KARACHI: Cement-makers have asked the federal government to allow the discharge of imported coal at Karachi Port Trust (KPT) as their demurrage mounts on account of the alleged mishandling of cargo at Pakistan International Bulk Terminal (PIBT), the country’s only coal-handling terminal with a single dedicated berth at Port Qasim.

According to the coal vessel lineup at PIBT, ships are facing delays of 10 to 20 days in discharging their cargoes.

In separate letters to the ministers for power and maritime affairs, the All Pakistan Cement Manufacturers Association (APCMA) demanded on Wednesday that the government should make multiple berths available for coal handling at KPT to minimise demurrage.

The cement industry consumes more than half of all annual coal imports handled at PIBT. Cement sales are rising across the country amid the government’s focus on the construction sector. They grew almost 50 per cent last month on a year-on-year basis.

Cement-makers paying demurrage due to long delays at PIBT

Consequently, rising imports of the commodity have choked the only coal-handling berth at PIBT. A purpose-built dirty cargo terminal at Port Qasim, PIBT has been handling all vessels carrying coal meant for cement plants since June 2018 when the Supreme Court banned its unloading on KPT’s six berths to curb pollution in Karachi.

“Demurrage has almost doubled. We’re paying up to $50,000 per day per vessel in some cases. Ships have to wait for two to three weeks for discharge. Imagine the drain on foreign exchange if 20-25 ships call on the port every month,” a cement company official told Dawn while requesting that he not be named to avoid any backlash from the terminal operator.

Replying to criticism, a spokesperson for PIBT said importers failed to coordinate among themselves the arrival of cargos, which resulted in port congestion.

“We called a meeting of all stakeholders on June 10 to help them schedule and regulate the arrival of cargos. But many cement-makers and their coal suppliers didn’t show up,” he said.

Three to four vessels are calling on the port every day, which is causing delays, he said. The monthly volume of cargo handled at PIBT has doubled in three months to one million tonnes, he added.

The PIBT spokesperson said importers should keep in view the schedule published on the terminal’s website and ensure a gap in vessel calls.

Importers have been calling for the restoration of coal handling at KPT partly because it cost them lower charges. The spokesperson said PIBT charged higher rates because it paid royalty to the port authority to the tune of Rs3 billion a year.

Published in Dawn, June 18th, 2021