Trade
5 years ago

Lower charges for Ctg port users during holidays

Trade bodies hail decision

Photo courtesy: ADB
Photo courtesy: ADB

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Updated :

The government has decided to offer concession on port charges for users during holidays in an attempt to keep cargo delivery uninterrupted like working days in the Chattogram port, people familiar with the development said.

The decision was taken since cargo delivery from the port during holidays was found to be poor compared to normal days, they said.

Shipping secretary Abdus Samad told the FE on Wednesday that during holidays, Chattogram port users would pay lower charges compared to weekdays.

"The port authority will fix the range of concession that can be given," he said.

"We have already asked the port authority to take action in this connection," he said.

One person said the issue was discussed at a recent meeting of the National Committee for Monitoring Implementation of Doing Business Reforms with cabinet secretary Mohammad Shafiul Alam in the chair.

The meeting discussed that users would feel encouraged to handle cargoes during weekly and festival-related holidays if waiver of port charges is offered.

The shipping ministry has taken the decision after the issue was discussed in the meeting.

Chittagong Port Authority (CPA) chairman Zulfiqur Aziz had earlier told the FE that he was working on the issue.

He said the rate of port charge reduction would be fixed after getting the final go-ahead from the ministry of shipping.

According to officials, presently users pay around Tk 10,000 in port charges for an import or export container.

They said during the weekly and other government holidays users show reluctance in getting the delivery of containers, which results in stockpile of containers at the port yard.

"If a handsome cut in port charges is offered, users will take interest and take delivery of cargoes on the holidays," said another CPA official.

Since users show unwillingness to get containers delivered, on occasions it was found that the number of containers at the port yard went beyond its storage capacity, the official said.

He said stockpile of an increased number of containers also hampered the movement of container and lowered productivity rate.

Top business leaders praised the decision, saying that the incentive would boost the use while helping to keep the country's prime seaport congestion-free.

President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Shafiul Islam (Mohiuddin) told the FE on Wednesday the country's external trade had been highly reliant on the Chattogram port since the independence.

The other ports like Mongla or under-construction Payra are not well connected with the rest of the country, he said.

"Any kind of disruption in Chattogram port activities hampers our business," Mr Mohiuddin said.

"The initiative is praiseworthy," he said.

President of the Exporters Association of Bangladesh (EAB) Abdus Salam Murshedy termed the initiative "very inspiring".

"The step will encourage the businesses to use the port during the holidays," he said, adding congestion at the port yard will also go down significantly.

"It's a time befitting and realistic move," Mr Murhsedy added.

The port handled 2.904 million TEUs (twenty feet equivalent unit) of containers in the year just gone by against 2.667 million TEUs a year back, recording nearly 9. 0 per cent growth.

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