CPA won't compensate for any cargo damage

The Chittagong Port Authority (CPA) would not entertain any compensation claim that may come from any port users against their damages due to incessant rain, followed by a severe inundation in the port areas from August 05 onwards.

It had not received any such claim until Friday, but issued a notification beforehand late last week on apprehension of prospective claims as the port city experienced record-breaking rainfall last month when vast areas went under water.

Businesses, however, argued that the CPA will have to compensate for any damage to cargo due to keeping those in the low-lying areas of the port yards. Terming the natural calamity as an 'Act of God', the authority has "disclaimed, renounced, and disowned" any claims to be made, according to the notification issued by the CPA director (traffic).

"…the Chittagong Port Authority is not at all liable and shall not be answerable for any losses or damages that apprehended to have been caused due to occurrence of incessant rain…" said the notification late last week.

It further elaborated that the CPA would not accept compensation claims of any damages created inside the 'Port Protected Area' and other areas to the goods/cargo of all kinds, including container cargo, containers lying either as import cargo or for onward export or otherwise.

The notice drew attention of all concerned including consignees, importers, shippers, exporters, shipping agents, and all users of the Chittagong port.

The CPA said the natural calamity is an 'Act of God' and for the consequences of which, the authority is "not at all liable" in law and is "immune" from all consequences under the Regulation-199 (14) of the Regulations for Working of Chittagong Port (Cargo & Container), 2001.

Also, the authority is not liable for such a claim of compensation under the relevant provisions of the Chittagong Port Authority Act, 2022.

Some 30,000 TEUs (twenty-foot equivalent units) of containers are currently lying at the port yards while some 2,200 to 3,000 TEUs enter the port areas everyday for outbound shipments.

The 19 privately owned inland container depots that handle export and import containers also have the capacity to store a total of 77,700 TEUs of containers.

The Chittagong region experienced heavy rainfall in August, breaking the record of three decades. The incessant rainfall that began on August 5 inundated most parts of the port city and its adjacent areas, almost halting the movement of people and vehicles.

Water also entered the premises of some of the off docks, according to an official concerned. Water may have also inundated some parts of the port yards during the incessant rain, he added.

An official of the CPA told the FE Thursday that none of the businesses are yet to submit compensation claims to the port authority, but the notice was issued apprehending that such claims might be placed at any time.

Contacted on Friday, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mahbubul Alam, however, disagreed with the CPA's stance.

"There was no cyclone or devastating flood in August apart from the heavy rain. If any damage of cargoes occurred, that may be due to the CPA's mismanagement," he said.

He further said that if the CPA keeps cargoes or containers in the low-lying areas and they get damaged, "the port authority must compensate for it".

"The authority cannot avoid its responsibilities by terming the reason of damages as an 'Act of God'," said Mr Alam.

[email protected]