handle Chattogram port container port throughput. This represents a minority view, indicating that a small group of respondents is confident in the current infrastructure’s capacity to meet demands. Greatly, “No” was remarked by 60 respondents who believed there are not enough dry ports to manage container port throughput, despite the 19 currently operating. To adequately handle container volumes at Chattogram Port, more infrastructure or improvements are needed. This majority view highlights concerns about existing capacity.

“No Comments” was stated by five respondents who chose not to comment on the sufficiency of dry ports. This may indicate a lack of detailed knowledge or a preference to refrain from making any comments. However, “No Idea” was selected by 3.75% of participants, as they did not see the results in the discussion. Based on the graph, it is clear that the current number of operational dry ports is insufficient to handle container throughput at Chattogram Port. The majority opinion points towards the need for increased capacity or infrastructure enhancements to better handle port demands. A small number of respondents believe the current capacity is sufficient. Taking care of these concerns should be a priority for port management and stakeholders.

7.5. Location of Dry Ports in Chattogram and Outside of Chattogram (See Appendix A-FGD Q4)

The strategic [35] placement of dry ports will improve the efficiency of connections between seaports and hinterlands and support the logistics industry’s sustainable growth. The responses reveal a division of opinion on establishing a dry port outside of Chattogram, with a notable inclination towards opposition. According to Figure 9 (Inset), 50 (62%) respondents, dry ports outside Chattogram are necessary. Although the current facilities in Chattogram are performing well, this group suggests that an expansion of the infrastructure is needed. In addition to improving overall efficiency in the national supply chain network, the decentralization of logistics can also reduce congestion at Chattogram. Several respondents, consisting of 30 (38%) people, do not believe that additional dry ports need to be established outside of Chattogram. By this majority view, Chattogram’s current infrastructure is sufficient to meet demands without further expansion. This indicates that they believe it is sufficient to meet current demands. Overall, the majority of respondents are satisfied with the current setup, although a significant number see the benefits of establishing dry ports outside of Chattogram. As a result, Chattogram’s existing facilities are being optimized rather than expanded to new locations, indicating a preference for focusing resources and efforts on optimization.

Figure 9 shows that agreed respondents to set dry ports at outside of Chattogram were participated in a discussion to explore new location for more dry port infrastructures in Bangladesh. Respondents were asked whether it is necessary to set up dry ports outside of Chattogram, considering the current performance of facilities in Chattogram. Among the 80 respondents, 50 said yes and that it is necessary to establish dry ports outside Chattogram. Those in favor of establishing dry ports outside of Chattogram provided specific locations where these facilities should be developed. Responses included the following:

• Dhaka, Gazipur, and Narayanganj to cover the Dhaka division and its adjacent areas: Mentioned by multiple respondents as suitable locations due to their industrial significance and logistical advantages.
• Pabna, Rangpur, and Dinajpur: Also highlighted as potential areas in the North Bengal part for establishing dry ports, likely due to their strategic location and port access. These dry ports have the potential to serve India, Nepal, Bhutan, and South-west part of China
• Khulna: Also highlighted as a potential area for establishing dry ports, likely due to its strategic location and port access.
• Habiganj: To cover the Sylhet division and provide intermodal services to the landlocked part of India.

The division between respondents who believe in expanding dry ports beyond Chattogram and those who do not indicates differing perspectives on Bangladesh’s logistics infrastructure capacity and future needs. Those advocating expansion often cited reasons such as reducing congestion in Chattogram, enhancing regional logistics efficiency, and supporting economic growth in other industrial hubs. Conversely, those opposed to expansion may perceive the existing facilities in Chattogram as adequate to handle current and foreseeable future demands. This is without additional infrastructure elsewhere.

This diversity of opinions underscores the complexity of logistical planning in Bangladesh. Balancing current efficiency with future growth demands careful consideration of regional economic dynamics, transport connectivity, and industrial development strategies. Among the respondents who indicated that it is not necessary to set up dry ports outside of Chattogram, a total of 26 provided reasons for their stance. Here are the details.

• Availability of Shipping Facilities: There are already all the necessary shipping facilities available in Chattogram, so no additional facilities are required outside.
• Existing Facilities Issues: There is dissatisfaction with the current dry ports with some respondents stating that they are not operating effectively or efficiently.
• Container Tracking Challenges: There were issues related to tracking containers that prevented dry ports from being established outside Chattogram.
• Proximity to Chattogram Port: The proximity of Chattogram Port to the city and existing infrastructure was cited as a reason not to build dry ports further away.
• Cost Concerns: Additional costs associated with transporting goods further from Chattogram Port were highlighted as a deterrent.
• Operational Control: A preference for local concentration of efforts and resources was expressed regarding operational control within the Chattogram area.
• Regulatory Challenges: There were challenges associated with managing logistics outside of Chattogram due to road transport regulations by the National Board of Revenue (NBR).
• Investment Returns: According to some respondents, Chattogram’s dry port is still aiming to achieve satisfactory returns on investment, and there is no immediate need to expand.
• Connectivity and Monitoring: Ease of connectivity and monitoring from port authorities within Chattogram was cited as a reason to focus efforts locally rather than expanding elsewhere.

A cautious approach to infrastructure expansion is evident in the majority opinion against creating dry ports outside of Chattogram. Stakeholders perceive Chattogram’s current facilities as adequate for meeting logistical demands based on concerns about operational issues, regulatory constraints, and cost-effectiveness. This viewpoint emphasizes the importance of optimizing existing resources and resolving internal challenges before considering external expansions. This ensures efficiency and sustainability in Bangladesh’s maritime logistics sector.

7.6. Role of Dry Ports in Supporting Chattogram Port and Adding Value to Imports and Export Trades of Bangladesh (See Appendix A-FGD Q5)

Dry ports are crucial for boosting Bangladesh’s import and export commerce and bolstering Chattogram Port, according to several respondents. The CPA has been able to significantly increase its productivity and efficiency by utilizing these facilities. An off-dock or dry port can be used for cargo handling, unloading, and shipping, which streamlines operations and shortens the turnaround time for feeder vessels. In the ready-made garment -RMG industry, where they manage 90–95% of containerized exports, they support full exports and a major portion of imports.

Moreover, dry ports boost Bangladesh’s trading capacity by offering multimodal transport alternatives, value-added services, and logistics support. These are also essential for empty container storage, customs clearance, and ensuring efficient operations to prevent port malfunctions. By managing a sizable portion of the port’s containerized traffic, this facility contributes significantly to Chattogram Airport’s global competitiveness and ranking while also promoting economic growth and job creation.

7.7. Opinions/Feedback/Recommendation on the “Private ICD/CFS Policy—2016” of CPA (See Appendix A-FGD Q6)

Concerns, suggestions, and comments on Chattogram Port’s “Private ICD/CFS Policy—2016” have been varied. All things considered, the comments shed light on the policy’s perceived efficacy, difficulties, and recommendations for enhancements. The majority of respondents indicated that they were unsure about the contents of the policy, which suggests that stakeholders need to communicate and share information more effectively. The policy framework has to be reviewed and updated regularly by the remarks made by many responders. Periodic reviews, ideally every five years, are required to include global best practices to solve new difficulties and guarantee conformity with shifting market dynamics and regulatory requirements.

Particular issues and critiques were also leveled at the policy’s operational foundation and implementation. Based on this criticism, a more accommodating and encouraging regulatory framework is required to encourage entrepreneurship in the logistics sector. Numerous participants conveyed favorable opinions of the policy. They claimed that it increased capacity, increased efficiency, and boosted Bangladesh’s economy. These viewpoints emphasize the policy’s potential advantages while also pointing out areas for change that could increase its efficacy. One respondent specifically suggested enhancing the dry port strategy to encourage more investment from business owners. This supports competitive advantages in logistics and maritime trade and fosters private sector involvement by larger economic goals.

7.8. Opinions/Feedback/Recommendation on the “Private ICD/CFS or off Dock/Dry Port Establishment and Management Policy, 2021” by the National Board of Revenue (NBR) (See Appendix A-FGD Q7)

The responses regarding the “Private ICD/CFS or dry port Establishment and Management Policy, 2021” by NBR reflect a range of perspectives and critiques from stakeholders involved in Bangladesh’s logistics and maritime sectors. A sizable portion of respondents said they were unfamiliar with the specifics of the regulation. This demonstrates the necessity of better communication and awareness-raising initiatives to guarantee that interested parties are aware of the goals, rules, and operational ramifications of the policy. Those who thought the policy was appropriate or okay likewise gave positive answers. These respondents agreed that the program might boost Bangladesh’s trade and logistics infrastructure, boost operational effectiveness, and promote private sector involvement. They viewed the policy as a step in the right direction but also suggested areas for refinement to maximize its impact and effectiveness.

Many respondents emphasized how crucial it is to make the policy more comprehensive, customer-friendly, and encouraging of entrepreneurial endeavors in dry port enterprises. To improve logistical operations and customer happiness, they suggested defining explicit distance requirements, outlining stakeholder roles and duties, and clarifying guidelines. Certain committees and tariff systems that were thought to be impeding the expansion and competitiveness of the industry were specifically called for to be eliminated or revised. Some of the respondents said this. These recommendations highlight a desire for legislative changes that create a more favorable atmosphere for innovation and company growth in the logistics industry.

7.9. Supervision of More Dry Ports in the Chattogram/Outside of Chattogram (See Appendix A-FGD Q8)

A substantial number of respondents expressed confidence in the ability of the Chattogram Port Authority and Customs departments to supervise more dry ports effectively. They highlighted the importance of timely and proper services from these authorities to facilitate business operations. This will reduce congestion at the main ports, and ensure smooth logistics processes. Many emphasized the need for increased manpower and technological advancements to enhance supervision capabilities across different regions of Bangladesh. Several respondents noted specific challenges to address for effective supervision. These challenges include insufficient manpower, particularly within customs, which affects customs procedures processing and monitoring activities. They also highlighted issues such as security concerns, dangerous goods handling, and the need for digital equipment to streamline operations. This will ensure compliance with international standards.

There were calls for improvements in coordination among various agencies involved in port operations and infrastructure development. Respondents stressed the importance of policy support to address regulatory challenges and facilitate smoother operations for dry ports nationwide. Critiques and suggestions for improvement were also raised, with recommendations to digitalize transactions and increase monitoring frequency by existing committees. Some respondents proposed that monitoring committees should operate at shorter intervals, such as every three months, to ensure continuous oversight and address emerging issues promptly. A few respondents expressed uncertainty or provided neutral responses. This suggests a need for more clarity on the roles, responsibilities, and capabilities of the port authority and customs departments in supervising dry ports. This is particularly true in terms of their operational scope and geographical coverage.

7.10. Development of Dry Ports Infrastructure and Potential Sources of Financing to Ensure Sustainability in Freight Management (See Appendix A-FGD Q9)

Respondents had a positive opinion of public–private partnerships (PPPs) due to their ability to integrate private capital and expertise with public funds. This was accomplished through the optimization of infrastructure development resources. This strategy balances incentives for long-term sustainability and technological advancement while distributing financial risk. Government grants and investments were also cited as a crucial source of funding. Numerous participants highlighted the need for government assistance in launching initiatives, offering subsidies for infrastructure, and establishing favorable conditions through legislative frameworks that draw in private capital. Dry ports can maintain their viability and sustainability while meeting international requirements by adopting this strategy. Reliable financing solutions for capital-intensive investments in digital systems, contemporary handling equipment, and infrastructure renovations are offered by both domestic and foreign institutions. Bank loans with advantageous interest rates and repayment terms can help dry ports increase operational effectiveness and keep their competitiveness in the logistics industry.

Foreign Direct Investment (FDI) was another important source of funding. The potential for FDI to supply cash, technology, and managerial know-how was highlighted by the respondents as a way to promote global best practices and speed up infrastructure development. Bangladesh can simultaneously expand its facilities and integrate into global supply chains as a result of this inflow of foreign investments. Innovative financing methods like soft loans, Initial Public Offerings (IPOs), and equity investments were also included in the proposal. These procedures not only reduce financial risks but also offer alternate ways to raise money and guarantee long-term support for operations and future expansions. Using global financial organizations like the World Bank, Asian Development Bank, and International Monetary Fund (IMF) was also advised. These organizations offer concessional funding, technical support, and capacity-building assistance to help dry port operations adopt digital technologies and comply with international standards.

7.11. Dry Port Policy Development in Bangladesh to Support Seaports for International Shipping Based on the Policies of CPA and NBR (See Appendix A-FGD Q10)

Several respondents emphasized how crucial it is to have a consistent policy framework. They underlined the advantages of harmonizing rules, practices, and policies throughout Bangladesh’s dry ports. Logistics and international trade players would be able to guarantee a level playing field, expedite operations, and lower bureaucratic barriers by establishing a single policy framework. The adoption of such a regulation would guarantee uniformity, clarity, and ease of compliance, which would increase overall efficiency and appeal to both operators and investors.

The significance of combining dry port regulations with national logistics and transportation policy was also emphasized by the respondents. In addition to enhancing multimodal connectivity and facilitating easier cargo transfers between ports and hinterland regions, integrated infrastructure development would be in line with national economic objectives. Road and rail connectivity, particularly to ports like Mongla and Payra, is essential for the growth of Bangladesh’s maritime industry. Strong supervision and monitoring were also required. Safety, environmental compliance, and operational transparency might all be guaranteed by setting up a specific organization or system to monitor the dry port’s adherence to rules and regulations. This strategy would encourage sustainable growth and increase stakeholder confidence in the maritime logistics industry.

8. Discussions

The potential [20] of inland intermodal facilities, also known as dry ports, to increase transportation efficiency and satisfy supply chain demands by combining access to highways and railroads with customs processing, warehousing, consolidation and distribution, manufacturing, and the clustering of economic activities along domestic and transboundary economic corridors has garnered a lot of attention. Due [36] to COVID-19, the global shipping market has changed and freight charges have increased significantly, now it is reshaping and making a standard by incorporating intermodal systems and trying to reach the last mile instead of port discharge or export receiving. In response to this changing climate, port or terminal owners have also changed their operational strategy, prioritizing direct intermodal transfer over port delivery, which has led to the need for dry ports in the hinterland. The major findings of the research are to set integrated inland freight transport connectivity, construct more dry ports, and apply modern transport technology like intermodal transport in Bangladesh.

A study [25] assessed that to improve the network with the hinterland and lower overall logistic costs and environmental impact, dry port development has mostly evolved in European and Asian nations. A group of researchers [7] argued for a smart port that is revolutionizing the maritime sector by combining cutting-edge technology with environmentally friendly procedures to improve environmental stewardship, operational effectiveness, and safety including the utilization of connectivity, automation, and digitization to improve logistics procedures and encourage cooperation between supply chain participants. A group of researchers [24] looked at a few success factors in the growth of Myanmar’s dry port, including less congestion in the main port, government backing and policy for logistics, and easier public-private ownership that promoted global trade.

In FGD, there is general optimism about the port authority and customs departments’ ability to supervise more dry ports, irrespective in Chattogram or out of Chattogram, because of significant challenges and opportunities for enhancement. Addressing manpower shortages, improving technological infrastructure, enhancing coordination among agencies, and refining policy frameworks are crucial steps toward realizing the full potential of dry ports. This is crucial to contributing to Bangladesh’s economic growth and enhancing its logistics capabilities on the global stage.

A group of researchers [14] set two parameters to meet the criteria of a dry port as an intermodal inland terminal that will satisfy an inland extension of a seaport, i.e., serving as a seaport’s interface inland, offering services that are usually available at the seaport firstly. The second matter is the connection to a seaport by a “high-capacity transportation means”, which often implies rail and, less frequently, barge/inland waterway transportation. The ocean [10] carrier joins the inland transport market, and the inland distribution strategy is typically viewed as a single door-to-door service that covers the full journey. With the emergence of multimodal transportation systems, traditional hinterland patterns changed traffic concentrations on preferred interior routes. Overcoming [37] the global sustainability challenges of logistics requires applying solutions that minimize the negative effects of logistics activities where the most efficient way of doing transport activity through intermodal transportation and developing dry port terminals has been proven as a sustainable means of promoting and utilizing intermodal transport in the hinterland of seaport container terminals. According to ESCAP [30], the pandemic taught Bangladesh a valuable lesson about increasing the proportion of intermodal container shipping and decreasing human participation in freight handling, such as in port handling facilities. For instance, the Port of Chattogram has looked into the potential of putting in place an automated system for transporting containers (using an overhead light rail) that would eliminate the need for vehicles by transferring containers to nearby yards or intermodal transportation hubs. Theoretically, such a system might provide advantages for customs clearance (e.g., scanning), minimize pollution, and alleviate bottlenecks caused by congestion.

Since [26] few pure infrastructure projects are profitable, it is crucial to understand that, despite government financing being an effective means of advancing dry port development, the significant financial burden cannot be disregarded. It [4] becomes challenging to categorize dry ports given the various expansions of dry ports worldwide, the variety of services offered, and the unique characteristics of each nation that affect the logistics infrastructure.

A strategic plan for the construction of dry ports close to alternate ports like Mongla and Payra was also put forth in the FGD. By putting this plan into practice, Chattogram Port operations will be dispersed, traffic will be lessened, and trade routes will be varied. By spreading its cargo handling skills among several ports and dry ports, Bangladesh can improve its ability to withstand logistical bottlenecks and better service foreign shipping lines.

Although private sector ownership and operation of dry ports are not necessarily a requirement for their sustainability, ESCAP [3] advised the government to take the necessary steps to establish dry ports and take its initiative accordingly. It seems widely accepted that the operation of these facilities is optimized when they are managed, if not owned, by businesses with logistics expertise. Therefore, private organizations can take land facilities, government loans, and other collaboration dry ports to expedite the freight transport process of Bangladesh. In this case, Bangladesh Railway may accommodate many dry port projects in the respective locations prescribed in FGD. A study [10] examined that inland intermodal hubs enable containers to be shipped longer distances across continents to establish a connection with a port as the hinterland and foreland of the port are expanded also encouraging the globalization of port management and operations.

Seaport [31] operators, managers, and authorities should be acutely aware of the external environment’s influence on their operations and overall efficiency, as this is crucial for developing strategies aimed at enhancing competitiveness and performance. In this connection, external factors are to be reviewed especially hinterland connections to understand the port community and users.

In the FGD, some respondents expressed views that the policy simply mirrors or closely follows the Chattogram Port policy framework. This perception raises concerns about the policy’s adaptability to diverse operational contexts beyond Chattogram. This suggests a need for customization to address specific challenges and opportunities in other regions of Bangladesh. Criticism regarding the policy’s adoption of global best practices was prevalent among respondents. They argued that the policy lacks innovation and fails to incorporate international standards that could enhance dry port efficiency and competitiveness. Suggestions included revising the policy to align more closely with global practices and abolishing restrictive measures that hinder operational flexibility and growth.

In reviewing Chattogram Port’s “Private ICD/CFS Policy—2016” in the FGD, participants noted that the policy could be expanded beyond Chattogram Port in some cases. The respondents argued that establishing dry ports outside Chattogram would reduce congestion, facilitate easier access to port facilities, and decentralize logistics operations, improving efficiency and reducing costs.

9. Recommendations

Based on the findings of the research, the following recommendations as future directions to set dry ports and apply intermodal systems. The following suggestions are offered to enhance inland intermodal connectivity, create dry ports, and implement intermodal systems in Bangladesh in light of the research findings from field visits, FGDs (Appendix A), and more discussion in the preceding section, Section 6:

➢

The physical [27] development and expansion of port structures are the primary bases for development, considering port visibility that must be integrated through existing seaport policy-based compliance practices. To follow the forecasting, the respective Ministry (Ministry of Shipping, Bangladesh Railway, and Roads and Highways Department (RHD)) will take necessary steps to build new terminals, digital connectivity to dry ports, and apply intermodal systems from/to vessel hook points.

➢

The infrastructure [29] and sufficient logistics assistance from the hinterland are essential to a nation’s Logistics Performance Index (LPI) and Liner Shipping Connectivity Index (LSCI). Given the importance of a dry port to hinterland logistics, a new study might be implemented to determine how a dry port will increase the LPI and LSCI score of Bangladesh.

➢

Modern [37] dry port systems connect road and rail transportation in the hinterland and consolidate container movements from/to seaports, improving the sustainability of the entire logistics system. It is urgent to approve the road intermodal system by the NBR for the countrywide, especially for the upcoming Ghorasal dry port and all other mid-range and distant dry ports.

➢

Dry port infrastructures will set integrated intermodal systems. This intermodal [33] will help to set an intelligent transport system of synchromodal that is introduced to logistics providers as a real-time free-mode choice approach to help them save total transportation time and costs while operating more sustainably. Extensive research is essential for synchromodal systems as Bangladesh features all three modes rail, road, and inland waters in container transport. According to ESCAP [15], there are frequently insufficient transportation nodes to facilitate multimodal or intermodal transport, and the infrastructure is frequently inadequate. Improving hinterland connectivity requires addressing the issue of insufficient or nonexistent dry ports.

➢

Inland [35] waterways, as eco-friendly modes of transportation, can integrate the entire inland freight transportation system. Emphasis is to be given to inland waterway transport and review the challenges and obstacles to expedite the operations of PICT and SAPL and smooth connections to Chattogram Port and Mongla Port. To set up more river container terminals and speed up PICT and SAPL operations, the relevant port authority and BIWTA need to work together.

➢

Policies [18] must be developed to promote more business-friendly dry ports throughout the country. Promote dry port infrastructures and work with Bangladesh Railway to use their land and connection to seaports, and develop a user-friendly dry port policy under one authority.

➢

This research faced several limitations in getting similar case studies, best practices, and success stories in setting dry ports for strengthening inland transport systems that will enrich the seaport’s efficiency, productivity, and competitiveness. On the other hand, quantitative data scarcity shortens the further analysis of inland freight transportation data. Therefore, future research is essential where the port authority and respective ministry need to take the initiative actively.

10. Conclusions

The idea [14] and reality of dry ports have changed in response to the expansion of international trade and the resulting rise in demand for port logistical services. To improve the state of the highway infrastructures along the chosen routes that connect the seaport, dry ports, and the city of Dhaka, the transport authority should implement policies and initiatives. The development and building of dry ports, as well as their economic significance, also require a thorough study and feasibility analysis. Incorporating the dry ports with other national policies on ports, land use, infrastructure, trade and logistics, environment, and investment, among other topics, is the research’s next step. Bangladesh must improve its freight transport connections and infrastructures, particularly its dry port infrastructures, to comply with international shipping rules and regulations and national transport policies. This will allow for integrated, uninterrupted, and seamless freight transportation systems and policies for conducting international trade efficiently and cost-effectively.

In the summary of quantitative data analysis, it was evident that the port throughput of Bangladesh has grown by approximately 2.5 times (from 2010 to 2022) and is forecasted to be 8.39 mTEUs, a growth of 2.6 times (from 2022 to 2050). The government is planning to do all containerized cargo loading and unloading outside of the ports, which means it will be performed in dry ports. The current capacity of 2.81 mTEUs in all 22 dry ports is not sufficient to minimize the demand for dry port facilities in Bangladesh. Therefore, it is essential to increase the supply side against the demand for dry ports and their infrastructure. Overall, a dry port policy will attract businessmen, investors, and others to make integrated freight transport connectivity to/from seaports.

In the summary of FGD discussion, existing dry ports as Close dry ports are managing all exports but only 38 items of imports, resulting in less utilization of their annual capacity. More items to be allowed to increase the volume as the operators have experience in handling all import items during COVID-19. However, pure intermodal is not performing due to the utilization of close dry ports of Chattogram that derive trucks and covered vans for inland transport of ocean cargo, the best reason for excessive CO2 emissions and multiple handling of cargo. In this case, most of the participants argued to set more dry ports out of Chattogram and near the last mile of the shipper/consignee. Finally, the application of intermodal and its relation to dry ports and seaports will increase the seaport’s efficiency and productivity and will bring competitiveness to South Asia. Overall, a common dry port policy to incorporate other policies of Bangladesh, including transport policies, is essential to set up more dry port infrastructures in Bangladesh. This research faced limitations in data collection, exploring similar cases to benchmark and policy recommendations. Furthermore, future research is essential to set up more dry port infrastructures in Bangladesh to increase the seaport’s efficiency, productivity, and competitiveness in Bangladesh.