Consult stakeholders before raising Chattogram Port service charges

A media report says the Chattogram Port Authority has taken a move to raise tariffs on port services claiming that the rates fixed more than 35 years back in 1986 and adjusted during 2006-08 have lost relevance in the present context. The port authorities have sought the opinion of stakeholders in 10 days in this regard while it has already appointed consultants for reappraisal of the charges. Stakeholders have however raised objections saying it would increase their port cost and adversely impact the entire economy with domestic inflation rate growing. This is going to be a serious issue while the port also needs more revenue to finance some mega projects and buy sophisticated equipment. Port users say the high service charge would import and export costs and seriously impact business competitiveness.
We believe a solution to this problem could be partly achieved by bringing down corruption at various levels that cause enormous revenue loss and by increasing efficiency in port operation. Mentionably, the cost of port operation is much lower in India, Pakistan and Sri Lanka while they provide better port service to customers. What is surprising is that the port buys equipment while berth operators use those free of costs. Stopping such misuse could bring revenue to the port authorities. We know that over the past years many committees were formed to bring dynamism in port use reducing corruption and waste but the situation never changed.
The CPA handles more than 90 per cent of the country’s around $100 billion worth of external trade for some 51 types of tariffs. This is one of the busiest ports in the world but in terms of operational efficiency it is far behind many others. Stakeholders have rightly demanded that the port should be made a true service provider in the interest of the people and the economy instead of being turned into a profit-maximising organisation. The port’s logistics and service charges are already expensive due to a rise in shipping freight and we would say service charges must be made reasonable instead of raising those unilaterally. The port authorities must hold discussions with stakeholders instead of taking a one sided decision.