Bangladesh Economic & Infrastructure Development - Updates & Discussions

[Bilal9]

Utility cabling in Dhaka to go underground, Dhanmandi to be first test case. SCADA monitoring for fault-finding use.

 

[saif]

Utility cabling in Dhaka to go underground, Dhanmandi to be first test case. SCADA monitoring for fault-finding use.

Chinese technology is being used for this project.

 

[Bilal9]

Chinese technology is being used for this project.

Yes - even all better and more recent projects use Chinese tech. It is much more appropriate for us.

I don't think we are ready for Chinese bleeding edge advanced tech (comparable to Japanese or EU tech) at this time but Chinese mid-level technology is very appropriate (and economical too).

 

[Bilal9]

Air Transport Services Group to lease 1st freighters in Bangladesh​

Bismillah Airlines seeks aircraft to grow in local cargo market​

Eric Kulisch

·Monday, October 09, 2023

A maintenance and repair supplier in Florida reconfigures an A321 passenger plane to carry cargo using a modification kit from 321 Precision Conversions. ATSG shares ownership in the company with Precision Aircraft Solutions based in Oregon. (File Photo: 321 Precision)

FreightWaves
Air Transport Services Group to lease 1st freighters in Bangladesh

4 min



Bismillah Airlines, a small, all-cargo airline in Bangladesh, has agreed to lease two narrowbody Airbus freighters from Air Transport Services Group, which has made it a strategic priority to diversify business by leasing cargo aircraft to customers outside the United States, FreightWaves has learned.

ATSG (NASDAQ: ATSG) has leased an Airbus A321 converted freighter into Bangladesh, Chief Executive Rich Corrado said early last month during the TD Cowen Global Transportation Conference. Company officials declined to elaborate or identify the customer when contacted afterward.

A source close to the freighter leasing, operating and maintenance company said Bismillah Airlines has committed to lease two of the freighters, to be converted by 321 Precision Conversions, a joint venture between ATSG and an aerospace company that produces kits for converting used passenger aircraft into dedicated cargo jets.

The transaction fits with other publicly available information about Bismillah Airlines’ plans. The cargo operator, which is owned by the Mollah Group of Industries, recently told industry publication Cargo Facts that it is acquiring A321 freighters and expects delivery of the first aircraft by early next year.

Bismillah Airlines is one of six cargo carriers based in Bangladesh, but it doesn’t appear to currently have any aircraft under license. It once operated its own aircraft, including three Soviet-made An-12Bs, a Lockheed L-1011-1 and a Boeing 747-200. The new leases suggest the company, which could not be reached for comment, is preparing to resume service.

ATSG is a vertically integrated aviation company that buys secondhand aircraft, pays to have their interiors remodeled for transporting heavy shipping containers and offers services, including flying, that can be purchased a la carte or bundled with a lease. In the United States, Amazon and DHL sublease aircraft back to ATSG’s two cargo airlines to operate on their behalf.

ATSG has historically leased Boeing 767 medium widebody freighters but in July leased its first two Airbus A321 narrowbody freighters to Raya Airways, a scheduled all-cargo carrier in Malaysia. The Wilmington, Ohio-based aviation company is also expanding its aircraft offerings to the A330 converted freighter to attract operators that prefer Airbus products and to defend against the declining supply of 767 passenger jets still economically suitable for conversion.

ATSG also delivered 767-300 freighters in July to overseas customers Georgian Airlines, Cargojet in Canada and SkyTaxi in Poland.
The company is on track to lease 19 new aircraft this year, with three-quarters of them going to international operators hired by large express delivery companies that need capacity to meet strong e-commerce demand. ATSG has commitments for 16 new leases in 2024.

E-commerce is growing faster in many regions of the world than in established economies like the United States, and consumers are ordering goods that require more cross-border transportation.

Management says the company is well positioned to take advantage of an estimated 38% growth in e-commerce sales through 2027, with e-commerce shipping volumes expected to grow faster than the 3.5% to 4% annual rate of general air cargo.

“Some of those emerging networks are just forming now to fulfill the e-commerce needs of those geographic areas,” said Corrado. Executives say there is plenty of room to grow in markets such as Mexico, India, Brazil and Canada where e-commerce is still less than 15% of total retail sales.

It’s not known if Bismillah has an agreement to operate the A321s for an express delivery provider, but Corrado suggested that such relationships give ATSG confidence in the creditworthiness of overseas customers because their finances and capabilities have already been vetted.

“These airlines that we’ve leased to in other parts of the world generally fly for DHL, UPS, FedEx, and Amazon. That means although we’re not getting the good credits that we have with Amazon, with DHL and UPS, their customer, we know very well because their customer is also our customer,” he said Sept. 27 at a special ATSG briefing for investors in New York.

(Bilal's note: Molla Industries' main product is Molla Salt, household name in Bangladesh).

 

[Bilal9]

Video article on Mongla Export Zone near Khulna, Bangladesh (adjacent to Mongla Port)

 

[saif]

Video article on Mongla Export Zone near Khulna, Bangladesh (adjacent to Mongla Port)

Can the Hasina govt. claim credits for the ongoing progress in Khulna? In my opinion only the private sector of Bangladesh can be credited for the ongoing progress in Khulna and elsewhere.

 

[Bilal9]

Can the Hasina govt. claim credits for the ongoing progress in Khulna? In my opinion only the private sector of Bangladesh can be credited for the ongoing progress in Khulna and elsewhere.

You'd be correct, only private sector invested in the EPZs. Despite the rather sad sack infra.

But Khulna is going to get a huge boost due to the Padma Bridge, as would Paira, where I believe another EPZ is planned.

Having a close-by port is a must for a successful EPZ.

 

[Bilal9]

Chittagong Karnaphuli tunnel is helping industrial development and EPZ expansion on South side of the city.

 

[saif]

Chittagong Karnaphuli tunnel is helping industrial development and EPZ expansion on South side of the city.

Do they have generator in case electricity goes out?

 

[Bilal9]

Do they have generator in case electricity goes out?

Yes - they have captive power generation as well as triple-redundant power supply connections from the grid like all Mega-projects currently in implementation mode.

This is a part of planning in all mega-projects.

 

[Bilal9]

Dhaka Metrorail MRT-6 2nd Phase being extended to Motijheel (main commercial area and Downtown of Dhaka) and all Station readiness status. 3rd Phase extension to Kamalapur logistics hub is in construction and to be completed by 2nd Quarter 2024.

I am glad we spent the extra money and gave it to the Japanese. Their standards and execution are quite nice (and I might add, rather picturesque). They are one of the better countries to benchmark (in addition to of course, China) and our people will be better trained that way.

 

[Bilal9]

Indian visitor reaction to Dhaka

 

[saif]

Indian visitor reaction to Dhaka

I wish all Indians on PDF were like him.

 

[Bilal9]

I wish all Indians on PDF were like him.

This is a decent middle or upper middle class educated person.

I don't know if one could say the same about the people here on PDF.

 

[Tom-tom]

Someone kept complaining about vanity projects. All I see is things that help to increase growth and productivity whilst ppl are becoming uplifted.