Concerns are mounting over Bangladesh’s coal transportation system as allegations of syndicate control and unfair freight practices threaten to disrupt fuel supply to several major coal-fired power plants.
Lighter vessel owners and transport operators have alleged that a group of influential intermediary logistics companies is manipulating the coal transportation business, forcing vessel operators to transport coal at rates far below government-approved fares.
They warned that if the situation continues, coal supply to major power plants, including Rampal and Payra, could face serious disruption, potentially affecting electricity generation across the country.
Bangladesh currently operates five coal-based thermal power plants. Except for the Matarbari Power Plant, large mother vessels cannot directly access the other plants due to navigational limitations. As a result, imported coal must first be unloaded at Chattogram Port’s outer anchorage and then transported inland through smaller lighter vessels.
Industry insiders said technical challenges have further complicated the situation. The unloading equipment used at Rampal and Payra power plants requires vessels with wider cargo holds, but many local lighter vessels are not technically compatible. Ship owners alleged that the Bangladesh Water Transport Coordination Cell (BWTCC) often allocates unsuitable vessels, creating opportunities for intermediary companies to dominate the system.
The allegations mainly centre on two logistics firms - QNS Shipping Logistics and AMMS Logistics - which operators claim secure subcontracting work despite having limited vessels of their own.
According to vessel owners, these firms hire independent vessels at rates nearly half the government-approved charges fixed by the Department of Shipping and BWTCC.
Operators said rising fuel costs, maintenance expenses, crew wages and inflation have made operations increasingly difficult under the reduced rates, causing substantial financial losses.
Following protests by vessel owners, the Department of Shipping held an emergency meeting on 17 May. During the meeting, ship owners demanded strict enforcement of BWTCC policies and action against the alleged syndicate.
BWTCC Convener Shafik Ahmed said authorities decided to introduce a separate vessel serial system for Payra operations and that freight rates for Payra-bound vessels would also be determined officially by the government.
Industry representatives said only 200 to 300 vessels out of nearly 1,000 operating under the BWTCC system currently meet the technical standards required for Payra operations.
Officials from the Department of Shipping acknowledged the complaints and said monitoring efforts would be strengthened. Meanwhile, QNS Shipping Logistics denied any wrongdoing, claiming freight rates are fixed through mutual agreements with vessel owners.
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