Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I have been the Chief Executive Officer of Portlink Logistics Centre Ltd, the largest off-dock in Southeast Asia, for the last three years. I have been in the logistics industry for the previous 23 years. My key expertise is in Mainline Operations, Equipment control, Feeder vessel Operation, Port agency operation and management, terminal operation, off-dock operation, warehouse management, supply chain management, logistics management for the retailers, Pick and Pack facility operation, and Customer service. I have worked in the portfolio of leading the winning team of sales and marketing, as a cross-functional team lead. I oversee the coordination of maritime logistics, port infrastructure projects, and regulatory compliance with customs, port authorities, and other regulatory bodies such as the environment, labour, VAT, tax, etc. 

My expertise lies in optimizing cargo throughput, reducing cargo turnaround time, increasing space utilization efficiency in warehouses and container yards, and implementing digital tracking systems to enhance operational transparency. I've worked extensively at Chattogram and Mongla ports, collaborating with government bodies and international logistics partners. My work has improved trade flow and logistical efficiency across several sectors, including garments and FMCG.

Q2. What is the projected growth of the maritime decarbonization market? How are ports adapting to support renewable energy projects?

Bangladesh has become the global role model for setting up the highest number of green factories, which are supplying readymade garments to the global fashion market. It indicates the mindset of the factory owners to contribute to reducing emissions. While specific projections for Bangladesh's maritime decarbonization market are limited, the country's active participation in global decarbonization efforts and its strategic initiatives suggest a positive growth trajectory. The Government has developed a national action plan to reduce GHG emissions from shipping and domestic waterways transport sectors, complying with MARPOL Annex VI. The major infrastructure maritime development projects, including Matarbari Deep Sea Port, Bay terminal project, and Laldiar Char Terminal to be built by Maersk Line, aim to expand and modernize port facilities in the next 5 years.

These projects include constructing climate-resilient infrastructure to accommodate larger vessels with deep draught, thereby improving efficiency and reducing emissions. The breakwater to be built for the Bay Terminal by the WB financing will ensure the protection of biodiversity and be aligned with the commitment of the Bangladesh Government to the IMO on carbon. Another potential market for decarbonization is the ship recycling industry and the steel industry. Bangladesh contributes significantly to global carbon reduction efforts as a leading ship recycling nation. It is worth mentioning that the country reduces around 2000 kg of CO2 per MT of steel recycled. After ratifying the HK Convention by Bangladesh, Ship owners have been investing to turn their yards into a green. Some four ship recycling yards have been certified as green, and some seven are in the process, out of 20 active ship recycling yards. Through these comprehensive efforts, Bangladesh is slowly shifting to become a leader in maritime decarbonization, demonstrating a strong commitment to contributing to it.

Bangladesh's ports increasingly integrate renewable energy initiatives to support sustainable development and enhance energy security. Most of the ICDs ( extended part of Ports) are investing in solar energy as a commitment to their supply chain customers who are ready to pay premium charges for the services rendered by those facilities. The wind energy development project has been taken near Mongla port, the second largest seaport in Bangladesh. A Chinese-backed consortium has been approved for a 55MW wind power project. This initiative aims to harness the region's wind potential to generate clean electricity, supporting both port operations and the broader energy grid. Other than this, many small initiatives have been taken by Ports, such as replacing the conventional security light with a solar-powered LED light, making it mandatory to install rooftop solar panels on the warehouses of all the ICDs, etc.

Q3. How are warehousing facilities evolving to support just-in-time delivery models?

Bangladesh's export trade is worth $50 billion, and out of this 50 billion export, approximately 85% or $40 billion is being generated from the fashion industry, i.e., readymade garments. Out of this $40BN export revenues, 90% is being handled in 19 ICDs in Chittagong, which have been handling the volume in their warehouses. The warehouse facilities usually consolidate the cargo sent by the factories. Warehouses basically serve logistics companies, which are known in the supply chain as freight forwarders. Freight forwarders are working as a bridge between retailers and manufacturers. ICDs receive the merchandise in their warehouses and store it for a certain period. After adding value such as sorting, labelling whatever the customers require, and getting the necessary shipping instructions from the Freight Forwarders, warehouse operators ( ICDs hereafter) are then supposed to stuff the merchandise in shipping containers. 

To execute the operation, there have been some sets of SOP for maintaining the delivery timeline of the goods from the factory to the warehouses and stuffing the merchandise into a shipping container by the warehouse operator within 72 hours of receiving the goods. After stuffing the goods into shipping containers, the containers are transported to the port premises to be loaded onto the designated container ships, hereafter called the feeder vessels.

There is constant communication with the warehouse operators, freight forwarders, mainline operators, and feeder operators to ensure smooth movement of the containers to connect the designated feeder vessels, which are supporting the just-in-time delivery models. Despite many bottlenecks at the port and shipper sides, warehouse facilities are relentlessly serving the trade to ensure just-in-time delivery at the Port of loading in Chittagong.

Q4. What is the long-term vision for integrating AI and automation in port operations, and how will this provide a competitive advantage over the next 5–10 years?

To be frank, Ports of Bangladesh are being operated in semi-automation and lagging far behind the global port index in terms of port efficiency, turnaround time of vessels, dwell time of containers, customs clearance, vessel operations, and many more. However, the interim Government has focused on the development of handling operations by inviting global players to participate in port development. As part of this vision, the Bay terminal and the Matarbari deep-sea port project have been considered to be developed by the Global Leaders of Port infrastructure development and operation, such as PSA Singapore, DP World, Dubai Port, AP Moller Maersk Company, AD Port, and others.

This government decision is to turn the Ports into International Standard ports so that there should not be any bottleneck at the existing ports. This will facilitate the movement of the increased volume of containers following the huge investment in the country's economic zones, including the proposed Free Trade Zone and Mirsarai Economic Zone.

The interim Government has a clear vision to bring the Bay Terminal into Operation by 2030, when the throughput of the country's export-import trade will be 5.1 million TEUS, which is 3.2 million TEUS in this current fiscal year.

Without AI integration and adaptation of automation, handling such large volumes will be difficult, costly, and vulnerable to failure to compete with its competitors in the Southeast Asia region.

Integrating AI and automation in port operations will increase operational efficiency, reduce cost, increase safety and security, improve supply chain integration, and attract foreign investment. It will also help reduce corruption in the operational and documentation processes, which is a crying need of the trade.

Q5. What are the opportunities you foresee in the feeder vessel sector, considering the trends in alternative fuel adoption and environmental regulations?

The cascade effect of the growing demand from the global fashion retailers as a drive to fulfil their commitment to IMO on their efforts and contribution in decarbonization, the feeder vessels sector stands at a pivotal point of transformation driven by alternative fuel trends and tightening IMO as well as environmental regulations by the Government. These shifts will offer multiple strategic, financial, and operational opportunities for the sectors. Besides Chittagong, Mongla and Matarbari deep sea port, the game changing port infrastructure development project of the Bay Terminal, PCT and Laldiar Char terminal ( future-ready terminals) will be developed by the global operators such as DP World, PSA, AD Port etc who can prepare themselves to offer priority berths for the LNG/Methanol based feeder vessels. As the fleet of Bangladeshi feeder vessels is relatively old, opportunities exist to retrofit or replace the aging feeder fleet with fuel-efficient, low-emission vessels. Shipowners can leverage international climate funds, as well as ADB, JAICA, WB, and IFC's development bank loans for green upgrades.

The Interim Government is significantly promoting the green facilities both in the terminal and off-docks. As such, public policy is being made softer and easier for all kinds of green initiatives, so it is at the execution level, including the maritime sector. As an immediate step, the Government may consider the preferential berthing of green-certified container feeder vessels, which would be lucrative for those feeder service operators who can deploy such fuel-efficient vessels and use alternative fuel. This will save operating costs during the berthing congestion. Global forwarders like DHL, DSV, Maersk Logistics, K&N, who have a strong presence in Bangladesh, are also actively looking for partners to contribute to decarbonization in the local supply chain. As such, they also offer enormous opportunities to work and invest in alternative fuel-based feeder services in Bangladesh.

Q6. How are companies positioning themselves to meet the increasing demand for sustainable supply chain solutions?

As I told you earlier, Bangladesh is a global leader in sustainable manufacturing, having the largest number of LEED-certified garment factories. The number of such green factories is 233, including many factories with Platinum certification, a testament to their eco-friendly practices. The manufacturers are well aware of the growing demand for sustainable supply chain solutions, and keeping this trend in mind, the investors have been working on practicing sustainable supply chain solutions for the last 10 years. 

Besides the Readymade garment factories, many more steel, chemical, and packaging manufacturers have spent 30% more than usual to shift them from traditional manufacturing units to sustainable ones. Global fashion brands such as H&M, Gap, Mango, IKA, etc, offer financial incentives and technical support to Bangladeshi textile and apparel suppliers for adopting sustainable supply chain solutions and energy-efficient technologies. Such initiatives by the global brands aim to accelerate the decarbonization of the fashion industry by reducing the cost to the suppliers. 

To align with the Government's sustainable energy initiatives, many ICDs have installed solar energy in both on-grid and off-grid models to reduce the dependency on electricity generated from biofuel and coal-based power plants. Half a dozen new ICDs are also investing in sustainable energy, such as solar energy, and using sustainable models in designing their new warehouses.
 

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

As an investor looking at companies within the sustainability supply chain space, my questions will focus on revealing their strategic vision, operational integrity, and ability to responsibly measure the implementation phases. 

The question could be, "How is your supply chain solution strategy well aligned with local and global ESG standards, and are you taking any specific, measurable steps to ensure environmental compliance at all the levels of your supply chain network?"