BM Analysis
The panoramic views of the 3rd terminal of The Hazrat Shahjalal International Airport (HSIA) really makes me proud. The iconic work will give a strong perception about the country to minds of the foreigners who arrive in Dhaka for different purposes. It will disseminate message among them that this country really strives for development.
This terminal may also create a huge business scope as frequency of airways will be increased significantly and thus connectivity of the country is to be enhanced.
According to the Civil Aviation Authority Bangladesh (CAAB) the 3rd terminal features immaculate floor and eye-catching patterns on ceiling with very sophisticated natural light. Its 12 boarding gates and double entry bridges will be operational by next year and more 14 boarding bridges are expected to be installed afterwards.
The third terminal project, costing Taka 21,300 crore, commenced on December 28th in 2019. The government contributed Taka 5,000 crore, while the Japan International Cooperation Agency (JICA) provided the remaining funding. Covering an area of 542,000 square metres, the third terminal will have a floor space of 230,000 square metres with housing 115 check-in counters, 66 departure immigration desks, 59 arrival immigration and 3 VIP immigration desks. Upon full-fledged operation of the 3rd terminal, Dhaka Airport’s annual passenger and cargo handling capacity is expected to double.
According to media reports, the terminal will accelerate the container handling capacity and thus air shipment of goods for its spacious cargo village. Both the exporters and importers have long been complaining on thefts of goods from the tiny cargo village, products left unattended with deterioration of quality of items, and the delay in releasing goods. Besides, charges were too high for the freight forwarders as they compare those with other regional airports. The cost of sending goods was also reported too high. Aviation experts claim that those incidents and hassles might be over once the new cargo village begins its full-fledged operation.
After the terminal was opened partially on Friday, the Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan expressed his optimism that widen cargo village may add some extra facility but that would not be enough. It was reported that local apparel suppliers have to air-ship more than 800 tonnes of goods a day. The volume goes up to 1,200 tonnes during peak times.
The present capacity of terminals 1 and 2 is 19,600 square metres and their combined annual handling capacity is two lakh tonnes. But the new terminal has a space of 36,000 square metres set aside for exporters handling capacity of 5.46 lakh tonnes per year. At present capacity of handling imported cargoes at terminal 1 and terminal 2, in area of 13,700 square metres, while the third one alone will add 27,000 square metres.
Apart from that the cargo handling capacity of the first two terminals is 84,379 tonnes while the third terminal will boost the capacity by 2.73 lakh tonnes. Civil Aviation Authority of Bangladesh (CAAB) incumbent chairman Air Vice Marshal M Mafidur Rahman hopes that the authority is expected to start the operation of the import and export cargo terminals by March 2024.
According to a report from the civil aviation and tourism ministry, the Bangladesh Agricultural Development Corporation currently has a 420-square-metre cold storage facility in the area adjacent to the existing export cargo terminal building. Kabir Ahmed, president of the Bangladesh Freight Forwarders Association, expressed his happiness saying that the use of third countries will reduce since local exporters and importers will get enough space at the HSIA 3rd terminal.
About the economic impact of the terminal, economists estimate that the third terminal will definitely have a positive economic impact because of higher connectivity and airfreight activities.
The Civil Aviation Authority of Bangladesh (CAAB) conducted a feasibility study about establishment of the 3rd Terminal at Hazrat Shahjalal International Airport in Dhaka In 2014. The study found that, HSIA can handle 8 million passengers annually, but the annual passenger traffic is expected to increase to 140 million by 2025 and reach 250 million by 2035. As a result, the existing airport is being expanded to accommodate additional passengers. Japanese donor JICA conducted a financial and economic evaluation of the project in 2016 in conjunction with CAAB feasibility test, full report of which was subsequently released in March 2017.
The Financial Internal Rate of Return, or FIRR , the project’s target financial internal rate of return or FIRR was set at around 2 percent (1.98%). But according to the JICA report, the FIRR of the terminal is 6.2 percent which is higher than the target and an indicator of investment’s potential profitability.
Prime Minister Sheikh Hasina during soft opening of Terminal 3 of the Hazrat Shahjalal International Airport (HISA), on October 07, repeated government’s aim to make Bangladesh an aviation hub with the slogan “Connecting dreams to reality.” And dreams of airport users also now see stronger possibility..
