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September 16, 2007
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Sunday
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Ramazan 03, 1428
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Govt to encourage private sector logistic firms
By Parvaiz Ishfaq Rana
KARACHI, Sept 15: The government plans to bring trucking business into organised sector by providing funds to those who register their fleets or firms as corporate entities, official sources said on Saturday.
However, the National Logistic Cell (NLC) is opposing the move tooth and nail. In a recent meeting of the National Trade Corridor Committee meeting, the point was raised but there was a strong opposition from the NLC representative, sources privy to meeting told Dawn.
Sources said if trucking business is brought into organised sector, it would reduce haulage cost, and help create discipline in the road transport sector.
At present trucking and other transport systems are controlled by money-lenders who offer money for purchase of trucks on a high interest rate. It ultimately breeds social and economic ills in society as an owner of a vehicle is forced to do anything to meet the repayment schedule.
Consequently, on the trucking side, over-loading of goods is a routine which not only damages roads but also causes accidents, and public transport indulges in rash and negligent driving and there is a poor maintenance of vehicles.
According to sources, the government had been suggested to create a fund to give money at a reduced rate of interest to trucking business to attract them into corporate sector.
Tucking companies should be properly registered with registrar of companies.
All rules and regulations governing companies under the companies act should be imposed on them. Even today NLC out-sources trucking by giving private sector NOCs on payment of Rs20,000.
The Afghan transit cargo is entirely handled by the NLC and Pakistan Railways and the private sector is not allowed to carry ATT cargo.
If the government does not take bold steps towards trucking business at this juncture, experts fear that the trucking business would meet a similar fate as that of the shipping companies.
After the creation of Pakistan National Shipping Company, private sector shipping companies vanished and even today nobody is ready to bring or register vessels under national flag.
The sources said that the NLC very reluctantly fixed a very high bench mark for allowing a private sector trucking company with a fleet of at least 100 trucks which was not feasible at the start of this venture.
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