HSIA Third Terminal: Biman to be sole ground handling service provider

As Biman is set to take charge of ground handling for the third terminal at Dhaka airport for two years, stakeholders are raising concerns about its ability to manage such a large terminal.

Director (investment promotion) of Public Private Partnership (PPP) Authority of the Office of the Chief Adviser recently issued a letter announcing the decision to award Biman the job.

The ground handling job involves passenger boarding, baggage handling, cargo handling, and all types of aircraft services. Biman is currently providing ground handling services to around 40 foreign carriers at the airport.

Given the track record of Biman, and criticism by carriers and passengers alike over poor service at the Hazrat Shahjalal International Airport, a monopoly over ground handling operations at the new terminal will not ensure quality service, aviation experts said.

They said Biman is struggling to run Terminal-1 and -2 of HSIA and does not have the necessary and trained manpower to operate the third terminal.

Biman should not be entrusted with the ground handling work as a single entity, they said.

The ousted Awami League government in 2023 had decided in principle to operate and maintain the third terminal by a Japanese consortium under a public-private partnership.

The PPP authority in its letter said if Biman failed to meet expectations in the two years, then a reputed foreign company should be given the responsibility of ground handling as a second company.

Former chairman of Civil Aviation Authority of Bangladesh Air Vice Marshal (retd) Md Mofidur Rahman told The Daily Star that everyone wants the quality of ground handling services at the third terminal to be world-class, satisfying carriers and passengers.

"The airlines operating at the Dhaka airport are not happy with the way the ground handling services are being provided at Terminal-1 and Terminal-2, and they raised their dissatisfaction at different forums," he said.

He said in a survey conducted by the HSIA authority, 93 airlines opined for keeping multiple ground handling service providers at the third terminal, paving the way for competition and better services.

"We have failed to meet the passengers' expectation of quality ground handling services at Terminal-1 and -2. Our hope was that we would be able to provide international standard services at Terminal-3," he also said.

No international airport in the world has a single ground handling service provider, he said.

CAAB had appointed International Finance Corporation, a concern of the World Bank Group, as a transactional adviser. It submitted a report in favour of appointing multiple service providers at the third terminal for better service.

Mofidur said the number of passengers and carriers serving Dhaka will increase after the third terminal is properly launched, and multiple ground handling service providers would be needed to ensure quality service.

"In Bangladesh, no one has the ability to deal with the cargo handling job at the third terminal. I can guarantee that no one in Bangladesh has the ability to operate these facilities as they are totally automated," said the former CAAB chief.

The third terminal, funded with Japanese loans, requires efficient revenue generation to meet debt repayment obligations, and any lapses in ground handling could jeopardise this goal.

The third terminal project, with a budget of Tk 21,300 crore, began on December 28, 2019. The government contributed Tk 5,000 crore, while the Japan International Cooperation Agency (JICA) provided the rest.

Aviation expert Kazi Wahidul Alam said monopoly in ground handling will benefit Biman, but passengers will suffer.

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Wahidul also said, "Foreign airlines will not have any other option than to become hostages to Biman."

Wishing anonymity, officials of several foreign airlines said they do not want to remain hostages to Biman.

"We want multiple ground handling service providers at the third terminal for ensuring better services through competition," said a top official of a foreign carrier.

CAAB Chairman Monjur Kabir Bhuiyan recently told the media that operations of the third terminal were likely to start next year.

The 230,000 square metre terminal has 115 check-in counters, 66 departure immigration desks, 59 arrival immigration desks, and 3 VIP immigration desks.

HSIA's annual passenger and cargo handling capacity is expected to double when the terminal is properly operational.

The annual passenger handling capacity of the HSIA would be 24 million (including the old terminals). At present, the Dhaka airport can handle 8 million passengers and 500,000 tonnes of cargo each year.

A major portion of Biman's income comes from ground-handling services. The airlines earned around Tk 1,500 crore from this in 2023.

Baggage handling remains a thorn in passengers' sides. Many complain of delayed baggage delivery, damage to their belongings, and theft.

Public hearings at the airport highlight these issues, reflecting poorly on Biman.

Foreign carriers have consistently complained about Biman's services. Several airlines told this correspondent that despite paying for ground handling service, they often receive insufficient support from Biman.

In some cases, the carriers deploy their own people at the airport to maintain service quality.

"We need to deploy 30 to 40 staffers at the airport during departures of flights and for cargo handling. It is Biman which is supposed to carry out these jobs," said an official of a foreign carrier.

Biman, however, said they are prepared for the third terminal. In addition to recruiting and training Biman's personnel, new equipment is being purchased.

"Several types of equipment have already been added to Biman's Ground Support Equipment (GSE). Over the next few months, approximately 70 types of equipment will be given to Biman's GSE," Bushra Islam, general manager, public relations, Biman said in a message.

Due to the adoption of modern technology and strong management initiatives, there has been a significant improvement in service quality, she said.

Bushra said outsourcing this responsibility to any external entities would result in a substantial loss of national revenue and harm the country's interests.