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Airport fire ruins pharma raw materials worth Tk 200cr

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Al Mamun Harun Ur Rashid :

The massive fire that broke out at the Cargo Village of Hazrat Shahjalal International Airport in Dhaka has inflicted severe losses on Bangladesh’s pharmaceutical and export sectors, raising urgent questions about safety and preparedness at one of the country’s most critical trade hubs.

“the blaze destroyed raw materials of pharmaceuticals worth at least Tk 200 crore,” said Mohammad Zakir Hossain, Secretary General of the Bangladesh Association of Pharmaceutical Industries.

Speaking at a press conference organised by the Exporters’ Association of Bangladesh (EAB) at a hotel in the capital on Monday, he noted that out of 307 pharmaceutical companies in the country, 250 are currently operational.

“By 11 am on Monday, the top 32 companies had reported losses exceeding Tk 200 crore.

They warned that as other companies submit their figures, the total damage is likely to rise,” Zakir Hossain said.

Each pharmaceutical product requires up to 53 different raw materials, meaning the destruction could disrupt the production of medicines valued between Tk 3,000 crore and Tk 5,000 crore.

However, Hossain emphasised that the incident will not immediately affect supply chains.

Hossain also raised concerns about the fate of materials diverted to Chittagong Airport during the fire on Saturday, noting that temperature control is essential for preserving pharmaceutical raw materials, a facility not available on those flights.

He added that precise calculations of losses will be possible once all companies report their damages but insisted that the fire represents a significant economic risk for the pharmaceutical sector.

He further called for year-round customs clearance at airports, similar to international practice.

The incident has also exposed broader vulnerabilities at Shahjalal International Airport. EAB President Mohammad Hatem stated that the fire highlighted the inadequacy of security and safety measures at the Cargo Village, putting both the airport and its operations at risk.

Speaking at the same press conference, he demanded prompt settlement of insurance claims for affected goods and urged the government to establish a special fund to compensate companies and individuals whose goods were uninsured.

Hatem called for the modernisation and expansion of the Cargo Village, the creation of temperature-controlled warehouses for pharmaceuticals, the construction of chemical warehouses at a safe distance, and the adoption of fully automated, technologically advanced warehouse management systems.

He stressed that responsibility for the fire cannot be avoided by the Civil Aviation Authority of Bangladesh, the Customs House, or Biman Bangladesh Airlines, as CAAB owns the facility, Customs oversees imported goods, and Biman serves as the handling agent.

The fire, which started around 2:15 pm on Saturday, October 18, took approximately 27 hours to bring fully under control despite the coordinated efforts of 37 Fire Service and Civil Defence units, supported by personnel from the Navy, Air Force, Civil Aviation Authority, Border Guard Bangladesh, police, and Ansar.

Hundreds of consignments, including garment raw materials, pharmaceutical inputs, electronics, machinery, and other import and export goods, were completely destroyed.

The EAB highlighted that beyond the financial loss, the fire has harmed Bangladesh’s international reputation, raising serious concerns about safety and emergency preparedness at major trade facilities.

Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, called for strict and exemplary punishment for those accountable for the incident.

“Exporters have obligations to their international partners, and incidents like this damage the country’s reputation overseas,” Russell added.

Md Shahriar, President of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association, noted that losses in the accessories sector have already exceeded Tk 23 crore, with companies still submitting damage reports.

At the event, the EAB has set out six key demands in response to the incident.

They called for the prompt resolution of insurance claims for goods affected by the fire and urged compensation and support for uninsured goods through a special government fund.

The association also stressed the need to modernise and expand the Cargo Village with improved safety measures, alongside establishing a dedicated, climate-controlled warehouse specifically for the pharmaceutical industry.

In addition, they recommended relocating chemical storage facilities to a safer distance and implementing full automation and modernization of warehouse management at the Cargo Village using advanced technology.

Meanwhile, in response to the disruption, the Ministry of Civil Aviation and Tourism issued a directive to CAAB to waive all applicable charges for additional and special flights arranged to restore schedules between October 19 and 21.

The exemption, announced in a letter signed by Senior Assistant Secretary Mosammat Shakila Parveen, aims to ease the financial burden on airlines as they recover from the incident.

The government has also formed an investigation committee to determine the cause of the fire and prevent similar emergencies in the future.

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