KARACHI, Oct 13: Minister for Ports and Shipping Senator Babar Ghori has asked terminal operators to immediately stop taking surcharge on account of International Ships and Ports Security (ISPS) Code. A notice to this effect has been issued recently.

On becoming ISPS Code compliant of International Maritime Organization (IMO) from July 1, 2004, all the terminal operators have arbitrarily imposed ISPS surcharge at $4 per TEU.

Pakistan is amongst first 13 countries who adopted the ISPS Code at its ports to meet the fast growing global challenges in the wake of security and terrorist threat.

The minister issued a sort of 'charge sheet' directing all the terminal operators to withdraw the ISPS surcharge forthwith which was imposed arbitrarily and without the consent of the designated authority.

Senator Babar Ghori taking serious note of the situation also pointed out to the operators that the imposition of ISPS surcharge entails expenses but a fine balance was needed to avoid making ports further expensive.

The three container terminals, two at Karachi Port and one at Qasim Port, would have earned whooping amount of around $3.6 million per annum on charging $4 per TEU.

According to estimates, the Karachi International Container Terminal (KICT) handles around 0.4 million TEUs per annum whereas Pakistan International Container Terminal (PICT) handles around 0.1 million TEUs. Similarly, the Qasim International Container Terminal (QICT) handles around 0.4 million TEUs per annum.

The total amount charged by these terminal operators on account of ISPS surcharge on handling 0.9 million TEUs per annum comes to around $3.6 million at the rate of $4 per TEU.

Surcharge of this sort does not only make ports expensive for users but the end sufferer are those who pay the cost and that is the consumer. Already trade bodies had been fighting for the removal of other surcharges imposed from time to time by the shipping lines or ports authorities.