Govt. to expand cargo village at BIA with Rs. 2 b investment

• Expansion project aimed at doubling capacity to 500,000 MTs and completion by 2022
• Aviation State Minister requests all line agencies facilitating international trade to submit requirements by this week
• Expects to digitise entire process, introduce new system to increase efficiency

By Charumini de Silva

The Government has decided to invest Rs. 2 billion to boost cargo capacity at the Bandaranaike International Airport (BIA) by 100% to facilitate international trade and to enhance Sri Lanka’s hub status in South Asia.

The expansion at cargo village in Katunayake will increase current capacity from 250,000 MTs to 500,000 MTs per annum. The project is expected to be completed by the first half of 2022. According to the Central Bank Annual Report cargo movements declined by 8.2% to 246,406 MT last year from 268,496 MT recorded in the previous year.

“We had a stakeholder meeting recently on expansion of cargo operations at BIA and visited the Air Cargo Village. The expansion project is now at procurement stage. We have requested all agencies facilitating international trade to submit their requirements within this week,” Civil Aviation and Export Zone Development State Minister D. V. Chanaka told the Daily FT.

Airport and Aviation Services (Lanka) Ltd. is in the process of constructing a new cargo import terminal and cargo village gateway entrance building with state-of-the-art facilities.

The State Minister said the Government expected to digitise the entire process and introduce a new system at the cargo village at BIA to increase efficiency.

“We are also conducting a feasibility study on the special scanners that are needed at the airport to facilitate international trading. We have received several complaints about difficulties faced by exporters. With the new scanners we hope to expedite clearance of export and import cargo and ensure the goods are inspected without delay,” Chanaka added.

Along with the expansion that is underway, he said the air cargo terminal would undoubtedly play a key role in supporting the needs and demands of the industry.