United News of Bangladesh

The Chittagong Port Authority has increased tariffs for the first time in 39 years by up to 50 per cent. The new tariffs came into effect in the early hours of Tuesday. Businessmen warned that the increased port service charges will raise trading costs and affect business competitiveness. The increased tariffs will increase consumer prices. Some of the port charges have increased more than others. For instance, the berthing charge for the first 12 hours has been increased by 100 per cent. After 36 hours, the berthing charge has been increased by up to 900 per cent. The new tariff sets the pilotage fee at $800 per movement, while the new fees for tugboat services range between $ 615 and $ 6,830, depending on vessel size. Container handling and other services’ charges have seen a 25 per cent to 50 per cent increase. "The scope and capacity of the port are expanding. We are committed to building new facilities and ensuring smooth services for port users. We do not believe this tariff adjustment will significantly impact consumers," said Omar Faruk, the CPA secretary. Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association, said that the new tariffs will hurt trade. "We had requested a maximum increase of 10-12 per cent” he said. However, port officials estimated the per-kilogram impact of the increased tariff to be marginal, increasing costs by 32 to 44 paisa. The Chattogram port handles about 33 lakh containers and 13 crore metric tons of cargo annually, with over 4,000 ships using the port service each year. Container handling at Ctg Port up 9% in Aug-October: CPA Chairman The new tariff structure was built on the advice of the Spain-based consultancy firm IDOM, which compared tariffs of 17 major global ports, including 10 Asian ports, before coming up with its recommendations. Export-bound containers, both full container load and less-than-container-load, now get 6 days of free time instead of the earlier four days’ time. The port will start charging from the 7th day at the daily rate of $ 6.90. The charge will rise with time, reaching $ 62 a day after 21 days. Issuing a warning that the revised tariffs could pose serious challenges, SM Saiful Alam, president of the Chittagong Customs Agents Association, said, “Where will traders recover these new costs from? Ultimately, it will be passed on to consumers. This is a bad development for the economy.” He pointed out that Chittagong port still lacks modern equipment, even compared with the ports in the neighboring countries. Currently, the port has only 18 gantry cranes, while 12 other berths rely on ship cranes to handle cargo. Shafiqul Alam Jewel, vice chairman of the BSAA, demanded that the port authority ensure better service after the tariff increase. According to the gazette, the entry fee per gross ton now stands at $ 0.306, while the vessel working charge within the port was set at $ 0.017. The minimum pilotage charge was fixed at $ 800. Vessels over 10,000 GT will have to pay $ 0.08 per gross ton. The night navigation surcharge has been increased by 25 per cent, while the outer pilotage area surcharge has increased by 50 per cent. The tugboat fee per movement for 200–5,000 GT was set at $ 615. The water supply charge from the mainline has been fixed at $ 2.92 per 1,000 liters. The cost of supplying water by a port lorry travelling a distance of 5 km has been fixed at $ 6.23. Using a water boat for water supply in the Karnaphuli River will cost $ 12.46. The boat water supply cost beyond 7 nautical miles from the Patenga lighthouse will be $ 24.96 per 1,000 liters. The waste handling cost within the Karnaphuli is now $ 2,456.99. Outside the Karnaphuli, the waste handling cost will be $ 4,063.15. The crane use charge per container for a crane less than 21 feet has been fixed at $ 20.80. For using a crane over 40 feet, now traders will have to pay $ 35.10. This is the first time since 1986 that the CPA announced new tariffs. CPA urged to take action against LPG import from sanctioned countries Port authorities say the tariff review was necessary to improve services and fund infrastructure upgrades to meet global standards. With around 80 per cent of the country’s apparel exports going through Chittagong port, business leaders said the increased costs could affect competitiveness. Rakibul Alam Chowdhury, a director of the Bangladesh Garment Manufacturers and Exporters Association, said, “The industry was struggling to cope with the US-imposed 20 per cent tariff. The new charges will complicate the situation further.” Mahfuzul Haque Shah, a former director of the Chittagong Chamber of Commerce and Industry, said that such a steep rise in cost is very difficult to deal with. “Our request to stand by businessmen in this difficult time was not heeded,” he said. “It will raise the costs of imported consumer goods and raw materials, impact manufacturing and hurt the economy,” he said. Chittagong Port is currently ranked 68th among the world’s top 100 busiest ports and handles 93 per cent of Bangladesh’s total import-export trade.

Amid Ramadan, allegations have surfaced against certain traders for hoarding imported goods at Chittagong Port, allegedly to engineer an artificial crisis and inflate market prices. According to port officials, importers are using port yards as storage facilities by delaying goods release, creating an artificial crisis, while around 40,000 Full Container Load (FCL) containers remain in the port yard and off-docks. The Chittagong Port Authority recently announced that if these goods-laden containers are not cleared by March 9, a fourfold charge will be imposed. Coffee, cashew cultivation helping Bandarban farmers to line their pockets At present, they said, among the 40,089 containers located in various yards at Chittagong Port, 31,384 are FCL containers. These containers, carrying imported goods, were left in the port yard without clearance, leading to disruptions in the port’s normal operations, they said. Chaktai-Khatunganj Wholesalers Association General Secretary Ahsan Ullah Jahedi pointed to the limitations of Chittagong Port in handling goods clearance. He said that the increased volume of goods being moved during Ramadan has led to some delays and complications in the clearance process, causing the goods to pile up at the port. Not only at the port but also across 19 off-docks, imported FCL containers are piling up. Currently, these off-docks hold 8,700 imported and 8,300 export-bound containers. Bangladesh Inland Container Depots Association (BICDA) Secretary-General Ruhul Amin Sikder Biplob said, "Many importers are using Chittagong Port as a storage space, leaving their imported goods-laden containers there for 20 to 21 days. This is causing an accumulation of FCL containers at the port, leading to operational issues.” Dhaka’s shopping malls dazzle well ahead of Eid shopping frenzy “When importers attempt to clear their containers, they face container congestion and traffic jams, negatively impacting the port’s operations. Therefore, it is necessary to deliver the accumulated containers at Chittagong Port as soon as possible," he said. Chittagong Port Authority Secretary Mohammad Omar Faruk told UNB that importers can keep goods-laden containers at the port yard for up to four days without charge. After this period, a 20-foot container incurs a fine of $6, while a 40-foot container incurs a fine of $12. This penalty increased to $24 and $48 per container, respectively, after the allowed period, he added. He said in light of the current situation, the Chittagong Port Authority has issued special instructions to clear imported goods and containers by March 9. If these instructions are not followed, from March 10 onwards, a fourfold charge will be applied to each container. The port authority has already sent letters regarding this to BGMEA and other port user organisations. Clifton Group Managing Director M Mohiuddin Chowdhury, an importer of garment products, blamed the customs authority’s manpower shortage for delays in container clearance. “The time-consuming clearance process is causing financial losses for us,” he said. Dhaka-Chattogram Highway turns deadlier; 152 lives lost in one year If the increased penalties are enforced, importers will have to pay $48 per day for a 20-feet container and $96 per day for a 40-feet container, further escalating costs, he said.

As the effects of Cyclone Mocha have passed, regular flights are starting at Chattogram Shah Amanat International Airport this morning (May 15, 2023). Director of the Airport, Group Captain Taslim Ahmed, said regular flights will depart from Shah Amanat International Airport from today. Earlier, due to inclement weather caused by Cyclone Mocha, the authority suspended flights at Shah Amanat International Airport from 6 am on May 13 after Bangladesh Meteorological Department issued the No. 8 disaster signal in Chattogram. Read More: Scanners to be installed soon at Ctg port gates: State Minister Meanwhile, all activities of Chattogram port were suspended since May 12 night due to fear of damage from Cyclone Mocha. Ships were being brought back to the jetty and outer anchor early today.   The Meteorological Department has asked Chattogram port to hoist local cautionary signal number 3 after the impact of Cyclone Mocha has passed. After the situation became normal, the Chittagong Port Authority decided to withdraw its alert-4 and normalise the port operations. The port will be fully operational from this morning, said Chattogram Port Authority Secretary Md. Omar Farouk. Read More: Bay Terminal Project: Deal signed with 2 South Korean companies to prepare final design

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested the Chittagong Port Authority (CPA) to allow releasing the imported goods from the Chittagong Port instead of private inland container depots (ICDs) to reduce time and cost.  BGMEA President Faruque Hassan made the call during a meeting with Chairman of Chittagong Port Authority Rear Admiral M Shahjahan in Chittagong on Tuesday. Faruque Hassan said currently it takes around six to seven days to take delivery of imported consignments from the private ICDs as compared to only two days at the port, which increases cost of releasing goods.  READ: BGMEA pays homage to Bangabandhu on National Mourning Day Moreover, the private ICD operators are charging higher fees and taking more time than the Chittagong Port for releasing the goods, he said adding that additional delay and charges are impacting the apparel industry at a time when the sector is struggling to turn around from the shocks created by the Covid pandemic. The BGMEA President expressed hope that RMG exports would increase in the coming months and urged the port authority to plan ahead and take steps accordingly to enhance the capacity and efficiency of Chittagong Port so that they can handle the increased pressure of export-import smoothly. Speaking at the meeting BGMEA First Vice President Syed Nazrul Islam urged the Chittagong Port Authority to make export-import activities quicker and timely to retain the competitiveness of Bangladesh apparel industry in the global market during this difficult time of Covid pandemic.  CPA Chairman Rear Admiral M Shahjahan said the RMG industry has been making enormous contributions to the economic development of Bangladesh.  He said the Chittagong Port Authority is carrying out export-import activities quickly and efficiently despite having different limitations. He also presented CPA’s plans and initiatives for infrastructural development and increasing efficiency of the port.  The meeting with the CPA was a part of BGMEA’s continuous efforts to keep the flow of export-import shipment smooth and timely.  READ: BGMEA extends financial aid for ailing photographer Chanchal Mahmood Earlier, BGMEA held several meetings with stakeholders including main-line operator (MLO) and buyers’ representatives in this regard.  After the meeting BGMEA President Faruque Hassan along with the CPA Chairman, the BGMEA leaders and other high officials visited Chittagong Port to see port operations.  BGMEA Vice President Rakibul Alam Chowdhury, Directors Tanvir Ahmed, Abdullah Hil Rakib, Haroon Ar Rashid, Navidul Huq, Rajiv Chowdhury, Md. Imranur Rahman, Md. M. Mohiuddin Chowdhury, Mohammed Abdus Salam, Tanvir Habib, A.M. Shafiul Karim (Khokon), Md. Hassan (Jacky), M. Ahsanul Hoq, Mohammed Meraj-E-Mostafa (Kaisar), former Director and Chairman of BGMEA Standing Committee on Customs (Sea) Anjan Shekhar Das, former Director and Chairman of BGMEA Standing Committee on Customs (Bond) Liakat Ali Chowdhury were present at the meeting. Md. Zafar Alam, Member (Admin and Planning); Commodore Md. Mostafizur Rahman, Member (Harbour and Marine); Mohd. Omar Faruk, Secretary, Enamul Karim, Director (Traffic); Md. Kudrat-e-Khuda, Terminal Manager of Chittagong Port Authority were also present at the meeting.

Over 10,000 people, occupying 57 acres of land without papers in Laldia Char, a small island at the estuary of the Karnaphuli river in Patenga, face eviction on Monday by the Chittagong Port Authority to make way for the Laldia Multipurpose Terminal.