Govt okays proposed tariff structure for Chattogram Port, rates to rise by up to 440%

The finance ministry has issued a no-objection certificate (NOC) to a proposed revision of cargo and vessel handling tariffs at Chattogram Port, clearing the way for the first major overhaul of its pricing structure in years.

The NOC was issued today (24 July) in response to the shipping ministry's proposal titled "Tariff on Goods and Vessels, etc for Chattogram Port Authority 2025", according to a letter signed by Monowara Parvin Mitu, senior assistant secretary of the Treasury and Debt Management Division.

Under the draft proposal, several key service charges are set to rise steeply. For instance, the tug charge for over 20,000 Gross Registered Tonnage (GRT) vessels is proposed a hike from existing rate of $632 to $3,415 – a 440% jump.

Besides, the pilot charge for a 1,000 GRT vessel will jump from $357.50 to $800 – an increase of 123.8%. Similarly, the tug charge for vessels between 200 and 1,000 GRT will rise from $158 to $615 – a 289.2% increase.

The finance ministry's letter recommended that the Chattogram Port Authority (CPA) focus on improving service quality and operational efficiency alongside implementing the new tariff structure.

Confirming the development, Monowara Parvin Mitu told The Business Standard that the NOC had already been forwarded to the shipping ministry's senior secretary.

CPA Secretary Md Omar Faruq said the tariff revision process is ongoing. "The shipping ministry has held meetings with various stakeholders, and feedback and suggestions regarding the planned increases have already been submitted," he said.

Chattogram Port currently provides approximately 56 types of services, including tug assistance, pilotage, water supply, crane operations, ship loading, unloading, container handling, and cargo delivery.

The port is still using a tariff structure formulated in 1986, with minor adjustments made in five sectors during FY08. Although efforts to modernise the tariff structure began in 2013, progress had remained stalled.

To move the process forward, the CPA commissioned a comprehensive review in 2022 by Spain-based consulting firm IDOM Consulting, Engineering and Architecture, in association with Bangladesh's Logicforum Limited. 

The consultants were tasked with aligning the port's tariff system with international standards, ensuring fair and competitive pricing for users, and improving CPA's revenue generation and service quality.