KARACHI: Karachi Port Trust (KPT), the premier port of Pakistan has announced a tariff increase after a gap of 20 years. The decision to this increase has been made after careful consideration of the circumstances.
Over the past two decades, the costs of operations, maintenance and modernization have significantly increased due to the prevailing inflation in the country and the escalation of USD. These factors, coupled with the need to adapt to evolving market demands and address infrastructure challenges have necessitated a tariff adjustment.
To determine the appropriate Tariff increase, KPT conducted extensive research and engaged in all relevant stakeholders in consultations.
The aim was to gather insights, understand the concerns and expectations of the Port users and ensure that the proposed increase is fair and balanced. These engagements have been crucial in shaping the decision making process, demonstrating our commitment to being responsible and sensitive organization.
KPT wet charges were reduced in the year 2003, 2006 and 2010 when compared to the year 1994. The wet charges in the revised SRO 2023 are still less with respect to pilotage, port dues and berthing when compared to the year 1994 even though the inflation has significantly increased.
Further, a new slab of GRT 45,001 to 90,000 have been introduced in port dues and berthing charges while capping on port dues and berthing charges on vessels of over 90,000 GRT has also been included to reduce the impact on vessels with high GRT calling at Karachi Port.
While the increase in Dry charges may have marginal impact on certain sectors, it is important to note that the KPT has decided to either maintain or negligibly increase the tariff structure for commodities like edible oil, food, grain, wheat, ata, seeds, fertilizers, meal, pulses, poultry feeds etc.
The primary objective behind this decision is to mitigate any significant price hikes for essential goods that may burden the general public. It is pertinent to mention here that KPT has decreased the tariff on transshipment through the port of Karachi in order to attract Shipping activities thus transforming KPT into a modern transshipment hub.
The increase in the Tariff will fuel the expense for future projects of KPT. The future projects are essential in keeping the infrastructure of KPT in line with the changing working environment of the maritime sector.
We appreciate the trust and support of the port users and stakeholders throughout this process. KPT remains committed to transparency, open communication and continuous improvement.
Copyright Business Recorder, 2023
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