Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has called for reducing rents at the Chittagong port following a rise in their business-operation cost in recent months.
The request was made at a views exchange meeting between the Chittagong Port Authority (CPA) and BARVIDA leaders held recently at the Port Conference Room.
CPA Chairman Rear Admiral M Shahjahan, BARVIDA President Habibullah Don and General Secretary Mohammad Shahidul Islam, among others, were present.
Apart from reducing the port rents, the association also requested the port chairman to initiate a joint 'inventory' programme involving port representatives, stevedores and BARVIDA to prevent losses incurred from the missing of parts of imported vehicles.
BARVIDA President Mr Don informed the FE that their business operation costs increased by above 30 per cent amid notable appreciation of the US dollar as well as imposing of a 100 per cent L/C margin for importing vehicles.
Bangladesh Bank on July 4 last imposed a 100 per cent cash margin for opening letters of credit (L/Cs) on cars, electronics, gold, precious metals, RMG, and pearls, among other items, to discourage imports in a bid to keep the country's currency and debt management more integrated and stable.
Mr Don said the fuel price hike had further raised operation costs while import had also declined by 40 per cent.
According to BARVIDA, after the first five days of free service, port rent for imported vehicles at warehouses is Tk 57 per tonne for the first week, Tk 119 a tonne from second week and Tk 226 per tonne from the third week until releasing the car from the shed. Apart from the rent, the traders also pay Tk 1,884 for removal charge, landing charge, river due, weighment charge and carrier charge, he said.
For the open space, the rent is Tk 49 per tonne for the first week, Tk 123 for the second week, and Tk 196 from the third week, while other charges are Tk 1,309.
BARVIDA requested the CPA chairman to review the port rent to help the traders minimise their operating costs.
