THE dry port at Hyderabad, which has huge potential of handling import and export cargoes of the whole of Sindh except Karachi, remains dysfunctional. It handled only one export consignment of molasses last month and has yet to make its presence felt in the second largest city of the province.

Located around 135km from Karachi, the dry port is managed by National Logistics Cell (NLC). However, the port lacks some basic facilities.

From agriculture point of view, Hyderabad is a rich horticulture area that produces a variety of fruits apart from industrial goods particularly in nearby Korti industrial estate. .

Automobile importers, who had been using the port until recently, told this writer that problematic customs officers and lack of proper facilities discouraged them to use the dry port facility.

Unless the government/NLC offers some incentives to the business community the dry port’s potential will remain untapped — Additional Collector Customs Omer Shafiq

The customs department, however, claimed that wrong declarations to avoid payment of taxes and duties on imported articles were detected by the department annoyed traders and they gave up using this port. Now they are facing similar issues at Karachi port as well. Somehow industrialists of Kotri Site and Nooriabad industrial zone prefer Karachi for dispatching their goods.

According to the Federal Board of Revenue figures Rs2.1bn was recovered under imports from the dry port for 2013-14. Additional Collector Customs Omer Shafiq says 78pc of this recovery was made under head of oil and diesel delivery through white pipeline which is transported onward to Punjab. The amount includes customs duty, sales tax etc.

Current imports from the dry port, mainly of specialised vehicles like transit concrete mixer and dump trucks, have dropped significantly. The dry port lacks facilities that hamper operations relating to traditional products.

Non-existence of facilities for storage, handling of contain cargo and online facilities are discouraging traders to use the port facility.

Ali Ghangra, an automobile businessman, says the dry port lacks facilities like crane, lifter, light etc.

He complained that even the appraisal of goods is a gigantic task. “It took 15 to 17 days to get our cargoes cleared at Hyderabad dry port. From Karachi operations go on smoothly,” he says.

Shafiq points out that unless the government (or NLC) offers some incentives to the business community the dry port’s potential will remain untapped. The high bonded transportation charges are adding to the cost of doing business. He agrees with the traders that infrastructural facilities need to be upgraded and charges for cargo handling, weigh bridges and storage have to be reviewed.

“As NLC vehicles often return empty from the up-country, it can reduce charge for export goods for seaport in Karachi from the dry port. Sambrial’s dry port has changed dynamics of Silakot’s business,” he says. He proposes that the dry port could be upgraded to process goods for air freight as well.

Most of export related deals of commodities like onion, mango and vegetable are made in Hyderabad, Tando Allahyar, Mirpurkhas markets. These could be handled by Hyderabad dry port. For this the Anti-Narcotics Force and the Department of Plant Protection (DPP) need to have a presence at the port.

Published in Dawn, Business & Finance weekly, March 7th, 2016