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Tuesday, April 5, 2016

Bangladesh fares better in logistics index

Tribune Report

Bangladesh climbed three spots up to 28th in 2015 index in a closely watched logistics industry ranking of the world’s 45 leading emerging markets, says a new report.
According to the 2015 Agility Emerging Markets Logistics Index released recently, Bangladesh scored 4.56 points, up from 4.45 points in 2014 due to steady growth and social indicators improvement. 
Its scores for “market compatibility” – business climate – and “connectivity,” or infrastructure and trade links, both improved, the report said. 
Bangladesh, the world’s second largest garment exporter after China, has averaged 6% growth in recent years and is trying to build a developed IT and software sector, it said.
“Bangladesh’s economy has proven to be resilient in the face of domestic challenges. However, the current volatile political situation in Bangladesh may negatively affect foreign direct investments critical to the country’s growth over the long term,” said Jude Julius Crasto, CEO, Agility Global Integrated Logistics Bangladesh.
Kuwait-based Agility is an international logistic company providing freight forwarding, transportation, warehousing and supply chain management services.
Transport Intelligence (Ti), a Switzerland based leading analysis and research firm for the logistics industry, compiled the Index.
The Index, in its sixth year, ranks emerging markets based on their size, business conditions, infrastructure and other factors that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies. 
The index is an annual data-driven ranking accompanied by a separate survey of nearly 1,000 global logistics and supply chain executives.
In terms of connected sub-index, Bangladesh moved up a few notches from last place in the 2014 Index.            
“A growing location for manufacturing, it has become a top spot for retailers to source apparel.
As such, Bangladesh       has made investments in its infrastructure to support this growth,” the report said.
Emerging market with the most potentials, Bangladesh was ranked 18th in 2015 index among 20 countries, down one spot from 17th in 2014. 
The report said BRICS nations Brazil, Russia, India, China and South Africa  accounted for much of the growth and investments in emerging markets. They have dominated the index.
It said a mixed performance from the BRICS economies is being offset by the dynamic growth of Saudi Arabia and next-tier countries such as Indonesia, Nigeria, Bangladesh, Pakistan and Mexico.
Along with those next-tier economies, emerging markets in ASEAN, Gulf Cooperation Council and Sub-Saharan Africa are offsetting mixed performance in the BRICS countries powering emerging markets’ growth in recent years, it said.
Saudi Arabia climbed to second spot in 2015, behind only China, which has 47 times the population and 12.5 times the economic output of the former, according to the report. 
The Agility said this was “a reflection of the pace at which it is building a world-class infrastructure, implementing reforms and attempting to diversify beyond oil, which is still half of the economy.”
Russia’s growing economic isolation has hurt the country in the eyes of logistics and supply chain professionals. 
More than 75% of respondents said they were pessimistic about Russia’s prospects, pushing it down three spots to seventh position in a ranking of countries expected to be major logistics markets over the next five years.
Supply chain executives were impressed by Qatar’s openness to business and its massive investment in infrastructure as it prepares for the 2022 World Cup. The country moved up six places to 16th position.
Logistics professionals ranked natural disasters and corruption as the top supply chain risks in Asia Pacific. 

In Latin America, corruption and government instability were perceived to be major risks while in the Middle East terrorism and government instability were seen as the most important risk factors.

Source:  The Dhaka Tribune, 25 January 2015

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