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Bangladesh weighs new logistics plan for Dhaka fruit flow

Dhaka's Badamtoli market continues to operate as the main distribution point for imported fresh fruit, handling daily arrivals of apples from China, oranges from Egypt, grapes from South Africa, and other produce. Activity begins before sunrise as trucks enter narrow streets that were not designed for heavy cargo. Traders frequently rely on non-refrigerated vehicles as temporary storage, and soft citrus, grapes, and berries often arrive damaged. Transport delays, queuing, and congestion also increase distribution costs.

Rising storage charges at Chittagong Port Authority have added pressure to importers who must remove consignments quickly or face penalties. Once released, the supply chain offers limited cold-chain capacity, no dedicated refrigerated truck networks, and no temperature-controlled warehousing linked to Badamtoli. These gaps contribute to post-harvest losses across Bangladesh's fruit and vegetable sector.

Bangladesh's infrastructure also remains underutilised. The Gabtoli central wholesale market, financed with Asian Development Bank support and later upgraded by the Department of Agricultural Marketing, includes cold rooms, processing equipment, and six refrigerated vans. Since its inauguration in September 2023, the facility has remained largely unused due to administrative disputes and allocation issues. Despite the demand for storage and handling capacity, fruit traders have not been integrated into Gabtoli's operations.

Stakeholder discussions highlight consistent cost pressures. Engagements with the Bangladesh Fresh Fruit Importers Association have focused on the use of reefer containers at Pangaon Inland Container Terminal (ICT). Although Pangaon ICT has 48 reefer plugs, expandable to more than 200, reefer movement has not developed. High freight rates for Chattogram-to-Pangaon services and inland haulage premiums from mainline operators continue to limit adoption.

A change in Pangaon's management structure may influence future operations. A 22-year concession to Medlog SA introduces commitments for barge services and infrastructure upgrades. If shipping lines adjust reefer freight structures, Pangaon could serve as a distribution point that reduces Old Dhaka congestion, lowers handling costs, and decreases spoilage. Its proximity to Dhaka, at 13 to 20 kilometres, positions it for short-haul distribution.

Coordination between the Dhaka South City Corporation and the Dhaka North City Corporation remains necessary. While DSCC oversees Badamtoli, DNCC is responsible for Gabtoli. Long-standing jurisdictional fragmentation has slowed market reform. Sector observers note that infrastructure alone will not resolve bottlenecks without policy alignment, incentives, and trader participation.

Proposals for a linked system include activating Gabtoli's cold-chain assets, allocating space to fruit traders, using refrigerated vans for last-mile transport, and establishing a pilot route connecting Pangaon and Gabtoli. Improved connectivity via the Padma Bridge and regional road corridors could support a more structured logistics system.

Bangladesh's increasing fruit import volumes and domestic production have outgrown Badamtoli's capacity. A coordinated approach linking Badamtoli, Gabtoli, and Pangaon could support a modern, cold-chain-driven distribution model for Dhaka's fresh fruit supply.

Source: The Daily Star

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