Categories: Business

Fire at airport cargo complex disrupts Bangladesh’s garment exports

(Reuters) -A massive fire at the import cargo complex of Dhaka airport has caused extensive damage to goods and materials belonging to major garment exporters, with losses and impacts on trade likely to run into millions of dollars, industry leaders said on Sunday. The blaze broke out on Saturday afternoon in the import section of the airport’s cargo village, forcing a temporary suspension of flights. Smoke continued to rise from the charred remains of the facility on Sunday as firefighters and airport officials assessed the damage. The fire gutted storage areas used for imported raw materials, ready-to-export apparel, and product samples — all essential to Bangladesh’s $47 billion garment industry. "This incident has caused serious damage to the country’s export trade, especially the garment sector,” said Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).  “High-value goods and urgent air shipments have been destroyed — including garments prepared for shipment, raw materials for production, and, most importantly, product samples.” He warned that the loss of samples could jeopardise future business. “These samples are essential for securing new buyers and expanding orders. Losing them means our members may miss out on future opportunities,” he added. ESSENTIAL SAMPLES BURNED IN FIRE BGMEA has begun gathering information from affected exporters to determine the extent of the losses. “We have asked all members to submit detailed lists of damaged goods, and an online portal has been launched to speed up data collection,” Khan added. The airport cargo village is one of Bangladesh’s busiest logistics hubs, handling more than 600 metric tons of dry cargo daily — a figure that doubles during the October to December peak season. “Every day, around 200 to 250 factories send their products by air,” Khan said. “Given that scale, the financial impact is significant.” The cause of the blaze has not yet been determined, and an investigation is underway. The incident marks the third major fire reported in Bangladesh this week. A fire on Tuesday at a garment factory and an adjacent chemical warehouse in Dhaka killed at least 16 people and injured others. On Thursday, another burned down a seven-storey garment factory building in an export processing zone in Chittagong. Bangladesh is the world’s second-largest exporter of apparel after China. The sector, which supplies major global retailers such as Walmart, H&M, and Gap, employs about 4 million workers and generates around $40 billion a year — more than a tenth of the country’s GDP. The fire, which struck during the peak export season, is expected to delay shipments and pose additional challenges in meeting international delivery deadlines. (Reporting by Ruma Paul; Editing by Louise Heavens)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

Indianews Syndication

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