Challenges Faced by the Dredging Industry
Fuel Price Volatility
Fuel constitutes a significant portion of dredging operational costs, and fluctuating fuel prices have impacted the profitability of projects. BCSDOA is lobbying for fuel price adjustments in government contracts.
High Taxation on Equipment
The 31% Total Tax Incidence (TTI) on dredgers and related equipment makes it difficult for companies to invest in newer, more efficient machinery.
Govt. Project Shortfalls
Many dredgers remain idle due to a lack of government projects, often caused by delays in tendering and limited funding. BCSDOA is advocating for more consistent project allocation to maximize the use of dredging capacity.
