Chittagong port: Business community protests against tariff hike

Leaders of the Port Users Forum have announced a programme of protest demanding suspension of the increased tariffs imposed by Chittagong Port authorities.

They warned that if the issue is not resolved within a week, they may resort to drastic measures, including a complete shutdown of the port.

The announcement came yesterday, Saturday afternoon at a protest meeting held at the Navy Convention Hall in Tigerpass, Chattogram.

The meeting was organised by the newly formed Port Users Forum to protect against what they describe as unreasonable and excessive charges imposed for various port services.

Around 2000 business people from different port user organisations attended the meeting and raised their hands in support of the demand to suspend the increased tariffs.

Meanwhile, vehicle owners have stopped the movement of transport vehicles in protest against the rise in port entry fees, bringing container transportation through the port to a virtual standstill.

Despite objections from the business community, the new tariff schedule was gazetted on 14 September. After a one month deferral, the increased charges came into effect on 15 October.

On average, tariffs have been increased by around 41 per cent. Critics claim the move aims to benefit foreign operators.

Four terminals of Chittagong Port are being handed over to foreign operators through government-to-government arrangements without open competition.

The New Mooring Container Terminal is to be operated by the United Arab Emirates, which will take over with all existing equipment. The other three terminals will require investment for operation.

The International Finance Corporation (IFC), a member of the World Bank Group and the transaction adviser for two of the ongoing projects involving foreign operators, stated in its April report that the existing tariff structure was insufficient to attract private investment.

This assessment has reportedly accelerated the decision to raise port tariffs, drawing strong criticism from Chattogram’s business community.

At yesterday, Saturday’s meeting, 22 business leaders spoke, all demanding that the tariff hike be suspended.

Amir Humayun Mahmud Chowdhury, Convener of the Port Users Forum said, "The increased tariffs must be suspended and a fair and practical rate structure should be determined through discussions with the business community. From Sunday, members of the C&F Agents Association will observe a four-hour work stoppage. If the issue is not resolved within a week, a larger protest programme will be announced."

Former FBCCI Director Amirul Haque stated, "We are not against foreign operators. Employing foreign operators can improve efficiency. However, appointing them should not come at the cost of increased tariffs. If port operations are halted in future due to this decision, the Ministry of Shipping will have to bear full responsibility."

Mohammad Abdus Salam, Managing Director of Asian & DAF Group said, "Tariffs have not been increased at Mongla or Payra ports but only at Chattogram, which is already profitable. Why this manipulation?"

Moderator of the meeting, SM Abu Tayeb, President of the Chattogram Chapter of the International Business Forum, remarked, "The same government that went to the US to negotiate tariff reduction is increasing them at home. This is alarming for the country’s business community. The new tariff structure is unjustifiable."

BGMEA Director MD M. Mohiuddin said, "We are already struggling due to increased US tariffs. Now the new port charges are causing further losses to the business sector."

SM Saiful Alam, President of the C&F Agents Association, commented, "If the new tariffs are not reduced, businesses will have nowhere to turn. The 13,000 workers and staff in C&F firms cannot bear this added financial burden."

Humayun Kabir Sohail, General Secretary of the Port Truck Owners Association stated, "The entry fee has been raised from 57 to 230 taka in one leap, while we do not even earn 500 taka per trip. How can a fourfold increase in fees be justified?"

Other speakers included Parvez Akhtar, former Chairman of the Shipping Agents Association; Shahid Sarwar, former Director of the same association; Mohammad Shafi, President of the Inland Vessel Owners Association; Mohammad Hossain, General Secretary of the Chattogram Prime Mover and Flatbed Owners Association; Sharud Nizam of the Shopping Complex Traders Association; and Moinuddin Ahmed of the Tyre Tube Importers and Dealers Association.