DHL Global Forwarding has invested over €2 million to expand its dedicated Container Freight Station (CFS) space in Bangladesh to cater to the nation’s ever-growing readymade garments (RMG) industry.
In a statement, DHL noted that CFSs are a scarcity in Bangladesh, with less than 20 CFSs countrywide. These facilities help pick up goods from multiple suppliers and consolidate them into a single container before shipping them to their destination. DHL said Bangladesh’s exports for 2022 hit a record high of US$52 billion for the first time in history as its exports continue to enjoy steady growth due to its strong RMG sector, with a 34.3% increase in export earnings compared to 2021.
It also noted that the RMG Industry plays a “substantial role” in the country’s exports, accounting for more than 80% of all exports — with the leading markets for RMG including the USA, Germany, UK, Spain and France.
“The expansion of the DHL Global Forwarding dedicated CFS facilities will aid the growing demand for Bangladesh’s readymade garments worldwide. With its exports reaching a whopping US$42.6 billion, Bangladesh’s readymade garments industry has grown significantly due to its strong manufacturing capabilities and competitive labour costs,” said Fabian Rybka, cluster head Bangladesh, Sri Lanka, Maldives, Nepal, Bhutan, DHL Global Forwarding.
Rybka noted that improved security, storage and sorting processes at these CFS facilities enable DHL to deliver high service quality to our customers while ensuring that it complies with EU/US quality standards.
“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.”
Feroz Jahangir, COO & head of value-added services, DHL Global Forwarding Bangladesh, noted that with Bangladesh being the second-largest readymade garments exporter in the world, businesses must ensure that they employ the right supply chain solutions to ensure that their exports can reach consumers in a cost-efficient and timely manner.
“These facilities will support the growth of less than container load shipments especially from the rising demand of e-commerce,” Jahangir said.
The DHL Global Forwarding dedicated CFS is located in Chittagong, a port city that houses the largest seaport in Bangladesh, Chittagong Port. This port is Bangladesh’s principal seaport and handles more than 92% of Bangladesh’s import-export trade. DHL said the expansion to 70,000 square foot facility’s strategic location will allow for quicker access to the port, where goods can be promptly shipped out on ocean freight. The dedicated facilities also boast green operations to reduce carbon emissions.
“In line with our green operations, customers can opt for sustainable marine fuel for both full container load (FCL) and less-than-container load (LCL) shipments under the GoGreen Plus solution, to reduce the carbon emissions of ocean freight shipments,” DHL said.
It added that the new CFS facility also has green features such as electric forklifts for a healthy working environment for employees, and ongoing discussions to install solar panels at the facility to help sustain day-to-day operations and further reduce carbon emissions in the long run.