Industrial Site Selection: Different Priorities
Factory and warehouse site selection involves different priorities from office selection. While structural safety and fire protection remain critical, industrial sites add dimensions like clear height, floor loading capacity, power supply (HT vs LT), gas availability, effluent treatment, labour availability, and logistics access. In Bangladesh, the choice between EPZ/SEZ and non-zone locations fundamentally shapes the compliance and incentive landscape.
Evaluation Framework — Industrial Specific
| Dimension | Good Practice | Minimum Acceptable | Red Flag |
|---|---|---|---|
| Clear Height | Warehouse: 8-10m, Factory: 5-7m | Warehouse: 6m, Factory: 4m | <4m clear height for factory, <6m for warehouse |
| Column Spacing | 12m × 18m or wider | 9m × 12m | <6m spacing (restricts racking/equipment) |
| Floor Loading | 50 kN/m² (warehouse), 20 kN/m² (factory) | 30 kN/m², 10 kN/m² | Unknown or unverified floor loading |
| Floor Flatness | FM2 (defined movement), FL25 | Functional for operations | Visible undulation, cracking, settlement |
| Power — HT Supply | Dedicated 11kV/33kV HT connection | Shared HT with adequate allocation | LT supply only for >200kW demand |
| Power — Capacity | 1.5× peak demand available | 1.0× peak demand | Load shedding affecting operations |
| Generator Backup | 100% production load, 24hr fuel reserve | Critical load backup, 12hr fuel | No generator or inadequate capacity |
| Gas Supply | Dedicated industrial gas connection (Titas/PGCL) | Shared gas with adequate pressure | No gas connection where process requires it |
| Water Supply | Deep tube well + WASA, treatment plant | Adequate supply for process + domestic | Water quality untested, insufficient for process |
| Effluent Treatment | ETP meeting DoE discharge standards | Basic ETP, discharge licence obtained | No ETP where process generates effluent |
| Fire Protection | Sprinkler, alarm, hydrant, trained team | Extinguishers, alarm, exit stairs, FSCD licence | No alarm, locked exits, combustible storage in exits |
| Structural Adequacy | Designed for occupancy, BNBC 2020 | Engineered structure, no visible defects | RCC frame with added floors, visible distress |
| Loading/Unloading | Dock levellers, adequate truck court, turning radius | Level loading area, truck access | No dock access, narrow road, no turning space |
| Labour Availability | Within 5km of labour catchment | Accessible by public transport | Remote with no transport infrastructure |
| Road Access | Dual-lane road, no weight restrictions | Paved road, container truck accessible | Unpaved road, bridge weight limit, seasonal flooding |
EPZ/SEZ vs Non-Zone: Decision Matrix
| Factor | BEPZA (EPZ) | BEZA (SEZ) | Non-Zone (General) |
|---|---|---|---|
| Tax holiday | 10 years (100% export) | 10 years (variable) | Per NBR, sector-specific |
| Export requirement | 100% export mandatory | Flexible (export + domestic) | None |
| Infrastructure | Ready — power, water, gas provided | Varies by zone maturity | Self-arranged |
| Labour regulations | BEPZA labour rules (separate from BLA) | Bangladesh Labour Act applies | Bangladesh Labour Act applies |
| One-stop service | BEPZA provides | BEZA OSS | Multiple authorities |
| Land availability | Limited — 8 EPZs, mostly full | Expanding — 100 planned | Unlimited but acquisition complex |
| Rent/Cost | Higher per sqm but includes infrastructure | Variable | Lower rent but higher infrastructure cost |
| Best for | 100% export manufacturers | Mixed export/domestic, new sectors | Domestic market, flexible operations |
Power Supply Assessment — Critical for Industrial
| Load Requirement | Connection Type | Typical Source | Application Process | Timeline |
|---|---|---|---|---|
| <200 kW | LT (400V) | DPDC/DESCO/PBS | Apply to distribution company | 1-3 months |
| 200 kW - 5 MW | HT (11kV) | DPDC/DESCO/PBS | Apply with load calculation, transformer site | 3-6 months |
| >5 MW | HT (33kV) | PGCB/BPDB | Apply to grid company, substation required | 6-18 months |
| EPZ/SEZ | Provided by zone | Zone authority | Included in zone agreement | Per zone readiness |
Land Acquisition Considerations
- Title verification — essential. Engage a property lawyer to verify mutation, khatian, CS/RS/SA records.
- Soil investigation — mandatory before design. Bangladesh alluvial soil varies dramatically — pile foundations typically required for industrial loads.
- Flood history — check with locals, BWDB, satellite imagery. What was the highest flood level in the last 20 years?
- Access road — verify ownership and right-of-way. Some industrial access roads cross private land.
- Adjacent land use — what's around you? Residential neighbours create noise complaints. Chemical neighbours create risk.
- Environmental sensitivity — is the land on or near a water body, wetland, or designated ecological area? DoE will block ECC.
- Zoning — verify the land is zoned for industrial use in the DAP (Detailed Area Plan). Converting agricultural land requires additional approvals.
References
Insights & Guidance
- Industrial site selection adds clear height, column spacing, floor loading, power (HT/LT), gas, ETP, and logistics access to standard building evaluation.
- EPZ (BEPZA) requires 100% export but provides ready infrastructure. SEZ (BEZA) is more flexible. Non-zone gives freedom but requires self-arranged infrastructure.
- Power supply is the #1 operational factor — HT connection for >200kW demand takes 3-6 months to arrange outside zones.
- Land title verification, soil investigation, and flood history are non-negotiable before acquisition.
- Floor loading must be verified — industrial operations can exceed residential/commercial design loads.
An industrial site must support operations for 10-20+ years. Getting power, floor loading, or clear height wrong is extremely expensive to fix after occupancy. A structured evaluation prevents costly operational compromises.
- Inadequate power — production loss from load shedding when HT connection is not available.
- Floor failure — overloaded floors cracking or settling, damaging equipment and inventory.
- No ETP — DoE shutdown order for discharge violations.
- Title dispute — land ownership challenged after construction investment.
- Land title documents — mutation, khatian, title deed
- Soil investigation report
- Power connection confirmation with allocated capacity
- ECC from DoE (Environmental Clearance Certificate)
- Clear height — measure at lowest point (consider beams, ducts)
- Floor condition — cracks, settlement, surface quality
- Power infrastructure — transformer, switchgear condition
- Loading dock accessibility — truck turning radius, dock height
- What is the confirmed power allocation (kW/MW)?
- What is the floor load capacity (kN/m²)?
- Is there an active gas connection? What pressure?
- What is the flood history of this site?
- Soil investigation — geotechnical engineer.
- Power assessment — electrical engineer with industrial experience.
- ETP design — environmental engineer.
- Title verification — property/land lawyer.