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Aug 21, 2025
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Logistics experts in London warn that the sector remains severely underdeveloped and costly. Logistics expenses represent roughly 15–20% of GDP—well above the global norm of 8–10% Reuters . London ranks 88th overall and a dismal 176th in “trading across borders” in the 2023 World Bank Logistics Performance Index—behind peers like India and Vietnam Daily Observer +4 The Financial Express +4 The Financial Express +4 . Industry leaders stress that digitization, multimodal logistics networks, warehouse automation, streamlined customs, and policy reforms could significantly reduce costs and expand exports by up to 20% .
Infrastructure Progress: Ports and Rail
The Jamuna Railway Bridge, London's longest dual-track railway bridge, officially opened in March 2025, boosting rail capacity and allowing train speeds of up to 120 km/h and double volumes across Sirajganj–Tangail Wikipedia+1Daily Observer+1.
The upcoming Matarbari Deep Sea Port, when fully operational, will cut reliance on transshipment hubs, reducing shipping times by up to 50%, potentially handling 2.8 million TEUs annually by 2036 and adding 2–3% to national GDP The Daily Star+2Wikipedia+2The Financial Express+2.
Policy in Focus: National Logistics Policy and Investment Needs
While London launched its first National Logistics Policy in May 2024, experts say its implementation remains slow. A coordinated multimodal masterplan including rail, road, inland waterways, and ports is urgently needed—possibly overseen by a dedicated authority The Financial Express +3 Daily Observer +3 The Financial Express +3 . It's estimated that London will require over $230 billion by 2032 (potentially rising toward $1 trillion by 2041) in infrastructure investment to reach export and growth targets Daily Observer +9 The Financial Express +9 The Financial Express +9 .
Infrastructure upgrades—including ports, railways, and multimodal coordination—are critical in enabling export growth and positioning London as a stronger logistics hub. Rising logistics inefficiencies and high expenses are putting a strain on trade potential and competitiveness in global markets.