In response to India’s abrupt withdrawal of transshipment privileges, Bangladesh is significantly boosting its air cargo infrastructure to ensure uninterrupted exports and seize the opportunity to emerge as a regional logistics hub.
Authorities are racing against time to strengthen the nation’s independent freight capacity, with a major focus on operational efficiency, cost reduction, and infrastructure expansion.
India’s Central Board of Indirect Taxes and Customs on April 8 revoked a four-year-old facility that allowed Bangladeshi goods, particularly ready-made garments, to transit through Indian ports to international destinations. The decision, which came without a clear explanation, disrupted a vital logistics lifeline that had proven crucial during COVID-19 pandemic.
Nearly 600 tons of garments—around 18% of Bangladesh’s weekly air exports—had been routed through Indian airports like Kolkata and Delhi.
Faced with soaring freight costs and logistical constraints, Bangladesh government, under the direction of Civil Aviation and Tourism ministry, has launched a series of measures to counter the fallout. The Civil Aviation Authority of Bangladesh (CAAB) and Biman Bangladesh Airlines are jointly working to revise existing tariffs and streamline ground-handling operations, aiming to make air cargo services more competitive.
CAAB Chairman Air Vice Marshal M Mofidur Rahman Bhuiyan stated that steps are being taken to deploy additional manpower, reduce fees, and simplify procedures to maintain export continuity.
He emphasized that directives have been issued at the highest levels to ensure uninterrupted air cargo movement, with cost reductions expected to be announced shortly. CAAB has already mobilized extra personnel at Hazrat Shahjalal International Airport (HSIA), while preparations are nearly complete to launch full-fledged cargo services from Sylhet’s Osmani International Airport on April 27.
Sylhet Airport is gearing up to dispatch its maiden cargo flight, operated by Galistair Aviation and carrying 60 tons of garments to Spain. Ground-handling equipment has been transferred from Dhaka, and Biman Bangladesh Airlines has intensified recruitment efforts, adding 400 new handlers to its existing team of 700.
Chattogram airport is also being prepared for cargo operations, with similar expansions expected soon.
Voyager Airlines will also commence operations from Sylhet, and talks are underway with international carriers like Turkish Airlines to increase air cargo flights from multiple Bangladeshi airports.
Meanwhile, customs clearance processes at major terminals are being expedited to alleviate congestion.
The upcoming third terminal at HSIA, scheduled for full operation by the end of the year, is poised to be a game changer. Once operational, the terminal will raise airport’s annual cargo handling capacity from 200,000 tons to 546,000 tons, featuring a 36,000-square-meter dedicated cargo zone.
Automation and advanced storage systems are expected to streamline operations and boost revenue. CAAB Chairman Bhuiyan indicated that the launch timeline depends on finalizing an agreement with a Japanese consortium, which could allow operations to begin within six months.
Despite recent investments, exporters continue to grapple with high airfreight charges. Rates from Dhaka to Europe have spiked to $6.30–$6.50 per kilogram, and to US, $7.50–$8.00, compared to Kolkata’s $4.00 and Maldives’ $3.50 per kilogram. Ground-handling costs at Dhaka’s HSIA are six times higher than those at Delhi airport, and jet fuel remains 30% more expensive.
Industry leaders, including Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem and Bangladesh Freight Forwarders Association (BAFFA) President Kabir Ahmed, have urged the government to address cost disparities and improve coordination among stakeholders. They have also proposed alternative routes through the UAE, Sri Lanka, and Maldives to maintain competitive pricing.
Chowdhury Ashiq Mahmud Bin Harun, Executive Chairman of Bangladesh Investment Development Authority (BIDA), hailed the crisis as an opportunity to capitalize on underutilized airports in Sylhet, Chattogram, Saidpur, and Lalmonirhat. He stressed the urgent need to expand national cargo capacity to attract investment and enhance trade facilitation.
Biman Bangladesh Airlines’ Director of Cargo, Shakil Miraj, underscored that Sylhet’s modern terminal infrastructure is already capable of handling two to three times more cargo than its current capacity, paving the way for broader operations.
While India’s unilateral move has disrupted established trade routes, Bangladesh’s rapid pivot toward self-reliance and its focus on air cargo development signal a turning point. With resilient policy measures, expanded infrastructure, and global partnerships, the country is poised not only to weather the storm but also to emerge as a pivotal air freight hub in South Asia.
Daily Observer
