Online Report
The Civil Aviation Authority of Bangladesh (Caab) and a Japanese consortium have yet to reach a consensus on revenue sharing, which is causing delays in signing an agreement to operate the much-anticipated third terminal at the Hazrat Shahjalal International Airport (HSIA) in Dhaka.
Speaking to The Business Standard today (16 August), Caab sources stated that both parties may reach an understanding within the next week, and the agreement could be signed within a month.
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Concerns have arisen within Caab as the warranty periods of some machinery and spare parts have already expired or are close to expiring.
“We are working to open the third terminal before the next national election. I think it’s possible if everything goes well,” a Caab member, requesting anonymity, told TBS.
“There is concern regarding the expiry dates of various instruments and machinery. That is why we are trying to open it soon to avoid financial losses,” he added.
The 13th national election is set to be held in the first half of February next year, according to interim government and Election Commission announcements.
As per earlier announcements, the third terminal was expected to open for passengers by the end of this year, as 99.88% of the construction work has already been completed.
However, the new Caab chairman, Air Vice Marshal Mostafa Mahmud Siddiq, could not provide a specific date during a briefing on 7 August.
He mentioned that efforts are underway to make the terminal fully operational very soon. He also said that discussions are ongoing with the Japanese consortium regarding the operation of the terminal, and that a formal agreement will be signed once both parties reach an understanding.
The consortium — comprised of Japan Airport Terminal Company, Sumitomo Corporation, Sojitz, and Narita International Airport Corporation — will carry out operational activities, while Caab will oversee security.
On 4 August, a Biman Bangladesh Airlines flight became the first aircraft to use the passenger boarding bridge (PBB) and visual docking guidance system (VDGS) at the third terminal.
Biman said this marked an important step forward in operational readiness and the enhanced service capabilities of the terminal.
Dhaka airport sources also said that various experimental services, such as boarding bridge operations, are already underway at the third terminal.
Around 6,000 personnel, including 4,000 for security, need to be deployed in four shifts to operate the terminal round-the-clock.
Biman will manage passenger and cargo handling services for two years under the consortium’s supervision. Data security will be under Caab’s jurisdiction, they said.
Caab Chairman Mostofa said, “At this moment, the biggest challenge is to bring the third terminal into operation. Since joining, I have held several meetings with all stakeholders. My main goal is to make the terminal operational while safeguarding everyone’s interests. We are working with urgency to open it as soon as possible.”
“All eyes are now on the third terminal. That is why my first big challenge is to operationalise it quickly,” he added.
Once the terminal is fully operational, the airport’s annual passenger and cargo handling capacity is expected to triple.
The airport’s annual passenger handling capacity is expected to reach 24 million (including the two existing terminals) once the third terminal is fully open.
Currently, HSIA can handle eight million passengers and 500,000 tonnes of cargo per year.
The third terminal was given a soft launch by the then prime minister, Sheikh Hasina, on 7 October 2023, with full operations initially promised by 2024.
However, political changes in the country following last year’s mass uprising that toppled the Awami League government, frequent shifts in project leadership, and delays in receiving key materials from abroad — particularly those needed for the VVIP terminal — have pushed back the timeline.
Ongoing negotiations with the Japanese consortium are further delaying the terminal opening.