Rezaul Karim has regularly exported clothes by air to different countries in Europe for decades. However, for the past three years, he has been avoiding domestic airports and using Kolkata and Colombo airports instead, transporting goods by road and sea first to save time and money.
Initially, he decided to send 10,000 kg of garment items through Dhaka airport. However, considering the time, lower cost, and buyer demand, he later transported the goods through Kolkata airport. It cost about Tk27 less per kg to send goods through Kolkata airport than through Dhaka, and it also took less time.
Not only Rezaul Karim but also many other clothing and various traders have been transporting their goods through Kolkata and Colombo airports. This reduces cost, time, and freight charges while providing adequate space and facilities. They commented that these facilities do not exist at domestic airports.
Last year, the Central Board of Indirect Taxes and Customs (CBIC) permitted the transshipment of Bangladesh export cargo to third countries via Delhi Air Cargo. Previously, air transshipment of Bangladesh export cargo to third countries was conducted only via the Kolkata air cargo complex.
Industry insiders fear that Bangladesh is going to lose air cargo business as buyers are using third-country airports to save time and money instead of Dhaka airport, citing high tariffs as the main reason.
An exporter said: “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."
Stakeholders criticized the high tariffs when neighbouring countries have offered buyers a lower tariff to carry goods.
Buyers are taking their goods to Colombo airport via Chittagong port and are also using Benapole to transport goods to Delhi and Kolkata airports.
According to the Bangladesh Freight Forwarders Association (BFFA), it usually costs around $3 per kg to export goods directly from Dhaka Airport to Europe, while it costs $2 per kg in Kolkata.
The association says that exporters have to pay terminal handling charges of 9 cents per kg to Biman Bangladesh and various security scanning charges of 7 cents per kg to the Civil Aviation Authority of Bangladesh (CAAB). This charge rate is more expensive than in Singapore.
According to the association, Dhaka is the second most expensive cargo airport in the world.
In contrast, the cost in Kolkata is much lower, with terminal handling and security scanning charges of 4 to 5 cents per kg.
Sources indicate that apart from these expenses, exporters also have to pay extra charges or bribes for transporting cargo, leading to a reduction of more than 25% in the cost of transporting goods through Kolkata.
Aviation expert Kazi Wahidul Alam told Dhaka Tribune that entrepreneurs will generally choose options where they can save 5 to 10 cents in their business. However, due to the high air freight charges in Dhaka, businessmen are turning towards more business-friendly locations.
He also mentioned that both passenger and cargo fares are excessively high, which other countries are exploiting.
He added that no one can afford to pay a surcharge of 70%, which is causing airlines to shut down.
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Minister: 97% work of Dhaka airport 3rd terminal completedBangladesh Exporter Association (BEA) leader Mohammad Hatem said that handling charges at Dhaka Airport are several times higher than at any other airport globally. He attributed this to a monopolistic control over the airport business, which leaves exporters with no choice and results in high costs.
Hatem also mentioned that despite paying these high charges, goods are sometimes handled by unskilled personnel at Dhaka Airport, leading to damage and loss of items.
Additionally, due to a dollar crisis, Bangladesh Bank has been unable to pay the dues of foreign airlines, causing these airlines to stop offering low-priced tickets to Bangladesh.
According to the latest data from the Ministry of Civil Aviation and Tourism and the Civil Aviation Authority of Bangladesh (CAAB), 165,000 tons of cargo were shipped through Dhaka Airport over the last year. This included 134,000 tons of clothing products and 30,000 tons of vegetables, fruits, and other goods.
On the other hand, 451,395 tons of cargo was exported through the Benapole land port in FY21-22, according to the port authorities.
Domestic and international airlines, including Emirates, Qatar Airways, Kuwait Airways, Etihad Airways, Malaysia Airlines, Saudia, Air Arabia, Thai Airways, Hong Kong Airlines, China Airlines, and Oman Air, transport cargo from Bangladesh. However, these airlines have gradually reduced their flight and cargo capacity.
According to CAAB, around 60% of goods transported by air from Bangladesh are carried by passenger aircraft, with the remaining 40% transported by cargo flights.
Shah Amanat Airport in Chattogram commenced operations in 1996. Over the past 28 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.
Moreover, two more foreign airlines, the India-based SpiceJet and the Kuwait-based Jazeera Airways, stopped operating flights from Chattogram Airport at the end of October last year. Oman Air also ceased its operations from Chattogram in March this year.
