The Bangladesh Inland Water Transport Authority (BIWTA) will raise tariffs across a range of waterway services from July 1, pushing up the cost of moving goods along the country’s inland river routes.

BIWTA last raised tariffs in 2019. The new schedule, finalised under powers granted by the Inland Water Transport Authority Ordinance, 1958, follows a push from the shipping ministry to boost revenue from the country’s waterways. The ministry published a gazette notification on May 12 in this regard.

A review of the 2019 and 2026 tariff schedules shows BIWTA has imposed sweeping changes to charges on vessels, ports, terminals, cargo handling, berthing, mooring and waterway usage. Industry figures say the new rates will significantly lift cargo transport costs, with knock-on effects for construction materials, agricultural and industrial raw materials, and consumer goods.

The increases come on top of two recent rounds of fuel price rises that have already driven up shipping freight rates. With the higher tariffs on cargo clearance at terminal and landing points, leaseholder companies will pass the additional cost straight onto goods. BIWTA officials said the new tariffs will raise charges for various services by about 30 percent on average from July 1 across domestic routes. Stakeholders warn that some commodity-specific rates have climbed far more steeply, threatening a negative impact on the country’s agriculture and consumer goods sectors.

STEEP INCREASES ACROSS SEVERAL SERVICES

For domestic cargo, bulkhead, ferry and flat vessels, the conservancy charge in 2019 stood at BDT 40 per gross tonne annually. The new tariff sets the same vessel class charge at BDT 100 per gross tonne — a 150 percent increase. For cargo vessels bearing foreign flags, the rate jumps from BDT 210 to BDT 800 per gross tonne, a rise of nearly 281 percent.

Pilotage fees have climbed from BDT 500 to BDT 750 per beat. Because the waterway from Chattogram to Chargazaria/Azad Bazar counts as four beats, costs on that route will rise further, sharply increasing the per-trip expense for large cargo vessels and bulk carriers.

Berthing charges have risen most steeply of all under the new tariff. In 2019, the schedule for cargo vessels operated on a multi-tier tonnage basis: BDT 125 for vessels up to 50 tonnes, BDT 150 for 51–100 tonnes, BDT 175 for 101–250 tonnes, BDT 200 for 251–500 tonnes, BDT 240 for 501–750 tonnes, BDT 315 for 751–1,000 tonnes, BDT 400 for 1,001–1,500 tonnes, BDT 575 for 1,501–2,000 tonnes, BDT 850 for 2,001–2,500 tonnes, BDT 1,125 for 2,501–3,000 tonnes, and BDT 1,680 above 3,000 tonnes.

That structure has now been scrapped. Under the new rates, vessels up to 500 tonnes will pay BDT 300; 501–1,000 tonnes, BDT 500; 1,001–2,500 tonnes, BDT 1,000; and anything above 2,500 tonnes, a charge of BDT 2,000. The heaviest blow lands on medium-sized cargo vessels, whose berthing charges have climbed between 108 and 150 percent.

Mooring charges follow a similar trajectory. The 2019 schedule set rates at BDT 62 for vessels up to 50 tonnes, BDT 75 for 51–100 tonnes, BDT 87 for 101–250 tonnes, BDT 100 for 251–500 tonnes, BDT 120 for 501–750 tonnes, BDT 157 for 751–1,000 tonnes, BDT 200 for 1,001–1,500 tonnes, BDT 287 for 1,501–2,000 tonnes, BDT 425 for 2,001–2,500 tonnes, and BDT 784 above 3,000 tonnes.

The new tariff imposes a BDT 100 mooring charge for vessels up to 250 tonnes, BDT 150 for 251–500 tonnes, BDT 200 for 501–1,000 tonnes, BDT 350 for 1,001–1,500 tonnes, BDT 500 for 1,501–2,000 tonnes, BDT 650 for 2,001–2,500 tonnes, and BDT 1,000 above 2,500 tonnes. For the 1,001–1,500-tonne band, the mooring charge rises 75 percent; for 1,501–2,000 tonnes, 74 percent; and for 2,001–2,500 tonnes, nearly 53 percent.

Landing, shipping and throughput charges have also shifted sharply. The rate stood at BDT 34.50 per tonne in 2019 within port areas. The 2026 tariff sets petroleum product charges at BDT 7 per 100 kilograms, or BDT 70 per tonne — a 103 percent increase. For cargo moved through licensed jetties or foreshore facilities, the new rate is BDT 50 per tonne and BDT 0.50 per cubic foot.

The new tariff schedule has also redrawn vessel categories, collapsing smaller bands into higher-rate tiers. Some vessels will now pay charges in a bracket above their previous classification. The berthing and mooring cost increases bite hardest for vessels in the 501 to 2,500-tonne range — precisely the size that dominates Bangladesh’s inland transport of cement, stone, sand, coal, fertiliser, food grains and industrial raw materials. Industry figures warn the new tariff will directly inflate bulk cargo transport costs.

Waterways are generally the cheapest freight option compared with road and rail. But traders note that even a modest per-tonne increase on inland routes translates into a large total cost rise given the volumes moved. They expect the new charges, once in force, to feed through into raw material and consumer goods transport costs for the country’s medium and heavy industries, stoking broader inflation.

BIWTA CITES INFLATION AND RISING OPERATING COSTS

BIWTA counters that road and rail freight costs have climbed sharply over the past six to seven years. While fuel, wages and operating expenses have risen across the board, waterway tariffs had been left untouched for a long period. The authority manages waterway conservancy, dredging, terminal operations, infrastructure development, security and navigational aids — all of which have seen annual operating cost increases. It describes the tariff revision as a routine realignment of the revenue structure, forced by seven years of accumulated inflation, wage rises, and higher fuel and construction material prices.

“There’s a rule to raise waterway charges every three years. For various reasons the process was delayed by six to seven years,” AKM Arif Uddin, BIWTA director for ports and transport, told Bonik Barta. “Many costs have risen during the period, and BIWTA’s own operating costs have climbed. The government has issued the notification keeping the impact tolerable for all parties, adjusting the charges broadly in line with inflation. The new tariff takes effect from July 1.”

BUSINESSES WARN OF HIGHER COSTS

The 2026 structure lifts the conservancy charge for domestic cargo vessels two-and-a-half-fold. Foreign cargo vessels face a near fourfold rise. Cargo handling charges have more than doubled. Berthing and mooring fees for medium-sized cargo vessels have surged between 50 and 150 percent. The overall cost of moving goods by water will rise from next month, feeding directly into industrial production costs and domestic supply chains. Because many coastal districts depend heavily on waterways, higher freight costs will push up local living expenses, industry figures warn.

“The cost of doing business in Bangladesh is already far higher than in neighbouring and competitor countries — almost double. Delivering goods to local consumers with that cost burden is extremely difficult,” said Mohammed Amirul Haque, president of the Chittagong Chamber of Commerce and Industry. “Most of the country’s imported industrial raw materials and commodities arrive at the ports and then move to factories nationwide by water. Raising the waterway tariff now will make business far harder to operate.”

Industry data show that after discharge at the country’s ports, a large share of these raw materials travels to Dhaka and other destinations on small and medium-sized lighterage vessels. Bulk imports including grain, cement clinker, steel products and edible oil are transferred from large vessels to domestic waterways and shipped to major industrial hubs, including Dhaka and Narayanganj. Separately, 19 coastal and waterway-served districts rely on small and medium vessels for goods supply.