Following the devastating fire at Dhaka Airport’s Cargo Village, Syed Ershad Ahmed, President of the American Chamber of Commerce in Bangladesh (AmCham) urges immediate reform in the country’s air cargo management system. In this opinion piece, he highlights years of negligence, weak safety measures, and the urgent need for automation and multiple operators to enhance efficiency and security at Hazrat Shahjalal International Airport.
For two decades, we have been calling for improved warehouse management at Dhaka Airport, yet no positive response has ever come. The devastating fire at the Cargo Village is the result of years of negligence. In most developed countries, cargo management is handled through third-party logistics (3PL) and container freight stations (CFS), but such systems have not been effectively implemented in Bangladesh.
To strengthen cargo operations at Dhaka Airport, it is essential to establish private inland container depots (ICD) near the airport.
The Civil Aviation Authority of Bangladesh (CAAB), Customs House, and Biman Bangladesh Airlines cannot escape responsibility for Saturday’s accident. CAAB owns the facility, Customs supervises imported goods, and Biman acts as the handling agent. Yet none of these entities paid adequate attention to ensuring sufficient safety measures in this highly sensitive area. The warehouse management remains weak and largely manual.
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Due to lengthy customs clearance procedures, goods continue to pile up, worsening the already severe space crisis. Warehouses for hazardous materials should have been kept separate and more secure. This incident has not only caused severe financial loss but also damaged the country’s reputation. Airlines such as British Airways and KLM have already suspended operations in Dhaka over security concerns—an extremely unfortunate situation for us.
Efficient logistics services are vital for enhancing any country’s competitiveness. Around 4 percent of Bangladesh’s total trade—comprising the most critical and high-value products—moves by air. Imported pharmaceutical raw materials, healthcare equipment, readymade garment raw materials, computers, and ICT components—all these air cargo items are of high value.
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It is now time for a complete overhaul of Dhaka Airport’s cargo management system. Modern technology must be adopted, customs processes simplified, and adequate safety measures ensured. Otherwise, the risk of more catastrophic accidents will remain.
To resolve the longstanding congestion in cargo operations at Hazrat Shahjalal International Airport, automation systems and multiple cargo operators should be introduced immediately. The existing monopoly of a single operator has hindered growth in this sector. With multiple operators and an automated system in place, the airport’s cargo handling capacity could easily be doubled.
