The new tariff structure of the Chattogram Port Authority (CPA) that took effect from midnight on October 14 has triggered widespread debate across Bangladesh’s business community.
Despite strong opposition from trade bodies and port users, the CPA has increased its charges for port services by an average of 41 percent, marking the first major hike in decades.
The move comes at a time when the port, the country’s main maritime gateway, earns over Tk 4,000 crore annually and maintains a large surplus amounting to several thousand crores in fixed deposits.
The question being asked by many is: how reasonable is such a steep increase when the port is already generating substantial profits?
Why now?
Officials of the Chittagong Port Authority argue that the revision is necessary to modernise facilities, enhance service quality, and align tariffs with regional and global standards. According to the CPA, the new tariff will generate an additional Tk 1,500 crore annually, which they say will help finance ongoing expansion and automation projects.
The authority also claims that despite the hike, port charges in Chattogram remain lower than in most neighbouring countries.
For example, container handling under the new tariff will cost $96 per TEU (twenty-foot equivalent unit), compared to $147 at Sri Lanka’s South Asian Gateway Terminal, $142 at Myanmar’s Yangon Port, and $117 at India’s Kochi International Transshipment Terminal.
In pilotage charges for vessels up to 10,000 gross tonnes, Chattogram’s revised rate is $800, whereas Chennai Port in India charges $4,538, Mundra Port $6,661, Colombo $530, and Yangon $510.
“Even after the increase, our rates remain competitive in the region,” a senior CPA official told Times of Bangladesh.
A booming port with surplus funds
However, critics question the logic of raising tariffs at a time when the port is not facing any financial strain. Chattogram Port’s annual earnings have been increasing steadily over the past few years, allowing it to accumulate a substantial surplus. Much of this fund is now invested in fixed deposits and interest-bearing accounts in different banks.
“Why should port charges be increased?” asked one of the port users. “The port already has huge surplus funds. Instead of increasing tariffs, the authority should focus on improving efficiency, eliminating corruption, and increasing cargo handling capacity. By doing so, it can earn more without burdening users.”
He further suggested appointing a professional CEO with full administrative authority to manage the port, empowering him to hire and fire staff as needed.
“Declare the port an essential service so that operations can’t be disrupted by strikes,” he added. “We believe the intention behind this tariff hike is to make the port more attractive for foreign management later.”
Foreign operators coming in
Industry insiders point out that several foreign companies are about to join port operations by the end of this year. Global logistics giants like DP World, Maersk Line, and MSC are expected to take charge of the New Mooring Container Terminal (NCT), Laldia Container Terminal, and Patenga Container Terminal, respectively.
Some users suspect that the 41 percent tariff hike is linked to these foreign operators’ entry – intended to align pricing with international standards to ensure profitability for them. However, CPA officials deny this, saying the revision is based on a six-year-long study conducted by a consultancy firm under government supervision.
Breakdown of the new tariff
According to the newly published tariff chart, almost every category of service at the port has become costlier. Piloting charges have been increased from $357.50 to $800 per vessel.
Tug charges for ships between 200 and 1,000 GRT have risen from $158 to $615. Gantry crane charges for loaded 20-foot containers have increased from $15 to $20.80 while the cost ranges from $7.50 to $10.40 for empty ones.
Meanwhile, using a 10-ton mobile crane will now cost $10.70, up from $1.72 previously.
CPA officials claim that with the new tariff and enhanced efficiency, service quality will improve.
They said reduced ship waiting times and faster cargo handling will save overall logistics costs.
Efficiency gains and cost savings
According to port data, the average waiting time for vessels at the outer anchorage has dropped drastically. Previously, around 12 ships had to wait up to four days before getting a berth, costing shipowners roughly $180,000 daily in charter hire, based on $15,000 per day per vessel.
Now, most vessels are berthed almost immediately upon arrival.
“With reduced waiting times, the shipping sector is saving at least $180,000 per day,” said an official, claiming this improvement offsets much of the impact of the tariff increase.
Contacted, CPA Secretary Omar Faruk said the tariff revision followed a long six-year process involving government oversight and expert consultation.
“This is not a sudden or arbitrary decision,” he said. “Even with this hike, the increase will raise costs at the consumer level by only about 12 paisa per kilogramme of goods.”
