Adviser Hints at Second Ground Handler for HSIA 3rd Terminal

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Dhaka: Civil Aviation and Tourism Adviser S K Bashir has indicated that the government may allow a second international ground handler for Hazrat Shahjalal International Airport’s (HSIA) third terminal alongside Biman Bangladesh Airlines, in a bid to ensure international-standard passenger and cargo services. “We have already taken a decision regarding ground handling and will make it public soon,” Adviser Bashir told BSS, hinting that the announcement is likely to come next week.



According to Bangladesh Sangbad Sangstha, Adviser Bashir emphasized the need for a competitive environment to enhance services based on the capacity of all those involved in ground handling. The goal is to implement a coordinated approach without making Biman uncompetitive or allowing passenger services to deteriorate. Bashir noted that while Bangladesh may not immediately achieve the highest international benchmarks, the passenger services at the new terminal must at least reach a “dignified and respectable” standard.



The final round of a three-day negotiation between the Civil Aviation Authority of Bangladesh (CAAB) and a Japanese consortium began to discuss the operation of the newly built third terminal. CAAB officials stated that the first two sessions are being chaired by CAAB Chairman Air Vice Marshal Mostofa Mahmud Siddiq, with Adviser Bashir presiding over the concluding day of talks. Representatives from all stakeholders, including the International Finance Corporation (IFC) as a transaction adviser, are participating.



CAAB sources revealed that the policy decision to assign Biman ground-handling responsibilities for two years created unease within the consortium, which has sought broader operational and revenue-sharing rights. Under the Public-Private Partnership (PPP) arrangement, a Service Level Agreement (SLA) is to be signed between Biman and the private sector partner managing the terminal. According to the PPP Authority, if Biman fails to meet performance indicators during the two-year period, the operator will be allowed to appoint a reputed international ground handling company in addition to Biman.



Ground handling has been a debated issue for years. The ousted previous Awami League government had signaled that a Japanese firm might take the role, amid concerns raised by foreign airlines over Biman’s service quality. Currently, Biman remains the sole ground handler at all airports in Bangladesh, serving nearly 40 foreign carriers with an annual turnover of Tk 1,000-1,200 crore. Despite improvements in service with new equipment and manpower, passengers and airlines still complain of delays, inefficiencies, and occasional theft.



Several foreign carriers have expressed dissatisfaction, often deploying their own staff to maintain standards despite paying Biman’s handling fees. A survey conducted by HSIA authorities found that 93 airlines supported having multiple ground handling providers at the third terminal. Biman officials, however, remain confident, stating that the airline handled over 57,000 flights in 2023 and has invested Tk 1,000 crore in 3,600 new pieces of ground support equipment in the past year, with recruitment and training ongoing and additional procurement underway.



The third terminal, built at a cost of Tk 21,300 crore with major financing from the Japan International Cooperation Agency (JICA), is expected to raise HSIA’s annual passenger handling capacity to 24 million and cargo throughput to 1.2 million tonnes. The facility spans 230,000 square metres of floor space and will feature 26 boarding bridges, 115 check-in counters, 66 departure immigration desks, 59 arrival immigration desks, and three VIP immigration desks.