Kolkata: DHL Express (India) Pvt Ltd, in association with Blue Dart Aviation, is planning a direct link between Kolkata and Dhaka in a bid to compete with the unorganised express and logistics sector in SARRC countries. The new service is likely to become operational in approximately two months time.

The new route will reduce time and costs for DHL, for earlier the cargo would travel to Dhaka from Kolkata, via Singapore.

"Blue Dart Aviation would run a direct flight to Dhaka in two months time and this would help bringing down our cost by at least 20 per cent in addition to the transit time," said Craig Grossgart, vice president, DHL Express (India) Pvt Ltd.

According to the company, the cost benefits would be passed on to the customers enabling a lower product cost. "Earlier we couldn't compete with the unorganised nature of the sector in this part,  but now we can compete with anybody, as the pricing would be more competitive," Grossgart said.

Eventually, the company plans to venture into other SAARC nations, particularly Pakistan and Sri Lanka.

"We would definitely like to be a first mover in the virgin territories of the region," Grossgart said. Keeping this strategy in mind, the company is designing an intra-SAARC product, which would be multi-modal in that it would use both air and surface networks.

The new scheme is undergoing pilot tests and may be launched soon. Keeping these plans in mind the company has inaugurated a 16000 sq ft, new state-of art facility at Kolkata.

"This facility at Kolkata would be a hub to tap the Bangladesh market. The trade between India and Bangladesh is estimated to be around euro 1.4 billion, of which 66 per cent can be handled by DHL," Grossgart said.

Meanwhile, Blue Dart will add one more Boeing 757 cargo aircraft to its fleet by the end of the year. Currently the company operates a fleet of seven aircraft, of which three are Boeing 737 and the other two Boeing 757s.

"We are planning to add one more Boeing 757 by the end of this year and also upgrade all the 737 versions with 757 ones," said Ketan Kulkarni, head, marketing, Blue Dart.

DHL Express holds a 81 per cent stake in the Chennai-based air cargo company.