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Govt to introduce air cargo service

Rezaul Karim | Wednesday, 14 May 2014



The government is finally set to launch an air cargo service with a view to facilitating export and import trade of the country, the official source have said.
"The government is contemplating introduction of a low-cost 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 in early next fiscal year", the source added.
Both the Ministry of Commerce (MoC) and the Ministry of Civil Aviation and Tourism (MoCAT) were working on the issue, they said.
"We sent separate letters to the chiefs of different trade bodies and organisations and also BGMEA and BKMEA seeking opinions in this connection last week," Deputy Secretary of the MoC Saidur Rahman Selim told the FE.
"If the stakeholders show interest, the government will soon take next course of action for launching the national air cargo service", he said.
"It is an urgent need to introduce an air cargo service in the country like the developed countries to help increase country's export trade further and for transportation of the export and import goods rapidly," he added.
The country's export policy also provided for launching an air cargo service, he mentioned.
The demand for air cargo service is increasing in the country gradually. As an alternative to sea and land transportations, the urgency of air cargo was specially felt during the last year's political turmoil, the sources say.
With the fast growing demand for Bangladeshi goods in different countries, the demand for an air cargo service of the country's own also increased, they said.
The service charge and fare of the proposed cargo service should be reasonable and cheaper than the 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 billion and Tk 60 billion 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 of air cargo doubles or triples during any political unrest, he said.
Presently, about 700 to 800 tonnes of export items are carried by using the air cargo service per day, according to the sources.
At present, Biman Bangladesh Airlines, which has an air service agreement with 42 countries, provides cargo services to its international destinations, besides flying passengers.
The local private companies also provide cargo services worldwide with the help of others. But there is no separate national air cargo service in the country.
Generally, US$4.0 million to US$6.0 million would be needed for purchasing a cargo aircraft, a Bismillah Airlines source said earlier.
At present, exporters have to pay from $2.10 to $2.80 for carrying a kg of goods by air. But the cost rose to $3.0 to $3.50 during the last political turmoil, he added.