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Ctg port to become costlier from Sept 16

Stevedores decide to hike charge 15pc

M SHAMSUR RAHMAN from Chittagong
The cost of cargo handling at Chittagong Port will increase by 15 percent as stevedores decided to raise their fee from September 16, 2004.
Bangladesh Master Stevedores Association (BMSA), a body of the cargo handling contractors, in a meeting yesterday decided to increase the charge for both bulk and container handling by 15 percent. They cited increase in remuneration of the staff as the rationale behind the decision.
Importers and exporters say the rise in handling cost will adversely affect the trade. Consumers too will feel the effects as Bangladesh presently imports, among other goods, a large volume of essentials like wheat, rice, various types of peas, salt.
The association has already communicated its decision to the Chittagong Port Authority (CPA) and directed all their members to implement the new rate.
Chairman of BMSA AHM Manzur Alam told The Daily Star that the new rate will not have much effect on imports as the productivity level
of goods handling has been upped by 100 percent by installing advanced machinery in place of manual labour.
"A year ago, we used to take 20 to 25 days to clear a ship, whereas now we take only 8 to 10 days," Alam claimed.
Importers, however, said ultimately the general people will have to bear the additional cost, as they (importers) will charge the consumers extra to retain the profit margin.
Abul Bashar Chowdhury of Mashud and Brothers, a leading commodity importer, said the efficiency at cargo handling has declined in last two months thanks to 'unskilled staff' engaged by the BMSA.
He said presently it takes 20 days to unload a ship with 3000 tonnes of cargo. Earlier it used to take only 10 days.
"The delay is costing us additional US$ 8,000 to 10,000 a day," Chowdhury, whose company imports 2 to 2.5 lakh tonnes of commodity annually, told The Daily Star.
If the new charge is implemented, his company will have to bear an extra cost of Tk 62.50 lakh annually, he added.
First Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) MA Salam said their cost will increase by well over 15 percent as the garment manufacturers will have to count 15 percent additional cost for importing raw materials while another 15 percent for exports.
He said Chittagong Port is already known to be the most expensive port in the region and the 15 percent increase will only add to the misery of the importers and exporters.
AMM Shahadat Hossain, chairman of the CPA, said they were not consulted prior to the decision.