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For the first time in decades, the tariffs for various service sectors at Chittagong Port are set to be raised. The new rates are awaiting publication in an official government gazette.
The news of a sharp one-time hike in service charges has alarmed port users, who fear the impact will ripple through the broader business sector and ultimately affect consumers.
During a visit to the New Mooring Container Terminal (NCT) of Chittagong Port on Friday, the shipping advisor confirmed the tariff hike but did not specify the percentage of the increase.
Port users say the proposed rates are several times higher than what they had suggested. They warn that the increase will be a burden. While port users had proposed a 10–15 percent hike, no further discussions took place after the initial round of talks.
Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association, said: “We don't agree with the proposed increases across various port service categories. We also believe now is not the time for a tariff hike. This will ultimately hurt businesses and trade. I think the tariff proposal should be reconsidered.”
Chittagong Port Authority (CPA) charges tariffs for services rendered to ships and containers once they enter the country’s maritime zone. These fees are typically paid by shipping companies, container operators, and import-export businesses. Shipping agents act on behalf of ship owners, while clearing and forwarding (C&F) agents pay the charges on behalf of importers.
A leader of a port user group said a meeting was held on Jun 2 at the Ministry of Shipping to discuss revising the port's tariffs. Port users provided their feedback, but the decision to raise tariffs was made without any further discussion.
“Raising tariffs under the current circumstances will hurt businesses and will inevitably impact consumers,” he said.
According to port officials, the current tariffs in most categories were set in 1986. There has been no comprehensive increase in nearly 40 years, except for five essential service items that saw minor hikes in fiscal year 007-08. Attempts to revise tariffs in 1996 and 2012 failed to materialise.
The CPA began working on a tariff revision in 2020 and appointed a Spain-based consulting firm to update the structure. The final proposal was submitted in 2022 and sent to the Ministry of Shipping in February this year after multiple rounds of internal discussions.
A CPA official, speaking on condition of anonymity, said the port currently collects charges in 52 categories, which have been consolidated into 23 for consistency.
According to port users, the handling charge for a 20-foot container is currently about $43. Under the new tariff, it will exceed $70. Currently, imported goods in containers are stored free of charge in the port yard for the first four days. On the fifth day, the charge is $6 per container, rising to $6.90 under the new rates.
Port Secretary Omar Faruk said the tariff hike aims to improve service quality.
“The port's capacity has increased significantly, and we’ve invested in modern equipment and improved facilities. As a government entity, raising tariffs is necessary to match our upgraded services.”
Khairul Alam Suzan, a director of the Shipping Agents' Association, said: “The tariff hike will have far-reaching effects on industrialisation, trade, and the overall economy. While development is essential, it must be inclusive, sustainable, and geared toward national welfare.”
He noted that Chittagong Port is already profitable, with surplus income even after covering modernisation and operational expenses.
“Raising tariffs now may disrupt trade and industry and create macroeconomic imbalance,” he said.
“A rise in tariffs means increased import-export costs, which will directly affect market prices and indirectly burden consumers, especially for raw materials and essential items reliant on imports,” he added.
Former first vice-president of BGMEA SM Abu Tayeb said that businesses were already under significant pressure and facing heightened competition.
“Production costs have gone up for various reasons. Hiking port tariffs now would be a crushing blow,” he said.
Another businessman noted that the garment, leather goods, and light engineering sectors are already struggling to remain competitive in global markets.
“Raising tariffs now would increase production costs and hurt export competitiveness,” he said.
Traders widely argue that higher tariffs will raise the cost of doing business, ultimately affecting consumers.
However, port official Omar Faruk believes the impact on consumers will be minimal.
“The actual increase is minimal and has been carefully calculated. Its effect on end consumers will be negligible,” he said.