The sooner the better

In a much-needed move the government has indicated it will revise the scandalously high charges that the users of our two commercial ports in Karachi and the newly commissioned port at Gwadar have to bear. Talking to journalists in Karachi the other day Federal Minister for Ports and Shipping Babar Ghauri said that since our ports are "a bit costlier than our regional competitors, the government would soon revise port charges."
The first part of his assertion, though, easily qualifies to be termed a gross understatement. A Recorder Report quoting an independent study gives a very different account that shows port tariff for container ships of 21000 gross registered tonnage having 400 TEU capacity is 85 percent higher at our ports than in Dubai, Colombo and Mumbai.
A still better perspective can be had from the fact that ships calling at the Karachi and bin Qasim ports are charged $18,500 and $1,600, respectively, whereas they pay $2,800, $6,400 and $11,000, respectively, at Dubai, Colombo and Mumbai ports. By far, ours are the most expensive services.
Notably, this is not the first time that someone in government has promised to revise the port charges. In the past as well similar promises were made, yet nothing concrete followed. The problem has persisted despite having negative repercussions for the local trade as well as our much-cherished dream of making the Gwadar Port a regional hub of economic activity.
As international shipping companies find cheaper yet efficient alternatives in the UAE and Iran there is no reason why they would want to call at our ports and pay exorbitant tariffs. In fact, some of them are said to be reviewing their operational costs in Pakistan and pondering other options. At the root of this unsavoury situation is unchecked greed and corruption.
Those familiar with the scene say almost all elements from agents to cargo handling companies and shipping agencies are under a Mafia-like control. And hidden charges are a common ploy to hoodwink the users. Ghauris announcement that the tariff regime would soon be reviewed offers a fresh hope for betterment.
Chairman of Pakistan Shipping Agents Association (PSAA) has welcomed it, pointing out that the shipping liners are looking to cut their costs, which will invariably lead them to lean towards the use of less expensive facilities. A quick downward tariff revision, therefore, is needed.
The PSAA has suggested - reasonably so - that for a start at least 30 percent reduction be made in wet charges that include anchorage, pilotage and tugging fees and berth hire, etc. Nonetheless, a simple revision in charges will not do. The government must put in place a well-regulated foolproof system to run all aspects of port operations. Given the urgency of the issue, it must act sooner rather than later.