Govt defers Ctg Port tariff hike by one month

Business Report :

The government has postponed the recently announced tariff hike at Chattogram Port for one month following requests from businesses, Shipping Adviser Brigadier General (retd) Sakhawat Hossain said on Saturday.

Speaking at a workshop titled ‘Customs and Port Management: Problems, Prospects, and Way Forward’, organised by the Economic Relations Division at the port auditorium, the adviser said the increased charges will take effect after the one-month suspension.

The announcement follows widespread criticism from exporters and importers, who feared that higher charges would push up the cost of foreign trade and weaken the country’s competitiveness as it prepares to graduate from least developed country status next year.

In the first full revision in nearly 40 years, the Chattogram Port Authority (CPA) recently increased service charges by an average of 41 percent through a gazette notification.

The adviser acknowledged that higher operating costs and ongoing projects, including the Bay Terminal, had forced the port to raise fees, but said the temporary halt aims to ease pressure on exporters.

Business leaders at the event urged the government to defer the hike for at least six months and cut some charges to help exporters remain competitive as global trade faces fresh challenges, including higher US tariffs. They also called for a joint taskforce to address service bottlenecks and sought legal reforms to speed up container auctions and cargo delivery.

The new tariff, which covers a range of port and private inland container depot (ICD) services, represents an average increase of 40-45per cent.

Exporters complained that ICDs have raised rates without improving capacity or service, and criticised the National Board of Revenue (NBR) for failing to enforce standards.
Chattogram Port Authority (CPA) Chairman Rear Admiral SM Moniruzzaman said the port is operating beyond its designed capacity and remains dependent on tidal conditions and limited channel depth, leaving it behind global standards.

He stressed the need for customs automation and legal changes to clear long-stalled containers and handle projected trade growth over the next five years.
NBR Chairman Abdur Rahman Khan said all auctionable containers stuck at the port will be inventoried by this month and auctioned quickly. He also announced plans to move 30 abandoned vehicles belonging to former MPs into the government transport pool. A paper presented at the workshop noted that Chattogram Port still lags behind leading global ports in logistics performance, trade costs, and customs clearance efficiency.

Chattogram port increased tariffs on a wide range of services by an average of 40per cent , the first such rise in nearly four decades. The new rates took effect on 15 September, following a government gazette notification issued on 14 September.

The last time tariffs were raised at the country’s premier seaport was in 1986. After almost 40 years, the interim government approved the increase despite strong opposition from port users.
The CPA had proposed the hike back in June, triggering protests from trade bodies and shipping agents. At a meeting convened by the shipping ministry on 25 August, port users argued that any tariff adjustment should remain within 10 to 15per cent .

A meeting between the Chittagong Port Authority (CPA) and trade stakeholders over proposed new tariffs ended on 25 August without any decision amid opposition from the stakeholders. Another round of discussions was held on 5 September.
But the final decision followed the CPA’s proposal almost entirely, with no major concessions made.
The port currently collects tariffs under 52 service categories. Of these, 23 categories are directly affected by the new rates.

In vessel-related charges, port dues per GRT rose 27per cent from $0.241 to $0.306. Pilotage charges saw dramatic escalations, with minimum fees for 10,000 GRT vessels jumping 124per cent from $357.5 to $800, and night navigation adding a 25per cent surcharge. Tug charges for larger vessels (over 20,000 GRT) inside the Karnaphuli Channel increased to $3,415 (no direct previous USD, but new fixed rates imply substantial uplift). Berth occupancy per GT/hour surged 60per cent from $0.0025 to $0.004.

Container operations experienced varied hikes. Wharfage for FCL 20′ containers rose 57per cent from $43.4 to $68, with OOG/dangerous cargo adding 100-200per cent premiums. Storage after free periods increased modestly by 15-29per cent for standard containers but up to 360per cent for dangerous goods. Crane charges for loaded 20′ containers climbed 39per cent from $15-30 to $20. ICD rates mirror these, with lift-on/off for loaded 20′ containers up 104per cent from $4.89 to $10.

Overall, hikes average 20-60per cent for core services but exceed 100per cent in specialized areas, potentially raising shipping costs by 30-50per cent for importers and exporters. This could strain Bangladesh’s trade competitiveness, though it may fund port infrastructure amid rising operational expenses.