Fire at Dhaka's main airport cargo village disrupts operations as garment exporters face mounting supply chain pressures
Bangladesh officials have launched an investigation into the cause of a huge fire within the cargo area of Hazrat Shahjalal International Airport (HSIA).
According to local reports, the fire began in the afternoon of 18 October before being brought under control with flights resuming later in the evening.
Local manufacturers' associations have claimed that the fire could have caused $1bn in product losses. It is mainly thought to have affected the import area of the airport, which contains important garment samples as well as other imports such as pharmaceuticals and components.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said that, according to the Fire Service and law enforcement agencies, the fire originated in a chemical warehouse.
"The affected facilities are not members of BGMEA, nor affiliated with any recognised industry association, nor covered under the Ready Made Garment Sustainability Council (RSC). These units are therefore not part of the formal, export-oriented, ready-made garment industry in Bangladesh.
"We request the Department of Inspection for Factories and Establishments and relevant authorities to ensure that due diligence is maintained across all industries to uphold the highest standards of compliance, for the greater interest of both our industries and the nation’s reputation.
"Particularly, we urge the government to take firm enforcement measures to ensure that no illegal facilities or warehouses operate outside regulatory oversight."
BGMEA instructed its members to clear imported materials within 36 hours to minimise disruptions in production and exports.
The organisation also encouraged authorities to initiate an impartial investigation to determine whether the fire was an accident or sabotage, ensure comprehensive support and adequate compensation for affected entrepreneurs, facilitate expedited arrangements for new shipments to maintain the industry’s regular flow, and strengthen security for export goods in sensitive airport areas to avoid concerns among foreign buyers.
The Ministry of Civil Aviation and Tourism confirmed that it had formed a committee to investigate the source and cause of the fire at the cargo village, determine responsibility and prevent the recurrence of similar incidents in the future.
The fire comes just as Bangladesh's garment industry is gearing up for the busy Christmas export season and is expected to cause supply chain delays.
It also comes as exporters from the country are facing rate hikes at Chittagong port and US tariffs of 20%.
