The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed deep concern over the Chittagong Port Authority’s decision to increase service charges by nearly 41%, warning that the move will significantly raise production costs for export-oriented industries.
The association also cautioned that the tariff hike would weaken Bangladesh’s competitiveness in the global market.
At a press conference held on Tuesday at the BGMEA Complex in Uttara, BGMEA President Mahmud Hasan Khan said in a written statement that the Ministry of Shipping has justified the hike by noting it was the first adjustment in nearly 40 years.
However, industry leaders argue that given the sharp depreciation of the Taka against the US dollar during this period, port charges have effectively already increased by about 308%.
According to BGMEA, the port collects fees in US dollars, when the exchange rate was Tk 29.89 per dollar in FY1986–87, compared to over Tk 122 at present, effectively multiplying port charges more than fourfold over the period.
The association further noted that the Chittagong Port Authority has never incurred losses; instead, it has consistently reported profits. Therefore, increasing tariffs without improving service quality is “unjustified,” the BGMEA stated.
Citing a recent World Bank report ranking Chittagong Port 357th out of 403 ports globally, BGMEA said this reflects severe inefficiency, adding that improving operational performance, not raising costs, should be the priority.
In addition, the BGMEA voiced concern over the recent approval of the Bangladesh Labour (Amendment) Ordinance 2025, arguing that allowing the formation of trade unions with the consent of only 20 workers could lead to internal conflicts and disrupt production.
By comparison, the association noted, India requires a minimum of 100 workers’ consent, while Pakistan mandates approval from 20% of the workforce.
BGMEA described the proposed structure as “the weakest in South Asia.”
The association also criticised the government’s decision to implement both the Provident Fund and the Universal Pension Scheme ‘Progoti’ simultaneously, saying it would create “dual financial burdens” for entrepreneurs.
BGMEA added that the industrial sector is already under strain due to rising labour costs, high bank interest rates, increased gas and diesel prices, and a reduction in export incentives.
Anwar-ul Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries (BCI); Taskin Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI); and Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), along with other business leaders, were present at the press conference.
