Dhaka’s Hazrat Shahjalal International Airport’s (HSIA) Terminal-3 is more than twice the size of Terminal-1 and Terminal-2. The first two terminals of Dahaka airport have an area of 100,000 square metres, meanwhile, the third terminal has an area of 230,000 square metres.
Although Terminal-3 was partially inaugurated in December last year, passengers will be able to use all of its facilities in December this year. The Civil Aviation Authority of Bangladesh (CAAB) is working on the project keeping that in mind.
Presently, the first two terminals can serve 80 lakh passengers annually; Terminal-3 is projected to serve 1.6 crore passengers each year.
With the date of Terminal-3 nearing, discussions have been going on for some time as to who will get the ground handling work of the third terminal.
Statistics show Biman Bangladesh Airlines, which currently handles the ground handling at HSIA, earns Tk1,500 annually from the two terminals.
As the Terminal-3 is more than twice as big as the current two terminals, it has a potential of yearly Tk3,000 crore business.
Many foreign companies are racing to get the contract to run the ground handling at HSIA’s third terminal.
The Ministry of Civil Aviation and Tourism has previously said the Japan International Cooperation Agency (JICA), which is a development partner in the project, will decide who will be responsible for the ground handling of the third terminal.
Biman has the lead, but also limitations
Biman Bangladesh Airlines is the first name that has been in discussion due to its long experience in this sector.
Moreover, the state-owned aviation company is the only service provider in ground handling at HSIA.
However, other than Biman, many other foreign companies have expressed their interest.
Many speculate it will done in partnership with Japan.
However, Civil Aviation and Tourism Minister Faruk Khan said that ground handling work will be done by JICA.
“In this case, if Biman is appointed, domestic interests will be protected. We have prepared Biman to provide ground-handling services to the third terminal,” he said.
On the other hand, CAAB Chairman M Mafidur Rahman said, “Japan will provide ground handling services. However, Biman is also under discussion. We have also spoken for Biman.”
JICA is analysing the capacity of the number of passengers and aircraft that will move through the third terminal.
Some stakeholders say it would be better to appoint two to three ground handling departments to improve the quality of service as well as make it competitive.
They also said handling such a large terminal may not be possible for Japan alone and in that case, they will look for partners.
Foreign interest flies in
In the meantime, Turkey's Celebi, the UK's Menzies, Switzerland's Swissport and other companies are interested in the project.
British High Commissioner to Bangladesh Sarah Cooke expressed her country's interest during a meeting with CAAB and the Ministry of Civil Aviation and Tourism.
Turkey said its Calebi has expressed eagerness to work as Terminal-3’s ground handler.
Swissport is scheduled to have a meeting with CAAB and give a detailed presentation about their plan.
JICA is interested in operating the third terminal on a public-private partnership (PPP) basis.
For this reason, an organisation named IFC has also been assigned to conduct a survey. Further decisions will be taken based on the results.
Biman Bangladesh Airlines is the only ground-handling service provider in Dhaka airport since independence.
The state-owned airline earns Tk1,500 crore annually from this sector.
Ground handling is a major source of revenue for the national flag-carrier airlines.
Foreign companies have always been eyeing this sector as it generates a large amount of revenue.
Many of the companies have tried to get into it through domestic business partners.
Among them are Middle East-based Dnata, Switzerland-based Swissport and Turkey's Celebi.
However, these companies have not only been interested in HSIA in Dhaka but also Chattogram’s Shah Amanat International Airport and Osmani International Airport in Sylhet.
Biman and its not-s-amicable reputation
Complaints from passengers about Biman's ground handling services have only mounted over the years.
Airlines have also complained about service quality.
Foreign airlines have repeatedly pointed the finger at Biman regarding these complaints including luggage theft, and broken suitcases.
They allege that Biman’s failure to maintain quality is responsible for it even though it is the airlines that have to pay compensation.
Moreover, there are many cases of foreign airlines delaying their flights due to a lack of timely service from the ground handling.
Foreign companies have lobbied hard to get ground handling contracts at HSIA, but in the end, Biman has always got the project.
The government has given its support to Biman various times to prioritise the interests of the country, but this time it is no longer in that position.
Despite the instances of mismanagement, foreign airlines have to depend on Biman because they don't have any alternative service providers at this airport.
However, as Terminal-3 is set to open, the foreign airlines want a proper management system.
That is why some are in favour of outsourcing ground-handling services to multiple service providers.
Ready to handle: Biman
Biman said it has bought Tk1,000 crore worth of equipment to improve its service quality.
In the last one year, more than 1,000 manpower has been appointed in the ground handling department, it added.
However, stakeholders say it is not enough to just buy the equipment, there is a lack of coordination and cooperation in Biman.
Also, training of staff is required, they said, further adding, Biman personnel need a mindset of providing good service.
If there is no change in this mentality, there will be no change in the quality of service, the stakeholder said.
Biman Bangladesh Airlines Managing Director and Chief Executive Officer Shafiul Azim expressed a positive attitude regarding ground handling work in the third terminal.
“Biman has the capacity, expertise and necessary equipment to provide ground handling services of the third terminal. More equipment will be purchased in the future and special emphasis is being placed on staff training,” he said.
"The aircraft's ground handling staff are highly skilled. They have the necessary skills and certifications. Airline workers are also in high demand abroad,” he added.
According to the Biman chief, the limited amount of baggage belts in the old terminals limits service quality.
“However, the new terminal will have more baggage belts, so passengers no longer have to waste time standing in line to get their luggage. Besides, the number of check-in counters in the old terminals is also less. It creates pressure on passengers. The new terminal will not have this problem. Aircraft capacity has been increased by purchasing new parts and hiring new staff. So Biman has the capabilities to manage the new terminal’s ground handling,” he added.
Both quality and quantity matter: Experts
Aviation expert ATM Nazrul Islam said, “Airlines are not increasing suddenly. In 2035, we will handle 2.35 crore passengers. Biman will lose a big business if it does not get the third terminal project”.
He said it would not be good for the country or the interests of the country.
“Biman has to improve the quality of service. Otherwise, the state-owned airlines will lose their single business in this business,” he added.
He also said there are scopes for foreign investments too given the business potential.
Experts say about 6,000 manpower will be required to operate the third terminal.
They also said sophisticated machines as well as the skills of the people behind the machines are important to ensure good service.
Another aviation expert and former member of the board of directors of Biman Bangladesh Airlines Kazi Wahidul Alam said the passengers will get ample space and a good environment in the third terminal.
“However, the organisations that will be engaged in airport services should change their approach and at the same time increase the quality of service,” he added.
