PHOTO: HABIBUR RAHMAN

SOHEL PARVEZ

The government has increased charges and fees by up to 100 percent for passenger and cargo vessels operating in inland and coastal waters. Transport operators and businesses say the move could push up logistics costs for essential goods ranging from food items to construction materials.

The revised rates, announced by the shipping ministry last month, are scheduled to take effect from July 1.

From the next fiscal year, cargo vessels, bulkheads, fishing boats and other vessels will be required to pay Tk 100 per gross tonne as a conservancy charge, up from the current Tk 40.

Launch operators will have to pay Tk 150 annually per passenger as a conservancy charge, up 30 percent from Tk 115.

The pilotage fee will rise to Tk 750 for every eight-hour period, up from Tk 500, according to the notification issued by the shipping ministry, which has raised rates for services provided by the Bangladesh Inland Water Transport Authority (BIWTA).

The government last raised the rates in 2019.

The increased rates include berthing and mooring charges for all vessels, including goods-carrying and passenger transport vessels.

“We have already lost a lot of passengers due to the Padma Bridge. We are incurring losses because of a dearth of passengers. The increased charges and fees will hit us further as we lose passengers,” said Akter Hossain, director at Sundarbans Navigation Company Ltd, operator of the Sundarban launch service on the Dhaka-Barishal waterway.

He said launches operating on these routes are already charging fares below the officially fixed rates amid falling demand.

Cargo vessel and oil tanker operators said the higher charges would increase transportation costs.

Nazmul Hussain Hamdu, senior vice-president of the Coastal Ship Owners Association of Bangladesh, said the changes would affect everyone in the value chain.

“We will have no way but to hike rental rates. So, we will feel the hit initially. Later, everyone will be affected,” he said, adding that cargo vessels carry a wide range of raw materials and essential goods.

A large volume of goods is imported through Chattogram Port, where cargo is unloaded from mother vessels before being transported by lighter vessels to factories and other destinations across the country.

“From raw materials for cement to wheat, salt, pulses and stones, the list of items we handle is quite long,” he said.

Cement industry stakeholders said manufacturers depend heavily on inland waterways to transport imported inputs such as clinker, limestone, slag, fly ash and gypsum. Cement is also shipped across the country through the same network.

On condition of anonymity, an official at a cement manufacturer said the increased charge would raise production costs by more than Tk 3 per bag.

Mohammad Iqbal Chowdhury, chief executive officer of LafargeHolcim “The “We