The international shipping industry is responsible for the carriage of some 92% of world trade and is the lifeblood of the global economy. Without shipping, intercontinental trade, the bulk transport of raw materials, and import/export of affordable food, crude oil petroleum products, gas, chemicals and manufactured goods simply could not be possible- half the world would starve and the other half world freeze.
Even land locked countries largely are dependent on sea trade. A brief mention of the growth in world seaborne trade (billion ton miles) stood at approximately 20,000 billion ton miles in 1994 and in subsequent years it increased in sizeable great proportions; in 2006 it increased to some thirty-five thousand billion ton miles and presently it is touching a figure of almost thirty eight thousand billion ton miles.
This bears enough testimony to the fact that it has increased considerably and has a sure tendency of further increase since this mode of transport is considered as a most economical and safe mode of transportation.
Ships are technically sophisticated high value assets and the operation of merchant ships generates an annual estimated income of over US Dollars 400 billion in freight rates, representing about 6% of total global economy only through seaborne trade, whereas transportation through road, rail and air sectors is largely dependent on the quantum of cargoes carried through sea lanes.
It is an established fact that transportation through road, rail and air is more expensive, more prone to accidents, theft, safety hazards and delays as compared with sea borne transportation. Sea borne trade is more economical, safe, efficient and more preferable than all other modes of transportation. Shipping industry is global which depends upon a Global Regulatory Framework to operate efficiently.
It is governed by laws accepted at global levels and are regulated by the International Maritime Organisation (IMO). IMO is the regulatory body and has made several conventions, recommendations, protocols that govern international shipping standards. Member states ratify these conventions, protocols and recommendations and ensure compliance to make seas safer, better and environmentally friendly to human beings, sea life and environment.
Transportation through road, rail and air sectors is largely dependent on the quantum of cargoes carried through sea lanes; represents about 35% of total global economy, that is to say that shipping has an impact of over 40% of total of global economy, both directly and indirectly and all related economies are directly attributable to shipping and provides employment to almost 35% of world population.
It is the availability, low cost and efficiency of maritime transport that has made possible the larger shifts towards industrial production in Asia, which has largely been responsible for recent improvements in global living standards. Shipping is directly linked with ports.
The development in ship design, size types and cargo handling techniques necessitate upgrading of ports and their facilities to suit the shipping requirements. The world has realised that the trading pattern is though world-wide yet it is recommended to increase and facilitate shipping and trade in the regions.
Larger ships operational cost per day is high and for transportation of small quantities of cargoes; the freight rates become exorbitant and less affordable; it is thus hub ports are developed where cargoes, containers etc are discharged and smaller ships whose fixed operational cost per day is much lower than larger ships (mother vessels) are used to carry cargoes on much lesser freight rates thereby reducing the total cost of transportation of cargoes.
Furthermore, certain ports in many parts of the world are small having lesser draughts where larger ships cannot enter the ports and such a system has been adopted to facilitate transportation of goods. It is gratifying to note that India and Pakistan have signed a Protocol on Shipping on the 14th.of December 2006; which has come into force on the date of signing and has replaced the "Protocol on resumption of shipping services between Pakistan and India" signed on January 15, 1975.
Since the April 2003 peace process, India and Pakistan have agreed to take steps to improve trade and commercial co-operation and upgrade shipping, rail, air and postal links. After several meetings and thoughtful consideration both the countries have ultimately signed a Protocol on shipping on the 14th.
Of December 2006; that is considered as a milestone and shall open new avenues for shipping industry and increase the cargo flow rise manifold. The newly adopted protocol has eighteen clauses with a provision for review at the request of either side. The draft maritime agreement between Pakistan and India includes a preamble and twenty-one articles with definitions.
THE PREAMBLE STATES:-
-- CONSCIOUS of the friendly relations existing between the Parties;
-- Desirous of establishing effective co-operation between the two countries on the basis of their well known interest for their national sovereignty and respect for principles of international law and sovereign equality of States;
-- Persuaded that the strengthening and development of relations in the commercial field with particular reference to Merchant Shipping, best navigational co-ordination ship construction and repair between the Parties are in the best interest and aspirations of their people; and
-- Convinced that friendship and reciprocal co-operation between their two countries shall contribute towards the development of economic and commercial relations between the two countries as well as engender inter-SAARC co-operation and unity. The above stated preamble is followed by twenty one Articles with definitions and eventually a Protocol was signed on the 14th.of December, 2006.
CLAUSE (1) OF THE PROTOCOL STATES:-
(1) The provisions of this Protocol shall apply to International maritime transport between the two countries and to cargo originating from/destined for a third country, except those for which cargo preference to domestic flag vessels is applicable and it shall be accomplished on the basis of the principles of free and non-discriminatory access to cargoes subject to domestic laws and prevailing practices.
In compliance with the preamble of the Protocol to facilitate trade amongst the SAARC countries; the merchant ships of both the countries must necessarily carry a sizeable agreed cargo from each other ports, destined for the ports of the South Asia Region, the landlocked countries of South Asia, including if agreed upon for South East Asian countries, as well.
Presently, Ports and Shipping sector in Pakistan mainly depends on captive trade which is the main reason of higher costs in freight rates and ports operation and it is imperative to have transit trade that shall undoubtedly reduce freight rates and ports charges.
Shipping is a global industry that includes ports. Unfortunately, ever since the inception of Pakistan; the stewards to the Government of Pakistan have appointed pseudo-professionals at the helm of affairs in the organisations of merchant marine who were and are not the professional technocrats of merchant marine. Consequently, shipping in Pakistan has remained in doldrums. Huge losses have been incurred due to corruption, maladministration, misappropriations and embezzlement of huge funds.
Even during democratic governments the influence of the armed forces has managed to induct senior naval officers at the helm of affairs in the organisations of merchant marine, barring a few appointments from amongst the civilians who possess political and other links with the civilian governments but unfortunately do not possess any training, qualification and experience of commercial shipping.
In both the two above stated cases the criteria for appointment has remained "obedience" no matter merit and qualification. This incorrect policy has ruined the organisations of merchant marine. It is high time to induct professional technocrats of merchant marine at the helm of affairs in the organisations of merchant marine so that this most neglected sector of national economy can be streamlined and Pakistan can pave its way to glory and prosperity in the real sense.
(To be concluded.)
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