TBT DESK: Bangladesh is swiftly boosting its air cargo infrastructure following India's sudden suspension of third-country transhipment, taking urgent steps to expand capacity, deploy manpower, and reduce costs to ensure uninterrupted export of key goods, particularly readymade garments.
The Civil Aviation Authority of Bangladesh (CAAB) and Biman Bangladesh Airlines, the national flag carrier and sole ground-handling agent, are jointly implementing extensive initiatives to facilitate uninterrupted cargo operations.
"We're (CAAB and Biman) together working to revise the current civil aviation and ground-handling tariffs to make air cargo more cost-effective," CAAB Chairman Air Vice Marshal Md Monjur Kabir Bhuiyan told BSS on Friday.
He said the government plans to form a task force, led by the Ministry of Civil Aviation and Tourism and comprising all stakeholders, to streamline and reduce charges associated with cargo operations.
"We've been instructed at the highest level to ensure air cargo operations remain functional regardless of external disruptions," Bhuiyan said. "We expect to announce reduced handling charges very soon," he added.
CAAB has already deployed additional manpower at the Hazrat Shahjalal International Airport (HSIA) cargo terminal. Additionally, Osmani International Airport in Sylhet is set to launch full-scale cargo operations on April 27, with Chattogram to follow shortly. Measures are also underway to expedite customs clearance.
On Friday, the CAAB chairman visited Sylhet airport to inspect preparations and instructed officials to ensure the terminal's readiness by April 27.
"Our existing infrastructure will soon handle two to three times more cargo, ahead of the opening of HSIA's Third Terminal," Bhuiyan said, noting that Sylhet's state-of-the-art cargo terminal boasts significant capacity. Biman's Managing Director and CEO, Dr Shafiqur Rahman, echoed the urgency, confirming the recruitment of new cargo personnel to handle the anticipated surge in shipments redirected from India.
Biman's Director of Cargo, Shakil Miraz, said the airline is preparing to provide ground-handling services in Sylhet, where Galistair Aviation's Airbus A330-300 freighter is scheduled to transport 60 tonnes of RMG cargo to Spain on April 27.
"We've already transferred ground-handling equipment from Dhaka to Sylhet and are ready for the inaugural operation," he said, adding that Biman is recruiting 400 additional ground handlers to supplement its current team of over 700 personnel at HSIA.
Last week, Commerce Adviser Sheikh Bashir Uddin, who has also been given charge of the Civil Aviation and Tourism Ministry, met with industry stakeholders to identify viable alternatives and mitigate the fallout for RMG exporters. BIDA Executive Chairman Ashik Chowdhury reaffirmed the government's commitment to creating a business-friendly ecosystem. "Air cargo infrastructure is a key pillar for trade facilitation and attracting investment," he said.
With the long-anticipated HSIA Third Terminal nearing completion, authorities are optimistic that the modern facility will ease reliance on regional hubs and enhance Bangladesh's export competitiveness.
Once fully operational, the Third Terminal is expected to raise export cargo capacity from 200,000 tonnes to 546,000 tonnes annually, including a dedicated 36,000-square-metre cargo zone. "Automated systems and expanded storage at the new terminal will allow us to handle cargo more independently and efficiently, significantly boosting revenue," said the CAAB chairman.
Bangladesh Freight Forwarders Association (BAFFA) President Kabir Ahmed praised the upcoming Third Terminal, calling it "the finest of its kind," comparable to Singapore's airport infrastructure, which includes modern scanning, testing, and temperature-controlled storage facilities, reports BSS.
India's decision earlier this month to revoke a four-year arrangement allowing Bangladeshi goods, mostly garments, to transit by land for air shipment via airports like Kolkata and Delhi has rattled exporters.
The route, which gained momentum during the COVID-19 pandemic, became a vital logistics lifeline, offering faster and often cheaper options than the overburdened HSIA.
According to BAFFA, nearly 600 tonnes-or 18 %, of Bangladesh's weekly garment air exports were routed via India. Bangladesh currently exports around 3,400 tonnes of garments by air each week, while HSIA's cargo village-originally built for 300 tonnes per day-often handles over 1,200 tonnes in peak periods.
Exporters have long complained about logistical delays and inadequate infrastructure at HSIA. Cargo is frequently left exposed due to limited space and ground-handling inefficiencies.
Cost remains a key concern, with BAFFA data showing that HSIA charges $0.29 per kilogram for ground handling -nearly six times higher than Delhi airport's $0.05 - while jet fuel in Dhaka is also 30 % more expensive.
"Jet fuel makes up 40 % of an airline's operating cost," said Bushra Islam, General Manager (Public Relations) at Biman. "That's why Indian airports have become the preferred choice for exporters."
Currently, Biman's passenger flights carry about 16 to 17 % of HSIA's annual 175,000-tonne cargo volume. Biman also provides ground-handling services to several foreign carriers.
Besides, exporters said that CAAB imposes multiple charges for overflying, landing, and parking-while Dhaka's runway limitations prevent large freighter aircraft from operating efficiently.
A lack of incoming cargo-partly due to limited international retail operations-means one-way cargo flights are less viable for carriers, unlike Indian cities where two-way trade is common.
"Indian airports are cheaper because they allow cargo to fly in and out," a senior Biman official said.
Major airlines, including Emirates, Cathay Pacific, Qatar Airways, Turkish Airlines, and Ethiopian Airlines, operate dedicated cargo flights only from Dhaka's HSIA.
BAFFA Subcommittee Chairman Hizkil Gulzar lauded the government's efforts in finally fulfilling long-standing demands for cargo services from Sylhet and Chattogram.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem downplayed the long-term impact of India's suspension, noting that $460 million worth of goods-half of them garments-have been exported via India in the past 15 months.
"If Sylhet airport becomes efficient, that volume can easily shift back," he said, calling for direct government support to bridge the cost gap.
While India's decision has disrupted existing logistics, authorities believe it has also opened an opportunity for Bangladesh to emerge as a regional air cargo hub opportunity Dhaka is determined to seize.