Port equipment charges likely to go up
Thursday, 18 October 2007
Jasim Uddin Haroon
The user charges of port equipment and other related services at Chittagong port are likely to be increased shortly that will push the cost of doing business further up, port sources said.
Cost of using rail mounted quay gantry cranes will stand at US$ 15 for each 20-foot and $ 22.50 for 40-foot laden containers.
Charges for empty 20-foot and 40-foot containers will stand at $7.5 and $ 11.25 respectively.
Although the charges were fixed by the CPA last year when the rail mounted gantry cranes were introduced in the port, but the rates had to be curtailed to 25 per cent following resentment among businessmen, shippers and workers.
Besides, tug-boat and water supply charges may also increase by around 50 per cent from the existing costs.
The CPA, which handles around 90 per cent of the country's external trade is likely to realise the revised rates soon after publication of a gazette notification.
Sources said the gazette notification might be released by next week.
In the meantime, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) expressed its concern at the initiative to raise different charges at the port.
Muhammad Amirul Haque, Chairman of the FBCCI standing committee on shipping and ports told the FE that the government should refrain from raising port charges at this moment as it would make imports costlier.
He also said the apparel sector will be adversely affected following fresh hike of port charges.
"I don't understand why the government is raising the charges right now when our main export earning sector is in a vulnerable position and prices of imported items are increasing in the local markets," he added.
When contacted, the chairman of Chittagong port Users Forum Saifuzzaman Chowdhury told the FE that he was not aware of the matter.
Country director of the PIL, a leading feeder operator Captain Mohammed Rafique told the FE that there is no example for separate charges for use of gantry cranes.
"Gantry crane charges are generally included with the terminal handling charges and the CPA should review the terminal handing charges instead of introducing separate charges for the use of such equipment", he added.
He also said: "We will adjust charges with the freight cost and the end users will ultimately pay the increased charges," he added.
However, tug charges for 200-1000 general registered tonnage (GRT) is going to be increased by 43 per cent. Currently, shipping agents are paying $ 110 for the same and it is going to be refixed at $ 158.
The tug-boat charge for the 1000-5000 GRT also is being raised by 43 per cent. The new charges will be $ 316 up from $ 220.
Tug charges above 5000 GRT will be $ 632 from existing $440.
Charges for supplying water is also going to be increased. Water supply by pipes is going to be refixed at $ 1.5 each tonne and water supply by barge will be $ 6.40 each tonne from existing $ 3.40.
Dr Pervez Sazzad Akter, Chairman of Bangladesh Shipping Agents Association told the FE that the CPA is raising the charges unilaterally.
"The CPA did not discuss with us in this connection," he added.
The user charges of port equipment and other related services at Chittagong port are likely to be increased shortly that will push the cost of doing business further up, port sources said.
Cost of using rail mounted quay gantry cranes will stand at US$ 15 for each 20-foot and $ 22.50 for 40-foot laden containers.
Charges for empty 20-foot and 40-foot containers will stand at $7.5 and $ 11.25 respectively.
Although the charges were fixed by the CPA last year when the rail mounted gantry cranes were introduced in the port, but the rates had to be curtailed to 25 per cent following resentment among businessmen, shippers and workers.
Besides, tug-boat and water supply charges may also increase by around 50 per cent from the existing costs.
The CPA, which handles around 90 per cent of the country's external trade is likely to realise the revised rates soon after publication of a gazette notification.
Sources said the gazette notification might be released by next week.
In the meantime, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) expressed its concern at the initiative to raise different charges at the port.
Muhammad Amirul Haque, Chairman of the FBCCI standing committee on shipping and ports told the FE that the government should refrain from raising port charges at this moment as it would make imports costlier.
He also said the apparel sector will be adversely affected following fresh hike of port charges.
"I don't understand why the government is raising the charges right now when our main export earning sector is in a vulnerable position and prices of imported items are increasing in the local markets," he added.
When contacted, the chairman of Chittagong port Users Forum Saifuzzaman Chowdhury told the FE that he was not aware of the matter.
Country director of the PIL, a leading feeder operator Captain Mohammed Rafique told the FE that there is no example for separate charges for use of gantry cranes.
"Gantry crane charges are generally included with the terminal handling charges and the CPA should review the terminal handing charges instead of introducing separate charges for the use of such equipment", he added.
He also said: "We will adjust charges with the freight cost and the end users will ultimately pay the increased charges," he added.
However, tug charges for 200-1000 general registered tonnage (GRT) is going to be increased by 43 per cent. Currently, shipping agents are paying $ 110 for the same and it is going to be refixed at $ 158.
The tug-boat charge for the 1000-5000 GRT also is being raised by 43 per cent. The new charges will be $ 316 up from $ 220.
Tug charges above 5000 GRT will be $ 632 from existing $440.
Charges for supplying water is also going to be increased. Water supply by pipes is going to be refixed at $ 1.5 each tonne and water supply by barge will be $ 6.40 each tonne from existing $ 3.40.
Dr Pervez Sazzad Akter, Chairman of Bangladesh Shipping Agents Association told the FE that the CPA is raising the charges unilaterally.
"The CPA did not discuss with us in this connection," he added.