Ctg airport likely to follow Dhaka’s T3 model

The government is considering handing over the operation and maintenance of Shah Amanat International Airport in Chattogram to an international operator, following a similar model being adopted for the third terminal of Hazrat Shahjalal International Airport in Dhaka.

The move is aimed at improving passenger services and other facilities at Shah Amanat Airport to international standards, according to a source involved in policymaking.

However, officials at Shah Amanat said they had not received any official letter or communication regarding the proposal.

The plan is being considered as a nearly three-year deadlock over the operation and maintenance of Dhaka’s third terminal appears to be nearing an end.

A Japanese sub-working group submitted its technical and financial proposals for operating and maintaining the third terminal on August 25. An evaluation committee formed by the Ministry of Civil Aviation and Tourism will scrutinise the proposals before taking a decision.

Sources said a contract could be signed after the technical proposal is evaluated, followed by examination of the financial offer and negotiations.

The Japanese consortium comprises Japan Airport Terminal Co, Sumitomo Corporation, Nippon Koei and Narita International Airport Corporation. Sumitomo Corporation is leading the consortium, which also includes three companies specialising in airport operations and management.

Initial discussions have focused on awarding the consortium a 15-year operation and maintenance contract. During the period, the consortium is expected to invest around $1.59 billion in operation and maintenance-related activities.

The consortium initially proposed giving Bangladesh 22.5% of total revenue, with the figure later discussed at 27%. The government, however, has not finalised the proposal and has sought further negotiations.

The third terminal is expected to generate significant revenue from passenger fees, aircraft landing and take-off charges, boarding bridge fees, passenger service charges, security and cargo-related fees, as well as commercial activities such as duty-free shops, restaurants, parking, car rentals, advertising, lounges and office and commercial space rentals.

An official said the authorities were carefully examining how “total revenue” would be defined in the operator agreement, including which revenue streams would be subject to sharing and which would remain with the Civil Aviation Authority of Bangladesh (CAAB).

At present, the airport service fee is Tk500 for international passengers and Tk50 for domestic passengers. The average landing charge for an international flight is around $2,157, compared with Tk3,300 for a domestic flight. The average boarding bridge charge for an international flight is around $138, while the cargo security charge is about six US cents per kilogramme.

More than 100,000 flights use Hazrat Shahjalal International Airport each year on average.

Built at a cost of around Tk21,300 crore, the third terminal was financed in part by a $2.21 billion loan from the Japan International Cooperation Agency (JICA). The loan carries an interest rate of 1.30% and is scheduled to be repaid over 20 years after the grace period.

The two existing terminals at Dhaka airport have a combined annual passenger-handling capacity of around eight million. Once the third terminal becomes operational, the total capacity of the airport’s three terminals is expected to rise to around 24 million passengers.

A JICA study has projected that around 16 million passengers will use Hazrat Shahjalal airport by next year, including more than 13.5 million international passengers.

The third terminal covers around 226,000 square metres and has 115 check-in counters, 66 departure immigration desks, 59 arrival immigration desks, 12 boarding bridges and 12 baggage conveyors, along with modern parking and other facilities.

International ground handling operator

Meanwhile, five international companies have expressed interest in becoming passenger ground-handling operators at the third terminal alongside Biman Bangladesh Airlines.

They are UK-based Menzies Aviation, Switzerland-based Swissport, Turkey’s Çelebi Aviation Holding, dnata, a subsidiary of the UAE-based Emirates Group, and Singapore-based SATS.

CAAB has finalised plans to appoint a second international operator alongside Biman for passenger ground handling at the third terminal.

Biman, however, will handle all cargo ground-handling operations on its own.

A government policymaking source said appointing international operators for both the third terminal at Shahjalal and Shah Amanat could accelerate the modernisation and development of the country’s airports.

The source said the government was considering appointing a private operator for Shah Amanat to bring passenger services and related facilities at the Chattogram airport up to international standards.

“Shah Amanat is linked not only to aviation and passenger handling but also to Chattogram’s future investment prospects. That is why the issue is being considered seriously,” the source said.

Engineer Mohammad Ibrahim Khalil, public relations officer of Shah Amanat International Airport, said the airport authorities had not yet received any communication or proposal regarding the appointment of an international operator.