THE Bangladesh government has withdrawn fixed freight rates on the Chittagong-Pangaon-Chittagong route, aiming to enhance container transportation by waterways and avoid carrying cargoes through congested highways and railways, reports Mumbai's Maritime Gateway.

The Chittagong Port Authority (CPA) issued a notification in this regard. According to officials concerned, the Ministry of Shipping on October 16, 2022 issued a circular fixing the rates for vessels operating on the route.

However, the importers and exporters found it "very high and felt discouraged to use the Inland Container Terminal (ICT) at Pangaon in Dhaka.

Stakeholders have urged authorities to reduce freight rates on the route to facilitate the ICT's full-scale operation. In response to this demand, the government now has revoked the freight rate circular.

The CPA also informed the stakeholders that a fixed schedule for vessels plying between Chittagong and Pangaon route has been announced for carrying their cargoes.

In the circular, it said the Bangladesh Railway has been failing to provide the required numbers of locomotives to carry boxes to and from Chittagong and Kamalapur Inland Container Depot (ICD).

As a result, the number of containers designated for the Dhaka ICD at the Chittagong port has increased to nearly 1,700 TEU, exceeding the storage capacity. It has led to significant delays for Dhaka-based importers in receiving their imported goods by train.