–M S Siddiqui–

Dhaka airport became expensive for exporters. The export consignments are nowtransported to Delhi and then airlift to other countries through Delhi airport only because of poor and expensive service in Dhaka airport. Even then the airlift through Delhi airport is competitive for Bangladesh exports.

Over the above of service charges, the airfreight cost from Dhaka to New Jersey stands at $6 per kilogram, while it is only $4 from Delhi airport. Similarly, the airfreight cost from Dhaka to New York is $8 per kilogram, whereas it is only $5 from Delhi airport. Additionally, the airfreight cost from Dhaka to Madrid or London is $5.5 per kilogram, compared to only $4 from Delhi airport.

Recently, Dhaka airport imposed a 72% surcharge on ground handling fees, with a hefty 60% fine for late payments. These high tariffs, coupled with value-added tax and other service charges, make Dhaka airport an expensive option for exporters.Moreover, NBR is not following the policy of government to exempt VAT for export related services. Sources indicate that apart from these expenses, exporters also have to pay extra charges or bribes for transporting cargo.

It costs around USD 20,000 to 25,000 to handle a 100-ton cargo flight at Dhaka airport, compared to just USD 1,200 to 2,000 at major Indian airports.On November 19-21, 2023, IATA made a comparison, stating that Lagos (LOS) and Abuja (ABV) in Africa were the most expensive airports in the world. According to the insiders, Dhaka is the second most expensive cargo airport in the world.

The tariff at the  airport in Bangladesh is so high that buyers stay competitive even when their goods travel a distance of nearly 1,900 kilometres in trucks from the country to Delhi via Benapole.Due to higher tariffs, value-added tax, and ground handling and service charges at the Dhaka airport, inefficient and corrupt practiceare mainly driving users away from Dhaka.

Delhi airport taking a bite of our export earnings and the increased arrival of cargoes from Bangladesh has put pressure on the Delhi airport. The users of Delhi airport have already demanded Delhi to impose extra charges on Bangladeshi goods to discourage Bangladesh exporters from using their airport.

Over 8,000 tonnes of cargo, primarily garment items, were shifted from Dhaka to Delhi last year due to these high costs. This year, the daily average shifting is 50 tonnesto Delhi airport. Despite higher expenses, some of the exporters have no choice but to use Dhaka airport. Currently, Dhaka airport has the capacity to store 400 tonnes of exportable goods whereas daily shipment averages 800 tonnes during normal times and surges to 1,200 tonnes during peak times.The cargo village at the Dhaka airport is struggling to meet the rising demand. The Dhaka airport’s cargo handling capacity has been strained by growing export volumes, which have increased 10 percent annually. The existing export warehousehas been in use for over 20 years, can no longer accommodate the rising volume of goods to be processed.The infrastructure simply cannot keep up with the demands.

The situation is made worse by malfunctioning Explosive Detection Systems (EDS) at Dhaka airport. Of the four machines meant for screening cargo bound for high-security markets like the EU and USA, only two are reportedly functional, leading to significant delays. This hasslowdown in screening process not only delays shipments but also discourages airlines from flying to and from Dhaka.

Bangladesh is losing billions of foreign currencies as export cargo shipment continues to be rerouted through Indian airports. The backlog at Dhaka airport is a direct result of high costs and poor infrastructure. Exporters are rerouting cargo driven away by excessive fees and delays.

Exporters are forced by delays and exorbitant handling costs at Dhaka airport is undermining the country’s export competitiveness and benefiting neighboring India. Delhi airport has become a transshipment hub for export cargo from Bangladesh instead of Dhaka airport, even though our government is dreaming of becoming an aviation leader in the South Asian region by operating a third terminal.

Media reported that due to increasing consignment from Bangladesh, the Delhi airport has installed five extra X-ray machines for handling cargo from Bangladesh to avoid any congestion for general cargo. If India can arrange equipment so quickly to serve the Bangladesh consignments, why Bangladesh cannot purchase few more scanner machine to face the growing demands?

Users have also long complained about thefts of goods from the tiny cargo village, products left unattended, and the deterioration of the quality of items due to store in open and insecure places in the airport.

Chattogram airport commenced operations in 1996. Over the past years, 17 foreign airlines have operated flights from this airport, but 15 of them have shut down their operations due to various reasons, including surcharges and tariffs. These airlines include Thai Air, Thai Smile Air, Kuwait Air, Phuket Air, Dragon Air, Malindo Air, Rotana Air, Himalayan Air, Ras Al Khaimah (RAK) Air, Tiger Airways, and Silk Air.Bangladesh should increase cargo flights to carry export consignments addressing the obstacles faced by the airlines.

Bangladesh may develop other airports, such as Sylhet and Chittagong, to relieve pressure on Dhaka airport. Sylhet airport reportedly has a cargo warehouse and only an energy-dispersive (EDS) detector  machine but lacks sufficient ground-handling equipment. Authorities may shift the export load to Chattogram and Sylhetand reduce congestion at Dhaka airport and improve overall efficiency. Some rapid measure should be taken to reduce inefficiency, setting up sufficient equipment and reducing the service charges etc.

Government should allow private Container Freight Station (CFS) to process cargo. Dhaka airport only received loaded pallets and containers, it should rebuild the modem scanning facility where only loaded pallets and containers to be scanned like Chattogram port, according to President of AMCHAM, Bangladesh. There should be more servicespaces for trucks for loading and unloading cargo and the engage private sector to the handling these support services. Private sector and overseas investors may be invited to enhance the capacity of the airport.