Trade bodies seek emergency support as floods disrupt Ctg Port operations

Highlights

• Trade bodies seek emergency support for flood-hit Chattogram Port
• Floods disrupt imports, exports and supply chains
• Businesses demand compensation for damaged cargo
• Groups seek fee waivers and loan relief
• Faster customs clearance urged for essential goods
• Taskforce proposed to improve future resilience

Four of the country's leading business associations have jointly urged the government to announce an emergency financial and policy support package for industries and traders affected by flood-related disruptions at Chattogram Port, warning that prolonged congestion and transport bottlenecks could severely impact exports, industrial production and supply chains.

In a joint letter sent to Shipping Minister Sheikh Robiul Alam today (12 July), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and the Chittagong Chamber of Commerce and Industry (CCCI) sought immediate government intervention to restore port operations and ease the financial burden on affected businesses.

The business leaders said the government's business-friendly policies and efforts to facilitate trade and investment have supported Bangladesh's economic growth, but the ongoing floods and heavy rainfall have disrupted operations at Chattogram Port and damaged road and rail connectivity, requiring urgent action.

According to the letter, flooding and waterlogging have disrupted cargo unloading, storage and transportation at the country's busiest seaport, putting imported cotton, yarn, fabrics, industrial raw materials, chemicals, packaging materials, food products and other moisture-sensitive goods at risk of damage.

At the same time, delays in exporting ready-made garments, home textiles, leather products, pharmaceuticals, agricultural goods and other manufactured products could lead to cancelled export orders, price discounts, late delivery penalties and costly air shipments, the organisations warned.

The trade bodies referred to continuous heavy rainfall since 5 July, which caused water to enter container yards at Chattogram Port and several private inland container depots, triggering complaints of damage to import and export cargo.

They also criticised a notice issued by the Chattogram Port Authority on 10 July, in which the port authority rejected any claims for compensation over cargo damage and declined to accept liability or accountability.

The associations said the unilateral decision and the language used in the notice had created widespread dissatisfaction among importers, exporters and other port users.

"If cargo under the custody of the port has been damaged due to infrastructure weaknesses, inadequate drainage or management failures, responsibility should be determined through an impartial investigation and affected businesses should receive fair compensation," the letter said.

Otherwise, they warned, confidence in Chattogram Port, the country's principal seaport, could be undermined.

The organisations also said importers and exporters are facing mounting demurrage, detention, port rent, storage, shed and yard charges, along with higher shipping costs, as containers remain stranded for extended periods.

The disruption to raw material supplies and exports is also putting pressure on factory production, cash flow, workers' wages, bank loan repayments and other business obligations, with small and medium-sized enterprises particularly vulnerable, they added.

Recalling previous government support during natural disasters, the business bodies noted that Bangladesh Bank had earlier allowed affected businesses additional time to repay loans without imposing penal interest or late payment charges.

Similarly, authorities had previously considered waiving demurrage and storage charges following disruptions to port operations.

In the current situation, the associations urged the government to adopt similar policy measures.

Among their recommendations, they called for immediate restoration of road, rail and port connectivity to prioritise the movement of import and export cargo.

They also proposed forming a special assessment committee comprising representatives from the Chattogram Port Authority, Chattogram Custom House, relevant government agencies and business organisations to determine the actual extent of losses suffered by businesses and cargo owners.

The organisations further sought a temporary full or partial waiver of demurrage, detention, port rent, storage, shed, yard and related shipping charges for containers stranded due to flooding, along with suspension of new charges until normal operations resume.

They also requested the introduction of a fast-track customs clearance system for industrial raw materials, export cargo, food, medicines and other essential and perishable goods.

On the financial side, the business bodies proposed special low-interest refinancing and emergency working capital loans for affected industries, extension of loan repayment deadlines, loan rescheduling facilities and temporary regulatory relief from loan classification.

They also sought extensions to deadlines for letters of credit (LCs), back-to-back LCs, imports, exports, shipments and export proceeds repatriation.

In addition, the associations urged the government to allow more time for payment of electricity, gas, water and other utility bills, as well as taxes, VAT, customs duties, withholding tax and government fees, while waiving late payment interest, penalties and surcharges.

The letter also proposed establishing a dedicated incentive and rehabilitation fund for small, cottage and medium enterprises affected by the flooding.

To address losses from flood-damaged cargo, the business groups recommended simplified customs, banking and foreign exchange procedures for the destruction, re-export, replacement or re-import of imported raw materials and export goods that have become unusable.

As a longer-term measure, they suggested forming a high-level inter-ministerial taskforce comprising representatives from the ministries of shipping, commerce and finance, the National Board of Revenue, Bangladesh Bank, Chattogram Port Authority, Chattogram Custom House, Bangladesh Railway, Roads and Highways Department and business organisations.

The taskforce, they said, should oversee both immediate recovery efforts and long-term resilience planning.

The associations also recommended investing in sustainable drainage and emergency water removal systems in and around Chattogram Port, raising the elevation of container yards and warehouses, ensuring uninterrupted power supply and cold-chain facilities, and improving climate-resilient road and railway infrastructure.

They further proposed developing a comprehensive National Trade Continuity Framework that would include alternative ports and transport routes, emergency customs services, digital documentation and business continuity planning to keep Bangladesh's import and export trade functioning during future floods, cyclones or other disasters.

The joint letter was signed by BGMEA President Mahmud Hasan Khan, BKMEA President Mohammad Hatem, BTMA President Showkat Aziz Russell and CCCI President Mohammad Amirul Haque.