The National Logistic Cell has taken exception to the aspersions cast by All Pakistan Shipping Association in a news item published in Business Recorder issue of September 3, 2004, captioned 'NLC scanners termed a commercial venture', terming it as merely prognostic whereby the NLC has been unnecessarily dubbed as commercial exploiter of the venture.
In a clarification sent to Business Recorder it has explained that NLC was tasked by the government to help install scanners when CBR efforts to strike a cost-effective deal with the suppliers in the market was frustrated by vested interests.
It said that NLC would definitely be handling the equipment, but on totally professional basis, rather than commercial.
Scanner operating charges the world over fluctuate between $15 and $20 per scan. The charges fixed by CBR are one-third to one-half of those prevalent internationally and are meant to cover the operating costs only, it said.
The APSA's perspective of global security is rather misconstrued whereby greater emphasis is laid on CSI (Container Security Initiative). This is based on the premise that the security of World's Maritime Trading System needs to be enhanced by targeting high-risk cargo containers and ensuring their screening before they are shipped.
The initiative aims at facilitating detection of potential problems at their earliest possible opportunity and is designed to prevent the smuggling of terrorists or terrorists weapons/explosives in the ocean-going cargo containers.
Even on this account, the installation of scanning equipment by an agency having an in-built security consciousness is a mandatory requirement.
All over the world, scanners are being installed with the aim of facilitation of Customs processing, apart from ensuring security against illegal trafficking. Scanning of containers takes far less time than their physical examination ie 3 minutes per container (the time of 15 to 20 minutes quoted in news item is fallacious).
Installation of a minimum four cargo scanners initially (two at Port Qasim and one each at East Wharf and West Wharf) will effectively handle the export traffic.
The subject scanners will be operating round the clock. The handling cost of containers processed through scanning is also less than their physical examination, both in terms of time and money.
It will decrease the processing time to one-fifth of the time now being taken, thus facilitating the customer in making import/export activity more economical.
It may be kept in mind that Karachi ports are charging excessive port handling charges in comparison to other ports, which need to be rationalised. Recently, port operators at the Karachi port have started imposing an IPSC charge of $4 to $6 and a container handling charge for transiting containers from CY (container yards) to bond (ports) of $10, without any approval from CBR, port authorities or any other government agency. No one, including APSA, objected to such a blatant increase. It was only on the pointing out by NLC that this issue has come to limelight.
Those with a corrupt bent of mind are therefore engaged in intense lobbying to prevent the government to use a neutral agency, such as NLC, to be deployed for the implementation of governmental controls on the import/export activity.
Installation of scanners is to automate customs processing and is in the larger interest of the business community.
If the extra cost has to be borne at all, the difference can be compensated by reducing the rates of other port handling charges ie Cess Charge, Entry Fee, Storage, Wharfage etc.
Karachi Port is one of the most costly ports in the World and there is a definite requirement of revising all the dues of KPT and its Terminal operators.
The APSA should launch a drive for reduction in the port handling charges of Karachi based terminal operators rather than obstructing the government in installing a system which will ensure transparency and fair play in the import/export business.
It is emphasised that the state-of-the-art equipment based on 'Gamma Ray' Scanning has been acquired which is much superior to X-Rays scanning system.
The document of US Homeland Security on Scanning Systems concludes that "in the post 9/11 era, X-ray screening can not provide the level of performance required. Its high error rate, high cost of operation and inability to detect WMD will bring the life span of X-ray screening system in the present configuration to an end in a few years".
Gamma Ray screening is an established technology and the US Homeland Security Research Corporation (HSRC) forecasts that "in future, such systems will provide direct detection of shielded nuclear devices."
Scanning machines being purchased from China meet all the specifications accepted/dictated by the CSI.
These Scanners, apart from being cost-effective, are capable of detecting and scanning weapons and munitions and effectively disclose any wrongdoing in the loading manifests and invoices. No Screening System provides chemical finger prints of drugs/bio-chemical agents.
It may be highlighted here that Neutron Activation System is the only system in the world which can effectively scan densely loaded cargo containers and provide material identification of most of the explosives, drugs and biochemical agents, but carries a price tag of $10 million.
Such a system, therefore, has not been deployed on the shipping ports anywhere in the world.
The equipment being inducted at Karachi ports was selected after detailed comparative study of various Scanning Systems available in the World Market.
Detailed analyses were done of their characteristics, figurative fiscal effects, width and range of their scanning spectrum and operating and maintenance costs etc.
The options available were presented to Federal Minister for Finance, CBR Chairman, CBR Members, and radiation experts of Pakistan Atomic Energy Commission, and their approval was obtained.
Detailed and wholesome consideration regarding equipment to be purchased was done by the concerned ministries for three months and, finally, 'Gamma-Ray' based system was preferred.
Finally, the installation of scanners was approved by the then Federal Minister of Finance (now Prime Minister of Pakistan). Hence, scanners being purchased stand financially as well as technically scrutinised, tested and approved.
NLC is not an outside agency alien to port handling operations. It is the 'Crisis Management Organisation' of the country which, in 1978, was tasked to get Karachi Port running again, when inefficiency and misrule had led to ships having waiting time of up to 50 days.
The objection of APSA over the handling of scanners by NLC does not make any sense. Right from the conceptual stage of the idea, NLC remained actively involved with CBR.
It is not only the port of Karachi where the scanners will be operated by NLC but it has also been tasked to install scanners all over the country including sites such as Chaman. Torkham, Taftan and Wagali.
Therefore, involvement of NLC for the operation of scanners will contribute towards facilitating the ports working, benefit the customers and enhance their confidence.
NLC has been cleared by a Presidential Decree to implement the policies of Ministry of Finance, CBR and government organisations concerned with security aspects.
NLC, therefore, expects APSA to come forward with a proactive approach to implement the government policy.
The installation of Scanners by NLC will boost the image of the country in the eyes of the world, apart from streamlining the procedures for freight handling.
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