DHL Global Forwarding expands CFS space in Bangladesh
DHL Global Forwarding invested over €2 million in state-of-the-art CFS facilities in Chittagong with a capacity of 70,000 sq ft
DHL Global Forwarding, the freight specialist arm of Deutsche Post DHL Group, has recently invested over 2 million EUR to expand its dedicated Container Freight Station (CFS) space in Bangladesh to cater to the nation’s ever-growing readymade garments (RMG) industry. 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.
Bangladesh’s exports for FY2022 hit a record high of 52 billion USD for the first time in history as its exports continue to enjoy steady growth due to its strong Ready-Made Garment or RMG sector, with a 34.3% increase in export earnings compared to FY2021. The RMG Industry plays a substantial role in the country’s exports, accounting for more than 80% of all exports. The leading markets for RMG include the USA, Germany, the 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 42.6 billion USD, Bangladesh’s readymade garments industry has grown significantly due to its strong manufacturing capabilities and competitive labor costs. Improved security, storage, and sorting processes at these CFS facilities enable us 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,” said Fabian Rybka, Cluster Head Bangladesh, Sri Lanka, Maldives, Nepal, Bhutan, DHL Global Forwarding.
“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,” added Feroz Jahangir, COO & Head of Value Added Services, DHL Global Forwarding Bangladesh.
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. 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. This 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.