Increased tariffs at Ctg port take effect amid port users’ opposition

• Chittagong Port enforces steep tariff hike
• Container handling charges surge over 56 percent
• Businesses warn competitiveness will be eroded
• Legal notice challenges CPA's revised rates

The Chittagong Port Authority (CPA) started enforcing the increased tariffs after midnight today, despite widespread opposition from exporters and importers against the steep hike.

Since 12:01am, all ships with containers and cargo arriving at the port have been charged at the new tariff for different services. On average, the rates are 41 percent higher than the previous tariffs. Businesses said this would erode their competitiveness.

The revised tariff came into force in line with a CPA circular issued on September 30, said CPA Secretary Md Omar Faruk.

The circular instructed all enlisted shipping agents to deposit sufficient funds at banks, based on the new rates, before obtaining clearance for incoming vessels.

This is the first time in 40 years the CPA has made a major revision of charges, fees, rents and tolls on a number of its services, including container and vessel handling.

The new tariffs came into effect after several months of opposition from businesses against any sharp hike. It began after the finance ministry approved the new rates on July 24 this year.

Initially, the government kept the enforcement of the rates on hold, and the shipping ministry held meetings with port users over the issue. Discussions did not bring any good news for businesses, as the government last month moved ahead to enforce the increased tariffs.

On September 30, the CPA said the new tariff would be effective from October 15.

From today, the charges for loading and unloading of export and import containers, the most common operations, have soared by 56.68 percent to $68 for a 20-foot full container load (FCL) container, up from $43.40.

Expressing concern over the spike, business leaders of Chattogram yesterday urged Chief Adviser Prof Muhammad Yunus to reconsider the new tariffs.

The Bangladesh Maritime Law Society served a legal notice on the government and the CPA, seeking cancellation of the order on the tariff hike.