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Businesses back launch of nat\\\'l air cargo service

FE Report | Monday, 23 June 2014


Different local trade bodies have evinced keen interest in the government initiative to introduce a national air cargo service.
The ministry of commerce (MoC) sought views of the businesses about the service and "most of them have given their positive opinions," a deputy secretary of the MoC told the FE.
"We earlier sent separate letters to the chiefs of different trade bodies and organisations and also MCCI, BGMEA and BKMEA seeking opinions in this connection," he added.
The government would soon take the next course of action for launching the national air cargo service as the stakeholders evinced their interest in it, he also said.
Of the trade bodies, the Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) gave their views in writing to MoC.
"Export-import trade of the country is increasing day by day. In the last fiscal year it amounted to around US $ 61.0 billion. Fresh fruits and vegetable exporters of the country have long been seeking a special air cargo facility as they export perishable items." the MCCI said in its letter.
"Export of other products, including readymade garment (RMG), the major export item, will also benefit from the service in case of emergency shipments. It would also facilitate investments in the country,'' the letter mentioned.
On the other hand, the BKMEA said it was a good proposal to launch a national air cargo service for transportation of export-import goods at lower freight rates.
"The government is contemplating introduction of a low-cost national air cargo service for the first time in the country in a bid to carry export and import goods, especially exportable RMG items speedily," a source concerned said.
"The service is expected to be launched early next fiscal year", he added.
Both the MoC and the ministry of civil aviation and tourism (MoCAT) were working on the issue, he added.
"It is an urgent need to introduce an air cargo service in the country like those in developed countries to help increase the country's export trade further and facilitate transportation of export and import goods rapidly," he added.
The country's export policy was also providing for launching an air cargo service, he mentioned.
The demand for air cargo service is increasing in the country gradually. As an alternative to transportation of goods by sea and road, the urgency of an air cargo service was felt especially during the last year's political turmoil.
With the fast growing demand for Bangladeshi goods in different countries, the demand for an air cargo service of the country's own has also increased, sources say.
The service charge and fare of the proposed cargo service should be reasonable and cheaper than those for international cargoes. Otherwise, the owners of the country's business houses would not show interest in the service, industry insiders observed.
"The exporters of the country have to pay between Tk 50 million and Tk 60 million as air freight to foreign airlines every year, an amount which can contribute to the domestic economy if we could have a national air cargo service. We could also earn operating profits from the service," a source concerned said.
The freight rate for an international air cargo service doubles or triples during any political unrest, he said.