The widespread extortion that occurs during the transportation of goods on the country’s roads and highways significantly drives up business operating costs. Allegations have surfaced that members of the ruling party, local representatives, and even law enforcement officials are involved in these extortion activities. Despite repeated protests from transport workers, the situation has not improved. However, the recent shift in the political landscape has led to a noticeable reduction in extortion on the roads.

Business leaders estimate that if extortion is completely curbed, operational expenses could drop by up to 10 percent across various sectors. Additionally, prices of essential perishable goods, such as vegetables, could decrease by as much as 40 percent.

In the absence of traffic police, students have taken on the role of regulating traffic on the roads. Police harassment has decreased as a result. This has sparked discussions and analyses on what a business model free from extortion and harassment might look like.

Experts note that eliminating extortion could also reduce transportation time, as vehicles carrying goods often face delays while stopping to pay off extortionists at various points. Mohammad Hatem, the executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), praised the students' involvement on the roads. He told Bonik Barta, “The role of the students on the roads has been extraordinary. If we can ensure an extortion-free environment in this manner, business operating costs could drop by up to 10 percent. Prices of essentials like vegetables could fall by as much as 40 percent. We are also optimistic that bribery and corruption will decrease in the future.”

A World Bank report highlights the cost structure of Bangladesh’s transportation and logistics sector. It shows that costs in the logistics sector in Bangladesh range from 4 to 48 percent, which is significantly higher than in competitor countries. The report also indicates that reducing transportation costs by just 1 percent could boost export demand by 7.4 percent. Moreover, implementing a few short-term reforms in this sector could potentially increase the country's export revenue by up to 19 percent.

M Masrur Reaz, Chairman of Policy Exchange, has been studying and working with the country’s transport and logistics sector for a long time. Speaking to Bonik Barta, he remarked, “One of the most unnecessary business expenses is the extortion on the roads. Trucks carrying goods are often forced to stop at multiple points to pay off extortionists, leading to lost time. If extortion is eliminated, costs will decrease, and time will be saved.”

Recognizing the sector's importance, the government adopted a National Logistics Policy this year. The policy projects that by 2041, passenger traffic on roads will increase 29-fold, freight traffic 10-fold, port container traffic 13-fold, and maritime container traffic 22-fold.

Statistics of 2018 suggest that 77 percent of the country’s total goods transportation occurred via roads, with 16 percent by waterways and 6 percent by rail. However, the policy aims to reduce road-based goods transportation to 60 percent by 2041.

Market analysts believe it is challenging to calculate precisely how much costs will drop across different sectors if extortion is curbed. They note that extortion rates and amounts vary depending on the goods and the distance traveled.

Speaking to Bonik Barta, Ejazur Rahman, Vice President of the Bangladesh Supply Chain Management Society, commented, “The amount of extortion is higher for the transportation of items such as vegetables, bricks, sand or stones. Additionally, the prevalence of extortion varies by region, with police, gang members, or political leaders involved in different areas. Therefore, it is difficult to specify how much costs will decrease. However, if extortion is controlled, consumers across the country will benefit.”

Transport workers' leaders are also optimistic that reduced extortion will allow them to drive more peacefully. They believe that, aside from Narayanganj, the country is largely free of extortion now.

Tajul Islam, Vice President of the Bangladesh Road Transport Workers Federation, told Bonik Barta, “On the route from Chittagong to Dhaka, truck drivers have to pay at least BDT one thousand at various points. If police harassment is added, this amount can rise to BDT two thousands. Although extortion has decreased nationwide, it persists at the cargo stand in Narayanganj. The students have not been able to stop it.”

Kamran T. Rahman, President of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), said to Bonik Barta, “Food prices significantly impact the cost of living. The absence of extortion has led to a noticeable reduction in these prices. The extent of cost reduction will vary by sector. But the prices of essential goods have decreased substantially. It will benefit the people a lot.”