Ctg port’s liability denial over flood damage draws flak

The Chittagong Port Authority (CPA) has come under criticism after formally disclaiming liability for damage to import and export cargo caused by the heavy rain and flooding that recently inundated parts of the port.

In a notice signed by CPA Director (Traffic) Golam Mohammad Sarwarul Islam on Friday, CPA said the authority would neither be liable nor answerable for any losses to goods, containers or other cargo stored within the port’s protected area as a result of the incessant rain and flooding since July 5.

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The notice said that any damage caused by the flooding constitutes an “Act of God”, for which the port authority is legally immune under Regulation 199(14) of the Regulations for Working of Chittagong Port (Cargo and Container) 2001.

It mentioned that the CPA “disclaims, renounces and disowns” any claims for compensation arising from the natural calamity, saying it is also protected under the Chittagong Port Authority Act, 2022.

The unusually strong wording of the notice has drawn criticism from importers, shipping agents and business leaders, many of whom described it as discourteous and an attempt to avoid responsibility.

Heavy rain between July 5 and 8 left large parts of Chattogram under water, including several container yards inside the port. Water reportedly entered containers through their lower sections, damaging imported goods.

Similar scenes were reported at private inland container depots linked to port operations, where images of waterlogged cargo circulated widely on social media and prompted demands for compensation.

Port users argue that cargo stored within the protected area is under the custody of the port authority.

Chattogram Chamber of Commerce and Industry President Mohammad Amirul Haque criticised the notice.

He said, “Natural disasters cannot automatically absolve the port of responsibility. The authority earns around Tk 6,000 crore in annual revenue, yet it has failed to build adequate sheds or develop effective disaster preparedness to protect cargo.”

CPA Acting Secretary Syed Refayet Hamim said, “Under the law, the port cannot be held liable for losses caused by natural disasters. The port has not accepted liability for such incidents in the past either, and it bears no responsibility in this case.”

“In accordance with the regulations, we issue a public notice every time such an event occurs,” he told The Daily Star.

He added, “We are not in a position to determine the extent of damage caused by the temporary waterlogging in the port yards because we have no authority to know what goods are inside the containers.”

He also said that no importer or company has so far submitted a claim seeking compensation.