Chattogram port’s higher tariffs to take effect October 15

The Chattogram Port Authority (CPA) will enforce its revised tariff schedule from October 15, a month later than originally announced.

In the first comprehensive revision in nearly 40 years, the CPA in early September raised service charges by an average of 41 percent through a gazette notification.

CPA Secretary Omar Faruk said the authority is bound to implement the tariff as per the gazette. "However, to ensure smooth application, the board decided to set October 15 as the effective date. All necessary preparations have been completed," he said.

At the port, a series of activities takes place from piloting a ship from the outer anchorage to the jetty, to tugboat services, water supply, crane charges, berthing, loading and unloading containers and delivering goods. CPA charges a fee for each of these services, which together make up the port's tariff.

Under the new tariff rates, importers will pay an additional Tk 5,720 per twenty-foot container, while exporters face an increase of Tk 3,045. The single largest jump is in loading and unloading charges, up from $43.40 to $68 per container.

The move drew severe criticism from exporters and importers, who said higher charges will push up the cost of foreign trade and erode the country's competitiveness as it prepares to graduate from least developed country status next year.

CPA officials maintain that even after the adjustment, Chattogram's charges remain lower than those of many regional ports and were long overdue for revision.

The authority, however, later deferred enforcing the tariff by a month to allow businesses time to adjust to the changes.

From October 15, all vessel, cargo and container bills for ships arriving after midnight on October 14 will be charged under the new structure.

The move comes as private inland container depots (ICDs) have also hiked charges by as much as 60 percent this month for handling export cargoes and empty containers, adding to trade costs.

The last large-scale revision of charges was in 1986. In 2007-08, fees were increased only for five services, including tugboats, water supply, wharf rent, container storage, and container stuffing and unstuffing.