Six months after fire, cargo still in the open at Dhaka airport

Highlights:

• Daily cargo is around 600 tonnes, but storage capacity is only about 100 tonnes
• Cargo volume rises to 1,500–2,000 tonnes after weekends due to clearance delays
• The crisis has continued for over six months since the 18 October fire, with no permanent warehouse in place
• BGMEA spent Tk50 lakh on a temporary warehouse, which was used for only three months

At Hazrat Shahjalal International Airport, Bangladesh's main gateway, import and export goods worth crores are lying under the open sky for days – sometimes months – exposed to rain and heat.

The fallout goes beyond mounting financial losses for businesses; it also leaves the country's busiest airport looking neglected and ill-prepared to handle trade. Yet, no authorities are willing to take responsibility.

Biman Bangladesh Airlines, which manages cargo operations, and the infrastructure owner, Civil Aviation Authority of Bangladesh (Caab), are locked in a blame game, each pointing fingers at the other, while businesses are left to absorb the losses in a system defined by accountability gaps.

The situation, persisting more than six months after a devastating fire destroyed the main cargo warehouse, is causing mounting financial losses for businesses while raising serious concerns about the airport's capacity to handle growing trade volumes.

Warehouse still not rebuilt

The cargo warehouse was gutted in a major fire on 18 October last year. Yet, more than six months later, no permanent replacement has been established.

In the immediate aftermath, a temporary warehouse was arranged for three months, funded by the Bangladesh Garment Manufacturers and Exporters Association.

BGMEA President Mahmud Hasan Khan said the association spent Tk50 lakh from its own funds to rent the facility.

"After three months, we had to give it up. Since then, goods have been lying in the open. We have urged the government to quickly set up a warehouse, but progress has been slow," he told The Business Standard.

Mahmud added that attention now appears to be focused on the planned third terminal, rather than immediate solutions.

Businesses count losses

Industry representatives say the lack of storage facilities is already causing significant damage.

Md Zakir Hossain, secretary general of the Bangladesh Association of Pharmaceutical Industries, said efforts have been made to mitigate losses by installing temporary tents and two cold rooms.

"However, due to space limitations, it is difficult to store goods for more than three to four days," he said, warning that risks will escalate further during the upcoming monsoon season.

Zakir also pointed to delays in customs clearance caused by bank holidays and weekends, which often create backlogs of two to three days.

Dhaka airport fire: Businesses fear over $1b impact on imports, exports

Stakeholders reported that on 30 March, Md Zahiduzzaman, deputy general manager of Cargo Import at Biman Bangladesh Airlines, sent a letter to the BGMEA president stating that a significant portion of imported goods remains outside due to a shortage of adequate warehouse space caused by the high volume of cargo. 

The letter noted that exposure to rain and scorching sun could damage the quality of valuable products, and warned that this situation is highly risky and incompatible with the airport's overall security and proper handling operations.

Under these circumstances, the letter requested the urgent clearance of imported goods to avoid potential losses.

Viral footage highlights crisis

The severity of the situation recently came into public focus after videos circulated on social media showing cargo piled on the airport apron, covered with tarpaulin during heavy rain.

In one video, a worker is heard saying, "This is our warehouse – out in the open. There is no shed, no protection. Goods get wet despite being covered."

Officials from both Biman and Caab have acknowledged that the footage accurately reflects conditions at the airport.

A cycle of blame

Biman officials claim they have repeatedly requested Caab to establish new facilities, noting that while they rent the space, they lack the authority to build permanent structures themselves.

Biman's spokesperson Boshra Islam explained that while two temporary cold storage units were installed, they only accommodate approximately 100 tonnes of goods. With daily arrivals reaching 600 tonnes, the vast majority of cargo is left on the tarmac.

"So, Biman has nothing more to do. We have written to Civil Aviation several times. Now, only they can say what will be done and when."

Conversely, Caab officials argue that the issue is aggravated by importers and clearing agents who fail to collect their goods promptly, particularly during weekends and public holidays.

Group Captain Ragib Samad, who is serving as executive director of the airport on behalf of Caab, said parts of the fire-damaged area were partially repaired to arrange cargo storage.

"However, the volume of incoming cargo is not being cleared by C&F agents and recipients at a commensurate rate, leading to a shortage of space. Furthermore, repairing and relaunching the facility after such a fire is no small feat," he said.

Ragib said, "We are aware that the monsoon is approaching and goods are getting wet in the rain. This situation would not have arisen if those bringing in the consignments had collected them promptly. 

"Although officials from customs, Biman, and civil aviation remain ready, C&F agents do not take delivery of goods after evening. They also do not take delivery on public holidays or weekends."

What was stored in Dhaka airport’s cargo village that made the fire so severe?

Ragib further noted that on Thursdays, the volume of cargo drops to 200 tonnes on average. "However, as deliveries are not taken on Fridays and Saturdays, the volume surges to between 1,500 and 2,000 tonnes."

When asked about the reasons for the failure to clear goods during weekends and public holidays, Bangladesh Freight Forwarders Association President Md Ariful Ahsan, told TBS that as he has only recently assumed leadership of the organisation, he is unable to comment on the matter at this stage.

However, Khairul Alam Suzan, a former vice-president of the association, explained that since the banks where Letters of Credit (LC) are opened remain closed during holidays, it is impossible to collect the necessary documentation for import and export goods. 

He further noted that the clearance of many items requires the payment of import duties via pay orders or real-time gross settlement, both of which necessitate operational banking services.

Unified coordination suggested

Suzan emphasised that goods imported by air are typically urgent and high-value. "The fact that they are deteriorating while left outside is unacceptable to everyone." To address the crisis, he suggested that LC-opening banks, clearing and forwarding agents, customs, and Caab must be brought under a unified coordination framework.

The former association leader added that cargo warehouses at airports worldwide typically utilise multi-layered racking systems, allowing vast quantities of diverse goods to be stored within the same facility. "But such arrangements are currently absent in Bangladesh."

Suzan pointed out that if a 1,00,000-square-foot warehouse were equipped with four vertical levels, it could accommodate a volume of goods equivalent to a 4,00,000-square-foot facility.