Bangladesh airport blaze may cause $1bn in losses, say experts

The Dhaka cargo inferno, which occurred at Hazrat Shahjalal International Airport (HSIA), has led experts and industry associations to warn of potential losses exceeding $1 billion (£750m) after a catastrophic blaze broke out in the logistics section of the country’s main airport on Saturday.

According to the country’s export associations, clothes and raw materials were among the goods destroyed, which could put some business at risk.

Meanwhile, the cause of the fire, which approximately took 27 hours to stamp out, is still under investigation.

The inferno has forced the temporary suspension of airport operations.

Bangladesh is well known for its second-largest textile industry after China, and it generates around $40bn a year, accounting for over a tenth of its gross domestic product.

According to local reports, 35 people were injured while working to extinguish the fire.

However, the damaged cargo village is the major hub for air cargo handling, processing, and logistics and is crucial for the country's trade, fabrics, chemicals and other goods.

The senior vice-president of the Bangladesh Garment Manufacturers and Export Association told Reuters: “Some of the goods destroyed were “essential” samples for securing new buyers which means affected businesses could lose out on future opportunities.”

The investigations are still underway, and the interim government of Bangladesh has released a statement saying, “It would take immediate and firm actions if any credible evidence of sabotage or arson is found.”

The government has officially opened an investigation as the recent incident could cost the country up to $1 billion in damages; this estimate is in line from industry experts and trade association, but it is not a final assessment and puts several businesses at risk.