KARACHI, Oct 6: The Karachi Port Trust’s decision to close down dry berth (No 1 and 2) for liquid cargo may adversely affect import and export of various non-POL products, including edible oil, chemicals, ethanol and molasses.

The country annually imports and exports around 2.5 million tons of non-POL products along with around 1.3 million tons POL products, which are mostly handled at the Karachi Port.

The general manager (P&D) of the KPT, after holding a briefing with the terminal operators early last month, issued a circular on Oct 3, 2005, informing the Terminals Association of Pakistan (TAP) about the closure of dry berth No 1 and 2 for liquid bulk cargo.

The reason for closure of the dry berth cargo, where the non-POL users had made a huge investment of around Rs22 million during 2001-03 by laying down pipelines, given by the KPT was increased traffic of bulk cargo resulting in long queue of ships awaiting dry berths.

GM P&D Brig Syed Jamshed Zaidi in his directives did not ensure an alternative arrangement for non-POL products and instead said: “As the OP-II is to become operational this month and will be available to all TAP and OCAC members, hence it has been decided that no liquid cargo ship will be handled at DB-I for the next four to six months.” The GM P&D asked the TAP members to prepare for berthing ships carrying non-POL products at the OP-II.

Meanwhile, spokesman for the TAP Akhtar Sultan told Dawn that the closure notice had created severe problems for companies involved in the import and export of various non-POL products and non-POL user terminals, which had equally shared Rs22 million with the KPT in laying down seven separate pipelines for various products in 2001-03.

Mr Sultan said that the decision would cripple the import and export of these products that were equally important and essential for different industries and consumers.

The spokesman claimed that there was no immediate alternative arrangement for handling these products as the trestles and pipe supports work at the OP-II was still in progress and it would take substantial time to complete. Therefore, prior to this, the terminal operators can not lay down the pipeline and the entire process is time consuming, he adds.

Mr Sultan said that at the time of laying down pipelines at the dry berth, the KPT authorities had assured that it would be permanently used by the non-POL product users. “However, now we are being asked to stop using the berth. This means our entire investment has gone to waste.”

Similarly, he said the TAP members in 1993 spent millions of rupees for laying down pipelines at the OP-III, which was now being used for POL products and occasionally allowed to be used by the non-POL product importers and exporters. Against this, he said, the OP-I was only allocated for handling POL products.

“Our members can not keep on investing huge amounts and ultimately have no choice but to shut down their operations,” he added.

Responding to a question, Mr Sultan said that the under present situation it was not only the question of investment but also there was a time factor, as no one could lay down pipeline overnight because the trestles and pipe support work at the OP-II was incomplete.

He fears that in case the KPT authorities do not allow the members to use the DB-1&2, the vessels calling at the port with a load of non-POL products may incur off-port waiting viz-a-viz demurrages if inordinate delays are experienced.

The TAP spokesman also sought KPT chairman’s intervention into the issue and demanded that the non-POL terminal operators should be given better treatment as they generated revenues and created economic activities by exporting molasses and ethanol and importing chemicals.