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Couriers thrive with growing customer confidence

Star Business Report
Private courier service sector has been witnessing a boom for the last few years on increasing customer confidence.
The courier service, emerged as a major service sector with handsome annual growth, has been complementing and rivalling the government's postal service since 1983. The private couriers take maximum 24 hours for inter-city parcel delivery. Some leading companies provide same-day delivery for intra-city parcel.
Each of the leading companies handles 15,000 to 20,000 letters and around 2,000 parcels a day on average while small ones 1000 to 1500 letters and 50 to 200 parcels, said a high official of Sundarban Courier. The volume was almost half even five years ago.
According to an estimate of Courier Service Association of Bangladesh, some 100 companies handle about 1.7 lakh letters and about 15,000 parcels a day to create a Tk 500 crore service sector. The sector generates huge revenue for the government in the form of 15 percent VAT (value-added tax) on theservice.
The development of inter-city bus services contributed to the rapid growth of the courier service. The couriers use these buses to transport parcels quickly. Rising transport costs also contribute to intra-city courier growth, industry people say.
However, industry insiders say the sector is running haphazardly with lack of uniformity in charges due to absence of a regulatory body. For stiff competition among mushrooming companies, the charges
vary.
Local courier service companies charge Tk 15 for a document weighing below 1 kg. If a document weight crosses the ceiling it is treated as goods. For goods parcel the charge isTk20 for first kgandTk lOforeverynextkg.
Abu Naser, general secretary of Courier Service Association of Bangladesh, said courier service expands operation and now covers every upazila of the country as it has earned confidence of customers for reliable and quickdelivery.
About difference of charges, he said some companies provide discount for corporate clients to attract and retain customers. There should be uniformity in charges for the benefit of customers and new companies also, he observed.
"Some companies impose service charge, which also casts bad
impact on the courier service business," he said, addfag that the government should take initiative to bring the companies under uniform guidelines.
Tanvir Ahmed Rony, director (Finance) of Sundarban Courier Service, one of the leading market players, said, "The business has become so competitive and demand-driven that some companies make delivery within hours for intra-city parcel.”
Sundarban, Execial and Pioneer have expanded service to India for document parcel. The companies also provide money order service. However, the government has recently planned to restrict courier firms from providing money order service as it leaves scope formoney laundering, an allegation refuted by theassociation.