Warehouse Infrastructure in Bangladesh: Current Landscape and Future Scope

In recent years, Bangladesh’s growing industrial, retail, and export-import sectors have triggered massive demand for modern warehouse infrastructure. As the country continues to cement its role as a key player in global supply chains—particularly in ready-made garments (RMG), agro-exports, and e-commerce—the need for efficient and scalable warehousing facilities has never been greater.

This blog explores the current state of warehouse infrastructure in Bangladesh, key challenges, opportunities for foreign and local investors, and the future scope of the sector as it integrates with smart logistics and digital technologies.

📦 The Current Landscape of Warehousing in Bangladesh

The warehousing ecosystem in Bangladesh has traditionally been dominated by basic storage facilities, often lacking in automation, climate control, or standard operating procedures. These storage centers are primarily clustered around Dhaka, Chittagong, Narayanganj, and Khulna, where industrial activity is concentrated.

However, this setup is proving increasingly inadequate to meet the needs of:

• RMG exporters requiring organized cargo handling

• Agricultural exporters needing temperature-controlled cold chains

• E-commerce platforms demanding faster last-mile delivery

• Importers and logistics firms looking for digital inventory management

Notable Existing Facilities

• BEPZA Zones (Bangladesh Export Processing Zones) like those in Chittagong and Dhaka offer structured warehousing as part of their services to exporters.

• Private logistics providers such as Kuehne+Nagel and Maersk Bangladesh have developed some modern warehouse spaces, but availability remains limited compared to rising demand.

🚧 Key Challenges in Warehouse Infrastructure

Despite its growth, the warehousing sector in Bangladesh still faces several hurdles:

1. Lack of Land and High Rental Costs

Urban areas like Dhaka suffer from land scarcity and inflated rental rates, which dissuade many investors from building new warehouse complexes.

2. Limited Cold Chain Facilities

Cold chain storage—critical for food, pharmaceuticals, and agro-exports—is still underdeveloped. According to USAID, only about 2% of perishable products benefit from cold storage infrastructure in Bangladesh.

3. Insufficient Automation and Digitalization

Most warehouses are manually operated, leading to inefficiencies in tracking inventory, order fulfillment, and labor management.

4. Poor Road Connectivity

Warehouses located outside the main cities often face logistical delays due to underdeveloped road infrastructure, especially during the monsoon season.

🚀 Future Scope and Growth Opportunities

Despite its shortcomings, Bangladesh’s warehousing sector is now ripe for transformation. The following trends point to a positive trajectory in the near future:

1. Special Economic Zones (SEZs) Driving Expansion

The government’s promotion of 100+ SEZs nationwide is attracting foreign direct investment (FDI) into manufacturing and export, consequently increasing the demand for integrated warehousing.

Key SEZs like Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) are already planning logistics hubs with built-in warehouse facilities.

2. E-Commerce Boosting Fulfillment Centers

With platforms like Daraz Bangladesh, Evaly, and Pickaboo expanding rapidly, the need for fulfillment centers, dark stores, and micro warehouses is on the rise.

Companies are investing in strategically located warehouses near urban centers to support same-day or next-day delivery.

3. Public-Private Partnership (PPP) Potential

The government is encouraging PPP investments in logistics infrastructure. For instance, the Bangladesh Investment Development Authority (BIDA) is actively promoting infrastructure projects, including smart warehousing, for foreign collaboration.

4. Rise of Third-Party Logistics (3PL) Providers

Third-party logistics providers like Paperfly and eCourier are building dedicated warehouse and distribution hubs to handle bulk and retail orders efficiently.

This makes 3PL a booming segment, offering warehouse outsourcing services for small to mid-sized businesses.

💡 Technology and Smart Warehousing: A Game Changer

Modern warehousing in Bangladesh is beginning to embrace Warehouse Management Systems (WMS), barcode scanning, real-time tracking, and cloud integration.

Technologies like:

• AI-powered inventory prediction

• IoT-based environmental monitoring

• Automated picking systems

…are slowly making their way into elite warehouse operations near Dhaka and Chittagong. As these technologies become more cost-effective, mid-tier warehouse operators are expected to adopt them over the next 5 years.

🌍 Investment Opportunities in Warehouse Infrastructure

Foreign investors and Bangladeshi conglomerates alike are eyeing warehousing as a long-term investment opportunity. Key advantages include:

• Low labor costs

• High domestic demand

• Strategic location as a trade hub between South and Southeast Asia

• Government tax incentives in SEZs and hi-tech parks

Explore more about business setup and logistics support services here.

🔚 Conclusion

Bangladesh’s warehousing infrastructure is undergoing a crucial evolution. From traditional storage to tech-driven distribution hubs, the sector holds immense potential for those who act early. Whether you are an e-commerce brand, a foreign investor, or a local exporter, the time is right to explore the opportunities in Bangladesh’s expanding warehousing ecosystem.

As the country positions itself as a regional logistics and manufacturing hub, robust warehousing will be the backbone of sustainable growth.

Need help connecting with trusted warehouse providers or logistics partners in Bangladesh?
👉 Contact our local experts at Bangladesh-Agent.com for end-to-end sourcing and logistics solutions.