Bangladesh faces $1 billion blow after airport logistics blaze, experts say

Bangladesh faces potential economic losses exceeding $1 billion following a massive fire that engulfed the cargo village at the country’s main international airport on October 18, devastating a key logistics hub during one of the busiest times of the year.

The blaze, which raged for more than 27 hours before being extinguished, destroyed large volumes of clothing, raw materials, and other goods awaiting export. According to industry leaders, the damage could cripple several export-oriented businesses, especially within the country’s vital garment sector, BBC reports.

The inferno erupted in the logistics section of Hazrat Shahjalal International Airport in Dhaka, forcing a temporary suspension of flights and disrupting airport operations. Local media report that at least 35 people were injured while working to contain the flames.

Bangladesh, the world’s second-largest garment exporter after China, relies heavily on its textile industry, which generates around $40 billion annually—more than 10% of the country’s GDP. Major global retailers such as H&M and Walmart source products from the country.

The destroyed cargo included not only high-value textiles but also pharmaceuticals, chemicals, and other export items. Some of the materials lost were “essential” product samples used to secure new buyers, said Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). "This means affected businesses could lose out on future opportunities,” he warned.

In an email to the BBC, the International Air Express Association of Bangladesh also estimated damages of more than $1 billion.

The BGMEA has since urged all its members to submit detailed inventories of destroyed goods in order to assess the full extent of the losses.

The fire at the airport marks the third major blaze in Bangladesh within just one week. On October 14, a warehouse fire claimed at least 16 lives, while on October 16, a seven-story clothing factory in Chittagong was completely gutted.

While the cause of the airport fire remains under investigation, unverified theories circulating on social media have linked the three incidents, alleging they were “pre-planned.” Political parties have in the past used such tragedies to attack rivals, often without conclusive evidence or accountability.

The country’s interim government issued a statement vowing firm action if “any credible evidence of sabotage or arson is found.”

Bangladesh has long struggled with industrial fires, frequently attributed to poor infrastructure and lax safety enforcement. Hundreds have died in similar incidents over the past decade, drawing international scrutiny but little sustained reform.

By Vafa Guliyeva