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Bangladesh races to expand air cargo capacity

The Indian decision, announced without warning on April 8, cut off a vital land-air corridor that allowed Bangladeshi goods to move overland to Kolkata and Delhi airports and onward to global markets. The disruption has forced Dhaka to fast-track efforts to diversify export channels and reduce dependence on India.
In a first move to address the shortfall, Sylhet's Osmani International Airport is set to launch dedicated cargo operations today and become the country's second airport to handle freighter flights after Dhaka's Hazrat Shahjalal International Airport (HSIA).
A chartered Airbus A330-300 freighter of Galistair Aviation is scheduled to depart Sylhet at around 7:05pm, carrying up to 60 tonnes of garments to Spain, said Shakil Meraj, director (in-charge) of the Cargo Department of Biman Bangladesh Airlines. The shipment is bound for Inditex, the Spanish clothing company that owns several major fashion brands, including Zara. Biman will provide cargo and ground-handling services for the inaugural flight.
Civil Aviation and Commerce Adviser Sk Bashir Uddin is expected to attend the inaugural ceremony as chief guest, alongside Bangladesh's Ambassador to Mexico M Mushfiqul Fazal Ansarey and Civil Aviation and Tourism Secretary Nasreen Jahan, who will be present as special guests.
"This is a significant milestone as Sylhet becomes operational for cargo flights," said Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal Md Monjur Kabir Bhuiyan. He added that explosive detection systems, X-ray scanners, and additional security arrangements had been installed to meet international freight handling standards.
The initiative to open Sylhet is part of a broader strategy to decentralise and expand Bangladesh's cargo-handling capacity. Officials are also moving to activate Shah Amanat International Airport in Chattogram for dedicated cargo operations, which have remained dormant since 2022.
An emergency meeting was held at Chattogram airport on April 21 to address operational bottlenecks. Group Captain Sheikh Abdullah Alamgir, director of the airport, said preparations were underway to restart cargo services and that initial capacity would allow at least two large freighter flights per week. "India's decision is a wake-up call. We now have an opportunity to become more self-reliant," Alamgir said.
Mohammad Ibrahim Khalil, public relations officer at the airport, said Chattogram's cargo station, capable of handling 250 tonnes for imports and 20 tonnes for exports, had remained largely unused since the suspension of import cargo flights two years ago.
Industry stakeholders have welcomed the move, but stressed that long-term success would depend on comprehensive infrastructure improvements and cost competitiveness.
"This service should not operate on an ad hoc basis. Full facilities, including screening equipment and scanning machinery for export shipments, must be installed so that exporters feel encouraged to use the airport regularly," said Kabir Ahmed, president of the Bangladesh Freight Forwarders Association (BAFFA). He noted that Sylhet's cargo infrastructure had remained largely underutilised until now.
Ahmed said the success of the initiative would also hinge on cost. If regular flights from Sylhet to Europe could maintain rates between $2.6 and $2.7 per kilogram, air shipment would be attractive for exporters, he said. For chartered flights, a rate of around $3.5 per kilogram would still be competitive, he added.
Ahmed cautioned that the government should open cargo services at Sylhet and Chattogram airports to all exporters, rather than prioritising shipments for specific companies.
COST DIFFERENTIALS
The urgency reflects the scale of the disruption. Freight forwarding industry estimates indicate that about 600 tonnes, or roughly 18 percent of Bangladesh's weekly garment air exports during lean seasons, were routed through Indian airports before the ban. The Indian route, which gained prominence during the Covid-19 pandemic, offered faster lead times and lower costs compared to shipping directly out of Dhaka.
Cost differentials were substantial. Even after factoring in overland transport costs, shipping garments to Europe via India had cost about $2.6 per kilogram, compared to $2.9–$3.2 per kilogram through Dhaka airport during off-peak periods and up to $4.5 during peak season, according to freight forwarders. Major buyers such as Inditex, which maintains a distribution hub in Delhi, had increasingly shifted shipments to India to meet tight delivery schedules.
By contrast, HSIA has long struggled with capacity and operational inefficiencies. Its cargo village, designed to handle 300 tonnes a day, regularly processes more than 800 tonnes in off-peak periods and up to 1,200 tonnes during peak seasons. Reports of cargo being left exposed to the elements, coupled with high ground-handling fees -- 29 cents per kilogram in Dhaka compared to just five cents at Delhi airport -- have compounded frustrations among exporters.
Between January 2024 and March 2025, Bangladesh's garment exporters shipped more than 34,900 tonnes of apparel worth $462.34 million through Indian airports to 36 countries, according to data from the Bangladesh Garment Manufacturers and Exporters Association.
Bangladesh's air cargo exports through India over the 15-month period included a range of products such as blouses, trousers, T-shirts, and baby garments. Key markets included the US, Germany, France, Japan, and South Korea, along with non-EU destinations such as the United Arab Emirates, Australia, Canada, South Africa, and Chile.
Now, CAAB and Biman are jointly reviewing civil aviation tariffs and ground-handling charges to improve competitiveness. "We expect to announce reduced handling charges very soon," Bhuiyan said, noting that the government plans to form a task force led by the Ministry of Civil Aviation and Tourism to coordinate reforms.
Longer-term hopes are pinned on the much-delayed third terminal at HSIA, which is expected to open early next year. Once operational, the terminal is projected to raise Dhaka's export cargo capacity from 200,000 tonnes to 546,000 tonnes annually, supported by a new 36,000-square-metre cargo zone.
Commerce Secretary Mahbubur Rahman said the government moved to expand shipment facilities at Sylhet and Chattogram airports to serve a wider range of exporters.
Rahman acknowledged that without substantial reductions in ground-handling charges at HSIA, it would be difficult to achieve competitive rates at other airports. "The government will substantially cut ground-handling charges and lower aircraft refuelling costs to reduce operational expenses. Overall logistics costs for air cargo shipment will fall significantly," he said.
The expansion is seen as critical for Bangladesh's $40 billion garment export sector, which accounts for around 85 percent of total exports and depends heavily on efficient logistics to meet delivery deadlines in Europe, the US and beyond.
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