ISLAMABAD: The government has decided to start 50 percent public sector imports from Gwadar Port destined for upcountry despite security challenges and difference of cost as National Logistic Cell (NLC) is ready to extend its support in this regard, well-informed sources in the Ministry of Maritime Affairs told Business Reorder.
Sharing the details, the sources said in continuation of the meeting of the committee constituted by the Cabinet on Public Sector Imports from Gwadar Port held on September 04, 2024, another meeting of the committee was held on September under the chairmanship of Minister for Economic Affairs and Establishment in the Committee room of Ministry of Commerce.
As directed in the first meeting representatives from Private Sector including All Pakistan Shipping Association, Pakistan International Freight Forwarders Association, National Logistics Corporation (NLC) were present.
Govt decides to bring in 50pc govt imports thru Gwadar port
Secretary Maritime Affairs briefed that the Prime Minister directed that 50% public sector imports be made from Gwadar port to make it operational, which is important for the CPEC and development of Balochistan.
Secretary, MoMA noted that earlier, on the directions of the Prime Minister, a summary was moved for the approval of the Cabinet incorporating input from various Ministries; i.e., Commerce, Finance, Industries and Production, and National Food Security & Research keeping in view, the benefits, cost analysis and freight charges etc.
He further noted that all the stakeholders supported the proposal of the summary of 50% Public Sector import from Gwadar Port, in principle. A committee was constituted to review the financial, commercial, logistical, transportation cost and consumer price implications of the proposal.
The Chairman Pakistan Shipping Agents Association highlighted that import from Gwadar is suffering due to security situation therefore improving security should be the prime objective of the government to make Gwadar Port functional. Secondly, the road and rail connectivity should be ensured as soon as possible.
Representative from NLC highlighted that there are security challenges being faced in Balochistan but these can be tackled through increase of business activities. He further informed that previously NLC handled the wheat cargo from Gwadar Port efficiently. He added that NLC has already established its office at Gwadar Port.
The representative from Leeds Logistics said that they are willing to contribute to the operationalisation of Gwadar Port. He also highlighted the security and power challenges at Gwadar.
The Chairman PIFFA highlighted the law and order situation and the connectivity issue impeding the promotion of Gwadar Port. He suggested enhancement of Afghan Transit Trade and that the public sector focuses on the transit trade from Gwadar Port.
The Chairman Gwadar Port Authority responded to the suggestions, queries and concerns of the representatives of private sector and apprised that highest-level possible security managed by Pakistan Army and Pakistan Navy is available at Gwadar Port. Last year the cargo was handled safely. He mentioned Coastal Highway, N-85 and M-8 as connectivity corridors for upcountry cargo shipment. The work on M-8 is in progress which will reduce the transportation cost.
The Chairman further explained that 74,000 MT cargo has been handled efficiently at Gwadar Port with zero demurrage. The Gwadar Free Zone (South) is completely developed. The Gwadar Free Zone (North) is under development. Two companies, ie, M/S Agven Fertilizers and M/s Hangeng have already started production in the Gwadar Free Zone.
For water supply facility, 1.2 MGD ROD water Desalination Plant has been completed. The Chairman apprised that 03 x month free storage facility for the bulk cargo is available for businesses. 37,000 MT Warehousing facility is available.
There is zero waiting with 0% demurrage charges at Gwadar Port. The offshore/onshore charges at Gwadar Port are comparatively lower than other Pakistani ports.
The federal/provincial/local taxes have been exempted in free zones at Gwadar for 23 years. The Secretary, MoMA apprised that new Gwadar International Airport is ready to start operations which would further enhance the air connectivity to Gwadar Port.
The Minister for Economic Affairs and Establishment stated that to develop the Gwadar Port, imports of public sector are to be made from Gwadar Port in the first Phase.
Though the Government has financial constraints, coupled with the security challenges and other gaps, the Government is ready to facilitate with regard to cost of imports to make Gwadar Port functional. He further directed to set out/sort out/determine the modalities of import of commodities from Gwadar Port.
The Chairman, Trading Corporation of Pakistan (TCP) stated that TCP is ready to divert cargo to Gwadar Port and 50% allocation to Gwadar can be managed easily at their end.
The meeting was of the view that although there is difference of cost between Karachi and Gwadar but in order to make Gwadar Port functional, 50% public sector imports should be made from Gwadar Port. Ministry of Maritime Affairs will submit the summary for the Cabinet for consideration and approval of the recommendations of the Committee.
Copyright Business Recorder, 2024
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