3rd Terminal Ground Handling: Menzies Offers $12 Million Investment, Promises Jobs as International Competition Intensifies

International competition in ground handling services has taken on a new dimension around the third terminal of Hazrat Shahjalal International Airport. Several of the world’s leading airport service providers are showing interest in entering Bangladesh’s aviation sector, with commitments of investment, modern technology, skilled manpower and job creation.

The contenders are UK-based Menzies Aviation, Switzerland’s Swissport, Turkey’s Celebi Aviation Holding and UAE-based Dnata. According to the relevant information, the companies have been shortlisted to take part in the operation and maintenance of the third terminal under the Japanese consortium.

The selection of the final operator is expected to move forward after the Civil Aviation Authority of Bangladesh (CAAB) verifies the companies’ security, technical capacity and compliance with regulatory requirements.

Biman Bangladesh Airlines has long dominated ground handling services at the country’s main airport. Those concerned believe that if international companies are confirmed under the new arrangement, competition in the sector will increase, and service standards, use of technology and operational efficiency may change.

Menzies ahead on global experience

Menzies Aviation is the talk of the competition because of the breadth of its international operations and its experience. According to information provided by the company, it operates at 350 airports in around 65 countries and has around 65,000 employees.

The company has international experience in passenger services, cargo management, ground services for aircraft operations and various operational activities at airports. Drawing on this experience, it is planning to introduce ground handling services in Dhaka based on modern technology, security systems and skilled manpower.

Turkey’s Celebi Aviation, meanwhile, operates at more than 60 airports in five countries and has around 9,000 employees, according to the information received.

However, there is no guarantee that a company with broader international operations will be finally selected. Technical capacity, the realities of investment, security standards, financial proposals and the ability to meet the airport’s needs will play the decisive role in the final selection.

Plan to invest $12 million

Menzies Aviation has planned to invest more than 12 million US dollars to run ground handling operations in Bangladesh. At the exchange rate, this could come to around Tk 140 crore.

The proposed investment covers ground support equipment, modern technology, operating systems and staff training. If these initiatives are implemented, there could be scope to improve efficiency in baggage handling, turnaround of aircraft for the next flight and other ground services.

According to Charles Wyley, Menzies’ executive vice president for the Middle East, Africa and South Asia, the company is planning to create more than 1,000 direct jobs in Bangladesh. The target is to recruit around 99 percent of these positions locally.

The company also said there is potential for around 4,500 indirect jobs in supplier companies, transport services, equipment maintenance and other related sectors.

However, these commitments on investment and employment are based on proposals. The real picture of implementation will become clear only after final approval, contracts and the start of operations.

Proposal to set up aviation training academy in the country

Another important aspect of Menzies’ proposal is the establishment of an aviation training academy in Bangladesh. Through it, the company plans to train local staff in ground handling, airport security systems, equipment operation and passenger service at international standards.

If such training can be launched, it could build skilled aviation workers in the country and increase its capacity to deliver services of international standard. At the same time, it would create scope to reduce dependence on foreign experts in the long run.

Building skilled manpower in step with the expansion of the aviation sector is important for Bangladesh. In particular, once the third terminal is fully operational, the demand for trained staff may rise alongside capacity to handle passengers and flights.

Menzies says it has been preparing for some time

This is not Menzies Aviation’s first move to enter Bangladesh’s ground handling market. According to the company, it submitted an application to CAAB in 2018 in response to an Air Navigation Order inviting applications for licences from international ground handling companies.

Menzies claims its application in that process was submitted with the necessary technical and operational documents. The company said these included safety guidelines, operating standards and other regulatory documents.

The company also said it has already set up a local company named Menzies Bangladesh Limited. It claims that, if the necessary approvals are granted, it can begin operations within three months, using its international network and prepared operating systems.

However, CAAB’s formal position needs to be confirmed on the relevance of the earlier application or approval to the current process, and on the timeline for starting operations.

Improving passenger service is the big challenge

Questions have long been raised at Hazrat Shahjalal International Airport about delays in baggage delivery, the extra time taken to turn aircraft around for the next flight, and the coordination of ground services.

In this situation, bringing in an international-standard ground handling operator could create scope to improve service quality, use modern equipment and increase accountability in operations. But simply appointing an international company will not bring the expected change. This requires specific performance indicators, regular monitoring and accountability under the terms of the contract.

It is important that the contract clearly includes matters such as fixed baggage delivery times, aircraft turnaround efficiency, the security situation and penalties for service failures.

New opportunities for investment and competition

The participation of leading aviation service providers has created new possibilities for airport management in Bangladesh. If a suitable operator can be selected through a competitive process, there may be greater scope to attract foreign investment, create local jobs, transfer technology and build skilled manpower.

Menzies Aviation’s wide international operations, proposed investment, local recruitment and plan for a training academy place the company in a notable position in the competition. However, the final decision will depend on the relevant authority’s evaluation, the financial and technical proposals, and the terms of the contract.

The most important question for those concerned now is how far international experience and investment commitments will translate into effective service in practice. The success of the third terminal will ultimately be determined by safe flight operations, fast baggage delivery, better passenger service and long-term gains in efficiency.