Be rational about tariff for Pangaon container port

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NEWS reports said that the government has phenomenally increased vessel tariff from Chittagong Port to Pangaon Inland Container Terminal in the suburb of Dhaka city adding more to cost of doing business and discouraging exporters and importers to use the newly commissioned port in 2013. It remained largely unutilized ever since as users were pressing for reducing tariff. But the Shipping Ministry recently raised the tariff instead without consulting major stakeholders and even ignoring recommendations of the Chittagong Port Authority (CPA) and the National Board of Revenue (NBR); which have earlier called for reducing tariff to increase the utilization of the port. The tariff cuts were suggested up to 70 percent in some cases to make cargo handling cheaper and competitive at a time when Bangladesh is facing stiff competition in global market to keep the cost of doing business at low in the country.
The report quoted insiders in the Ministry of Shipping as saying that the Ministry has acted to help a ruling party man who has set up a private container terminal and freight station at a small distance from the Pangaon Terminal. It just highlights a chaotic situation in which the Ministry is working to dump its own port facility set up at a huge cost to help a private port hurriedly set up by a private firm owned by a wealthy party man. The disclosure came at a time when as per World Bank (WB) Bangladesh has lost two points in doing business in global rating this year as against most of its business rival made steady improved in their situation.
It goes without saying that bribes, corruptions at high places of the government, wrong decisions and priority to serve party men’s interest are creating impediments to business. The concerned authorities must act responsibly after taking into consideration the consequences.  
The Shipping Ministry run by a Trade Union leader in road transport sector has raised tariff by over 50 percent in all cases without bothering what impact it may have on users and to the terminal that the government has set up to provide alternative and a low cost route to carrying cargo to and from Chittagong Port to industrial belt inside country.
So far 32 private operators have obtained license to ply vessels using the Pangaon route and they have to buy it at huge cost. So far only a few have fielded vessels but the surge in tariff rates has come as a new obstacle to increase the use of the terminal.
It is said that the ministers are good at condemning their opponents but not competent to run the ministries. On the other hand their inefficiency is causing problems for the government and the general public.

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