The Exporters Association of Bangladesh (EAB) has said that the country's exporters are “alarmed” and foreign buyers are “anxious” after the fire at the cargo village at Dhaka's Hazrat Shahjalal International Airport.

The organisation's president, Mohammad Hatem - who is also the president of BKMEA - made the remarks at a press briefing on Monday.

He said, "The recent fire at the cargo village of Hazrat Shahjalal International Airport, one of the most important pieces of infrastructure for the Bangladesh's economy, has become a big warning sign for our business community and export-oriented industries."

"We’re alarmed and our foreign buyers are also anxious.”

Hatem said, "Incidents like this clearly prove that the security measures at the cargo village are not effective enough and that it is extremely risky in terms of security."

"Similarly, Shahjalal International Airport is also exposed to security risk."

The briefing was held by the sector-wise apex bodies of the BKMEA, BGMEA, BTMA, BGPMEA, as well as associations for the leather and leather goods, fruit and vegetables, pharmaceutical industry, jewellery exporters, sewing thread, frozen foods, plastic goods, silk goods, handicrafts, craft and giftware sectors, and other related associations.

The initial estimate of the damage stood at “Tk 120 billion”, according to the organisations.

On behalf of the organisations, Hatem said: "It is difficult to determine the extent of the losses the exporters saw in the fire at the moment. There was direct damage as the products were burnt in the fire; but this was not the only direct damage - there was even greater damage as the products made from the burnt raw materials could not be exported."

"Because of the fire, import and export activities will be disrupted over the next few days. There is a risk of losing the market, buyer confidence falling, and chances of international agreements being affected."

"We are trying to determine the extent of the damage by sending urgent messages to our members, but we don't have a complete picture yet. It’ll be possible to get an accurate picture of the overall damage after a transparent and thorough investigation," he said.

"Even then our estimates show that primarily the damage stands at $1 billion or Tk 120 billion.”

'PHARMACEUTICAL RAW MATERIAL WORTH TK 2BN BURNT’

Bangladesh Association of Pharmaceutical Industries (BAPI) General Secretary Zakir Hossain said, “We wrote to 32 companies to learn about their losses. We found that their raw materials worth Tk 2 billion had been burnt.”

He criticised the closure of customs house tariff collection on weekends from Thursday evening.

He said it should be on for 24 hours, even if conducted at a smaller scale. “We are ready to pay extra for it.”

Otherwise, another devastating fire like this could lead to a shortage in the supply of important public health products, he said.

Highlighting his own losses he said, “One of my narcotic items got burnt. Now it's a matter of three to four months to get permission to import it again, get it approved by the Department of Narcotics and Drugs, and import it from abroad. It’ll take a very long time."

GOVT OFFICES RESPONSIBLE

The EAB president said, "The Civil Aviation Authority of Bangladesh (CAAB), Custom House and Biman Bangladesh Airlines - no one can avoid the responsibility for this fire incident.”

"Because, CAAB is the owner of this cargo village, the customs authority is the supervisor of imported goods, and Biman Bangladesh Airlines is the handling agent."

Hatem also complained that "not one of the concerned authorities paid due attention to ensure adequate security" at such a sensitive location.

In his words, “The current warehouse management is very weak and still operated manually. In addition, the long customs clearance process leads to a large backlog of goods, further exacerbating the limited space crisis.”

"Warehouses for sensitive products like chemicals and pharmaceutical raw materials should have been located separately, more securely, and at a safe distance. This incident has not only caused financial losses; it also tarnished the country's image severely."

Bangladesh Textile Mills Association (BTMA) President Shawkat Aziz also demanded a speedy investigation and punishment for those authorities responsible.

EAB’S 6-POINT DEMAND

The EAB president said, "I urge the government to quickly implement the following steps after a full investigation into this incident and assessment of the damage."

They are:

1) Providing necessary instructions for the speedy settlement of insurance claims against goods damaged in the fire.

2) In case of products that were not insured, a special government fund should be formed to provide compensation and assistance to the affected organisations or individuals.

3) Modernisation and expansion of the cargo village, ensuring future security.

4) Provision of separate, modern air-conditioned warehouses for the pharmaceutical industry.

5) Establishing chemical warehouses at a safe distance.

6) Make the warehouse management of the cargo village fully automated and base it on modern technology.