Depot owners reject Ctg port’s move to halt tariff hike, cites lack of legal basis

The Bangladesh Inland Container Depots Association (Bicda) has formally objected to a Chattogram Port Authority (CPA) directive suspending its planned increase in container handling charges, arguing the port has no jurisdiction to interfere in privately negotiated tariffs.

In a letter sent to the CPA chairman on 25 September, Bicda President Khalilur Rahman said the association had received a CPA memo dated 9 September stating, "The increased tariff will remain suspended until approved by the Ministry of Shipping."

Bicda, however, disputes that such a decision was made during the meeting.

In its letter, the association said CPA officials themselves had acknowledged that tariff approval was beyond the port's authority and had instead advised stakeholders to submit written views for the ministry's review.

The CPA also suggested that all parties attempt to reach a mutual understanding within a month.

The association insists that neither the CPA nor the long-defunct tariff committee formed under the 2016 ICD/CFS policy holds the power to set or suspend rates charged by private inland container depots.

"No functional tariff committee has existed for nine years," the letter said. "Even when the ministry announced a committee in 2019, it never operated or set any tariff structure. A committee dominated by service users can never ensure fairness, as they will always seek the lowest possible charges."

Bicda argued that depots negotiate their own rates with shipping lines or freight forwarders through bilateral contracts, often below Bicda's suggested benchmarks.

"Whatever tariff Bicda proposes, final charges are determined by market supply and demand," it added.

The association also clarified that its tariff schedule is not under judicial review. Instead, a High Court case is assessing the legality of the 2016 policy's tariff committee itself.

Bicda warned that suspending the revised tariff would threaten the financial sustainability of private depots already struggling with rising operational costs.

"Without implementing higher tariffs, operations will become unsustainable," it said.

When contacted, CPA Secretary Mohammad Omar Faruk told The Business Standard that the matter of suspending the tariff hike was discussed at the meeting, where all stakeholders were present.

"Bicda claimed that as service providers, they reserve the right to raise tariffs. However, under the Inland Container Depots Rules, there is an obligation to form a committee to restructure the tariff," he said.

Bicda earlier announced a significant increase in export and empty container handling charges at private inland container depots in Chattogram, effective from 1 September.

According to a Bicda circular issued on 15 July, export cargo handling charges were raised by 36% to 44% compared to existing rates, while fees for handling empty containers rose by up to 31.8%. Import container handling charges remain unchanged.

BICDA Secretary General Ruhul Amin Sikder said the inland container depots had kept their rates unchanged for the past seven years.

"Even during the Covid-19 pandemic, when almost all transport and shipping costs went up, we maintained the old tariff," he said. "But over the years our operating expenses have risen far beyond that rate. Without an increase, the ICDs cannot survive."

He added, "We began applying the new tariff on 1 September, and there is no plan to reverse the decision."

Private inland container depots handle the bulk of Bangladesh's export and import containers outside Chattogram Port's main gates, easing congestion at the port.