A CPA circular had said the enhanced charge would be effective from today (February 1) but facing strong opposition from the Shipping Agents Association, the decision was postponed until February 21, sources said.

Nine out of 48 feeder vessels operating on the main routes connecting Chittagong and Singapore, Malaysian and Sri Lanka ports are gearless.

The Chittagong port authorities issued a circular on Monday saying that the handling charge for a loaded 20-feet container would be $14.60 instead of $3.63 earlier while the port would charge $21.80 dollars for a 40-feet container instead of previous rate of $5.80, said the source.

The new charge would be applicable for gearless ships that do not carry any crane on board. The charge for the ships with gear would be one-fourth of the rate, said the circular.

The unilateral decision of increasing handling charges angered the Shipping Agents Association who held an emergency meeting with the CPA chairman and other high officials yesterday.

The shipping agents decided not to comply with the decision of increasing handling charges.

The enhanced charge for gearless ship would keep negative impact on cargo handling at the port and it would discourage the feeder vessel operators, they said.

The business community also protested the decision saying that it would keep serious impact on the consumer items.

The sophisticated gantry cranes installed spending Tk 150 crore are used mainly for handling container of gearless vessels that cannot operate without such a crane at a port.

After installing the cranes last year, the number of ships calling at Chittagong Port increased significantly, sources said, adding that the port authorities increased the charge following a compensation claim Saif Powertec Limited that was awarded the job of container handing as the handling of containers through port operators was very slow.

The company issued a letter claiming Tk 10 lakh compensation per day following a work stoppage programme enforced by the port operators.

The private operation of the crane was stopped for around one month due to opposition by a section of dock workers backed by Chittagong city Mayor ABM Mohiuddin Chowdhury.

They besieged the Chittagong Container terminal, obstructed the operation of cranes by the private company and demanded cancellation of the agreement signed with it.

The port operators forcibly stopped the activities of the private company more than once during the political agitation programme of the Awami league-led 14-party alliance in November-December last year.

The operation was stopped from November 12 last year and the private company resumed the operation on December 15, following a High Court order that asked the port authority to restore the operation by the private company for three months.

The High court also issued a rule nisi asking the CPA to explain why the suspension of the cranes would not be declared illegal and unlawful.