News / Bangladesh readies new air cargo facilities after ban by India

© Jahangir Alam

After India cancelled the use of its transhipment facilities for Bangladesh cargo, the government decided to launch an air cargo shipment facility from Sylhet Airport in north east Bangladesh.

The first flight is expected on 27 April, when a freighter from lessor Voyager Aviation will leave Osmani International Airport carrying 56 tonnes of garment products for Spain.

Businesses expect the new facility will reduce the pressure on Dhaka Airport, as well as costs.

Meanwhile, Sylhet is not the only focus: the government is also looking at air exports from Chittagong Airport, some six hours’ drive south-east of Dhaka, and is also thought to be implementing measures to cut ground handling costs.

Nasir Ahmed Khan, director, Bangladesh Freight Forwarders Association (BFFA), said: “The cargo which had been airlifted through India, will now fly from Sylhet – thus no additional pressure on Dhaka Airport.”

India had been a popular transhipment destination for Bangladesh exports, in part because of low tariffs, but also because of chronic operational problems in Dhaka Airport. Mr Khan added: “We have to work on both these issues. We should enhance facilities, enhance capacity, enhance the amount of equipment.

“Also we have to lower the lower ground handling cost in Dhaka Airport.”

He said cargo handling at Sylhet would be cheaper than at Dhaka, which is likely to attract exporters. And Dhaka is developing improved cargo handling facilities in its third terminal, which could also lead to lower costs.

One local forwarder told The Loadstar last week the airfreight market remained soft after the Eid holiday, but added: “If the carriers can’t increase capacity, rates will shoot up exponentially in the coming days.”

Currently, air freight rates from Dhaka to the US are between $4.50 and $5 per kg, while to Europe it’s $2.70 to $3.30.

The forwarder reiterated that while the situation was calm on the rates front, the ban on Bangladesh transhipment cargo was a “serious decision”  by the Indian government”, which could prove to be “very harmful”.