Benapole land port fee hike faces opposition
Syful Islam | Monday, 21 March 2011
Syful Islam
The government's move to set a uniform fee for land ports faces resistance after Benapole port agents said they would not pay higher rate due to lack of proper infrastructure, officials said Sunday. User fee for Benapole land port in some cases is less than 110 per cent, leaving a gap with other ports. The Shipping Ministry has formed a 10-member committee to bring uniformity in tariffs by raising user fee for the country's biggest land port. Statistics show that a truck, a bus or lorry pays Tk 40.23 for entry to the Benapole port each time whereas the tariff for per entry to Sonamasjid, Hili, Bibirbazar, Akhaura and Burimari land ports costs Tk 73.87. A motor car, a jeep, a pick-up or three wheeler pays Tk 16.10 for using Benapole port once while the charge is Tk 36.94 for using other land ports. For using a fork lift outside warehouse premises in Benapole port, a user pays Tk 201.03 only while users of other ports pay Tk 443.24 for the same equipment. A 2005 move to push up user fee in Benapole land port was foiled by Clearing and Forwarding (C&F) agents after they halted export- import trade through the port for 15 days. Officials said the committee charged with harmonising fees is now considering a 25 per cent hike in the port's fee to narrow the gap with other ports. Benapole land port handles the highest export-import volume only after the Chittagong port, accounting for nearly 80 per cent of total trade with India through land ports. Officials said the committee, headed by Irtiza Ahmed Choudhury, member (Traffic) of Bangladesh Land Port Authority (BLPA), has decided to visit the Benapole land port next month to monitor the development work of the port. It will also hold meeting with officials of the C&F agents association on raising the fee. "We are hopeful to raise the fee significantly through discussion with the C&F agents. We need to lift the fee to bring uniformity with other ports and help raise the revenue income," Mr. Choudhury told the FE. He said, "Change is not possible overnight. We're committed to raising the port's infrastructure on par with the international standard." "We have already raised the number of sheds to 41, from 25 in 2005. So, the allegation of poor port development is not correct." Since 2002, sources said the port authority has established sheds, leased lands for expansion of the port, established transhipment yard and constructed bypass road up to zero line. It has also prepared a design to construct a terminal of international standard. Secretary of the Benapole C&F Agents Association Emdadul Huq told the FE Sunday that they have no objection to the proposed hike in fees if necessary facilities are ensured. He said 5 per cent fee was raised in 2005. But there has been no development activities since then," Mr. Huq said. "Facilities in Benapole port are so poor. We face huge problems in handling export import activities in the port. So, there is no rationale to raise fees." Sources said apparel industry leaders are slightly opposing the proposed fee hike but the operators of other land ports are backing the move. Benapole port is being used mainly for importing raw materials and export to India. The land port authority is running Benapole, Akhaura and Burimari land port by their own while it gets 49 per cent tariff from Sonamasjid and Hili port and 28.09 per cent from Teknaf port since those are being operated by private operators.
The government's move to set a uniform fee for land ports faces resistance after Benapole port agents said they would not pay higher rate due to lack of proper infrastructure, officials said Sunday. User fee for Benapole land port in some cases is less than 110 per cent, leaving a gap with other ports. The Shipping Ministry has formed a 10-member committee to bring uniformity in tariffs by raising user fee for the country's biggest land port. Statistics show that a truck, a bus or lorry pays Tk 40.23 for entry to the Benapole port each time whereas the tariff for per entry to Sonamasjid, Hili, Bibirbazar, Akhaura and Burimari land ports costs Tk 73.87. A motor car, a jeep, a pick-up or three wheeler pays Tk 16.10 for using Benapole port once while the charge is Tk 36.94 for using other land ports. For using a fork lift outside warehouse premises in Benapole port, a user pays Tk 201.03 only while users of other ports pay Tk 443.24 for the same equipment. A 2005 move to push up user fee in Benapole land port was foiled by Clearing and Forwarding (C&F) agents after they halted export- import trade through the port for 15 days. Officials said the committee charged with harmonising fees is now considering a 25 per cent hike in the port's fee to narrow the gap with other ports. Benapole land port handles the highest export-import volume only after the Chittagong port, accounting for nearly 80 per cent of total trade with India through land ports. Officials said the committee, headed by Irtiza Ahmed Choudhury, member (Traffic) of Bangladesh Land Port Authority (BLPA), has decided to visit the Benapole land port next month to monitor the development work of the port. It will also hold meeting with officials of the C&F agents association on raising the fee. "We are hopeful to raise the fee significantly through discussion with the C&F agents. We need to lift the fee to bring uniformity with other ports and help raise the revenue income," Mr. Choudhury told the FE. He said, "Change is not possible overnight. We're committed to raising the port's infrastructure on par with the international standard." "We have already raised the number of sheds to 41, from 25 in 2005. So, the allegation of poor port development is not correct." Since 2002, sources said the port authority has established sheds, leased lands for expansion of the port, established transhipment yard and constructed bypass road up to zero line. It has also prepared a design to construct a terminal of international standard. Secretary of the Benapole C&F Agents Association Emdadul Huq told the FE Sunday that they have no objection to the proposed hike in fees if necessary facilities are ensured. He said 5 per cent fee was raised in 2005. But there has been no development activities since then," Mr. Huq said. "Facilities in Benapole port are so poor. We face huge problems in handling export import activities in the port. So, there is no rationale to raise fees." Sources said apparel industry leaders are slightly opposing the proposed fee hike but the operators of other land ports are backing the move. Benapole port is being used mainly for importing raw materials and export to India. The land port authority is running Benapole, Akhaura and Burimari land port by their own while it gets 49 per cent tariff from Sonamasjid and Hili port and 28.09 per cent from Teknaf port since those are being operated by private operators.