Air freight capacity to increase

The Civil Aviation Authority of Bangladesh (CAAB) and Biman Bangladesh Airlines are enhancing their air cargo infrastructure following India's sudden suspension of third-country transhipment.

CAAB, the civil aviation regulatory body of the civil airlines, and Biman, the sole ground-handling agent at airports in Bangladesh, are taking urgent steps to expand capacity, deploy manpower and reduce costs to ensure uninterrupted exports by air, particularly of garment items.

The move comes as Bangladesh's garment exporters face a major challenge in handling urgent international shipments after India abruptly closed a widely-used air cargo transhipment route on April 8.

The route, via Kolkata and Delhi airports, allowed Bangladeshi exporters to move goods overland to India through the Benapole-Petrapole border and then air-ship them worldwide.

It became popular since the pandemic, offering faster service and often lower costs than relying on the overstretched Hazrat Shahjalal International Airport (HSIA) in Dhaka.

Industry estimates suggest about 18 percent of Bangladesh's garment air cargo was flown through Indian airports per week in a lean season.

Bangladesh exported roughly 3,400 tonnes of garments by air in a week, with 600 tonnes flown through Indian airports before the transhipment ban, according to data from the Bangladesh Freight Forwarders Association.

One of the main attractions of Indian air transshipment was cost.

While sending a kilogram of apparel from HSIA to Europe typically costs $2.90-$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.

Major international buyers like Inditex (Zara's parent company), which maintains a distribution hub in Delhi, preferred the route for speed and efficiency.

Local suppliers relied on it to shorten lead times and optimise delivery schedules.

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 more than 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. Often, shipments are left exposed to the elements.

Another sticking point is the ground handling fees.

Dhaka charges 29 cents per kilogram compared with 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.

Both CAAB and Biman are working to revise the current civil aviation and ground-handling tariffs to make air cargo more cost-effective, said CAAB Chairman Md Monjur Kabir Bhuiyan.

The government also plans to form a task force led by the ministry of civil aviation and tourism, comprising all relevant stakeholders, to streamline and reduce charges associated with cargo operations.

"We have been instructed at the highest level to ensure air cargo operations remain functional regardless of external disruptions. We expect to announce reduced handling charges very soon."

To address the crisis, CAAB has already deployed additional manpower at HSIA's cargo terminal.

Moreover, full-scale cargo operations at Sylhet Osmani International Airport will begin on April 27, with Chattogram to follow shortly. The authorities are also working to speed up customs clearance.

"Our existing infrastructure will soon be capable of handling two to three times more cargo ahead of the opening of HSIA's third terminal," Bhuiyan said, noting that Sylhet's modern cargo terminal has substantial capacity.

Biman is hiring 400 additional ground handlers to support its current team of over 700 at HSIA, said its director of cargo Shakil Mirza.

It is also preparing to provide ground-handling services in Sylhet, where Galistair Aviation's Airbus A330-300 freighter is scheduled to transport 60 tonnes of garment items to Spain on April 27.

Ground-handling equipment has been transferred to Sylhet and is ready for the inaugural operation, he said.

Once HSIA's third terminal becomes operational by the end of this year, it will significantly boost Bangladesh's export competitiveness.

There is renewed optimism surrounding the new terminal, which industry leaders say is equipped with modern scanning, testing, and temperature-controlled facilities.

"The third terminal is the finest -- it's just like the airport in Singapore," said Kabir Ahmed, president of the Bangladesh Freight Forwarders Association.

Biman's cargo handling capacity will double with the launch of the new terminal, said Bushra Islam, its general manager for Public Relations.

Currently, Terminals 1 and 2 have a combined export cargo space of 19,600 square metres and can handle 200,000 tonnes annually.

The third terminal will offer 36,000 square metres of space and a handling capacity of 546,000 tonnes per year.

At present, about 16 to 17 percent of HSIA's annual 175,000-tonne cargo volume is carried by Biman's passenger flights.

Major international airlines including Emirates, Cathay Pacific, Qatar Airways, Turkish Airlines, and Ethiopian Airlines currently operate dedicated cargo flights from Dhaka's HSIA.