Circular Logistics in Motion: Dhaka Turns Textile Waste into Supply Chain Value

Dhaka, Bangladesh – June 3, 2025
By Maria Kalamatas | The Logistic News
Section: EchoChain

A quiet transformation is reshaping how Bangladesh handles its textile waste—one that’s beginning not in factories, but in the arteries of the country’s freight and logistics system.

“Logistics is no longer just about moving goods; it’s about moving smarter,” said Nayeem Rahman, Program Lead at GreenPorts Alliance, a multi-stakeholder platform uniting ports, freight operators, and recyclers.

Logistics Hubs Become Recovery Centers

In Dhaka and Chittagong, key inland and port terminals have recently designated processing areas to handle surplus fabrics, misprinted materials, and pre-consumer textile waste. These hubs, traditionally used for container staging, are now doubling as recovery points where discarded goods are repurposed for new production cycles.

According to data collected by local customs, over 1,200 tonnes of textile waste were diverted from landfill and re-injected into the supply chain between April and May alone.

Operational Gains with Environmental Value

For freight companies, the shift is more than symbolic. Optimizing space by removing waste from primary cargo has reduced dead weight and lowered fuel costs. In one pilot, a Dhaka-based logistics firm reported a 9% gain in container utilization.

Even more, these new logistics practices meet rising international demand for verifiable environmental performance. European clients, especially in fashion retail, are beginning to request proof of circularity along with shipping documents.

“Being able to prove you’re not just greenwashing—this is now a commercial advantage,” Rahman added.

Shared Systems and Verified Chains

A crucial part of the model’s success lies in its digital traceability. Each recycled shipment is now tagged with a digital certificate, created by blockchain partners and verified by customs. The system ensures that products made from recycled textiles can be traced from origin to export, complying with EU due diligence rules expected in late 2025.

“This is not just about compliance—it’s about competitiveness,” said Arifa Nizam, sustainability advisor at PortLink Logistics.

Scaling Beyond Textiles

Encouraged by early results, the government is studying similar approaches for other sectors. Leather offcuts, jute fiber scraps, and even damaged electronics are being mapped for recovery flows in logistics corridors beyond the capital.

“We are building a logistics model where waste becomes part of trade,” Nizam concluded. “That’s the new frontier.”

Maria Kalamatas
For The Logistic News – EchoChain Section