A game changer for aviation

Foreign Minister AK Abdul Momen in July last year slammed officials at Hazrat Shahjalal International Airport as he saw long queues of passengers waiting for their luggage. And a month before Momen, Prime Minister's Private Industry and Investment Adviser Salman F Rahman also expressed his dissatisfaction with the quality of passenger services at the airport.

This seems to be a recurring theme for the Dhaka Airport, as it often makes the headlines for frequent complaints from expatriates, and even government ministers and advisers for mismanagement in luggage handling.

However, the opening of the third terminal is expected to end all these complaints.

And as the government campaigns to brand Bangladesh in a bid to allure foreign investors, the third terminal is expected to make the country an attractive destination for air travellers. 

The challenges faced by Dhaka airport were primarily a result of insufficient infrastructure development. However, the addition of the third terminal has the potential to significantly impact the aviation industry in Bangladesh for the better.

First, the third terminal can facilitate 16 million passengers while the existing capacity is only 8 million. 

Moreover, many foreign airlines have been planning to start flight operations in the country but Bangladesh could not allow them due to limited infrastructure. But the door is expected to open after the third terminal comes into full operation from the end of next year. 

At present, 33 foreign airlines operate in Bangladesh and they are planning to increase flight frequency in line with the capacity of the third terminal. 

The unique geographical position of the country in between the East and the West offers a huge opportunity to harness the benefits from air travel. 

Bangladesh's proximity to China, Hong Kong, Korea, Macao, and Japan has enhanced its potential to serve as a vital bridge for cargo transportation.

The Middle East and Gulf countries also present substantial opportunities for the export of fresh vegetables, fish, and other agricultural products.

In March this year while inaugurating the Aviation Summit in Dhaka, Prime Minister Sheikh Hasina stressed the need for preparing a roadmap aimed at making Bangladesh an aviation hub in the region.

"Reaping on the dividend of our geo-strategic advantage, we should create a roadmap as to how we can make our country an aviation hub," she said in a video statement aired in the inaugural session of the first edition of Aviation Summit in Dhaka.

Referring to the construction of the third terminal, she said, "The transformation of our economy has helped boost the travel opportunities for our people and open up new routes and markets for our airlines.

"When Bangladesh will turn into an upper middle-income country by 2031 and a developed country by 2041, the aviation market will be further expanded," she added.

PM Hasina said as the economy of Bangladesh has grown, so has the importance of air cargo.

"The air cargo market of Bangladesh is rapidly growing at 8% per year – three times the world average. This underlines the strong demand for a dedicated national cargo operation in our country. With all of this in mind, there are areas where aviation actors need to do more," she said.

The country's aviation sector contribution to the GDP is very insignificant compared to other countries in the Asian region. 

The contribution of the airlines industry to the GDP was $769 million in 2020, which was less than 1%. That same year, the contribution of airlines to Vietnam's economy was $12.5 billion, Philippines' was $10.4 billion, Sri Lanka's was $7.9 billion, Thailand's $63.7 billion, and Hong Kong's was $33 billion, according to a study conducted by the Institute of Chartered Accountants of Bangladesh.

The full operation of the third terminal is expected to greatly increase the industry's contribution to Bangladesh's economy as well. 

The new terminal is expected to provide world class service to the air travellers, Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal M Mafidur Rahman said at an event recently. 

For now though,  airlines will be able to use the new parking apron and taxiway of the third terminal after the partial opening. The two old terminals' aprons can accommodate 29 aircraft at present.

Mafidur Rahman said a total of 37 aircraft can be parked at a time once the third terminal becomes fully functional. 

Boeing and Airbus both recently released forecasts showing an upbeat outlook for future aircraft sales with Asia leading the way.

Boeing projected global demand for 42,595 new commercial jets by 2042, valued at $8 trillion.

Passenger traffic continues to outpace global economic growth of 2.6% when the global fleet nearly doubles to 48,600 jets, expanding 3.5% per year, according to Boeing.

According to Boeing, Asia-Pacific markets will represent more than 40% of global demand with half of that total in China.

South Asia's fleet will expand more than 7% annually, the world's fastest rate, with India accounting for more than 90% of the region's passenger traffic.

How the third terminal will boost exports

The third terminal is also expected to enhance the airport's export cargo handling by three times, expand cold storage facilities and reduce lead time, and boost the country's agricultural exports.

The airport currently has an export cargo handling capacity of around 2 lakh tonnes per annum, which will increase to around 5.47 lakh tonnes once the third terminal goes fully operational.

On the other hand, three-category cold storage facilities, ranging 396.15 square metres with a capacity of around 4,000 tonnes in the new export cargo complex, will help preserve fresh fruits, vegetables, fish and other items.

Agri exporters say currently there is a demand for 500-800 tonnes of cold storage space per day. With growing international demand for fresh Bangladeshi agricultural products, this demand is projected to increase to 3,000-4,000 tonnes within the next five years.

According to a report by the Civil Aviation and Tourism Ministry, the Bangladesh Agricultural Development Corporation (BADC) currently has a 420-square-metre cold storage facility in the area adjacent to the existing export cargo terminal building at Hazrat Shahjalal International Airport.

CAAB has appointed a consultant for the construction of a separate warehouse adjacent to the export cargo terminal building on BADC land.

As per the Ministry of Civil Aviation and Tourism, the import-export cargo complex under construction at Hazrat Shahjalal International Airport will be equipped with an automated system and feasibility studies are underway for three new sheds.

A scanning machine for exportable agricultural produce has also been installed at the airport, and the road adjacent to the export cargo area is being widened.

According to the ministry, about 60% of all cargo transported by air from Bangladesh is by passenger aircraft. The remaining 40% of goods are transported on exclusive cargo flights.