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Dear NCMPR,
Please find attached my essay on Maritime Sector in Pakistan. I have 20 years of the experience
of ocean maritime business handling. The below essay has been prepared with the help of
Wikipedia, Karachi Port, Port Qasim, Gwadar Port web sites, and PIFFA study documents,
Seminars, and some personal experience. The article has not yet been published in any Print or
electronic media.
Syed Saif Uddin Ahmed
UPS SCS Pakistan (Pvt) Ltd.
Syed Saif
Manager Operations Karachi
&
Operations Excellence Pakistan
UPS SCS Pakistan (Pvt) Ltd,
Bungalow # 89-B SMCHS
Karachi - 75400
Pakistan.
Tel: 9221 3431 0491 96 (Six Lines)
Cell: 92300 231 8853 92302 824 5380
Email: ssaif@ups.com
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Maritime Sector in Pakistan.
As a whole, the trade around the globe uses Water Transport as a main source of transportation. It
is the key element and the cheapest mode of transport in the world. The Major trade move on Sea
freight and another means of transport is Inland Waterway.
By the natural distribution resources of land and water, Pakistan is one of the fortune country who
has both resource of transports. As Pakistan is located at the Arabian Sea in subcontinent, it also
have largest rivers and canal system in Pakistan.
Inland waterways are not at such utilized since partition of greater India, and only had Canal
system for agriculture use, but the Arabia Sea has been used for the global trade.
Pakistan coastline stretched to about 960 KM, which only have three port.
01. Karachi Port
02. Port Qasim
03. Gwadar Port
Karachi Port
The Port of Karachi is one of the South Asia's largest and busiest deep-water seaports, on the
coastline of the Arabian Sea, handling about 60% of the nation's cargo (25 million tons per annum)
located in Karachi, Pakistan. It is located close to the main business district and several industrial
areas. The geographic position of the port places it in close proximity to major shipping routes
such as the Strait of Hormuz. The administration of the port is carried out by the Karachi Port
Trust, which was established in the nineteenth century.
Port Qasim
The Port Muhammad Bin Qasim also known as Port Qasim, is a deep-water seaport in Karachi,
Sindh, Pakistan, on the coastline of the Arabian Sea. It is Pakistan's second busiest port, handling
about 35% of the nation's cargo (17 million tons per annum). Port Qasim and Karachi Port, the
busiest port of country, together handle more than 90% of all external trade of Pakistan.
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The port encompasses a total area of 12,000 acres (49 km2
) wherein many industrial zones operate.
In addition to the Pakistan Steel Mills (PSM) and KESC Bin Qasim Power Plant, around 80% of
the Pakistan's automotive industry is located at Port Qasim. The port also provides direct
waterfront access to two major nearby industrial areas, Export Processing Zone (Landhi) and
Korangi Industrial Area. Approximately 60% of country's export and import is originated from
these areas. Port Qasim is managed by Port Qasim Authority, a semi-autonomous government
body.
Gwadar Port
Gwadar is located on the shores of the Arabian Sea it is in Pakistan's western province of
Balochistan. It is about 533 km from Karachi and 120 km from the Iranian border and 380 km
(240 mi) km northeast of the nearest point in Oman across the Arabian Sea. Gwadar Port is located
at the mouth of the Persian Gulf, just outside the Strait of Hormuz, near the key shipping routes in
and out of the Persian Gulf. It is situated on the eastern bay of a natural hammerhead-shaped
Peninsula protruding into the Arabian Sea from the coastline.
The surrounding region is home to around two-thirds of the world's oil reserves. It is also the
nearest warm-water seaport to the landlocked, but energy rich, Central Asian Republics and
landlocked Afghanistan
Utilization of Maritime Sector
Over 95 percent of international trade of Pakistan is transported through sea. During past years the
volume of sea borne trade was above 37 million tons. About 10 million tons of this was general
cargo. Over 80 percent of general cargo is now transported in containers. The combined throughput
of Karachi and Port Qasim now exceeds 1million TEU.
The main trading partners of Pakistan are North America, Western Europe, Middle East and South
East Asia. Efficient trade through Multimodal transport with all the trading partners requires
regular liner services between Pakistan and these regions. The national flag carrier Pakistan
National Shipping Corporation does not operate a container service, but many foreign shipping
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lines are offering regular services to the main trading regions of Pakistan either directly or through
transshipment from a regional hub port.
Major shipping lines operating the services are:
Maersk Sealand Denmark, APL, Singapore, Hanjin, Yan Ming Line , Evergreen , NYK, Japan,
Mitsui-OSK, Japan, CSCL, China, COSCO, China, K Line, Japan, OOCL, Hong Kong, Senator
Line
As Suggestion for increase the maritime activity to utilized the right path
Increase awareness of all concerned factor regarding the potential benefits that they may achieve
through trade facilitation, as Simplification of payments, Transparency measures, availability of
trade and customs related information (dissemination of trade and customs laws, regulation,
procedure rulings.
For the above reasons, a comprehensive approach to trade facilitation, covering all aspect of
international trade transactions has to be adopted.
In the addition of above path, following process, procedures as described below can determine
mainly they country laws and regulation, commercial terms of doing business and process which
may add to the simplicity and make the process involved international trade easier and attractive
the stake holder and rest of the world
01. Transshipment allowed to CIS and other Land lock countries with simplified
procedures
02. TIR should be adopted in Pakistan to take benefit of the other members countries
cargo.
03. Duty Free Environment should be provided to other countries to get the benefit of the
same from that country.
04. Domestically, politically security should provide for transit shipments.
05. MCC - Gateways (Multi Country Consolidation: Pakistan should start Consolidation
– De-consolidation)
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Transshipment allowed to CIS and other Land lock countries with simplicity
Since Afghanistan, Turkmenistan, Tajikistan, Kyrgyzstan, Azerbaijan, Uzbekistan, Kazakhstan
are land lock countries and away from Deep Sea and dependent on the neighboring countries who
has that natural resources, and fortunately Pakistan is the one of best option to extend his Maritime
services to their door steps. Despite Pakistan have good relation and highway route to CIS
countries via Afghanistan, but still due to complex structure and duties and taxes we are not taking
the benefit of their needs.
TIR should be adopted in Pakistan to enjoy the other member’s countries cargo benefits
Since Pakistan has not yet singed TIR convention due to some political and other neighboring
countries threat on transshipment, but Pakistan should announce that services with their own
parameters to rest of the world, for example if USA need to move cargo from Pakistan to CIS
Counties, they need to Participate in root, infrastructure, equipment placement to development fast
tracks to CIS countries. They have to provide machinery and bunkers trucks to move cargo their
destination. If any country want to use Pakistan route to CIS Countries, they have to invest 2
Billion on that project, will allow to move in fast track.
Duty Free Environment should provide to other countries to get the benefit of the same from
that country.
Duty free enjoyment is best way to attract the nations to use the Pakistan route to get CIS countries,
but due to the smuggling and misuse of the benefits it is hard to implement Duty free environment,
but in vise versa Pakistan should take the discount from the product from those countries those
nations are import/exporting to Pakistan.
For example, if Saudi Arabia want to move his Oil to CIS countries, Afghanistan via this route, so
we can allow them to move duty free to CIS Countries, but meantime they have to provide OIL to
Pakistan with discounted price.
If EU want to move their product from Pakistan to CIS Counties, Afghanistan (As survey report,
as 1x20’ unit moving from Europe direct route to CIS taking 16000 USD cost while same moving
from Pakistan to CIS Countries, take 9000 USD means 7000 USD secure), so Pakistan should
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take the compensation of the EU to give him relaxation of Pakistan product to import in EU and
select as favorite nation for business.
Domestically, politically security should provide for transit shipments.
The major dilemma for Maritime business is Security and safety majors from Government and
private sector. The One Unit passing from Karachi to Chaman, Kandahar boarder has lot of threat
from different groups. Government should talk to the Locals, provisional government to talk with
locals political powers to give them security passes to move unit and charges the carrier using that
route. It may be not more than USD 1000 cost to move safely from Karachi to Chaman/Kandhar
Border. AS when local people will earn on the marine transportation they will support it instead
of attack on it, as that product they attacked is useless to them.
MCC - Gateways (Multi Country Consolidation Pakistan should start Consolidation – De-
consolidation)
The MCC program (Multi Country Consolidation & Gateway) should announce from the
Government of Pakistan to have the all over the world cargo at Pakistan and rework the cargo to
make full boxes to rest of the world. Every nation can send their good to move nearest to the
Pakistan boarders and Pakistan provide Consolidation to the final destinations. That must be move
on expedite and duty free with simple documentation to utilized or Port warehouses, and Labor
and staff. It can be handedover to the private sector for looking after, as Gwadar Port is served by
the different Private services.
Conclusion
The above all suggestion are to the benefit of the country to enhance the maritime sector and they
may provide for the employment, stronger infrastructure for long run basis. Combining the support
of the Government of Pakistan and Private sector and of course local political power, it can make
the major role in building the nation, building the country, making the maritime sectors more
useful. Government should allot budgets for the development of maritime sector with the help of
provincial government, and set the targets to achieve the highest level gradually.
