Govt eyes air cargo hubs to boost trade

The government wants to establish air cargo operator stations by engaging world-renowned logistics companies and the domestic private sector in air cargo clearance activities to remove trade barriers and improve logistics services.

Once implemented, the international airports in Dhaka, Chattogram and Sylhet will gradually be upgraded into full-fledged logistics hubs, which will significantly expand the e-commerce sector.

The government has proposed issuing regulations relating to private ports and terminal operators to elevate the quality of the country's port services to international standards and attract greenfield investments.

Improving logistics services, especially for exports and imports at airports and land ports, is very important as the country needs to reduce the cost of doing business to become more competitive in the post-LDC period.

Because of poor logistics services, including the limited capacity of the cargo village at Hazrat Shahjalal International Airport (HSIA) in Dhaka, goods are often left unattended in open areas.

Both exporters and importers who use the cargo village at HSIA frequently complain about the shortage of space and have also reported theft incidents in this important export-import facility.

Moreover, airport services in Bangladesh are more expensive than those in some other countries, such as India, for transporting goods by air. As a result, some international clothing retailers have used transhipment routes through India.