KARACHI: The removal of capping on port tariffs by the Karachi Port Trust has pushed up port charges, making it costlier than Port Qasim by 15 per cent, shipping agents and port users claimed on Thursday.

They lamented the decision that was taking stakeholders on board that could hurt the port business.

The increase in port charges was enforced from Aug 12, 2016 and notified on Aug 29, 2016 through SRO (KE) 2016.

With the increase in port tariff, the average impact hovers around 66pc on tariff of large containers ships and around 50pc on tanker port charges, shipping sources told Dawn.

Explaining the impact a port user said a large container ship will now pay about 66pc more around $33,000 per ship, an oil tanker will pay 50pc more.

The KPT has also enhanced the cost of re-floating of grounded ships within Karachi Port jurisdiction, the source said.

This means that a vessel with 20,000 gross registered tonnage (GRT) will have to pay about $4 to $5 million as salvage operation cost plus actual cost of utilising KPT resources, he summed up.

The Pakistan Ship’s Agents Association (PSAA) lodged protest with Minister of Ports and Shipping Hasil Khan Bazenjo over the sudden hike in port tariff.

The PSAA expressed its concern over the implementation date of the SRO which was published on August 29, 2016 and circulated on August 31, 2016.

The ship agents explained that it is standard practice of port authorities the world over that the margin between publication and implementation date of any revision in port tariffs is minimum 30 days. In this case, the KPT implemented the port charges with retrospective affect, PSAA said.

The PSAA raised objection that the current SRO deals only with haulage and salvage, but does not explain the motivating compulsions or justify the rationale behind this increment.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) demanded of the KPT to withdraw the tariff charges as it will increase the cost of doing business.

Published in Dawn, October 21st, 2016