Car imports thru’ Mongla to get dearer

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Syful Islam | Published: May 10, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

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The Mongla Port Authority (MPA) has decided not to offer anymore the low-cost 'space rent' facility to car importers from next year, officials said.
Instead, they will be offered the high-cost 'wharf rent' facility to raise earnings of the port, they added.
The port authority recently forwarded the decision to the ministry of shipping for approval.   
The charge of a car kept in the port for one month under 'space rent' category is Tk 915 while it is Tk 5,665 under 'wharf rent' category.
Sources said taking the advantage of low cost under the 'space rent' category, the big importers keep their cars in the port months after months hiring big warehouses resulting in congestion in the port yards.    
"We have decided not to make available the 'space rent' facility from next year for car importers. They will, however, be able to avail the 'wharf rent' facility," MPA chairman Riazuddin Ahmed told the FE.
He said in 2010, the 'space rent' facility was offered as an incentive to make use of the port attractive to car importers.
"But, now it has become a burden causing space shortage as importers prefer to keep their cars in the port yards for long," Mr Ahmed said.
He said the decision was forwarded to the ministry recently and will be implemented after getting its approval.
Mr Ahmed said businessmen were not using the Mongla port for car import before 2010. They were using the Chittagong port for the same.
"I was chairman of the Chittagong Port Authority then and gave proposal to the higher authority for introduction of low-cost space rent facility in the Mongla port to attract the car importers," he said. It worked, and many car importers had started using the port, he added.
He said presently there is no option of 'space rent' facility for car importers in Chittagong port and even the 'wharf rent' of the port is much higher than that of the Mongla port.
"As a result, importers prefer to keep their cars in Mongla port under 'space rent' facility at low cost for months instead of keeping those in 'wharf rent' category affecting the port's earnings from the segment," Mr Ahmed added.
Talking to the FE Friday, president of Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) Abdul Hamid Sharif welcomed the decision saying that the 'space rent' category is advantageous for only big importers but not helpful for small importers.
He said the 'space rent' facility is available within big warehouses which only big importers can avail.
Since big importers hire warehouses for long period taking the advantage of low cost, the cars of small importers remain under the open sky and are being damaged, Mr Sharif said.
"If the 'space rent' category is abolished and only 'wharf rent' facility is offered, the big importers won't be interested to keep their cars in the port for a long period offering room to small importers to keep their cars inside the warehouses," he said.
The BARVIDA is against any decision that creates discrimination among the businessmen, he added.
Managing Director of 'Haq's Bay Automobiles Ltd Abdul Haque, who is availing the 'space rent' facility, told the FE that withdrawal of the provision will result in import of lesser number of cars through the port.
"The provision was introduced to make the port attractive for users. If the incentive is discontinued, importers may not be interested to import cars in large number through the port," he added.
He said trying to make the rent of the Mongla port similar to that of the Chittagong port won't be a wise decision since the former is located at a disadvantageous position where big vessels do not want to go due to low draft.  
     syful-islam@outlook.com