Dhaka,  Saturday
18 January 2025

No deal, Biman still makes Tk 900cr procurement

Imran Ali

Published: 03:04, 2 January 2024

No deal, Biman still makes Tk 900cr procurement

Photo : Messenger

Although there is no deal signed officially as of now to get the ground handling work at the Hazrat Shahjalal International Airport’s (HSIA) third terminal, Bangladesh Biman has already invested significantly in procuring the ‘latest equipment’ worth about Tk 900 crore, which analysts have termed ‘nothing but a fraudulent move.’

Biman officials said such a move is aimed at maintaining the ground handling functionality of the airport's third terminal, once it is operational, to take their service standard to the next level.

However, there remains uncertainty as to whether Biman will secure the contract for ground handling services for the newest terminal – thereby raising questions about proper utilisation of these recently acquired resources investing in crores of public money.

When asked, Executive Director of Transparency International Bangladesh (TIB) Dr. Iftekharuzzaman has criticised such actions by Biman terming the move ‘fraudulent.’

“They have a history of engaging in various fraudulent activities in the past. They are aiming to pressure JICA and CAAB to secure ground handling jobs. They will argue that since they have purchased these machines with a significant amount of money, they should be provided with the work,” he remarked.

Since the initiation of work on the third terminal, the Civil Aviation Authority of Bangladesh (CAAB) has been deliberating on outsourcing ground handling services to foreign companies with the aim of delivering world-class passenger services. At present, CAAB is in advanced talks with JICA in this regard as the Japanese agency is expected to make a decision on awarding the ground handling work.

Biman for the past 51 years has undertaken the ground handling responsibilities at Hazrat Shahjalal International Airport (HSIA). Unfortunately, during this extended period, a majority of passengers have lodged complaints regarding various issues, including theft of valuable items via tampering with passengers' luggage, instances of lost goods, inadequate handling leading to improper delivery, and luggage damage due to mishandling.

However, Biman continues to actively pursue the ground handling work for the third terminal. Despite uncertainties surrounding the award of the contract, the company is making efforts to fortify its position. 

One of these initiatives involves considering the provision of body-worn cameras to ground handling workers. This step is intended to address allegations of theft, maintain accountability, and ensure transparency throughout operations. Additionally, despite the ambiguity surrounding the acquisition of the job, Bangladesh Biman has proceeded with investments such as acquiring heavy machinery and equipment for luggage handling, signaling its readiness and commitment to potentially undertake the ground handling responsibilities.

Regarding this matter, Bangladesh Biman's Managing Director and CEO, Mohammad Shafiul Azim, emphasised to the media, "Previously, the airport was not operating as a full-fledged international airport. With the new developments, there's a significant opportunity for us to transform into a comprehensive international airport. Hence, we are investing in new equipment to align with these changes. These equipment types are commonly utilized by major airports worldwide. They encompass approximately 19 to 20 variations, including Balter, Unloader,

Highlifter, and various non-mechanised machinery. Our aim is to procure the latest versions of this equipment to ensure passenger and cargo safety. We aspire to deliver world-class services at the third terminal."

A senior Biman official further elaborated, stating, "The current value of the procured equipment stands at around Tk 800 to Tk 900 crore. Additionally, there are plans to acquire further equipment, estimated to cost between Tk 500 to Tk 600 crore. This would result in a total investment of approximately Tk 1500 crore for all the equipment required."

According to sources, Biman Bangladesh Airlines, a state-owned entity, has been operating for 51 years, yet it continues to grapple with persistent accusations of mismanagement and inefficiency. Despite its long-standing presence, the airline has struggled to overcome its tarnished reputation and address issues of inefficacy. 

Biman Bangladesh Airlines is responsible for executing all ground handling operations, including the loading and unloading of various goods from both domestic and international aircraft at the country's airports. However, the organization has been plagued by recurrent complaints, particularly concerning theft from passengers' luggage and damages to goods.

Presently, this state-owned company is ardently vying to secure the ground handling responsibilities for the newly developed third terminal of Hazrat Shahjalal International Airport, which has been in the works for an extended period. Nevertheless, the quality of service rendered by Biman Bangladesh Airlines has consistently come under scrutiny, raising doubts about their capability to deliver efficient and reliable ground handling services.

It's anticipated that with the opening of the third terminal at Shahjalal Airport, the flight operations are set to witness a significant surge, potentially doubling the number of flights to approximately 300 per day. Additionally, the cargo service is also expected to experience a substantial increase. In preparation for this substantial expansion, Biman is actively acquiring modern and robust machinery and equipment to effectively manage and handle this heightened volume of services.

Simultaneously, the Bangladesh Civil Aviation Authority (CAA) has confirmed that the Japan International Cooperation Agency (JICA) will undertake the initial management responsibilities to ensure the provision of world-class service standards at the third terminal.

In this case, the authorities also think that long-time experienced aircraft can be kept with them. 

Air Vice Marshal Mofidur Rahman, Chairman of Bangladesh Civil Aviation Authority, said, "The decision regarding ground handling will be contingent upon JICA. Given their forthcoming management responsibilities, they will be responsible for making that determination. The government's priority is to ensure enhanced services and viable profitability. Effective ground handling is pivotal for profitability; without proficient handling, we risk limiting incoming traffic to Bangladesh. It is incumbent upon them to either entrust it to Biman or consider involving an additional company. Our government's directive is clear: prioritize service quality. If JICA deems Biman suitable for this role, it's favorable since Biman is our national carrier. We would welcome any initiative by JICA to enhance aircraft capacity. Ultimately, regardless of whether the company is Japanese or Bangladeshi, our paramount concern is the assurance of excellent service."

Hazrat Shahjalal Airport's third terminal, modeled after Singapore's Changi Airport, aims to be fully operational by the end of 2024.

Messenger/Disha