Looming threat of congestion surcharge and the aftermath

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Shahiduzzaman Khan
Chittagong Port is bracing for a fresh unheaval. The feeder vessel operators have, once again, stated that they are considering to impose congestion surcharge as the turnaround time of the ships at the port has gone 'abnormally high.' On a rough reckoning, the operators are all set to impose such surcharge, as they are highly annoyed at the deteriorating performance of the port.
Indeed, as the reports suggest, Chittagong Port is performing much below its potential. Unrest among a section of stevedores and labourers is persisting for the last few months. During the last caretaker government, union activities were banned and hundreds of workers lost their jobs. The Chittagong Port Authority (CPA), during that time, restored some discipline in the port activities with the help of the joint forces. Stay-time of the vessels came down to 48 hours at the port and cargo handling operations improved substantially. There was, in fact, no congestion at the port at that time.
But the situation changed after the change of government. With the restoration of union activities, inactive union leaders surfaced once again and began to launch 'mass' movement in support of their demands. As usual, protest rallies, sit-ins and strikes continued to paralyse normal activities of the country's premier port.
The moot demand of the labour unions was to reinstate the jobs of the terminated workers. The CPA, at first, did not comply with this demand. But with the demand getting stronger from the union side, the CPA and the minister concerned had to think twice. The minister shuttled between Dhaka and Chittagong and tried to intervene in the matter. Assurance was made to the effect that workers with good experiences and speed would be reinstated after a thorough evaluation on a case-to-case basis. But the unions appeared adamant on their demand. The CPA did not move then.
The present impasse in port performance originated from a section of aggrieved berth co-partners who were helping their berth operation leaders in cargo handling operations. They alleged that the berth operators did not give their share of profit in spite of their role in smooth functioning of the port. As such, they went to court, and got stay order on the gantry crane operation. The situation threw the port operations in a total disarray.
With the High Court stay order, the port authorities had no option other than to operate the normal activities with its own men. The level of port activities declined substantially after the CPA took over. Cargo handling operation slowed down and ships' turnaround time went up to as much as 72 hours. The feeder vessel operators have, of late, come up with their decision, stating their position about the imperative for imposing of congestion surcharge, assumedly $100 per container, very soon. They have reportedly communicated the matter to their main line operators in Singapore.
Indeed, this is a critical situation, which should worry every one. Chittagong Port handles the bulk of the country's export and import trade. The government had moved to reactivate Mongla Port, but there was no encouraging response from the country's trade circle to use it. Apparel manufacturers, apparently hard hit by the slow performance of Chittagong Port, expressed their resentment saying that some of their shipments might miss the deadline. Other exporters expressed identical sentiments. What is a matter of great concern is that many ships might not call on the port if the present situation continues.
In its efforts to improve the situation, the port authority decided to keep cargo handling operations open on Saturdays as well. This is, nevertheless, a good move, but not enough to address the worsening situation. Slow performance of the port will never improve with the present set of people who have little expertise in gantry crane operations. Keeping the port open on Saturdays will be of little use unless the whole port activities are streamlined. Inflated overtime bill to the workers will otherwise cost the CPA exchequer heavily.
There is no denying that the port activities have increased manifold since the country's independence. Export-import trade has also witnessed a tremendous rise. There is no alternative to enhancing efficiency of Chittagong Port. Unfortunately, none is giving adequate attention to the unfolding situation there. The government, particularly the ministry of shipping, appears unnerved on the issue until now. Except declaring port activities open on Saturdays, it could take no effective action to properly address the situation. The ministry could have moved to the Supreme Court much earlier to quash the stay order on the port activities if it thought that the berth co-partners' demand was unjust and illegitimate. On the other hand, it could have settled the matter beyond the court by negotiating the issue with the aggrieved workers.
Chittagong port has certainly the scope of being one of the largest and efficient ports in the region. Colombo emerged as one of the most efficient ports in South Asia, despite ethnic clashes and other kinds of unrest that raged across Sri Lanka for long until the end of the armed struggle by the ethnic Tamils there. Singapore has become a leader in seaport calling in recent days emerging from the scrap. Despite having enormous potentials, sadly enough, Chittagong port is failing to perform up to its potentials. The government has decided to build a deep sea-port. This is, no doubt, a good gesture. But what is urgently needed at this moment is the improved efficiency of Chittagong port sooner than later.
szkhan@dhaka.net