CPA moves to revise tariff rates after 26 years

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Sheikh Shahariar Zaman
Chittagong Port Authority (CPA) has taken initiative to revise tariff rates after 26 years to streamline the charges aligned with the present-day situation.
There are 60 tariff charges in the port and out of that only five were revised upward in 2007-08 period and the rest have remained the same since 1986, port secretary Sayed Farhad Uddin Ahmed told the FE.
"We need to adjust the rates commercially as inflation went up by over 300 per cent since 1986 and costs of the authority have increased manifold," he said adding, "The tariff rates are much lower compared with those of the neighbouring countries."
The CPA has also undertaken a set of projects worth Tk 45 billion which will be financed by the port authority.
The revision is supposed to take place every two years but although the authority earlier took several attempts to increase the rates, it could not implement the same due to strong resistance, he said.
"This time we want to implement the revised rate by this year," he added.
The authority earned Tk 11.34 billion revenue and its total costs were Tk 4.57 billion in 2008-09 fiscal and in the last fiscal the expected revenue was to be over Tk 12 billion, the port secretary said.
"We also paid Tk 2.73 billion income tax to the government for 2008-09 fiscal," Mr Farhad said.
The CPA has a surplus fund of about Tk 35 billion, which will be used for capital dredging, equipment purchase, developing Karnaphuli container terminal and other development activities, he said.
Senior vice-president of Bangladesh Freight Forwarders Association Badrul Haque Chowdhury said the government initiative of tariff revision is a welcome move but the government should not do anything which will increase cost of business.
The port has been enjoying a growth rate of about 20 per cent for the last couple of years and it has increased the revenue sharply, he said.
"The CPA is a profit making organisation and it should pass on some benefit to the port users for the national interest," he added.
He urged the government to rationalise tariff rates of private stakeholders, which are operating in the port.
"We are trying to increase the freight charge but are unable to do so due to pressure from different quarters and the government should look into the issue," he said.
Meanwhile, the CPA agreed to reduce tariff charges of the five items for only readymade garment sector. The reduction will be applicable after getting approval from the ministry.