Despite strong opposition from major businesses and port users, the Chattogram Port Authority (CPA) is set to implement a new tariff structure from November 15.
Despite repeated appeals from traders and trade organizations to defer the decision, the port authority has confirmed that it will proceed as planned, expecting to generate an additional income of around Tk 1,568 crore per year.
The new tariff, which represents an average 41 percent increase, has sparked sharp criticism from the country’s business community, who argue that the move comes at a fragile time for Bangladesh’s trade and economy.
Businesses voice objection
Various business associations have written to the Ministry of Shipping and the CPA several times over the past few months, urging suspension of the proposed tariff hike. Their main argument is that such a drastic increase could have a serious impact on trade costs, import prices, and export competitiveness.
A tense face-off has now emerged between the port authority and business community. On October 12, a high-level meeting of traders, exporters and port users held at a hotel in Chattogram questioned the rationale for introducing such a steep hike.
According to CPA data, the port earned Tk 3,912 crore from cargo, container, and vessel handling during fiscal year 2023-24. With the new tariff in place, the estimated annual income is projected to rise to Tk 5,480 crore, up by about 40 percent year-on-year.
The Chattogram Port Authority currently provides nearly 60 different services to vessels and cargo, ranging from tugboat operations and pilotage to water supply, crane usage, loading/unloading and cargo delivery.
Traders fear repercussions
Traders and industrialists argue that while they have refrained from calling strikes or launching agitation programs to avoid disrupting the economy, they are actively engaging policymakers to seek a review or suspension of the decision.
Former president of the Chittagong Chamber of Commerce and Industry (CCCI), Amir Humayun Mahmud Chowdhury, told Times of Bangladesh, “We do not want any deadlock at the country’s main port. We are trying to draw the attention of the Chief Adviser, who is currently abroad. Once he returns, we plan to send a formal letter highlighting the need for a rational solution to this issue.”
The revised tariff schedule reflects significant increases across several service categories. Tug charges for vessels exceeding 20,000 gross registered tonnage (GRT) will rise 440 percent – from $632 to $3,415. Pilotage fees for ships of 1,000 GRT will jump 123.8 percent, from $357.50 to $800. The loading/unloading charge for a 20-foot container will increase from $43.40 to $68.
Overall, the cost per 20-foot container (TEU) for port services is expected to increase from Tk 11,849 to Tk 16,243, adding roughly Tk 4,395 per container.
Amirul Haque, president of the Bangladesh Cement Manufacturers Association and Managing Director of Premier Cement, expressed frustration over the decision.
“The CPA is proceeding with the new tariff without adequately considering traders’ input. We strongly urge them to reconsider. We will announce our next course of action on Monday [October 13],” he said.
Responding to questions about the timing of the tariff enforcement, CPA Secretary Md Omar Faruk said the decision is not sudden. The process to revise the tariff began six years ago. A consultancy firm, after extensive discussion with stakeholders, finalised the new structure, and the shipping ministry instructed the CPA to implement it.
“With the new rates, the cost per kilogramme of cargo will increase by about Tk 0.12 only,” he added.
The CPA maintains that the revision is long overdue, as the existing tariff structure has been largely unchanged since 1986. The idea of a comprehensive revision was first proposed in 2013 but was delayed multiple times.
In 2019, the government finally approved the tariff modernisation plan, following which the CPA hired an international consulting firm. The firm submitted a new service pricing proposal in 2020, and after several reviews, the structure is now being implemented in 2025.
Shipping companies increase charges
Following the announcement, international shipping lines operating at the port have begun imposing additional surcharges, further alarming traders.
Maersk Line, a Denmark-based carrier, raised its terminal handling charge (THC) for 20-foot containers from $120 to $165 effective October 15. For 40-foot containers, the rate increased from $205 to $310.
Earlier, on October 7, three major lines – CMA CGM, CNC, and ANL – introduced a $45 surcharge on 20-foot containers effective October 26.
MSC, another global carrier, imposed a “port container recovery surcharge” of $100 to $200 per container starting October 16.
