CPA waives Tk 175m as store rent in 4.5 years

The Chittagong Port Authority (CPA) has waived some Tk 175 million as store rent during the last four and a half years ended in June 2013 which puts a negative impact on the port's income, sources said.

Of the amount a big portion was waived due to influence of a powerful quarter, they said.

"Repeated waiver of realisable tariff puts a negative impact on the port's income which may affect development works," CPA secretary Syed Farhaduddin Ahmed wrote in a recent letter to the ministry of shipping (MoS).

He also wrote that the tariff rate set in 1986 at the Chittagong port was 'cost based' which was partly amended in 2008.

During the period costs of many other services relating to import and export increased significantly but no commercial adjustment of tariff was made. As a result the income of the port did not increase compared to the services it provides, he said.

Sources said recently the MoS sought opinion from the CPA as two importers -- Shova Advanced Technologies Ltd and Shova Enterprise -- requested store rent waiver. Until November 2013 the companies had Tk 1.77 million due as store rent to the CPA.

Officials said many port users frequently seek tariff waiver and apply to the ministry in this connection. After that they engage influential quarters to pursue their applications.

The CPA secretary said only the ministry has the power to give such waiver. "The ministry has a set guideline to decide on tariff waiver. We only follow the ministry's instruction."

"We receive such requests very often. The top bosses decide which one to get waiver or not," a senior MoS official told the FE.

He said after getting such requests the ministry seeks opinion from the CPA. Its opinion is also being considered before taking decision on tariff waiver.

Mr Ahmed said the tariff rate at the port has not been increased for many years. The charge here is very low compared to other nearest ports.

He said seeking tariff waiver despite the low charge is not logical.