Responding to the Indian Government's unfair and unanticipated trans-shipment revocation, Bangladesh is significantly boosting its air cargo facility ensuring uninterrupted exports while seizing the opportunity to emerge as a regional logistics hub. According to Bangladesh Biman sources, the airline is preparing to provide ground-handling services in Sylhet, and a Galistair Aviation Airbus A330-300 freighter is scheduled to transport 60 tonnes of RMG cargo to Spain on April 27. Necessary ground-handling equipmenthas already been transferred from Dhaka to Sylhet for inaugurating the first operational flight. Moreover, Biman is also under the process of recruiting 400 additional ground handlers to strengthen its current team of over 700 personnel at HSIA.
We, however, welcome the Interim Government's prompt and efficient decision to strengthen the country's air cargo facility. At the same time, we urge authorities concern to turn completely self-sufficient, in both import and export goods by solely depending on our own air cargo facility.
A robust Air cargo infrastructure is a key pillar for trade facilitation and attracting foreign investment. That said - considering the abrupt withdrawal of trans-shipment of goods via India, the unique time is now to bolster the country's existing cargo handling capabilities.
According to Bangladesh Freight Forwarders Association (BAFFA), nearly 600 tonnes-or 18 percent-of Bangladesh's weekly garment air exports were routed via India. Bangladesh currently exports around 3,400 tonnes of garments by air each week, while HSIA's cargo village, originally built for 300 tonnes per day-often handles over 1,200 tonnes in peak periods.
Understandably, the challenge is in front of us, but the nearly completed HSIA's third terminal offers a ray of hope and optimism. Once fully operational, the third terminal is expected to raise export cargo capacity from 200,000 tonnes to 546,000 tonnes annually, including a dedicated 36,000-square-metre cargo zone.In addition, automated systems and expanded storage at the new terminal will allow us to handle cargo more independently and efficiently, increase revenue earnings considerably.
Thus, we expect to witness a significant change completely re-shaping our air cargo dynamics, and it must take place soon.
Lastly, two major factors need urgent attention.
First is the cost in handling cargo, HSIA reportedly charges $0.29 per kilogram for ground handling -nearly six times higher than Delhi airport's $0.05 and jet fuel in Dhaka is also 30 percent more expensive. Second, Dhaka has limited international retail operations meaning, handling mostly one-way flights. One-way cargo flights are less viable for carriers, unlike Indian cities where two-way trade is common. For this reason, Indian airports are cheaper since they allow cargo flights to fly in and out.
We call on the civil aviation authorities to come up with both short and long-term solutions for these two key challenges.
