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ORAT, which will last between six months and a year,” said Air Vice Marshal Mostafa Mahmood Siddiq, chairman of Civil Aviation Authority of Bangladesh (CAAB).

“We expect to inaugurate the Third Terminal about six months after the test run begins,” he said during a views-exchange meeting with members of the Aviation and Tourism Journalists’ Forum of Bangladesh at the CAAB Headquarters.

Highlighting the risks of rapid transition activities, he said, “Studies by global experts show that around 74 percent of airport transitions have failed. That’s why we are proceeding cautiously to avoid any disruptions after launching of the terminal.”

Asked about the deal with the Japanese consortium, the CAAB chairman said, “The agreement will be fair. We will ensure everything necessary to safeguard the national interest.”

Although both sides have reached consensus on several issues, some gaps still remain, he added.

After around one and a half year’s pause, Bangladesh and Japan resumed talks in March after the BNP government took office in February.

Key issues under discussion include embarkation fees, upfront payments, and revenue-sharing arrangements.

The Japanese consortium includes Japan Airport Terminal Company, Sumitomo Corporation, Nippon Koei, and Narita International Airport Corporation.

The terminal has remained non-operational since its soft launching on October 6, 2023, by then Awami League government.

On several occasions, then CAAB authorities said the terminal would be fully operational by the end of 2024.

But the terminal remained non-operational due to disagreements over management and revenue-sharing between CAAB and the Japanese consortium.

The AL government decided in principle to operate and maintain the terminal by a Japanese consortium under a public-private partnership.

The Japanese company will be responsible for the operational activities of the terminal and CAAB will be in charge of security.

The terminal, with its spectacular aesthetic design, cost over Tk 21,300 crore to build. The government contributed Tk 5,000 crore, with the rest of the amount coming from the Japan International Cooperation Agency (Jica) in the form of loans.

Upon fully-fledged operation of the terminal, HSIA’s annual passenger and cargo handling capacity is expected to double. The annual passenger handling capacity would be 24 million (including the old terminals).

At present, the airport can handle eight million passengers and 5,00,000 tonnes of cargo each year.

In another development, Biman, along with a second ground-handling operator, will be appointed at the Third Terminal to deliver better services and introduce competition in ground-handling.

“The second operator will be engaged from the very first day of the terminal operations...,” the CAAB boss said.

He added that the Japanese consortium, led by Sumitomo Corporation, will have the prerogative to select the second ground handler in addition to Biman.

In October 2024, during the interim government, Biman was given the task of ground-handling responsibilities at the terminal for an initial period of two years.

The decision followed prolonged discussions under the previous administration, when the possibility of appointing a Japanese firm was considered due to concerns raised by foreign airlines over the national carrier’s service quality.

Currently, Biman provides ground-handling services not only for its own flights but also for all 41 international airlines operating from HSIA, generating annual revenues between Tk 1,400 to Tk 1,500 crore.

Passengers and stakeholders frequently criticise its services, particularly baggage handling, for delays and inefficiencies.