Bangladesh Logistics and Warehousing Market Outlook to 2029

The report titled “Bangladesh Logistics and Warehousing Market Outlook to 2029 – By Mode of Transportation (Road, Rail, Air, Sea), By End User (Retail, FMCG, E-commerce, Pharmaceuticals, Manufacturing), By Warehousing Type, By Region” provides a comprehensive analysis of the logistics and warehousing industry in Bangladesh. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation; trends and developments, regulatory landscape, customer-level profiling, issues and challenges, and comparative landscape including competition scenario, cross comparison, opportunities and bottlenecks, and company profiling of major players in the logistics and warehousing market. The report concludes with future market projections based on revenue, segmented by transport mode, industry verticals, regions, and success case studies highlighting major opportunities and risks.

Bangladesh Logistics and Warehousing Market Overview and Size

The Bangladesh logistics and warehousing market reached a valuation of BDT 62,000 Crore (approx. USD 5.7 Billion) in 2023, fueled by rapid urbanization, the expansion of e-commerce, government investments in transport infrastructure, and increasing manufacturing and export activities. Key players in the market include Kuehne + Nagel Bangladesh, DHL Express, DB Schenker Bangladesh, Maersk Bangladesh, APL Logistics, and Runner Logistics. These firms are recognized for their robust transport fleets, multimodal connectivity, and growing warehousing footprints across Dhaka, Chattogram, and emerging SEZs.

In 2023, DHL launched a new 100,000 sq. ft. bonded warehouse near Chattogram Port to handle growing demand for just-in-time logistics. The initiative supports Bangladesh’s vision to become a regional logistics hub and enhance efficiency in export-import activities. Dhaka and Chattogram remain critical logistics corridors due to their proximity to industrial clusters and maritime gateways.

Market Size for Bangladesh Logistics and Warehousing Industry on the Basis of Revenue in USD Billion, 2018-2024

What Factors are Leading to the Growth of Bangladesh Logistics and Warehousing Market

• Infrastructure Development: Major government investments in Padma Bridge, Dhaka Elevated Expressway, and upgrades at Chattogram and Mongla ports have dramatically improved logistics efficiency and connectivity. These projects reduce travel time and lower operational costs, driving growth in freight and warehousing demand.

• Boom in E-commerce and Retail: Online retail growth at 25% CAGR has significantly increased demand for last-mile delivery, third-party logistics (3PL), and cold chain infrastructure. Dhaka, Gazipur, and Narayanganj are emerging hotspots for fulfilment centers due to population density and high order volumes.

• Export-Oriented Manufacturing: With RMG, leather, and pharmaceuticals driving Bangladesh’s exports, logistics providers are building specialized infrastructure for containerized transport and bonded warehousing. In 2023, the logistics sector handled over 80% of garment-related exports with dedicated customs clearance facilities.

Which Industry Challenges Have Impacted the Growth for Bangladesh Logistics and Warehousing Market

• Infrastructure Bottlenecks: One of the major barriers to growth in Bangladesh’s logistics sector is the inadequate infrastructure, including poor road conditions, congestion at key ports (like Chattogram), and limited railway connectivity. As of 2023, logistics costs in Bangladesh accounted for nearly 15% of GDP—one of the highest in Asia—mainly due to inefficiencies in transport and warehousing.

• Regulatory Complexity and Bureaucracy: A fragmented regulatory framework and multiple government agencies overseeing logistics operations result in delays, especially in customs clearance and cargo handling. In 2023, the average dwell time at major ports exceeded 4.5 days, significantly above global standards, adding delays and costs to supply chains.

• Lack of Skilled Workforce and Technology Adoption: The logistics sector struggles with a shortage of trained personnel, particularly in cold chain and warehouse automation. Only about 25% of warehousing operators reported having access to trained staff for handling digital inventory systems or temperature-sensitive goods. This limits operational efficiency and scalability for logistics service providers.

What are the Regulations and Initiatives which have Governed the Market

• National Logistics Policy 2021 (Draft Stage): The Government of Bangladesh has introduced a draft National Logistics Policy aimed at streamlining regulatory oversight, boosting infrastructure investments, and creating a one-stop service platform for logistics stakeholders. If implemented effectively, this is expected to reduce logistics costs by 4-5% of GDP over the next 5 years.

• Bonded Warehouse Licensing and SEZ Expansion: The Bangladesh Export Processing Zones Authority (BEPZA) and the Bangladesh Economic Zones Authority (BEZA) have streamlined rules to allow faster approval for bonded warehouse operations in export zones. In 2023, more than 50 new warehouse licenses were issued across the country, encouraging private investment in logistics parks and cold chain facilities.

• World Bank-Backed Infrastructure Programs: Under the Western Economic Corridor & Regional Enhancement Program (WeCARE), Bangladesh has initiated multi-billion dollar projects aimed at upgrading highways, rural roads, and inland ports. The first phase, focusing on the Dhaka-Khulna corridor, is expected to reduce transit times by 30% once operational by 2026.

Bangladesh Logistics and Warehousing Market Segmentation

• By Market Structure: The logistics market in Bangladesh is predominantly unorganized, comprising small transporters and local storage providers who dominate due to cost competitiveness, informal business models, and long-standing client relationships. However, the organized sector—comprising national-level 3PL providers, multinational logistics firms, and specialized warehousing companies—is gradually expanding, driven by rising e-commerce demand, global supply chain integration, and infrastructure improvements. Organized players are increasingly focusing on multimodal logistics, automation, and end-to-end service offerings to attract institutional and international clients.

• By Mode of Transport: Road transport remains the dominant mode in Bangladesh due to limited rail and inland waterway infrastructure. Over 75% of goods movement still occurs via roadways, which are more flexible and accessible across urban and rural regions. However, government initiatives such as the Padma Bridge and the Dhaka-Chattogram Expressway are expected to further streamline road logistics. Rail and waterways are underutilized but gaining attention for bulk cargo movement due to lower costs and sustainable benefits.

Market Segmentation for Bangladesh Logistics and Warehousing Market Basis Market Segment on the Basis of Revenue in Percentage, 2024

• By End-User Industry: The FMCG and Retail sectors are the largest demand drivers for logistics and warehousing services, due to rising urban consumption, expansion of modern trade formats, and growth in inventory turnover. E-commerce, particularly in last-mile delivery, has seen exponential growth and is pushing demand for organized, tech-enabled warehousing and faster logistics solutions. Pharmaceuticals and Cold Chain sectors are also growing, led by regulatory compliance and increasing health infrastructure needs.

Competitive Landscape in Bangladesh Logistics and Warehousing Market

The Bangladesh logistics and warehousing market is moderately fragmented, with a mix of traditional operators and emerging organized players. The sector is seeing increasing participation from multinational 3PL providers, tech-driven logistics startups, and specialized warehousing firms. Key players include SA Paribahan, eCourier, Paperfly, Sundarban Courier, DB Schenker Bangladesh, DHL Bangladesh, PRAN-RFL Logistics, and City Express, each offering unique service capabilities across different logistics verticals such as B2B freight, cold chain, last-mile delivery, and warehousing infrastructure.

Some of the recent competitor trends and key information about competitors include:

• SA Paribahan: A leading player in intercity cargo transport, SA Paribahan operates over 200 hubs nationwide. In 2023, the company expanded its warehousing space by 300,000 sq. ft., focusing on FMCG and pharma clients in the Chattogram-Dhaka corridor.

• Sundarban Courier: Specializing in B2C and parcel delivery services, Sundarban saw a 20% rise in last-mile shipments in 2023, driven by the growing e-commerce boom. The company also launched GPS-based parcel tracking services to improve delivery transparency.

• eCourier: One of the top e-commerce logistics providers, eCourier reported a 35% YoY growth in order volumes in 2023. The company has also invested in AI-based routing and delivery management tools to optimize its delivery network in Dhaka and nearby districts.

• Paperfly: Known for its hybrid distribution and smart delivery models, Paperfly expanded to over 100 delivery hubs in 2023 and introduced a dedicated “Fulfillment as a Service” offering targeting SME e-retailers.

• PRAN-RFL Logistics: The logistics arm of PRAN-RFL Group handles integrated warehousing and distribution for over 500 SKUs. In 2023, it deployed automated racking systems and expanded its cold storage chain to support its growing agro-processing exports.

• DHL Bangladesh: A global 3PL leader, DHL invested in temperature-controlled logistics and customs clearance support tailored to Bangladesh’s pharma and textile export sectors. DHL’s cross-border trade facilitation hubs handled over 50,000 consignments in 2023.

• DB Schenker Bangladesh: Focused on multimodal logistics, DB Schenker recently launched dedicated supply chain solutions for automotive and electronics clients. Their 2023 investments included expansion into ICD (Inland Container Depot) support services.

What Lies Ahead for Bangladesh Logistics and Warehousing Market?

The Bangladesh logistics and warehousing market is projected to witness steady growth through 2029, supported by government infrastructure investments, rising manufacturing output, and rapid e-commerce penetration. The sector is expected to expand at a healthy CAGR, driven by structural reforms, improved connectivity, and a shift towards organized logistics solutions.

• Emergence of Smart Warehousing: The future of warehousing in Bangladesh will see increasing adoption of smart technologies such as RFID, IoT-based inventory management, automated sorting, and real-time visibility tools. These innovations will enhance operational efficiency, reduce shrinkage, and provide better tracking across the supply chain.

• E-commerce and Last-Mile Acceleration: With online retail growing at double-digit rates annually, the demand for last-mile logistics and hyperlocal warehousing will surge. Logistics firms are expected to expand fulfillment centers closer to urban clusters, and same-day/next-day delivery models will become standard practice in major cities.

• Development of Integrated Logistics Parks (ILPs): Government and private sector investments into ILPs, especially along key trade corridors (e.g., Dhaka–Chattogram, Khulna–Mongla), will play a key role in reducing logistics costs and enabling multimodal connectivity. These parks will provide warehousing, cold storage, container terminals, and value-added services under one ecosystem.

• Policy-Driven Reforms and Public-Private Partnerships (PPP): The long-awaited National Logistics Policy is likely to be finalized by 2025, which will bring greater clarity on regulations, single-window clearances, and incentives for infrastructure development. PPP models will become more common, especially for port modernization, inland depots, and dry ports.

Future Outlook and Projections for Bangladesh Logistics and Warehousing Market on the Basis of Revenues in USD Billion, 2024-2029

Bangladesh Logistics and Warehousing Market Segmentation

• By Market Structure:
  o Organized Logistics Providers
  o Unorganized/Traditional Transporters
  o Freight Forwarding Companies
  o Courier and Parcel Service Providers
  o Cold Chain Logistics Operators
  o Warehousing Providers
  o E-commerce Fulfillment Service Providers
• By Mode of Transport:
  o Road Transport
  o Rail Transport
  o Inland Waterways
  o Air Freight
  o Maritime Shipping
• By End-User Industry:
  o FMCG
  o Retail and E-commerce
  o Pharmaceuticals and Healthcare
  o Manufacturing and Industrial Goods
  o Apparel and Textiles
  o Agriculture and Food Processing
  o Electronics and Consumer Durables
• By Type of Warehousing:
  o General Warehouses
  o Cold Storage Warehouses
  o Bonded Warehouses
  o E-commerce Fulfillment Centers
  o ICDs (Inland Container Depots)
• By Region:
  o Dhaka Division
  o Chattogram Division
  o Khulna Division
  o Rajshahi Division
  o Sylhet Division
  o Barisal Division
  o Rangpur Division
  o Mymensingh Division

Players Mentioned in the Report:

Freight Forwarding Companies

• 3i Logistics Group
• A.H. Khan & Co.
• Agility Logistics
• Bolloré Logistics
• DHL International GmbH
• FedEx
• Schenker Logistics (Bangladesh) Ltd
• Tower Freight Logistics Ltd
• MOL Logistics Co Ltd
• Nippon Express Bangladesh Ltd
• CEVA Logistics
• Blue Ocean Freight System Ltd
• Shams Group of Companies
• Asia Pacific Logistics
• GEODIS Bangladesh
• Newport Express (BD) Ltd
• Rajpat Shipping Bangladesh
• ABC Freight Forwarding & Shipping Ltd
• CDZ Global Logistics Ltd
• Time Logistic Ltd
• NMC Bangladesh Ltd
• STO BD International Express Logistics

Warehousing Companies

• A.H. Khan & Co.
• Nippon Express Bangladesh Ltd
• Yusen Logistics Bangladesh Ltd
• WAC Logistics
• Khan Logistics Ltd
• IPort Logistics Ltd
• Omni Logistics
• Summit Alliance Port Limited
• One Union Solutions
• SEKO Logistics Bangladesh

E-Commerce Logistics Companies

• eCourier
• Paperfly
• RedX
• Pathao Courier
• Chaldal Logistics
• Ajkerdeal.com
• Shohoz
• Gluons Shop Limited
• BeshiDeshi
• Daraz Bangladesh
• Pathao Inc
• Hillsbazar

Express Logistics Companies

• DHL Express Bangladesh

• FedEx Bangladesh

• Aramex Bangladesh

• UPS Bangladesh

• Bangladesh Express Co (BANEX)

• BD Express Cargo

• Sonar Courier

• J&T Express Bangladesh

• STO BD International Express Logistics

• United Express

Key Target Audience:

• Logistics and Freight Companies
• Warehousing and Cold Chain Operators
• E-commerce and Retail Businesses
• Industrial Manufacturers and Exporters
• Government Authorities (e.g., Bangladesh Economic Zones Authority, BEPZA)
• Infrastructure Developers
• Transportation and Supply Chain Investors
• Technology Solution Providers (WMS, TMS)

Time Period:

• Historical Period: 2018–2023
• Base Year: 2024
• Forecast Period: 2024–2029