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Sylhet airport's cargo handling plan after India ban brings relief to exporters

Published : Saturday, 19 April, 2025 at 12:00 AM  Count : 590
 

 

With the right support, Sylhet has the potential to become more than a regional gateway. It could emerge as a symbol of Bangladesh's economic adaptability and ambition in an increasingly complex global environment.

In the wake of India's sudden suspension of transhipment privileges for Bangladeshi goods, the Civil Aviation Authority of Bangladesh (CAAB) has acted swiftly to ensure continuity in export logistics. By initiating cargo services from Sylhet and Chattogram airports, previously a function solely of the capital's Hazrat Shahjalal International Airport (HSIA), the country has taken a decisive step towards decentralising its export infrastructure and mitigating its dependency on external routes. This strategic pivot, while born out of necessity, could mark the beginning of a broader economic transformation for historically peripheral regions, such as Sylhet.

The first significant milestone in that shift will be marked on 27 April, when Sylhet's Osmani International Airport will launch its inaugural air cargo flight to Spain. Operated by the Biman Bangladesh Airlines, the aircraft will carry about 60 metric tons (mt) of garments: one of the country's most vital export sectors. This service will operate using the airport's current infrastructure, though authorities have acknowledged that an expansion will be required. Several private sector warehouse developments are already underway. These are expected to be completed within six months. The cargo service is being run by trained local manpower, adhering to European Union safety and quality protocols, reflecting a growing domestic capability to handle international logistics independently.

While the launch of cargo services is an immediate logistical solution, it also carries profound implications for regional development. Sylhet, known for its low-lying haors and susceptibility to seasonal flooding, has often struggled to build sustainable infrastructure. Beyond the natural floods, the region has been repeatedly affected by unexpected water flow from upstream India, leading to severe and unpredictable flood events. In recent years, these floods have devastated livelihoods, disrupted trade routes, and highlighted the inadequacy of local flood defences. The people of greater Sylhet, long aware of their vulnerability, have often voiced their need for more resilient infrastructure, particularly flood-resistant expressways and protective dykes.

Now, with Sylhet emerging as a potential cargo hub, there is renewed hope that these long-standing demands will finally gain traction. The region's transformation into a logistical corridor necessitates the development of elevated expressways. These dual-purpose structures could protect against seasonal flooding while facilitating the uninterrupted movement of goods, even in adverse conditions. In this way, the haors, once seen as geographic and economic constraints, could become central to a new model of regional integration and economic growth.

This initiative also has a broader geopolitical dimension. The move to expand air cargo services beyond Dhaka comes amid heightened diplomatic friction between Bangladesh and India. Relations between the two nations have grown increasingly tense since August 2024, particularly following the exit former Prime Minister Sheikh Hasina. India's abrupt decision to end transhipment facilities for Bangladeshi exports via its ports and airports was perceived by many as a reflection of these strained ties. The Bangladeshi government's swift response, activating domestic alternatives and strengthening internal logistics, sends a clear signal of self-reliance and economic resilience.

The public reaction to the announcement has been notably positive, especially in Sylhet and Chattogram. Citizens expressed delights upon hearing of the new air cargo services, even without fully understanding the geopolitical motivations behind the move. Their optimism reflects a long-standing aspiration to see their regions play a more central role in the national economy. For decades, a significant portion of Bangladesh's exports, particularly in the ready-made garments sector, has relied on Indian airports. This was due in part to lower handling costs, more efficient logistics, and significantly cheaper fuel prices.

Exporters have long voiced frustration over inefficiencies at HSIA. The cargo village at Dhaka airport was designed to handle 300 mt day. Yet, it regularly processes between 800 and 1,200 mt, depending on the season. Delays, mismanagement, and even reports of cargo being left exposed to the elements have led to widespread dissatisfaction. Ground handling fees in Dhaka are nearly six times higher than in comparable Indian airports. And jet fuel in Dhaka is about 30 per cent more expensive. According to the Biman Bangladesh Airlines, the jet fuel accounts for up to 40 per cent of an airline's operating costs, making these cost disparities difficult for exporters to ignore. Without necessary reforms, these inefficiencies could continue to hinder competitiveness and push traders to look elsewhere.

Nonetheless, the launch of cargo services from Sylhet and Chattogram is a timely pressure release for the capital. While these regional airports currently lack the scale of the HSIA, they offer immediate alternatives that reduce congestion in Dhaka and allow for a more distributed export network. Over the time, this decentralisation could foster greater regional equity, enabling districts like Sylhet to participate more fully in the global economy.

Complementing this shift, the upcoming third terminal at the HSIA, expected to open by the end of 2025, offers longer-term relief.

This expansion will not only improve the operational efficiency of the Dhaka airport but also allow Biman to handle a larger share of the country's export logistics. Yet, until the terminal becomes operational, Sylhet and Chattogram must serve as vital nodes in Bangladesh's export chain.

While significant challenges remain-including high operating costs, fuel pricing, and the need for modern ground handling equipment-the direction is clear. Bangladesh is moving towards a more self-sufficient and diversified logistics network. The government must now work closely with stakeholders to ensure that operational standards at new cargo hubs match international expectations. Policies that incentivise private investment in cargo infrastructure, offer subsidies for jet fuel, and streamline regulatory costs will be the key to sustaining this growth.

For Sylhet, this could bring an opportunity. If infrastructure investments are made wisely, and if logistics and flood prevention strategies are aligned with, the region's vast haors could transform from being a source of vulnerability to a foundation for progress.

The writer is a journalist with The Daily Observer



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