Bangladesh readies new air cargo facilities after ban by India

By Admin

19 Apr, 2025

Bangladesh is ramping up its air cargo infrastructure following a significant decision by India to cancel the use of its transshipment facilities for Bangladeshi exports. In response, the Bangladeshi government has launched a new air cargo shipment route from Sylhet's Osmani International Airport, located in the northeast of the country.

The first international cargo flight is scheduled for 27 April, operated by a freighter leased from Voyager Aviation. It will carry 56 tonnes of garment products to Spain, marking a pivotal shift in how Bangladesh manages its air freight exports.

Reducing Pressure on Dhaka Airport

This development is expected to ease the intense load on Dhaka’s Hazrat Shahjalal International Airport, which has long faced operational challenges. The new Sylhet cargo facility is a strategic move to decentralize air export activity and lower operational and ground handling costs, offering a more competitive edge to exporters.

Nasir Ahmed Khan, director of the Bangladesh Freight Forwarders Association (BFFA), stated, “The cargo which had been airlifted through India, will now fly from Sylhet – thus no additional pressure on Dhaka Airport.” He further emphasized the need to expand facilities, boost capacity, and invest in modern equipment, particularly to tackle high costs and infrastructure limitations in Dhaka.

Focus on Cost and Capacity

Sylhet is not the only area being considered for air cargo expansion. Authorities are also planning air export operations from Chittagong Airport, located roughly six hours from Dhaka. Measures are reportedly underway to cut ground handling charges, especially at Dhaka Airport, where costs have deterred some exporters.

Khan noted that Sylhet’s cargo handling costs are expected to be significantly lower than those at Dhaka, making it an attractive option for exporters. Meanwhile, Dhaka is preparing to enhance its cargo handling capabilities with the development of its third terminal, which could lead to further cost reductions and efficiency improvements.

Industry Concerns Over Capacity and Rates

While the immediate airfreight market remains soft following the Eid holidays, one local forwarder warned of a potential spike in air freight rates if carriers fail to increase capacity. Currently, airfreight charges from Dhaka to the US stand between $4.50 and $5 per kg, and to Europe, between $2.70 and $3.30 per kg.

Despite the current calm, the forwarder stressed that India’s decision to halt transshipment was a “serious” move with the potential for long-term impact. “This could prove to be very harmful,” they said, highlighting the urgent need for Bangladesh to build self-reliant cargo infrastructure.

As the nation adapts to the new logistics landscape, these developments mark a crucial step toward strengthening Bangladesh’s export backbone, particularly in the face of shifting regional trade dynamics.