Shahjalal International Airport Terminal-3: Operations face further delay

The launch of Dhaka airport's third terminal faces a further delay, as the Civil Aviation Authority of Bangladesh (CAAB) is still negotiating an operation and maintenance agreement -- a prerequisite for starting services -- with a Japanese consortium.

In April, CAAB deferred the opening of the iconic terminal to the end of this year, which was originally scheduled for October 2024.

Officials involved in the project say that CAAB is likely to miss the revised deadline even though the terminal's construction is almost complete. It will take one to two months to finalise the agreement and another five to six months for the consortium to recruit and train personnel.

Seeking anonymity, a senior CAAB official said the regulatory body and the Japanese consortium have yet to settle the revenue-sharing terms for the terminal.

Contacted, CAAB Chairman Air Vice Marshal Md Mostafa Mahmood Siddiq said, "The terms and conditions regarding the agreement with the Japanese consortium are yet to be finalised."

When asked about a possible date for starting the terminal's operation, he said, "We will be able to say the exact date of launching once the deal is signed."

The CAAB boss further said it would take around six months for test run of equipment and other preparations after the construction company hands over the terminal to CAAB.

Asked, Air Commodore Abu Sayeed Mehboob Khan, member (operations and planning) of CAAB, could not provide a time frame for signing the agreement.

He, however, said at least a month would be needed to strike the deal.

According to CAAB officials, the consortium, comprised of Japan Airport Terminal Company, Sumitomo Corporation, Sojitz, and Narita International Airport Corporation, will carry out operational activities, while CAAB will oversee security.

Around 6,000 personnel, including 4,000 for security, need to be deployed in four shifts to operate the terminal round-the-clock.

Biman Bangladesh Airlines will manage passenger and cargo handling services for two years under the consortium's supervision. Data security will be under CAAB's jurisdiction, they said.

All equipment -- from baggage handling systems to explosives detection devices -- must be checked before the terminal is put into operation, said Air Vice Marshal Md Monjur Kabir Bhuiyan, the immediate past CAAB chairman.

The Japanese consortium will carry out trial runs and CAAB will monitor them, he added.

Business leaders have been calling for the terminal's swift launch -- a demand that gained urgency after India abruptly suspended third-country transshipment on April 8, posing significant challenges for Bangladeshi garment exporters.

Air transshipment through India became popular due to faster services and lower costs compared to Dhaka airport. Moreover, inefficiencies and mismanagement in ground handling have long plagued the airport.

CAAB officials believe that exporters' concerns will be largely addressed once the third terminal goes into operation.

On October 7, 2023, the previous government went for a soft launch of the Tk 21,300 crore project, promising to make it fully operational by the end of 2024.

However, frequent changes in project leadership, delays in receiving some materials from abroad, and last year's political changeover pushed back the deadline.

Of the total project cost, Tk 5,000 crore was provided by the government, and the rest was covered by loans from Japan International Cooperation Agency (JICA).

The terminal's construction began on December 28, 2019, with a floor space of 230,000 square meters. It houses 115 check-in counters, 66 departure immigration desks, 59 arrival immigration and 3 VIP immigration desks.

Once it becomes fully operational, Dhaka airport's cargo handling capacity will double to 1 million tonnes annually, and its passenger handling capacity will triple to 24 million a year.