Ctg port tariffs poised for steep rise

Bangladesh's external trade is set to get costlier as the government Thursday approved a proposal for increasing tariffs on both goods and vessels at Chittagong seaport, in some cases up to 10 times or above, officials said.

The ministry of finance gave the all-clear to the proposal submitted by the ministry of shipping for taking measures for "improving the quality of services and efficiency" at the country's prime seaport.

Chittagong Port Authority officials say the port-use tariffs have not been increased since 1986. However, it was found that tariffs for five services saw upward revision last time in May 2008.

The port users sharply reacted to the charge hike at a time when export to the United States is "under threat" from a steep 35-percent reciprocal tariff imposed by the Trump administration in addition to the existing 15 per cent.

Under the revised charges, as just approved, port dues per gross register tonnage (GRT) have been increased from $0.241 to $0.306 while pilotage charge (for 10,000 GRT vessel) incised from $357.75 to $800. The shifting charge for night has been raised from $59.60 to $80.

The tugboat charge for 200 GRT to 1000 GRT has been ramped up from $158 to $615, for 1000 GRT to 5000 GRT from $316 to $615, for 5000 GRT to 10000 GRT from $632 to $1230.

For the vessels over 10000 GRT to 20,000 GRT tug charge is re-fixed $2050 and over 20,000 GRT the charge will be $3415.

The rate for the hire of tugboat for any other purpose is increased from $158 to $512.50, ship berthing or un-berthing charge increases from $88.50 to $94.32 and  mooring- occupancy charge raised from $167 to $224.85.

Also, the jetty crane charges for below-10-tonne capacity has been increased from $42 to $58.24, quay gantry-crane charge (loaded), not exceeding 21-foot, increased from $15 to $20.80, and over-21-foot-crane charge increased from $22.50 to $31.20.

The tugboat cost for fire fighting is to see over tenfold increase in the latest revision-from $30 to $325.89.

Diving-board charge increases from $178.60 to $286.21, hire for salvage-diving unit shoots up from $71.50 to $344.59, dredger rentals increase from between $2235 and $4470 to $10,281.

Entry fees for people and vehicles are also to see a significant rise. A gate pass (temporary) for one user will now cost Tk 100 in a rise from previous Tk 25 while covered van, truck, and trailer-entry charge will go up to Tk 200 from Tk 12.5.

In the multipronged rate-rise package, the port authority is raising charge for hiring dump barges from $41.70 to $68.37 while the same for explosives barges will be from $59 in the past to $98 now.

The charges for loading or discharging containers are also seeing a good rise. Boxes not over 21 feet will be charged $68 from previous $43, while boxes over 21-foot size will be charged $102 from previous $65, and over 40-foot containers will be charged $115.

The Less-than-Container Load (LCL) containers loading or discharging charge-for not over 21-foot size-will be $204 from $130, for over 21 feet will be $306 from $195, while over 40-foot containers will be charged $344.

Empty containers-not over 21-foot size-will be charged $34 in a hike from the present $22.10, over 21-foot boxes will be charged $51 from current $33.20, and the over 40-foot containers will be charged $57 for loading or discharging.

Rakibul Alam Chowdhury, a former vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), sees the government move to increase port charges as "illogical" as no exporter would be able to absorb this additional cost.

"Without any consultation with port users and without any improvement in service quality, the hike in service charges cannot be considered business-friendly," he told the FE, in an instant reaction.

Mr Chowdhury questions how the entrepreneurs would be able to run their businesses or make new investments amid such "policy and infrastructure uncertainty".

syful-islam@outlook.com