A Japanese consortium offers a 22.5 percent revenue share with Bangladesh generated from the third terminal of Hazrat Shahjalal International Airport. The government is currently negotiating with the consortium, led by Sumitomo Corporation, regarding the operation of the third terminal. The revenue-sharing proposal was presented by the Japanese delegation during a meeting on “Operation and Maintenance of the 3rd Terminal” held at the foreign ministry in Dhaka on April 3, sources at the Civil Aviation Authority of Bangladesh (CAAB) said.
However, Bangladesh has asked the consortium to reconsider its offer. According to a ministry press release citing State Minister for Civil Aviation and Tourism, M Rashiduzzaman Millat, the Japanese side has been requested to submit a revised proposal.
This was the second bilateral meeting between Bangladesh and Japan on the 3rd terminal’s operation since the BNP formed the government. The first meeting, held in the second week of March, saw the Japanese consortium propose an 18 percent revenue share for Bangladesh.
According to CAAB sources, the proposal outlines that the Japanese consortium will act as the terminal operator for 15 years. During this period, it plans to invest $1.59 billion in the terminal’s operation and maintenance. In return, Bangladesh will receive 22.5 percent of the total revenue generated.
Officials said the main sources of revenue from the third terminal will include aeronautical and non-aeronautical charges. Aeronautical charges cover passenger service fees, landing charges, boarding bridge charges, and cargo security charges. Currently, international passengers pay a service fee of BDT 500, or $6.4, while domestic passengers are charged BDT 50 for using the airport. According to feasibility estimates by Japan International Cooperation Agency (JICA) for the third terminal project, the airport is expected to serve around 16 million passengers in 2027, including more than 13.5 million on international routes.
Additional aeronautical charges include an average landing fee of $2,157 per international flight at Dhaka airport. For each domestic flight, a landing charge of BDT 3,300 is collected. Airlines also pay an average of $138 per international flight for the use of boarding bridges. Meanwhile, a cargo security charge of $0.06 per kilogram is imposed on goods. According to data from the CAAB, more than 100,000 flights use Hazrat Shahjalal International Airport annually.
On the other hand, non-aeronautical revenue streams include duty-free shops, food and beverage sales, parking, car rentals, advertising, lounges, real estate leasing, currency exchange, and other commercial activities within the airport. Aviation experts say that 40 to 50 percent of an airport’s total revenue typically comes from non-aeronautical sources.
The then Awami League government initiated talks with the Japanese consortium in 2023 to appoint an operator for the third terminal, built at a cost of BDT 211.39 billion. Despite multiple rounds of meetings on revenue sharing during its tenure, no final agreement was reached. The recently outgoing interim government also held several meetings with the consortium’s representatives, but failed to appoint an operator due to a lack of consensus on revenue sharing. Although the terminal has remained “ready” for commercial operations for over a year, it has yet to be launched.
CAAB officials said that the company appointed to operate the terminal will not be able to begin operations immediately after signing the contract. It may take around six to eight months to complete the necessary preparations before commercial activities can begin. As no agreement has been signed with an operator so far, officials noted that the likelihood of launching the terminal this year is diminishing.
When asked about the ongoing discussions with the Japanese consortium, CAAB Chairman Air Vice Marshal Mostafa Mahmud Siddiq told Bonik Barta, “Discussions with Japan over the agreement are ongoing. There has been progress on many issues, but nothing has been finalised yet.”