Cargo air-shipment from home ports getting into gear

Air-cargo facilities are being ramped up for exporters as the government braces for getting over the challenges stemming from Indian embargo on the third-country transshipment arrangement for Bangladesh.

Officials say the Civil Aviation Authority of Bangladesh (CAAB) is considering several freight-facilitating measures that include launching dedicated cargo operations from two additional international airports in the country besides the Hazrat Shahjalal International Airport (HSIA) in Dhaka, increasing manpower to support these operations, and reducing operational costs.

Osmani International Airport in Sylhet is set to begin dedicated international cargo operations on April 27, to be followed by Shah Amanat International Airport in Chattogram a few days thereafter, CAAB Chairman Air Vice-Marshal Md Monjur Kabir Bhuiyan told The Financial Express.

A chartered flight will transport 60 tonnes of garments from Sylhet to Spain via the Middle East on the first day of freight operations at the Sylhet airport, said Boshra Islam, General Manager (Public Relations) of Biman Bangladesh Airlines, the sole ground-handler at the country's airports.

Biman has already hired an adequate number of ground-handlers and equipment to support the cargo operations at Osmani International Airport, said the official.

Although no schedule has been prepared for airfreight operations from Sylhet, Biman officials say, the existing capacity can handle up to three cargo freighters per week.

In addition to increasing the operational capacity, the government is also considering cuts in various export-related fees.

"The CAAB along with Biman Bangladesh Airlines is working to revise the current civil aviation and ground-handling tariffs to make air cargo more cost-effective," says the CAAB chairman.

The government also plans to form a taskforce led by the Ministry of Civil Aviation and Tourism and comprising all relevant stakeholders to streamline and reduce charges associated with cargo operations, he adds.

Shakil Meraj, Director (Acting) of the Cargo Department at Biman Bangladesh Airlines, informed that they export 0.21 million tonnes of cargo annually through the HSIA - an average of about 575-600 tonnes per day.

Once the third terminal becomes operational by the end of this year, the port's cargo-handling capacity is expected to double, significantly boosting Bangladesh's export-competitiveness.

Currently, the terminals 1 and 2 have a combined export-cargo area of 19,600 square metres and an annual handling capacity of 200,000 tonnes. The third terminal will add 36,000 square metres of space and an annual handling capacity of 546,000 tonnes.

At present, only five airlines - Emirates, Qatar, Turkish, Saudia and Cathay Pacific - out of 35 operate dedicated cargo flights from the HSIA. Besides, 15-17 more airlines, including Biman, transport cargoes from Dhaka airport with passenger aircraft.

Kabir Ahmed, President of Bangladesh Freight Forwarders Association (BAFFA), says that currently, 450-500 tonnes of export goods are air-shipped daily, resulting in no additional pressure on Dhaka airport for cargo transportation.

However, during peak season of export shipment from October to December, the volume increases to approximately 1,000-1,200 tonnes per day. As a result, the airports in the neighbouring countries were utilized in a detour to handle the increased volume of cargoes. 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 Covid-19 pandemic, offering faster services and often at lower costs, instead of relying on the overstretched HSIA. One of the main attractions of the Indian transshipment facility was said to be lower cost.

BAFFA Director Md Kamruzzaman Ibne Amin states that cargo shipping from the Indian airports is 20-25-percent cheaper than from the airports in Bangladesh, even after including the cost of overland transport to the Indian airports.

However, on the heels of developments following the August-5th 2024 changeover in Bangladesh, India on April 8 last suspended the transshipment facility for Bangladesh's export cargo to third countries via its land borders, affecting largely the shipment of the country's main export item, readymade garments, through their airports.

The CAAB chairman hopes their latest initiatives would help reduce export costs to a reasonable level. "However, it will be difficult to compare this with India, as our neighbouring country's infrastructure and cargo-handling volume are significantly greater than ours."

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