Logistics. In an increasingly interconnected and interdependent world logistics is playing an ever more important role. Whether it is just-in-time supply for manufacturers or the increasingly instant demands of consumers in e-commerce, having robust and scaleable supply chain infrastructure is hugely important. Historically, however, much of our logistics infrastructure was not planned on a multi-modal, integrated basis. Companies had modal specialization and liked to keep it that way. No longer. There must be integrated solutions, across modalities, responding to the scale of the supply request and costs and efficiencies of various transportation markets.
HGA has the experience in looking critically at the big-picture options for port and logistics facility development. We look at the risks, costs and benefits to determine effective development plans, phasing, and financing. We never, however, forget the mechanics and details of how such projects operate, as smooth operations is the key to success. While often times the private sector drives such investments, the public sector has a critical role to play in facilitating - and sharing in - success. HGA knows how to bring together the wide range of stakeholders such ventures require and forge a balanced path forward.
Transportation and Logistics Experience
For Bangladesh Railways, consulted on development of a greenfield container terminal in suburban Dhaka and a brownfield yard redevelopment in Chittagong Port.
80% of the country’s GDP from exports comes from the Dhaka to Chittagong corridor. Currently 90% of freight volume is completed by truck. At times, the 270km 2-lane route can take 3 days to traverse due to congestion. Over 90% of the truck traffic arrives at the port in break bulk form; as such, containers need to be stuffed in a tangle of warehouses ringing the area. Taken together, the tremendous inefficiencies of this system caused ships to incur demurrage of an average of 5 days.
Bangladesh Railways sought to streamline, modernize and computerize containerized service from, primarily, garment exports in Greater Dhaka to awaiting ships in Chittagong. HGA assisted the railway to configure the identified greenfield site and designed a PPP structure to help fund and implement the project. In Chittagong, HGA helped to identify a public sector funded solution that could tap in to development support funding from the Asian Development Bank and other development finance institutions.