Dhaka airport’s third terminal needs a world-class cargo village
The third terminal creates an opportunity to rethink Dhaka’s role in regional air logistics. The objective should not simply be to handle more tons, but to handle cargo faster, safer, more predictably and at internationally competitive cost
The third terminal at Hazrat Shahjalal International Airport is one of Bangladesh's most important aviation infrastructure projects. But its success should not be measured only by spacious passenger lounges, boarding bridges or modern immigration facilities.
For an export-oriented economy, the real economic test will also be what happens on the cargo side. Bangladesh needs a world-class air cargo village operating alongside the new passenger terminal.
The airport handled 1.27 crore passengers in 2025, compared with 1.25 crore in 2024. The third terminal is designed to substantially expand both passenger and cargo capacity. Official airport information puts the airport's current cargo capacity at around 200,000 tonnes annually, rising to 500,000 tonnes after expansion.
That capacity increase is essential, but capacity alone will not make Dhaka competitive.
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The cost of an inefficient cargo system
Bangladeshi exporters have long complained about high air-freight costs, handling charges and delays. More recently, congestion has become even more visible.
In September 2026, reports indicated that the airport's uncleared import cargo backlog surged to around 300–400 tonnes, while some cargo was being stored under inadequate conditions and export cargo screening capacity remained constrained.
For an economy seeking to expand exports of pharmaceuticals, agricultural products, electronics, garments and other time-sensitive goods, such bottlenecks are not merely airport problems. They are competitiveness problems.
What should a modern cargo village deliver?
First, cargo must be treated as a specialised logistics operation, not as an extension of passenger services. The facility needs spacious acceptance and examination areas, adequate truck docks, automated handling systems, pallet and ULD-processing facilities, modern screening equipment and efficient cargo-flow design.
Equally important, the new cargo village should have a dedicated, professionally managed import warehouse with secure, automated storage and retrieval systems, real-time inventory visibility and controlled access. Import, export and transit cargo should not be unnecessarily mixed.
Separate, properly engineered facilities must also be provided for dangerous goods and valuable cargo, including appropriate segregation, fire protection, security controls, surveillance and specialised handling procedures. This is fundamental to both safety and international cargo standards.
Second, speed must become a measurable service standard. Singapore's Changi Airport, for example, tracks cargo dwell time, truck waiting time and other service indicators. Dhaka should adopt similar performance-based monitoring, with clear targets for customs clearance, screening, acceptance and delivery.
Third, Bangladesh urgently needs a reliable cold chain. Pharmaceuticals, vaccines, seafood, flowers and other perishables cannot depend on ordinary warehouses. Dedicated temperature-controlled zones, cool dollies, monitoring systems and uninterrupted power should be integral to the cargo village.
Dhaka should also pursue internationally recognised standards such as IATA CEIV Pharma, which provides a globally recognised framework for pharmaceutical air-cargo handling.
Fire safety cannot be an afterthought
The 18 October 2025 cargo-village fire demonstrated why fire protection must be designed into the infrastructure from the beginning. Fire Service officials subsequently said that proper fire detection and protection systems were not found at the site. An investigation later attributed the fire to an electrical short circuit and identified weaknesses related to cargo accumulation and operations.
The new cargo village should have a dedicated, professionally managed import warehouse with secure, automated storage and retrieval systems, real-time inventory visibility and controlled access. Import, export and transit cargo should not be unnecessarily mixed. Separate, properly engineered facilities must also be provided for dangerous goods and valuable cargo.
The new facility therefore needs automatic fire detection and suppression, fire-resistant construction, compartmentalised storage, smoke-control systems, clearly segregated dangerous-goods areas and unobstructed emergency access. Regular joint emergency drills involving airport authorities, the Fire Service, customs, airlines, ground handlers and warehouse operators should be mandatory.
The objective should also be business continuity. Backup power, redundant communications, alternative processing arrangements and rapid-recovery procedures can prevent a single incident from paralysing the wider supply chain.
Digital visibility and security
Finally, cybersecurity must be built into the cargo architecture from day one. Airway bills, customs declarations, manifests and shipment information are increasingly digital. Network segmentation, encryption, continuous monitoring and 24/7 security operations should therefore be treated as essential infrastructure.
Equally important is end-to-end cargo visibility. Exporters and importers should be able to track consignments from acceptance and screening through customs clearance, warehouse movement and aircraft loading. Integration among customs, airlines, freight forwarders, warehouse operators, ground handlers and regulators can create a single digital cargo ecosystem, reducing paperwork, duplication and opportunities for delay.
The third terminal creates an opportunity to rethink Dhaka's role in regional air logistics. The objective should not simply be to handle more tonnes, but to handle cargo faster, more safely, more predictably and at internationally competitive costs.
If Bangladesh gets the cargo village right, the third terminal can become more than a modern airport. It can become a strategic trade infrastructure platform, supporting higher-value exports, improving cargo connectivity and strengthening Bangladesh's position in regional supply chains.
Syed Ershad Ahmed is a Corporate Leader and Logistician with extensive working experience at home and abroad with renowned multinational corporations; Fellow, The Chartered Institute of Logistics and Transport (CILT), UK; former President, Foreign Investors Chamber of Commerce and Industry (FICCI) and AmCham Bangladesh.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
