Business leaders and port users have voiced strong opposition to the proposed 41% increase in service tariffs at Chattogram port, urging the government to adopt a more gradual approach to prevent harming the country’s competitiveness in international trade.
The call was made during a meeting held at the Shipping Ministry in Dhaka, convened to review the tariff structure proposed by the Chittagong Port Authority (CPA). The meeting was chaired by Shipping Adviser Brig Gen (retd) M Sakhawat Hussain and attended by representatives from various business associations, port user groups, CPA officials, and senior port officials.
The proposed tariff revision, which received approval from the Finance Ministry on 24th July, was scheduled to be implemented once it is gazetted after vetting by the Law Ministry. However, stakeholders expressed concerns over the magnitude of the hike, with many warning it could make Bangladesh’s foreign trade less competitive.
During the meeting, CPA Deputy Chief of Finance and Accounts Qazi Meraz Uddin Arif presented a PowerPoint explaining the rationale behind the tariff increase, noting that it is the first in 40 years. He also mentioned that even after the proposed adjustment, port tariffs would remain lower than those at other major ports globally.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan criticised the steep rise, calling it unacceptable. He emphasised that such a hike could undermine the country’s export competitiveness, especially as Bangladesh prepares for its graduation from the Least Developed Country (LDC) status. Khan proposed raising tariffs gradually about 10% annually, in phased steps rather than a sudden 40% increase.
Similarly, Bangladesh Shipping Agents Association (BSAA) Chairman Syed M Arif warned that increased tariffs, combined with recent hikes by berth operators and off-dock service providers, would escalate overall trade costs. He cautioned that higher port tariffs could lead foreign shipping lines to raise freight charges, further impacting trade.
Participants also pointed out that port services at Chattogram are still below expectations, with vessels in neighboring ports departing within a day after loading and unloading, unlike the longer turnaround times at Chattogram.
The meeting concluded without any decision on the tariff proposal, reflecting the stakeholders’ concerns over the potential adverse effects of the steep tariff hike on Bangladesh’s trade competitiveness.
