No headway in cargo handling charge cut at airports

There is no progress in the reduction of cargo handling charges in Bangladeshi airports even three months after a government body submitted a report to the authorities in this regard.

The Ministry of Civil Aviation and Tourism did not take any effective measures to facilitate the lessening of charges after receiving the report.

On the other hand, Biman Bangladesh Airlines officials say they have no scope to lower ground handling charges as they realise the "very minimum" compared to similar fees in other regional airports.

Officials say New Delhi revoked third-country transhipment facilities for Bangladesh through India's land customs stations to ports and airports in early April.

The decision immediately disrupted sending air cargo, especially readymade garments, using the Indian airports, creating uproar.

Following that, the civil aviation ministry asked the Civil Aviation Authority of Bangladesh (CAAB) to submit a report on the extent to which cargo handling charges could be lowered to facilitate external trade.

Officials say CAAB submitted a report on May 19 to the ministry, recommending lowering cargo screening charges using the explosive detection system to $0.06 per kg from the existing $0.08 per kg, a 25 per cent reduction.

Also, it recommended reducing landing charges for dedicated cargo planes at Dhaka airport by 25 per cent and at Sylhet airport by 35 per cent to promote freighter services.

The civil aviation authority further proposed cutting terminal handling charges, realised by Biman, from $0.08 per kg to $0.06 per kg.

Moreover, Biman charges $0.10 per kg for cargo handling, and CAAB proposed decreasing it to $0.07 per kg, a 30 per cent drop.

For scheduled freighter flights, Biman could lower ground handling charges to $0.06 per kg from the existing $0.07 per kg, the CAAB report said.

Besides, Biman also realises RA3 surcharge - $0.02 per kg - for Europe-bound cargoes.

CAAB recommended that Biman not realise any such charge since the latter actually provides no service in this case. Sources said after getting the report on May 19, the ministry on June 1 sent a letter to CAAB to resubmit the report, suggesting further lowering of the charges.

It also asked CAAB to include comparisons with charges in airports of other countries.

However, until Wednesday, CAAB did not resubmit the report.

A senior civil aviation ministry official recently told The Financial Express the proposed charge reduction was "very minimal" and thus CAAB was asked to resubmit the report and recommend further cuts.

"We are yet to get the report," he said.

Commodore Abu Sayeed Mehboob Khan, a member (operations and planning) at CAAB, told The Financial Express Wednesday the recommendation was made taking into consideration the highest possible waiver that could be given to facilitate Europe-bound cargo transportation.

"Actually, we sent the report recommending the lowering of charges as much as possible," he said, adding, "We cannot suggest further reduction since we have already done it."

Mr Khan said he would soon reply to the ministry's letter.

Civil Aviation Adviser Sk Bashir Uddin could not be reached over the phone for comments despite several attempts.

Nasir Ahmed Khan, a former director of Bangladesh Freight Forwarders Association, expressed frustration over the delay in lowering the charges to facilitate air cargo handling.

"It is really frustrating," he told The Financial Express, urging the authorities to take quick steps.

syful-islam@outlook.com