The Chattogram Port Authority (CPA) has enforced its revised tariff structure effective from September 15, increasing port service charges by an average of 41%.
The overhaul, marking the first major revision in decades, consolidates various port services into seven key categories, which include vessel dues, conventional cargo charges, general services, container handling, and other related activities.
The revised tariff structure has led to significant increases in some categories. For example, tug charges for ships exceeding 20,000 gross registered tonnage (GRT) have risen by 440 percent, from $632 to $3,415. Similarly, pilot charges for vessels of 1,000 GRT have surged by 123.8 %, from $357.50 to $800.
Additionally, the charge for loading or unloading a 20-foot container has increased from $43.40 to $68. On average, the cost per 20-foot container for port services has gone up from Tk 11,849 to Tk 16,243, an additional Tk 4,395 per TEU.
The sharp hike in tariffs has sparked strong opposition from the business community, which argues that the increased charges will drive up business costs and ultimately burden consumers.
Stakeholders had initially recommended a more gradual rise of 10–12 percent, rather than the sudden increase of over 40 percent amid a cluster of challenges in business.
“In stakeholder meetings, we had argued there was no need to increase the port tariff since the port already earns more than Tk 4,000 crore annually. Now that the new tariff is in effect, the cost of doing business will rise even further,” Bangladesh Shipping Agents Association Chairman Syed Mohammad Arif told TIMES of Bangladesh.
Amirul Haque, Managing Director of Premier Cement, also criticized the tariff hike, calling it “unreasonable.”
“Chattogram Port is already a revenue-generating institution. Increasing tariffs by more than 40 percent while ignoring businessmen’s opinion is not justified. This will only push up business costs,” he added.
Backing the hike, port officials said that the tariff structure at Chattogram Port had been largely unchanged since it was first introduced in 1986, with only minor revisions made in 2008.
The port currently offers 56 types of services, ranging from tug assistance to cargo handling.
To modernize its system, the CPA hired Spain-based IDOM Consulting, Engineering, and Architecture, along with Bangladesh’s Logicforum Limited, in 2022 to conduct a comprehensive review of the tariff structure.
Their goal was to align the tariffs with international standards, improve the port’s competitiveness, enhance service quality, and increase its revenue-generating potential.
The new tariff structure covers several aspects, including dues and charges on vessels, conventional cargo handling, general services, container-related charges, and ICD-bound charges.
The revision is designed to improve the efficiency and service quality of the port, but the business community remains concerned about the immediate impact on operational costs.
