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Ctg port users urge CA to reconsider tariff hike

Ctg port users urge CA to reconsider tariff hike
Chattogram port. Photo: Collected
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‘The Port Users Forum’, a coalition of leading import-export and logistics organizations, has urged the government to reconsider the new tariff structure announced by the Chattogram Port Authority (CPA).

In a formal letter addressed to Chief Adviser Muhammad Yunus on Tuesday, the forum described the tariff hike as an “irrational and ill-timed step” that could negatively impact Bangladesh’s trade competitiveness and economic stability.

The letter, signed by Forum Convener Amir Humayun Mahmud Chowdhury, said the proposed Chattogram Port Authority-2025 tariff schedule includes an average increase of around 41 percent on various shipping and logistics services, effective from October 15.

The forum said that when the last tariff was revised in 1986, the exchange rate was Tk 30.61 per US dollar, while it now exceeds Tk 122. This means the port’s existing tariff, adjusted for currency depreciation, has effectively increased fourfold.

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Over the years, port revenues have also increased through higher fees and charges in several service segments.
“Another major tariff hike would disproportionately increase the cost of import and export activities,” the letter said.

The forum also warned that imposing higher domestic port tariffs at this stage would be detrimental to the export sector, following Bangladesh’s recent diplomatic success in easing US trade restrictions.

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The Port Users Forum has requested the chief adviser to suspend the new tariff schedule’s implementation and initiate a comprehensive review in consultation with all relevant stakeholders.

It also said the need for a service-oriented, non-profit policy in port management, noting that Chattogram Port is a public service entity, not a profit-driven enterprise.
The letter further said that the CPA currently enjoys a substantial surplus under the existing tariff structure, much of which is kept in fixed deposits or interest-bearing accounts instead of being reinvested into capacity enhancement.

“Increasing tariffs solely to generate additional revenue is unreasonable and irresponsible,” the forum said.
The forum cautioned that the tariff hike could erode the confidence of the international shipping community and damage Bangladesh’s reputation as a cost-effective logistics hub.

The letter highlighted several potential consequences, including rising export logistics costs, undermining global competitiveness, higher import costs for essential commodities like fuel, wheat, and fertilizers, further driving inflation, and a possible decline in Bangladesh’s rankings in international indices like the Logistics Performance Index and Ease of Doing Business.

Concluding the letter, the forum said, “Chattogram Port is not merely a port — it is the lifeline of Bangladesh’s economy. Any policy decision concerning it directly impacts the nation’s overall economic stability.”

 

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