Bangladesh garment exporters fear $1bn losses after huge airport fire | Business and Economy News

The fire gutted import cargo terminals areas at Dhaka airport, destroying an estimated $1bn of ‘urgent air shipments’.

A fire that decimated a cargo complex in Bangladesh’s largest airport has caused devastating losses to garment exporters during the peak export season.

The blaze – which ripped through the cargo import area of Dhaka’s Hazrat Shahjalal International Airport on Saturday afternoon – gutted storage areas holding huge quantities of raw materials, apparel and product samples belonging to exporters.

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“We have witnessed a devastating scene inside,” said Faisal Samad, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“The entire import section has been reduced to ashes,” he said, estimating losses could reach as high as $1bn.

Smoke continued to rise from the charred remains of the facility on Sunday as firefighters and airport officials assessed the damage.

Among the destroyed goods are “urgent air shipments”, including garments, raw materials, and product samples, added Inamul Haq Khan, senior vice-president of BGMEA.

He warned that the loss of samples could jeopardise future business in the country’s crucial garment industry, worth $47bn per year. “These samples are essential for securing new buyers and expanding orders. Losing them means our members may miss out on future opportunities,” he said.

Cause of blaze unclear

The airport cargo village that caught fire is one of Bangladesh’s busiest logistics hubs, handling more than 600 metric tons of dry cargo daily – a figure that doubles during the October to December peak season.

“Every day, around 200 to 250 factories send their products by air,” Khan said. “Given that scale, the financial impact is significant.”

The cause of the blaze has not yet been determined, and an investigation is under way.

The incident marks the third major fire reported in Bangladesh this week. A fire on Tuesday at a garment factory and an adjacent chemical warehouse in Dhaka killed at least 16 people and injured others. On Thursday, another burned down a seven-storey garment factory building in an export processing zone in Chittagong.

The government said the security services were investigating all incidents “thoroughly”, and warned that “any credible evidence of sabotage or arson will be met with a swift and resolute response.”

“No act of criminality or provocation will be allowed to disrupt public life or the political process,” it said, urging calm.

Bangladesh is the world’s second-largest exporter of apparel after China. The sector, which supplies major global retailers such as Walmart, H&M and the Gap, employs about four million workers and generates more than a tenth of the country’s GDP.

The fire is expected to delay shipments and pose additional challenges in meeting international delivery deadlines.