Jahaji

Bangladesh, as a riverine country, is one of the most extensive waterway networks in the world. Inland waterway transport (IWT) is a cost-effective and environment-friendly way to transport bulk commodities like construction materials, fertilizers and food grains. Yet the vessel owners, suppliers, carriers, transports, agents who are involved into this transportation are struggling to manage their business. The system is pragmatic and the stakeholders have least access to information. Here, every deal is made verbally and there is no common platform for its multi-level stakeholders to verify the information.

Jahaji is the first ever common B2B platform for the multi-level stakeholders of IWT (cargo) sector where they can validate the information and manage business using their smartphones.

By expanding access to information and digital literacy, Jahaji will extend business boundary, reduce barriers, and increase productivity of these stakeholders. It will reduce economic vulnerability by creating skilled force among the youth.

In Bangladesh, 75% of commercial activities are occurred within 10km of navigable waterways. Despite the potential, the growth rate of IWT sector has dropped by 7% in last five years. Because, this sector is run orally and business commitments are made based on perdition and intuitions. So, the multi-level stakeholders are facing multi-layered problems like:

• The supplier doesn’t have any option to book ship comparing the rate, capacity and location.
• Ship owner’s business boundary is limited, and he has to depend on middleman for rental.
• In emergency cases, a supplier doesn’t have any option to buy and sell bulk goods with quality checking facility.
• A carrier gets puzzled when a Mother Vessel (MV) arrives at outer anchorage, because he struggles to coordinate the lighter ships for unloading.
• Transport/Agent/Broker faces difficulties to gain clients’ trust, and struggles to keep commitments.

At present, 0.5 million sector people are suffering directly. If we count other beneficiaries like Govt., port workers, MV Company, trade organizations, importers and exporters, construction project workers, the number would reach 10 million.

The contributing factors to the problems are lack of access to information, absence of common platform, pragmatic system structure, and unduly facility gainers from existing system.

According to our survey, more than 25,000 vessels carry bulk commodities using inland water way. The multi-level stakeholders of IWT is consisted of ship owners, shipping staff, carriers, suppliers, transports, agents, brokers, and buyers. Two of Jahaji Board members are sector people. So we understand the problems to the bones. Moreover, we’ve conducted a survey at 3 regions in Bangladesh to understand the segment-wise need. We’ve found, the market is imperfect and the access to information and sector governance structure is poor. We’ve also found, this sector badly requires a common platform for its stakeholders.

Jahaji is a common platform which addresses the needs of IWT (cargo) stakeholders. This B2B platform will virtually connect their business. Using Jahaji app, they can run business operations and validate the information. It also offers them a virtual marketplace for trading bulk commodities from running ship.

Jahaji is an easy-to-go app, because we have designed the app based on our customers’ need. Our offline regional team (Peoples’ Officer) always collects user feedback and sends us on regular basis. We use to upgrade our services continuously based on clients’ feedback. Also, our peoples’ officers are trying to expand digital literacy among the sector people.

It is Jahaji which brings booking and tracking services for IWT (Goods) sector in Bangladesh for the first time. It gives a common tech-platform for the stakeholders of this sector. Initially, Jahaji offers thee services i.e. Booking, Tracking and Marketplace. Here are the details:

Booking: Booking service enables the commodity suppliers to book lighter ships from a wide range of options after comparing the rate, location and capacity of ships. It would give them more flexibility; reduces the cost and dependency on middleman.

Tracking: Tracking service gives access to vessel owners, carriers to monitor their ships in real time. Also, suppliers, brokers, agents, and even buyers can track their trips real time via Jahaji app. Tracking service is also available for corporate clients to monitor a number of ships at a time.

Marketplace: One of the important things of this sector is bulk commodities like sand, stone chips, coal are traded verbally from running ships. Jahaji introduces a virtual marketplace for trading bulk goods from running ships with embedded features of price, location, quantity, and quality comparison. It’s a platform for seller for showcasing their commodities. And for a buyer it’s a place for buying the goods after checking the features.

Jahaji Process:

We have released the android version of Jahaji app in Playstore. It’s built using Cordova Framework. Our iOS version is underway. Besides, we have an admin panel for processing orders and team management. We have also designed an app for ship owners which will be installed in the ship.

When a customer signups to Jahaji, our Executives of First Impression (EFI) call them instantly to verify and help them completing the user profile.

When our clients request for any service like booking or trading in marketplace via app, the data has been processed automatically and sent to concerned department for action. Meanwhile our EFI and peoples’ officer keep contacting with the client for feedback. As this sector is very niche, there is shortage of labor force in this sector. We policy is to recruit fresher and train them through our capacity building program.

The innovation of Jahaji has come from incongruities between economic realities of IWT (cargo) sector. Being a part of this sector, we’ve realized that the real costs did not come from doing work (being at river) but from not doing work (sitting idle). Jahaji platform will open many business windows for its stakeholders and give them an opportunity to extend their business horizon as well.

We’ve also considered demographics as an external source of our innovation. Changes in the numbers of people and their age are important. The second generation ship owners, suppliers have started replacing their ancestors and within next five years, they will be the majority. They are educated, young and have more digital literacy than that of their parents. This is one of the reasons we go for a digital platform.

In this sector, bulk goods like sand, stone chips, coal are traded from running ships. Currently, there is no such option for sellers to display their goods from a running ship. And buyers have to believe in sellers’ oral commitment before purchasing the goods. It creates huge misunderstanding among parties. We’ve introduced a virtual Marketplace which would connect the buyers and sellers in a single platform. Using Jahaji app, buyers can check the product quality, ship location and compare the rates and quantity of goods and can purchase from running ships. Jahaji marketplace is our copyrighted innovation and nowhere in the world has such service for IWT sector.

We have designed our theory of change model based on three term outcomes. Firstly, we have focused on company lubrication and staff capacity building. Secondly, we have focused on service development and up-gradation by continuous market research. And finally, we have planned for market penetration via our communication and outreach outputs. Our target is to change the opinion and attitude of our stakeholder towards new technology and positively change their behavior.

1. Currently we are serving 20 business entities.

2. In one year, we'll be serving 8,000 business entities.

3. In five years, we'll be serving 56,000 business entities.

Jahaji is expected to serve around 8,000 business entities in one year and 56 thousand business entities within next five years. That means Jahaji would directly and meaningfully affect the lives of the dependents of these entities. Jahaji is going to affect the life of ship owners, shipping staff, carriers, suppliers, transports, transport agents, brokers, buyers, port workers.

Jahaji is starting its commercial operation from September 2019 and planning to serve 8,000 business entities within one year. That means it would directly affect more than 125 thousand* people by 2020. Jahaji is planning to serve almost 56,000 business entities by 2024 which would bring significant change to more than 850 thousand* lives.

If we consider the indirect stakeholders like Govt., policy makers, construction project, financial institutions, and other beneficiaries, the number would reach tens of millions. Jahaji is designed to make the business operation smooth and transparent. So, it would reduce economic vulnerability and business barriers for IWT stakeholders and beneficiaries. By expanding access to information, digital literacy, and creating skilled man power and high paying jobs in this sector, Jahaji would help to shape a better ITW sector and a better society. Also, Jahaji will contribute to outline better sector governance. According to a WB report (page 18), more than half of the country’s land area and three quarters of commercial activities are situated within ten kilometers of navigable waterways during all seasons. Jahaji service will increase the mobility and productivity in inland water way. So it will definitely boost up the economic activities across the country and thus will have a revolutionary impact on millions of lives in Bangladesh.

*estimated. According to our baseline study, each business entity of ITW connects average 16 people directly.

1) Financial Barriers

• One Year Barriers: Short term funding to smoother operation. 
• Five Year Barriers: Within next five years, we’re supposed to operate across Bangladesh and we’re planning to move into external market outside Bangladesh. As few donors are interested in the sector, the main barrier would be funding and get proper investment suggestion.

2) Technical Barriers:

• One Year Barriers: Sustainable setup box and continuous system and service up-gradation. Only android version has released.
• Five Year Barriers: lack of skilled labor force for local and global operation in this sector to serve.

3) Legal Barriers:

• One Year Barriers: Most of regulations and laws related to this sector are outdated and not sector friendly.
• Five Year Barriers: As we are planning to scale up the business to other countries within next five years, there would be new and different regulations for different countries. Complying with their regulations will be a challenge.

4) Cultural Barriers:

• One Year Barriers: Different area, different people, and different mindset for each local market. Internal and external opposition to bring change from those who benefit unduly from the present situation.
• Five Year Barriers: Insufficient dredging shrinking the waterway. This Sector prone to corruption. Syndication in this sector.

1) Solution to Financial Barriers:

• One Year: We have available funds to carry out the operation for this year. Participating in several business completions and approaching to potential investors to raise fund to move further
• Five Years: We’ll seek for low cost investment. If the investment plan didn’t work properly.  We’ll raise capital from share market.

2) Solution to Technical Barriers:

• One Year: Development of own tracking device. iOS version of app is underway.
• Five Years: We will gain more tech-capacity by training and hiring. Also, through our own capacity building program we will create skilled human resource for this sector.

3) Solution to Legal Barriers:

• One Year: New regulations of this sector are being drafted, we would do policy advocacy for sector improvement.
• Five Years: Continuous policy advocacy to draft sector friendly law and regulation. Our legal adviser has a PhD. from Macquarie University and published works in international journals on Maritime laws. We will get the support from one of the best experts for legal documentation.

4) Solution to Cultural Barriers:

• One Year: we are recruiting regional people as our peoples’ officers and building their capacity which helps us to reduce cultural barriers.
• Five Years: Continuous policy advocacy. We will expand digital literacy among our multi-level stakeholder. We’ll partner with the sector trade organizations and work together for the improvement of IWT sector.

Full time Staff: 12

Adviser: 3

Regional Adviser: 1

Jahaji has an excellent combo of skills, experience, and educational background in board members. Two of its board members are directly involved in supply and shipping business for years. One of the Co-Founders has more than 8 years of experience in working in different Comm-Tech position at renowned international organizations. So, Jahaji has a rare combination of domain knowledge and technology. Jahaji app is unique, because we understood the problems very well before jumping into the technology solution. We have conducted a baseline survey to get the current scenario and problems. We have used our experience to analyze the problems and used our expertise to solve the problems. After working for more than two years, we have designed Jahaji services from scratch. It’s not just an app, it’s a solution and we’re the best to deliver.

Here are the profiles of Jahaji Board members:

1) Shaikh Bahauddin, Chairman, Jahaji Ltd.

• Decades of experience in family business.
• Ship Owner and Supplier.
• Partner at AJ Corporation and AJ Logistics.

2) Abhinandan Jotdar, Co-Founder and Director, Jahaji Ltd.

• Ex Banker, graduated in Finance from the University of Dhaka.
• Started supply and logistics business in Khulna in 2016.
• Founder of AJ Corporation and AJ logistics

3) Kajal Abdullah, Co-Founder and CEO, Jahaji Ltd.

• Graduated in Finance from the University of Dhaka.
• Worked at BRAC, BBC, UNDP.
• Alumni at RNTC, Netherlands.

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Jahaji is a common tech platform in IWT (Cargo) sector. Being the pioneer service provider of this sector, Jahaji is getting a brand image easily in this sector. As the founders are from the same sector, Jahaji has already a built-in customer base. Jahaji would use these key resources to serve its customers. Jahaji services are i.e. Booking, Tracking, and virtual Marketplace.

The key customers of Jahaji are ship owners, suppliers, transport, carrier, agent, and, buyers of IWT (Cargo) Sector in Bangladesh. Jahaji will bring a transformational change in the sector and empower its key customers by giving them a common platform, broader business horizon, and more control over business. Jahaji will reduce their dependency on middle man and help them to utilize their time and money. Also, by expanding digital literacy among them, Jahaji will help increasing their business goodwill and social status.

The beneficiaries of Jahaji include Mother Vessel Owner, Government, Port Workers/Labors, Shipping Staff, Insurance Company, Unemployed youth, Trade Organizations like (WTC, BCVOA, and Chambers of Commerce), Financial Institutions, and Development Projects. Jahaji will reduce the business barriers and economic vulnerability of this sector and help outlining better sector governance. Jahaji will create job and skilled labor force in this sector and empower the youth.

Jahaji is a self-funded organization. We have been operational for last 8 months, where we focused on platform development, R&D, and capacity building of our staff. We’ve tested our services to our target community and got good results. We have spent around 68,500 USD* till August 2019. We are going to commercial operation from this month (September 2019) and will spend more 200,000 USD within this year. We’re expected to generate revenue from October 2019 which will cover almost 11% of our current cost in this year. So, we have come up with a short term plan to carry out our operation smoothly for next one year. We would like to take part in business competition like Tiger Challenge and contact with external investors to raise funds and implement our short term plans. 

Here is a graph of our short term plan:

Long Term Plan:

By the end of 2020, we’re expected to become a profitable and self-sustaining organization. We have a long term plan for post 2020 period. As an information and technology service provider, Jahaji would follow market linkage model to sell the services and connect the clients to market and buyers. If we can implement our plan successfully, our positive growth would be 55% in 2021, and 143%, 163%, 91% in respective years. 

Here is a graph of our long term plan:

*Conversion Rate: 1 USD = BDT 84.85

Being a new organization, Jahaji might face technological and financial barriers in coming years. Tiger IT is country’s one of the esteemed organizations and has set its pugmark to another level. Besides funding, we are looking forward to getting strategic and operational supports (mostly in technology, corporate networking, and monitoring) from seasoned professionals. Also, we would appreciate a physical office space in Dhaka.