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Chattogram seeks 40% tariff cut to boost airport logistics

The Chittagong Chamber of Commerce and Industry has requested the government to cut international flight tariffs by 40% and establish a dedicated cargo village to transform Shah Amanat International Airport into a regional logistics hub. They argue that preferential tariffs and improved infrastructure would help reduce reliance on Dhaka-centric aviation and attract more transit traffic.

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Chattogram seeks 40% tariff cut to boost airport logistics

According to tbsnews.net, the Chittagong Chamber of Commerce and Industry has requested the government to cut international flight tariffs by 40% and establish a dedicated cargo village to transform Shah Amanat International Airport into a regional logistics hub.

Proposed reforms to enhance airport efficiency

The chamber, in a letter dated August 15, addressed Finance and Planning Minister Amir Khosru Mahmud Chowdhury, emphasizing the need for preferential tariffs and improved infrastructure to utilize the airport’s full capacity. Chamber President Mohammad Amirul Haque highlighted that Chattogram, as the site of Bangladesh’s main seaport and major export processing zones, is well-positioned to become a key East-West logistics bridge.

The business body outlined five strategic interventions, including operating the airport 24/7 and introducing preferential tariffs for international flights. They also recommended developing transit and refueling infrastructure for long-haul carriers and establishing a modern cargo village, inland container depot, and container freight station near the airport.

Land in Patenga, located near the airport, is available for large-scale development and could support both aviation and maritime cargo needs. The chamber suggested using public-private partnership models, including build-own-operate or build-own-operate-transfer, to finance and manage these infrastructure projects.

Learning from successful port policy

To attract international airlines, the chamber cited the success of reduced tariffs at Mongla Port as a model. They argued that a similar incentive-based fee structure at Shah Amanat International Airport would boost economic activity and help Bangladesh achieve its goal of building a $1 trillion economy by 2034.

The chamber stressed that preferential tariffs and improved infrastructure would help reduce the country’s reliance on Dhaka-centric aviation and attract more transit traffic. They believe that better utilization of the airport’s existing capacity could enhance passenger and cargo handling and strengthen the region’s logistics networks.

Current limitations, such as the inability to allow passengers to board or disembark during long-haul stopovers, are hindering the airport’s potential. Addressing these operational gaps, the chamber argues, would make the airport more competitive and attractive to international carriers.

Private sector participation and economic benefits

The chamber noted that private investors are ready to participate in the development of the airport and surrounding infrastructure. They believe that public-private partnerships could accelerate the implementation of the proposed reforms and ensure long-term sustainability.

By improving the airport’s efficiency and connectivity, the chamber expects to generate broader economic activity, including increased trade and investment. They argue that these reforms would support national development targets and help diversify the country’s economic base.

Chattogram’s strategic location and existing industrial and export infrastructure make it an ideal candidate for becoming a major logistics and investment hub. The chamber’s proposal, if implemented, could significantly enhance the region’s economic and transportation networks.

Source: tbsnews.net

Compiled from international media by the SCI.AI editorial team.

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