A Study on the Significance of Transport Sector on the Garments Industry in Dhaka City

Abstract

Garment industry has become the single largest source of foreign currency earning of Bangladesh only within a few decades. It has been contributing to the socio-economy of the country including expediting the wheel of economy, increasing trade volume, creating labour market for around four million people while around 80 percent of them are women. Bangladesh is the second largest exporter of RMG expanding its market to more than 100 countries. RMG industries have overcome several obstacles it encountered time to time. However, due to lack modernized infrastructure particularly in terms of communication and transport system it undergoes some challenges. This study has been undertaken to find out how transport sector is contributing to the development of RMG sector and expediting export and import of RMG as well as what are the challenges still exist in transport sector which can be addressed.

In line with this, this study has targeted to identify the existing transport modes, the distribution pattern of raw material and finished goods, the costs the owners have to incur. Garment industries in Dhaka city have been identified for survey. In addition, buyers, buying organizations and other related stakeholders have also been consulted.

The transport sector has been indeed one of the major factors for developing the garment industry. It affects the lead time in large extent. The exporters have to maintain the lead time- time from receiving order to shipment. In this case transport is essentially the major factor for movement of raw materials and supply of finished goods to the sea port within the agreed time. In addition, transport sector largely contributes to supply chain management. This study identifies how much a transport centered importproduction-export chain is important for stable development of the RMG industry.