Caab Pushes to Open Third Terminal Amid Japan Deal Delays

A portion of the Terminal-3 of the Hazrat Shahjalal International Airport in Dhaka.

The Civil Aviation Authority of Bangladesh (Caab) and a Japanese consortium are still finalising revenue-sharing terms, delaying the much-anticipated third terminal at Hazrat Shahjalal International Airport (HSIA) in Dhaka.

Sources said both sides could reach an understanding within a week, with the agreement potentially signed within a month.

Concerns have grown as warranty periods for some machinery and spare parts are expiring. “We are working to open the third terminal before the next national election. It is possible if all goes well,” a Caab official said, speaking anonymously. “We are rushing to avoid financial losses due to expiring equipment.”

The 13th national election is scheduled for the first half of February next year. The terminal, which was nearly complete with 99.88% of construction finished, was initially expected to open by the end of this year.

Caab Chairman Air Vice Marshal Mostafa Mahmud Siddiq said during a briefing on 7 August that efforts are ongoing to make the terminal fully operational soon. The Japanese consortium — including Japan Airport Terminal Company, Sumitomo Corporation, Sojitz, and Narita International Airport Corporation — will manage operations, while Caab will oversee security.

On 4 August, a Biman Bangladesh Airlines flight used the passenger boarding bridge and visual docking guidance system at the third terminal for the first time, marking a key step in operational readiness. Experimental services, such as boarding bridge operations, are already underway.

Operating the terminal around the clock will require about 6,000 personnel, including 4,000 for security. Biman will manage passenger and cargo handling for two years under consortium supervision, while Caab will handle data security.

Chairman Mostafa said, “The biggest challenge is to bring the third terminal into operation. Since joining, I have held several meetings with all stakeholders. My priority is to make the terminal operational as soon as possible while safeguarding everyone’s interests.”

Once fully operational, the terminal will triple the airport’s passenger and cargo handling capacity, raising annual passenger handling to 24 million, compared with the current eight million. Cargo capacity will also increase from 500,000 tonnes per year.

The terminal was given a soft launch on 7 October 2023, with full operations promised in 2024. However, political changes, frequent project leadership shifts, delays in key materials from abroad, and ongoing negotiations with the Japanese consortium have pushed back the opening date.