Pakistan, India need to revise protocol: Boosting sea trade
By Parvaiz Ishfaq Rana
KARACHI, Oct 1: The Karachi Port has suggested to the government to revise shipping protocol with India so that vessels of both the countries could freely call at each other’s ports to ensure cost-effective trade relations.
Besides the upcoming Gwadar deep-sea port, the country’s two other ports –- Karachi and Qasim ports — for the last couple of years have under taken massive expansion and modernization to respond to the changing trends and set their focus beyond national trade.
KPT high-ups have strongly argued that the country’s geographical location gives it a natural conduit and confluence for regional trade. Its location provides economical cargo routes to Afghanistan, CIS, Western China and India.
Vice Admiral Ahmad Hayat, chairman KPT, in his recent presentation to the Ministry of Ports and Shipping, pointed out that with modernization of Karachi port on landlord strategy, added facilities at Port Qasim and emerging Gwadar port could easily cater to the needs of fast growing regional trade.
He further said that hinterland connectivity was the lifeline of ports. “Our coastal highway links all ports and extends beyond the western boundaries. We have revitalized our railways for cargo traffic and two dedicated container trains ply between Karachi and Lahore daily. Above all our logistics are in place, and have the vision to perceive the region as one big entity,” Ahmad Hayat asserted.
The KPT chief said that at this stage the country only needed to take cognizant decisions to optimize these geographic proximities allowing economic facts to take precedence over political boundaries. “A free passage of trade goods between Pakistan and India will give the business communities to choose the most cost-effective option, which is imperative for both the nations under the WTO regime.”
“I wouldn’t be making a revelation by mentioning that Karachi and Port Qasim are cost effective options for the northern Indian states,” the admiral exhorted and went on to say a robust road and rail connection between India and Pakistan would open a new vista for market of both the nations’ goods. “Reopening of the Khokhrapar rail link in December this year harbingers well for trade between the two nations,” he added.
The KPT chairman said that expansions and linkage of ports between the two countries would enable them to think beyond bilateral trade. “World trade increases faster than the world GDP. This sums up the importance of the ports and shipping sector which is one of the most vital links in the global logistics.”
He further said that facility in connectivity made TIR Convention a requirement in an efficient trade route. Governed by the IRU, ratification to TIR Convention would tremendously facilitate trade across borders due to simpler customs procedures.
Hayat said that Pakistan had agreed to ratify the Istanbul convention based on ATA Carnet and the TIR convention. The Central Board of Revenue (CBR), he said was in the process of depositing the respective instruments of accession and hoped that a similar initiative from the Indian government would be taken to facilitate regional trade.
He also briefly touched upon the enhanced operational capacity of the ports and said that Karachi Port handled 28.815 million tons of cargo last year including 911,936 TEUs. The expansion of the container terminals was under way and in the next three years the total capacity would be around 1.1 million TEUs with 14-metre depths.
Similarly, he said that a 5mta dedicated bulk cargo terminal was also coming up in the next two years. The liquid bulk cargo handling berths were capable of berthing vessels up to 90,000dwt. The automated entry and exit control system at Karachi Port had facilitated and expedited port clearance. Since last year Port Qasim and Karachi Port had adopted ISPS in its totality, he said.
About 30-km east of Karachi, he said is situated Port Qasim which offers a dedicated container terminal with a capacity of 500,000TEUs, capable of handling vessels with 11-metre depth. It also has a modern oil terminal having 6mta capacity.
The newest deep draught port at Gwadar is conceived as a regional transhipment hub. Presently Gwadar port has three multi-purpose berths capable of berthing 14-metre deep bulk carriers and 3,000TEUs container vessels. The phase-II envisages 10 additional berths, six berths for 6,000TEUs container vessels, two berths for 100,000 bulk carriers and two 16-metre deep liquid handling berths capable of handling up to 200,000dwt tankers.
