HomeLatest"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 following a legal challenge questioning the validity of the port’s decision to increase charges for the first time in 40 years.

Justices Kazi Zinat Hoque and Aynun Nahar Siddiqua granted the stay order in response to a petition filed by the Bangladesh Maritime Law Society (BMLS). The petition raised concerns about the Statutory Regulatory Order (SRO) and a subsequent circular issued by the Chittagong Port Authority (CPA) on September 30, which put the revised tariff into effect starting October 15 this year.

Additionally, the court issued a rule requiring relevant authorities, including the Ministry of Shipping’s secretary and the CPA chairman, to justify the legality of the contested SRO and circular. The court directed that the CPA’s circular, implementing the new tariff, will be suspended for 30 days or until further notice.

Chattogram Port Secretary Omar Faruk acknowledged the High Court’s decision, stating that they are yet to receive an official copy of the order. Once received, they will assess the directive and take appropriate actions accordingly.

The CPA had adjusted port tariffs in September for the first time since the early 1980s, attributing the increase to escalating operational and maintenance expenses, the necessity for modernization, and currency devaluation. The revised tariff structure involved elevated fees for vessel berthing, container handling, storage, and other port services across different categories.

The sudden tariff revision, effective from October 15, faced backlash from shipping operators, freight forwarders, and exporters who cautioned that it could elevate logistics expenses, diminish profit margins, and erode Bangladesh’s trade competitiveness, particularly in export-driven sectors. Concerns were raised that the heightened port charges might reduce the appeal of Bangladeshi exports in global markets and elevate import costs for essential goods, consequently impacting the efficiency of the overall supply chain.

Following the tariff adjustments, the Bangladesh Container Shipping Association and the BMLS separately filed writ petitions, contending that the changes were made without adequate consultation with stakeholders and lacked legal authorization.

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