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Tariffs

Chittagong Port Authority to Implement Tariff Hike Amidst Strong Opposition

Strategic Insights

— 2 min read

The Chittagong Port Authority (CPA) has announced plans to implement a tariff hike on port services, effective October 15, marking the first increase in nearly four decades. The move has triggered strong opposition from trade bodies, exporters, importers, and port users, who fear it will raise costs, fuel inflation, and undermine export competitiveness. Business leaders have decided to submit a memorandum to the chief adviser and shipping adviser, urging them to reconsider the decision.

Key Takeaways:

  • The Chittagong Port Authority (CPA) will implement a tariff hike on port services from October 15, marking the first increase in nearly four decades.
  • The move has drawn strong opposition from trade bodies, exporters, importers, and port users, who fear it will raise costs, fuel inflation, and undermine export competitiveness.
  • Business leaders, including the Chittagong Chamber of Commerce and Industry (CCCI), the Bangladesh Shipping Agents Association (BSAA), and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), have protested the decision.
  • The tariff hike includes a nearly 50% to over 100% increase in key service fees, such as port entry, pilotage, and loading and unloading charges.
  • Business leaders warn that the new rates could lead foreign principals to divert vessels to other regional ports, increasing import costs and weakening the competitiveness of Bangladeshi exports.
  • The Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) has added that the new tariff structure will increase consumer suffering, fuel inflation, and negatively affect commodity prices.

Statistics:

  • The tariff hike will be implemented on October 15.
  • The increase in key service fees ranges from almost 50% to over 100%.
  • The proposed increases in port tariffs and other operational costs are a major concern for businesses.
  • The number of port users and shipping agents attending the meeting at the Radisson Blu Hotel in Chattogram was significant, with representatives from trade bodies, exporters, importers, clearing and forwarding agents, and shipping agents.

Sources:

  • "CPA defers port tariff hike for a month" on September 20, 2023 (no publication name mentioned)
  • Chittagong Port Authority circular dated September 14, 2023 (no publication name mentioned)
  • Interview with Amir Humayun Mahmud Chowdhury, former president of the Chittagong Chamber of Commerce and Industry (CCCI)
  • Interview with Amirul Haque, former FBCCI director and managing director of Seacom Group
  • Interview with Syed Mohammad Arif, Chairman of the Bangladesh Shipping Agents Association (BSAA)
  • Interview with AM Mahbub Chowdhury, Senior Vice President of the Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI)
  • Protest letter from the Bangladesh Shipping Agents Association (BSAA) to the Chittagong Port Authority (CPA)
  • Protest letter from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to the Chittagong Port Authority (CPA)

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