The Civil Aviation Authority of Bangladesh (CAAB) is set to launch cargo services from two more international airports after the Hazrat Shahjalal International Airport (HSIA) in Dhaka following India's abrupt closure of their transshipment route for Bangladeshi goods.
The CAAB said, "We are opening Sylhet for cargo operations on the 27th of this month, and Chattogram will follow shortly," Bangladesh is moving towards an alternative route after India stopped the use of its ports and airports for exporting Bangladeshi goods to third countries, known as transshipment.
The first flight will depart from Sylhet for Spain at 7:00pm with garment products. It will carry about 60 tons of goods. Bangladesh Biman said that the flight will be operated by its own trained manpower with international certifications in compliance with the safety and quality transport rules of the European Union.
The service is initially being launched using the existing infrastructure and equipment of Sylhet Airport. The concerned parties have expressed satisfaction with the warehouse facilities at the export cargo complex at the airport, but they also said that a larger warehouse is needed for the future. Construction work on several private sector warehouses is underway, which could be completed within the next six months.
However, Bangladesh Biman authorities believe that it will be a challenge to keep ground services fully operational in the absence of regular cargo flights.
Cargo services from Sylhet and Chattogram airports will increase exports and imports through the regions and also reduce traders' dependency on the Dhaka airport for air transportation of goods. It will also save the cost and time of businesses.
However, it is expected that the third terminal at the HSIA, which might be opened at the end of 2025, will improve the capacity of ground handling and air shipment of goods significantly.
Industry estimates suggest about 18 per cent of Bangladesh's garment air cargo was flown through Indian airports. Bangladesh exported roughly 3,400 tonnes of garments by air per week, with 600 tonnes flown through Indian airports before the transshipment ban, according to data from the Bangladesh Freight Forwarders Association.
One of the main attractions of Indian air transshipment was the cost. While sending a kilogram of apparel from HSIA to Europe typically costs US$2.90 to $3.20 during off-peak periods (and up to $4.50 in peak season), shipping through India costs about $2.60 per kg, even after accounting for overland transport to Indian airports.
By contrast, exporters have long complained about bottlenecks at HSIA. The airport's cargo village has a maximum capacity of 300 tonnes, but it handles over 800 tonnes daily even in the off-season, and up to 1,200 tonnes during peak periods. Ground handling inefficiencies and mismanagement have plagued the Dhaka airport for years. Shipments have reportedly been left exposed to the elements.
Ground handling fees are another sticking point. Dhaka charges 29 cents per kilogram compared to just five cents at Delhi airport. Combined with slower service and a lack of modern equipment, these high costs have driven exporters to seek alternatives abroad.
Fuel costs also play a role. A $1-per-gallon difference in jet fuel prices between Dhaka and Delhi gives Indian airports a further edge.
The airport cost is driven by the high price of jet fuel, which is about 30 per cent higher in Dhaka than in India. "Jet fuel accounts for 40 per cent of an airline's operating costs," according to Biman Bangladesh airlines. "If that's the reality, then why wouldn't a businessman prefer Delhi over Dhaka for exporting cargo?" another Biman official said. "The government should seriously look into this," he added.
"On average, 1.75 lakh tonnes of cargo are exported annually from Dhaka airport, and Biman carries 16 to 17 per cent of that total," according to sources. Biman also provides ground-handling facilities to various airlines that transport this cargo.
A high official of Biman told The Daily Observer on Tuesday that the airline's cargo handling capacity will double once the third terminal becomes operational. Currently, Terminals 1 and 2 have a combined space of 19,600 square metres dedicated to export-bound cargo, with an annual handling capacity of two lakh tonnes of goods. The new third terminal alone will offer 36,000 square metres of space for exporters, with a handling capacity of 5.46 lakh tonnes per year.
A senior cargo department official at Biman said several charges, such as overflying, landing and parking fees, are imposed by the CAAB, not Biman. "We only provide ground handling services to foreign airlines," he said, requesting anonymity.
There are also infrastructure-related challenges. For instance, a cargo aircraft that exceeds the prescribed weight limit cannot land at Dhaka airport because of the runway's limited strength.
Emirates, Cathay Pacific, Qatar Airways, Turkish Airlines, Ethiopian Airlines, and several other carriers currently operate dedicated cargo flights from Dhaka.
