The Indian government has given the green light for Bangladesh’s transhipment cargo to be handled at the Delhi Air Cargo complex in a move that will enhance regional trade hub ambitions. From 15 February, an air freight window for Bangladesh transit cargo will be available, improving cargo evacuation and logistics efficiency.

Bangladesh shippers have had air freight access from the Kolkata air cargo complex since June 2020, but the fewer flight connections there have put pressure on their ability to take advantage of this alternative trade corridor. The Delhi Air Cargo facility will provide improved connectivity, making it easier for Bangladesh’s export industry to reach a wider range of markets, including those in Europe, the Middle East, and Asia.

According to Vineet Malhotra, co-founder and director at Kale Logistics Solutions, transhipment through India can lead to significant cost savings for Bangladeshi exporters, as it allows them to take advantage of lower air cargo rates and more competitive shipping options available through Delhi Air Cargo. Additionally, the faster movement of goods to final destinations will be the most alluring factor for Bangladeshi exporters.

The move builds on a sea-rail multimodal logistics system that allows the transhipment of Bangladesh export containers from Nhava Sheva and Mundra ports by sea. The alternative transhipment facilitation push comes as the Bangladesh government and local exporters are looking to capitalize on global sourcing shifts away from China.

This cross-border transhipment program presents a two-way opportunity, as, by aiding intermediate hub facilities for growing Bangladesh exports, New Delhi can scale up cargo volumes at its seaports and air cargo complexes. Overall, the approval for the transhipment of cargo at the Delhi Air Cargo complex is a significant boost for the region's trade hub ambitions.