Bangladesh policy may up cost of goods transport via lighter vessels

Bangladesh’s Department of Shipping has recently reinstated a regulatory framework that many believe could result in the dominance of syndicates and increased transportation costs for goods moved by lighter vessels. Following the abolition of the serial system last year—an initiative that had cut transportation costs for imported goods by at least 20% across 34 waterways—a new policy implemented on October 15 may negate these benefits, as reported by local media.

Previously, freight rates were established through negotiations between importers and vessel owners. However, under the new directive from the Bangladesh Water Transport Coordination Cell (BWTCC), this negotiation process has been eliminated, leading to higher transportation costs and, consequently, increased prices for goods.

Under the revised policy, lighter vessel owners will now operate under the BWTCC, which will be managed in collaboration with three associations representing lighter vessel owners. The BWTCC is set to coordinate with all stakeholders, including lighter vessel owners, importers, product agents, and local agents, for the allocation of lighter vessels. Additionally, a 10-member supervisory committee has been established to oversee the activities of the cell.

At the outer anchorage of Chattogram Port, goods are transferred onto lighter vessels, which operate nearly 2,500 vessels across 34 domestic waterways. Business leaders argue that while the BWTCC was intended to facilitate the transportation of goods from the port’s outer anchorage, it has effectively taken control of the entire operation. The cell charges Tk20 per tonne and allocates vessels at its discretion, imposing additional fees for delays, which has resulted in doubled transportation costs.

There are calls from the business community to keep the goods transportation sector free from control by the cell or any syndicates.