Cargo Cost Cuts Considered as India Halts Transit
In response to the abrupt suspension of India’s transit facility, the Civil Aviation Authority of Bangladesh (CAAB) has recommended reducing landing, parking, and ground handling charges at airports to boost the country's air cargo sector.
On Monday, May 19, CAAB submitted the proposal to the Ministry of Civil Aviation and Tourism with the aim of making air freight more competitive in the wake of India’s decision. The proposal was jointly prepared with Biman Bangladesh Airlines, which currently holds exclusive rights to ground handling services at Hazrat Shahjalal International Airport.
Sheikh Bashir Uddin, the Adviser on Commerce and Civil Aviation and Tourism, said, "The government has taken all necessary steps to tackle the situation created by India's decision. We are committed to reducing cargo costs and making our services more competitive than India’s."
Agreeing with this view, CAAB Chairman Air Vice Marshal Md. Mofidur Rahman Bhuiyan said, "We are reviewing the existing tariff structure to reduce cargo handling costs. New charges will be announced very soon."
Investment Increasing in Cargo Infrastructure
Although the Cargo Village at Shahjalal was initially designed to handle 300 tons daily, it is currently processing nearly 1,200 tons of cargo per day. The growing demand has prompted efforts to recruit additional manpower and expand infrastructure.
Full-fledged cargo operations have recently begun at Sylhet’s Osmani International Airport. Plans are underway to initiate similar operations in Chattogram and Cox’s Bazar. Relevant departments are also collaborating to expedite customs clearance processes.
According to CAAB’s chairman, the upcoming third terminal at Shahjalal International Airport will boost the airport’s annual cargo handling capacity from 200,000 tons to 546,000 tons. The terminal will feature a 36,000-square-meter cargo zone equipped with modern automation technologies, helping to eliminate storage constraints.
Exporters Frustrated by High Costs
Currently, cargo handling at Dhaka Airport costs approximately $0.29 per kilogram — nearly six times higher than the $0.05 per kilogram charged in Delhi. Additionally, jet fuel in Bangladesh is about 30 percent more expensive than in India, causing concern among exporters.
According to the Bangladesh Freight Forwarders Association (BAFFA), around 600 tons of garments were exported weekly via Indian transit routes — a flow that has now entirely ceased. However, a recent decrease in jet fuel prices has offered some relief.
Despite the challenges, aviation insiders believe India’s suspension of transit facilities should not be viewed solely as a crisis. Instead, they see it as a strategic opportunity for Bangladesh to establish its own air cargo hub.
