Bangladesh is losing billions of taka as export cargo shipment continues to be rerouted through Indian airports due to handling inefficiencies at Dhaka's Hazrat Shahjalal International Airport (HSIA). Such cargoes pass to India through Benapole land port.
This shift, driven by delays and exorbitant handling costs at Dhaka airport is undermining the country's export competitiveness and benefiting neighboring India, exporters said.
Nurul Amin, Vice President of Bangladesh Freight Forwarders Association (BAFFA), highlighted the growing financial impact.
"Over 13,000 metric tons of export cargo have bypassed Dhaka airport and rerouted through Delhi since February. It has cost Bangladesh over BDT 300 crore and the figure keeps rising," Amin said.
He placed much of the blame on Dhaka's outdated and inefficient cargo handling system. "The backlog at Dhaka airport is a direct result of high costs and poor infrastructure. Exporters are rerouting cargo driven away by excessive fees and delays.
"According to Amin, HSIA charges $0.08 per kilogram for handling, with additional costs for mandatory scanning, bringing the total fees to $0.14 per kg for shipments to Europe and the USA. "This is far higher than Indian airports, where costs are lower, and processing is more efficient," he added.
The cost gap is pushing exporters to opt for Indian airports such as Delhi, Bangalore, and Kolkata, where the overall air freight cost, including transportation and handling fees, is $1 to $1.5 lower per kilogram compared to Dhaka.
The handling charges at HSIA are not the only issue causing this shift.
The airport's cargo handling capacity has been strained by growing export volumes, which have increased 10 percent annually.
HSIA's export warehouse, in use for over 20 years, can no longer accommodate the rising volume of goods to be processed.
"We're seeing severe congestion due to a lack of warehouse space and outdated equipment," Amin said.
"The infrastructure simply cannot keep up with the demands." The situation is made worse by malfunctioning Explosive Detection Systems (EDS) at Dhaka airport.
Of the four machines meant for screening cargo bound for high-security markets like the EU and USA, only two are functional, leading to significant delays.
"This slowdown in screening process not only delays shipments but also discourages airlines from flying to and from Dhaka," he explained.
"The backlog at the airport has caused international airlines to reduce flight capacities, further worsening the problem.
"Amin further pointed out that Dhaka remains one of the most expensive airports in South Asia for cargo handling. "It costs around USD 20,000 to 25,000 to handle a 100-ton cargo flight at HSIA, compared to just USD 1,200 to 2,000 at major Indian airports," he noted.
This stark price difference, coupled with inadequate ground-handling support, has made Bangladesh's main airport unattractive to exporters and airlines alike.
Amin stressed without urgent reforms, the country would continue losing export revenues to Indian airports.
He suggested developing other airports, such as Sylhet and Chittagong, to relieve pressure on Dhaka airport. "Sylhet already has a cargo warehouse and EDS machines but lacks sufficient ground-handling equipment," Amin stated. "By splitting the export load between these airports, we could reduce congestion at HSIA and improve overall efficiency."
Nasir Ahmed Khan, another Vice President of BAFFA, criticized the poor quality of ground handling at HSIA. "We're losing business to India because exporters know they can get better service at lower costs," he said.
