Meeting on proposed tariff hike at Ctg port tomorrow

Shipping ministry has convened a high-level meeting tomorrow to review Chattogram port's proposed new tariff structure with stakeholders, port users and officials amid differences between the port authority and users over the plan to increase charges.

Shipping Adviser Brigadier General (retd) M Sakhawat Hossain is expected to preside over the meeting, which will be the second on the issue. Sources indicated that port users and stakeholders may raise strong objections against the tariff hike during the discussion.

Earlier, a high-level meeting on the matter ended without any decision. On June 2, representatives from about 28 government and private organisations, including the Chittagong Port Authority (CPA), attended the meeting at the shipping ministry chaired by the shipping adviser.

Exporters, importers and trade bodies have already expressed concern over the CPA's plan to increase charges, saying the proposed rates are several times higher than what they had recommended and would ultimately add pressure on businesses.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Shipping Agents' Association (BSAA) have formally requested the CPA not to implement the new tariffs.

In its letter, the BSAA noted that fees for port entry, pilotage, loading and unloading have been raised from nearly 50 per cent to more than double, describing the proposed structure as "unreasonable and untimely."

BSAA Chairman Syed Mohammad Arif 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. The tariff proposal should be reconsidered."

The association further argued that the CPA is operating in a monopoly market while its facilities, infrastructure, efficiency and service standards remain below international benchmarks.

Echoing similar concerns, Chattogram Metropolitan Chamber of Commerce and Industry (CMCCI) Senior Vice President AM Mahbub Chowdhury dismissed the CPA's claim that tariffs had remained unchanged for four decades.

He pointed out that as port charges are paid in US dollars, the depreciation of the taka has effectively increased the cost every year.

"In 2008, when the dollar was Tk 76, we paid fees at that rate. With the dollar now at Tk 121 or more, we are already paying significantly higher charges," he said. "If the new tariff structure is implemented, consumers will suffer, inflation will rise and commodity prices will face upward pressure."

According to port officials, most of the existing tariffs were set in 1986. Since then, there has been no comprehensive revision, except for five items that saw minor hikes in the fiscal year 2007-08. Earlier attempts in 1996 and 2012 to adjust the structure also failed.

CPA officials argue that operating under a tariff regime nearly four decades old is no longer sustainable and that the proposed changes are necessary to align charges with current costs and demands.

However, BSAA leaders warned that the move could create a crisis for businesses, noting that Bangladesh's port charges are already among the highest in South Asia.

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