Port expert for reducing dry charges

Karachi: An international expert on Ports and Shipping Marc Abeille has brushed aside the general impression that Pakistan’s premier ports — Karachi and Qasim — are costlier than other ports of the region.


However, he said like many other ports of the world, there was a great disparity between dry and wet charges of the Karachi port and it was only required that the wide gap between the two charges be narrowed down.


These views were expressed by Mr Abeille, who is also a consultant to Unctad, during his recent presentation on “Developments and Benchmark Achievements” of ports in the international context.”


Assigned by Unctad, the expert also examining the ports and shipping charges, under the Trade and Transport Facilitation Project, categorically said that Karachi and Qasim ports were not costly and are in level with other regional ports.


The presentation made at the office of Director General Ports and Shipping, was attended by senior management level personnel of ports and shipping sector, private terminal operators and Pakistan ship agents. The DG Ports and Shipping Captain Anwar Shah was the other speaker on the occasion.


During a brainstorming question and answer session, the expert informed the participants that by any account Pakistan’s ports were not costlier than the regional ports and it was only that their wet charges are much higher than the dry charges and this was more relevant to Karachi Port than Port Qasim.


Meanwhile, a local port and shipping expert said that the reduced wet charges, which include port dues, (entry-exist charges), pilotage, tugging and berthing, will not benefit importer or end-consumer but instead only the foreign shipping lines enhance their profit margins.


Citing an example, the expert said that recently PQA reduced their wet charges between 10 to 15 per cent, but the foreign shipping lines, which operate in consortium, did not transfer this benefit of less cost to the consignees or the end-consumer. Similarly, KPT reduced their wet charges by 15 per cent in 2003, but till this day it did not trickle down to end-consumers.


The expert, who requested anonymity, suggested that it would be in the national interest if dry charges, which include wharfage, storage, terminal handling, lift-on and lift-off etc, are drastically cut. It will directly benefit the consignees and the end consumers. He emphatically, rejected the idea of reducing wet charges and it will again not going to benefit the consignee.
However, expert said that there was a need to bring about a balance between dry and wet changes, particularly with reference to the Karachi Port. But again, one should not expect that foreign shipping lines will transfer this benefit to consignees or end consumers, he asserted.


He further said that only those ports keep their wet charges low which normally deal with trans-shipment cargoes as they have to directly compete with other ports of the region. However, in case of Karachi Port, it was, too early as the port was still planning and working on deepening of its approach channel as well as its berths.


Still being feeder ports and heavily dependent on ‘captive cargo’ the Karachi and Qasim ports should work on reducing dry charges rather than reducing their wet charges, which do not benefit the consignees or end consumers, but only going to enhance the profits of foreign shipping lines, he added.


He said it was only the World Bank which had been pressuring Islamabad and port authorities to reduce their wet charges as this would directly benefit shipping lines and not importers.