New Airport Cargo Facility Lies Idle Amid Export Slowdown

At Hazrat Shahjalal International Airport cargo utilisation has fallen by 30–40 percent as weak export demand continues to weigh on trade, according to Biman Bangladesh Airlines

Feb 25, 2026 - 14:35 Updated: Feb 25, 2026 - 16:34

New Airport Cargo Facility Lies Idle Amid Export Slowdown

Newly built automated cargo terminal at Hazrat Shahjalal International Airport (HSIA). Photo: CAAB

Bangladesh’s newly expanded airport cargo facilities are operating far below capacity as weak export demand continues to weigh on trade, industry insiders say.

Nearly a year after India withdrew its transhipment facility for Bangladeshi exporters, prompting Dhaka to fast-track alternative arrangements, cargo volumes have fallen sharply. While the government opened export operations at Osmani International Airport and approved a Tk70 crore upgrade at Shah Amanat International Airport, both facilities are now largely idle.

Even at Hazrat Shahjalal International Airport — the country’s main air freight hub — cargo utilisation has fallen by 30–40 per cent, according to Biman Bangladesh Airlines, the sole ground handling agency.

Business leaders argue that the slowdown is not due to infrastructure constraints but to shrinking demand. Data from the Export Promotion Bureau show that exports during July–January of FY26 totalled $28.41 billion, down 1.93 per cent year-on-year. Readymade garments, which account for more than 80 per cent of the export basket and dominate air shipments, declined by 2.43 per cent over the same period.

Freight forwarders say orders have slowed over the past five to six months, with factories scaling back production amid subdued imports of raw materials and cautious investment sentiment. As a result, daily air cargo exports from Dhaka have dropped to 500–600 tonnes, compared with the usual 800–900 tonnes during the peak season — a contraction of nearly 40 per cent.

Lower volumes have also pushed down freight rates. EU-bound air cargo now costs between $2.5 and $3 per kilogramme, significantly below last year’s levels.

Cargo operations that began with optimism at Osmani International Airport last April have since stalled. After operating 41 flights carrying garments to Spain over six months, export flights from Sylhet stopped in November. Airport officials maintain that the facilities meet international standards, attributing the suspension to commercial decisions by operators.

In Chattogram, progress on the approved cargo upgrade project remains slow, with no clear timeline for full-scale operations.

Meanwhile, activation of the cargo village at Dhaka’s newly built third terminal has been delayed due to contractual disputes. Once operational, the facility is expected to increase annual export cargo capacity from 200,000 tonnes to more than 500,000 tonnes.

Aviation analysts say the expanded infrastructure could eventually position Bangladesh as a regional transhipment hub. For now, however, the country is facing surplus cargo capacity amid declining export demand.

Industry observers note that the quiet warehouses are not a sign of logistical failure, but rather a reflection of broader economic headwinds.

Until export orders rebound — particularly in the garment sector — new terminals and upgraded facilities are likely to remain underutilised.

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