HomePolitics"High Court Halts Chattogram Port Tariff Increase"

“High Court Halts Chattogram Port Tariff Increase”

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The High Court has issued a temporary halt on the implementation of Chattogram Port’s recently updated tariff schedule for a period of one month. This decision came after a legal challenge was raised against the port authority’s move to increase charges for the first time in forty years.

The court order was issued by Justice Kazi Zinat Hoque and Justice Aynun Nahar Siddiqua following a petition filed by the Bangladesh Maritime Law Society (BMLS). The petition specifically contested the validity of the Statutory Regulatory Order (SRO) and the subsequent circular issued by the Chittagong Port Authority (CPA) on September 30, which aimed to enforce the revised tariff starting from October 15 this year.

Furthermore, the court has also issued a directive demanding an explanation from relevant authorities, including the Ministry of Shipping’s secretary and the CPA chairman, regarding the legality of the challenged SRO and circular. As per the court’s instructions, the implementation of the new tariff, as outlined in the CPA’s circular, will be put on hold for a 30-day period until further notice.

In response to the court’s decision, Chattogram Port Secretary Omar Faruk confirmed the development, stating that while they are aware of the High Court order, they are yet to receive an official copy. He mentioned that once they receive the directive, they will review it and take necessary actions accordingly.

The decision to increase port tariffs in September, marking the first revision since the early 1980s, was justified by the CPA citing escalating operational and maintenance expenses, the necessity for modernization, and currency devaluation. The revised tariff structure encompassed elevated charges for services such as vessel berthing, container handling, storage, and various other port-related services across different categories.

The sudden tariff adjustment that came into effect on October 15 faced backlash from shipping operators, freight forwarders, and exporters. Concerns were raised regarding the potential impact on logistics costs, profit margins, and the overall competitiveness of Bangladesh’s trade, particularly in export-driven sectors. Industry experts cautioned that the increased port charges could diminish the attractiveness of Bangladeshi exports in global markets and escalate import expenses for essential goods, consequently affecting the efficiency of the supply chain.

In response to the tariff changes, the Bangladesh Container Shipping Association and the BMLS separately filed writ petitions, contending that the revisions were implemented without adequate consultation with stakeholders and lacked legal authorization.

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