July 16, 2006	Sunday	Jumadi-ul-Sani 19, 1427

KARACHI, July 15: The World Bank has asked the government to close down the Karachi Dock Labour Board (KDLB) as it was making port services costlier. The bank opined that the Pakistani ports were still overstaffed and there was a need to reduce the workforce by 25 to 40 per cent.

The bank also observed that due to unnecessary labour regulations protecting the KDLB, cost of services provided by country’s ports were higher for the port-users. It has also called for 15 per cent reduction in port charges.

The WB pointed out that though cargo handling charges of Pakistani ports were comparable with international ports but shipping charges were high and the port authorities were making high profits.

Consequently, the bank wants the government to assess whether such financial transfers from users to the ports are really in the best interest of the economy or whether lower charges and lower port profits would have a more positive impact on trade and economic development.

After giving its appraisal of the Pakistani ports, the World Bank made a number of recommendations to the government, including closing down KDLB by using a mutually agreed separation scheme.

While stressing upon the need for bringing about improvement in port management, the WB wants the government to appoint port management specialists. The bank wants the Pakistani ports to go for outsourcing of port services to the private sector and ensure that ultimately they assume the role of landlords of the ports rather than work as service operators.

It has been further suggested that the Pakistani ports should ensure making navigation facility available on a 24-hours seven days a week basis to minimise the turnaround period of vessels. Further more it was also emphasised that the ports should improve their infrastructure and modernise them to meet international standards by investing in both cargo handling capacity and deeper drafts to receive larger vessels.

While suggesting further reduction in port charges by 15 per cent, the WB feels that it will help to make Pakistani trade more competitive.

Consequently, the WB said that since sea freight rates were determined in a competitive market and Pakistan could do little to affect them, therefore, it should ensure that the ports charge appropriate rates, provide deeper draft necessary to encourage direct calls by ships and ensure rapid turnaround of vessels.

The bank wants the government to update the National Ports Master Plan in order to re-evaluate the appropriate role for the Karachi Port Trust (KPT), Port Qasim Authority (PQA) and Gwadar Port Authority (GPA).

Despite the fact that the KPT, on April 27, 2006, announced reduction in port charges by 15 per cent effective from July 1, 2006, and earlier effected a 15 per cent cut in its charges in FY04, the World Bank has sought a further cut of 15 per cent in KPT’s port charges.