KARACHI: Saquib Fayyaz Magoon, SVP FPCCI, has apprised that the business, industry and trade community is in the state of shock and disbelief at three-fold increase in container terminal charges since Karachi Gateway Terminal Limited (KGTL) has taken over the management of container terminal at Karachi Port East Wharf. Previously, charges were PKR. 150 per metric ton and they have been raised to PKR. 480 per metric ton, he added.
He strongly demanded that KGTL should rationalize their rates with immediate effect; and, any future raise should be announced 2–3 months in advance. Additionally, they should not operate in a vacuum in a consultation-less manner.
It is pertinent not that Khurram Aziz Khan, CEO of Karachi Gateway Terminal Limited (KGTL), visited FPCCI Head Office in Karachi to interact and get feedback of the business community over their services and charges at Karachi Port.
Saquib Fayyaz Magoon stressed that shipping lines and container terminals need to be brought under a strong and effective regulatory authority to put an end to exploitation of importers and exporters at their hands. Trade is the backbone of any economy and traders cannot be left at the mercy of container terminals, he added.
Asif Sakhi, VP FPCCI, categorically maintained that FPCCI is keeping all options and forums at its disposal as the apex body to resolve the issues; and, more than willing to facilitate the talks between KGTL and the business community. Asif Sakhi added that the issue of LO-LO (Lift On – Lift Off) charges underscores the need for a regulatory framework. Currently, these charges are levied by terminal operators; and, are often not included in the overall freight charges – which ideally should cover all expenses from container yard to container yard (CY to CY). This leads to increased costs and a lack of clarity for traders, he added.
Asif Inam, VP FPCCI, maintained that container terminals should have traffic control, security and first-aid services 24/7; and the traders must be treated with respect. Additionally, there should be transparency in KGTL contract and the mechanism to set their charges.
Zaki Aijaz, VP FPCCI, highlighted that KGTL high-handed approach is affecting the traders across the country as Karachi Port is the principle port of shipping operations of the country. He proposed that KGTL should focus on volume rather than squeezing its clients through exorbitant rates.
Khurram Aziz Khan, CEO KGTL, offered to formulate a high-profile committee with FPCCI nominees to look into grievances, complaints, issues and feedback of the traders from the apex platform. FPCCI is the right place to engage with the trading community. He elaborated on KGTL expansion plans for infrastructure development of their container terminal. We are going to spend $75 million in the next 2 years alone and another $100 in the time-span of 5 years from now; in order to bring world-class, cutting-edge and efficient infrastructure, machinery and technologies to Karachi Port, he added.
Khurram Aziz Khan stated that KGTL has signed its agreement with KPT; which comes under the ministry of maritime affairs. Therefore, KGTL comes under the legal jurisdiction of Pakistan.
Copyright Business Recorder, 2024
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