Enhance the efficiency of Bangladesh Land Port Authority through streamlining of port management using supply chain management theory- a case study on Benapole land port

Abstract

Land ports are playing a significant role in increasing import and export and collecting government revenue. At the same time, it is playing an effective role in alleviating poverty and reducing border smuggling by creating employment and increasing the income of the marginal people of the country. The daily activities of Bangladesh Land Port Authority are being conducted keeping in mind the objective of accelerating economic growth. Bangladesh is bordered by India along 4,053 km and Myanmar along 193 km, making the border with India the 5th longest in the world. Bangladesh has 24 land ports along these borders with India and Myanmar. The trade through these land ports is growing steadily, with imports increasing at an average rate of 23.33% and exports at 4.83%. Notably, 16.47% of Bangladesh's total imports come from India, with a significant portion of this trade conducted via land routes. However, the efficiency of these land ports is currently suboptimal. A recent study at Benapole Land Port conducted by the National Board of Revenue (NBR) reported a total turnaround time of approximately 10 days, 8 hours, and 11 minutes. This extended turnaround time significantly raises business costs for traders and adversely affects consumers by increasing the cost of goods. During the field visit of this for the study port stakeholders were asked why this high time required. They responded that lack of automation system and connected with all border agencies and stakeholders, shortage of mechanization in the port operation for cargo handling equipment, no Standard Operational Procedure (SOP) for port operations and coordination with the stakeholders. They suggested that a proper SOP should be develop from the pre-arrival procedure for export & import to the final delivery cargoes from the port. They also suggested to develop sufficient infrastructures for storage and parking of goods & vehicles including innovative facilities which may reduce the time & cost in port operation. Land ports play a crucial role in global supply chains as Third-Party Logistics (TPL) service providers. Their functions, including the loading and unloading of cargo, storage, and payment of taxes and duties, are essential for international trade and transportation. Efficient port operations are vital for integrating these activities smoothly into the overall logistical chain. Given the significance of ports, inefficiencies at these points can disrupt the alignment between ports and their logistics chains. To address these challenges, this study applies the principles of lean operations and Just in Time (JIT) theories to enhance port efficiency. By applying lean principles and JIT theories, the goal is to develop a more efficient port operation that reduces waste and enhances the flow of goods through the supply chain. This approach aims to improve overall effectiveness, reduce costs, and facilitate smoother integration with regional and global logistics networks. There are so many dimensions and measures need to be taken to increase the efficiency of land port for reducing the time which will positively impact the cost trade land routes. The major recommendation to address the challenges are Immediately implement the full automation system in an integrated way including the interfacing or interlink with other agencies, Mechanization of port operation, Develop innovative infrastructure, and Harmonization of time of port operation. The land port has an effective role in the economic growth in Bangladesh. An effective port may reduce the cost of international trade, reduce the price of commodity by properly maintaining the supply chain. In the modern port management, Lean Operations in association of Just in Time (JIT) theories of Supply Chain Management will make reducing of wastage of different activities like transportation time, waiting time of cargoes, over processing of operational work and other port operations using measured interventions. This will be expediting the ports efficiency which is directly involved with the cost of trading. Considering the importance of increasing efficiency of ports through land routes, the BLPA may take the recommendations to implement as soon as possible.