TSDI seeks to cut user costs, calls for ports efficiency

Karachi: According to Transport Sector Development Initiative (TSDI), Pakistani ports are responsible for loss of Rs 15 billion due to their inefficient working. The ports sector essentially holds a monopoly over international trade, as over 95 percent is channelled through the two main ports-Karachi and Port Qasim.


The growth in port traffic in the last 10 years has been around 6 percent per annum. The berth capacity of these ports is considered adequate for the next 20 years, but the approach channels need improvements. None of the two existing ports (KPT and PQA) have the required container handling facilities. There is still wide scope of containerisation in the two ports.


On the land side, the main problem is the excessive handling charges and low labour productivity. As a result, the cash flow of the Karachi Port has dropped by 50 percent between l996 and l999.


For cargo, the Karachi port is reported to be 1.5 times more expensive than Bombay, 4.5 times Colombo and 19 times Dubai. As a result, the shippers pay about Rs 15 billion 'extra' per year to the two ports - a cost which is passed on to the users.


Both ports still have direct involvement in day-to-day operation. Experience has shown that the most desired course is the landlord concept in which the basic ports facility are provided by the public sector while all operational tasks such as stevedoring, piloting, etc are handled by the private sector.


There is serious lack of co-ordination among the two ports. Currently, both ports tend to operate in competition with each other. With the creation of additional port in Gwadar, according to experts, the situation would be further aggravated. The problem can be overcome by converting the Directorate General of Port and Shipping into regulatory body with full autonomy to bring the three ports under its policy control, while still maintaining day-to-day operational independence.