CAAB mulls operating HSIA's third terminal on its own

The Civil Aviation Authority of Bangladesh (CAAB) is considering operating the newly built third terminal of Hazrat Shahjalal International Airport (HSIA) with its own manpower and expertise, as negotiations with a Japanese consortium over its operation and maintenance have hit a stalemate.

Talks with the consortium - primarily shortlisted to manage the Tk 213.99 billion facility - have stalled due to a lack of consensus on several key conditions, a senior CAAB official told The Financial Express on condition of anonymity.

"In view of the current situation, CAAB is exploring alternative options, including running the terminal on its own," the official said.

Sources said Air Commodore Abu Sayeed Mehboob Khan, member (Operations and Planning) of CAAB, recently gave a presentation at HSIA outlining how the authority could manage the terminal using its existing resources.

However, CAAB Chairman Air Vice Marshal Md Mostafa Mahmood Siddiq said the Ministry of Civil Aviation and Tourism (MoCAT) would need to issue a formal directive before any such plan could move forward.

"Once the ministry gives its approval, we will need at least five to six months to prepare for full-scale operation," the CAAB chairman said, according to the official.

Initially, CAAB plans to operate four of the 26 boarding bridges at the terminal.

Efforts to reach Air Commodore Abu Sayeed Mehboob Khan for comment were unsuccessful.

The third terminal, which is nearly complete, cannot yet begin commercial operations due to the absence of a finalised operation and maintenance agreement.

A Japanese consortium - comprising four private companies and two state-run organisations - had been selected for the job for a 15-year term following initial bid discussions. However, despite several rounds of negotiations, the two sides could not reach a final agreement.

Once appointed, the operator would be responsible for recruiting and training personnel, familiarising them with equipment, and carrying out operational tests before launching commercial activities - a process expected to take several months.

In January this year, the then CAAB chairman said 99 per cent of the construction work had been completed, with minor finishing work - mainly in the VVIP section - delayed due to complexities in contracts and import of materials such as granite and ceiling components.

Under the operational plan, national flag carrier Biman Bangladesh Airlines will continue to handle ground services at the terminal under the supervision of the new operator, following the signing of a service level agreement (SLA).

Biman has handled ground operations since independence, though its performance has often drawn criticism from international airlines.

Currently, HSIA's two terminals handle 12-13 million passengers annually - around 50 per cent more than their designed capacity of 8.0 million. Once the third terminal becomes fully operational, the airport's total passenger handling capacity is expected to rise to 24 million per year, along with a significant boost in cargo throughput, according to the authorities concerned.

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