In business lexicon a "sleeping beauty" is known as either a company that is considered prime for take-over and has not yet been approached by an acquiring company or an economic opportunity that has escaped the attention of prospective entrepreneurs, of which full potential is yet to be developed.
Dubai is now a much-talked-about success story around the world with very developed infrastructure, port and airports. Many commentators and policymakers have opined that Dubai's success defies common sense and prevailing advice. The late Sheikh Rashid Bin Saeed Al Maktoum, then Ruler of Dubai wanted Jebel Ali port to be planned for 32 berths when his British advisors proposed only four. All of Dubai success did not happen by accident. Outsiders did not see the hard work by his sons, especially Sheikh Mohammed, who was crown prince at that time. It is through sheer hard work but most important, it is through co-ordinated execution of coherent plans. While the port was being built, the Ruler and his aides ensured that there was a comprehensive review of what was needed to make the port successful. These include the software, a comprehensive review of customs procedures, rules and laws. More important, Sheikh Mohammed was entrusted with ensuring that development of the surrounding infrastructure such as warehouses, roads, vehicles traffic were planned and executed in co-ordination. The late Sheikh Rashid Bin Saeed Al Maktoum recognised Jebel Ali to be the sleeping beauty of Dubai and it is the success we witnessed today that proves his foresight and wisdom.
This brings to mind Karachi's possible sleeping beauty - the Pakistan Deep Water Container Port (PDWCP) - which is being constructed at Keamari in Karachi. I am given to understand from several sources that Phase I of this project is forecast to open for business around early 2015 and would cost in excess of US $1 billion. Karachi, the location of this port, was chosen to leverage a number of physical and economic synergies that would be available to the project given that Karachi is a mega city where the basic support infrastructure required for doing business would already be available to the PDWCP. This project has the potential to become a centre of economic activity without the need for relocation of people and support infrastructure. The port infrastructure is being completed by the Karachi Port Trust (KPT) and envisages several phases, which will add up to 12 million TEUs (twenty foot equivalent boxes) to the handling capacity of Karachi Port. Phase I is designed to handle 3.1 million TEUs. PDWCP is expected to be the most advanced port in the West Indian region both in terms of the technologies that it is expected to use and also in terms of the equipment that is planned to be deployed at this port. This grand vision of KPT and the Government of Pakistan must be applauded as a long-term vision has been taken into consideration in the development of this project rather than the short-term knee jerk solutions that we have inadvertently become accustomed to over the years. However, before I announced myself as a proud Pakistani, I have to call to caution.
I have pointed out before and I want to be longwinded again. The infrastructure around the new port will not support the capacity of the PDWCP. There has been talk of a much vaunted idea of building a cross-harbour bridge since 2006, when the PDWCP was been mooted. This proposed suspension bridge is planned to connect Keamari with Manora thus saving around an hour of travel time to locations such as Javed Bahria and opening up potential for real estate development on the other side of the Karachi Harbour. However, the cost estimated at that time of US $600 million is prohibitive and bogged down on issue of recovery of costs. Such grandiose pine-in-the-sky plans should be abandoned and we need to have our feet placed firmly on the ground. KPT would be well advised to take a practical view of the situation by focusing time and money on improving the current infrastructure for the purposes of the PDWCP instead of spending unfounded direction on the suspension bridge.
Energies and resources (tangible and intangible) need to be channelled towards projects that would create business opportunities and jobs thus adding economic value to the overall logistics supply chain. The PDWCP is set to evolve as a new centre of economic activity creating more than a thousand new jobs directly and innumerable indirectly. The port would capitalise upon the possibility of turning Karachi into a trans-shipment hub in the region catering towards the logistics needs for the Middle East and western Indian regions. This should be possible if we get out bearings right and stay the course throughout the voyage; this ball is in KPT's court.
To describe the roads within 5 kilometres of the entrance of Phase I as a nightmare is perhaps a clear understatement. There are three potential routes for container traffic to enter and leave the planned PDWCP. First, there is the road on the west side along the oil pier and exit to the M.A. Jinnah Road via Khamis Gate intersection. This route is so narrow that two trucks travelling in the opposite directions cannot pass each other without a slow display of tight manoeuvring skills of the drivers. Such a dramatic scene is hardly one that any international container terminal will want to show the world. Second, there is the eastbound road towards Bilawal House, passing a daily retinue of coal and old trucks, loading and unloading. It is a daily bustling bazaar where at its peak hundreds of trucks jostled for manoeuvring space to get out of the lock jam. Thirdly, there is the route through the area of the liquid bulk storage north of the second option, passing heavily populated areas. This narrative is just to give a flavour of the scale of the foreseeable serious problems of congestion, queues and delays that may be faced by the operators of the port unless KPT springs into action to upgrade the road infrastructure require for smooth operations of the port. The problem requires mega efforts. Urgent efforts are needed to find and build alternative roads along the coast to allow for the efficient evacuation of container traffic.
The lock jam arising from the handling of coal, liquid and container cargo in one location is symptomatic of lack of comprehensive planning. Each cargo type and terminal was allowed to grow organically, and ad hoc solutions developed, resulting in the current situation. There needs to be more long-term, more macro thinking on the separation of the types of cargo handling. More important, other building the terminals, planning of the surrounding and support infrastructure needs to be planned and built hand in hand. The shifting of coal and other dirty cargo handling from the densely populated areas of Karachi to Port Qasim has indeed been long overdue and in the meantime has augmented to Karachi's pollution and respiratory health woes. Concrete actions need to be taken immediately to take a long-term view of this situation.
I hope that the winds of change in Islamabad will provide a fresh impetus to efforts to make absolutely sure that the PDWCP will not be an example of shining steel and concrete, but could not realise its full potential. Indeed, it would be a national shame if the PDWCP build to handle millions of TEUs, could only handle minimal traffic. If such a situation arises, those at the helm of affairs would need to stand answerable to how hundreds of millions of dollars were spent sans the necessary planning.
At the same time, as I have advocated strongly, there is a need for a Deep Sea Port Act to bring together the efforts of concerned to ensure its success. Such an initiative will give due recognition to all those who toiled very hard in small and big ways for the national good. More important, such legislation should also push efforts in supporting directions. There is a need to bring customs procedures that are commensurate with a deep sea port and facilitate any trans-shipment of cargo. They should provide the means to help the operator market the PDWCP to international shipping lines. The legislation should also be far sighted enough to provide for better financial and other incentives for further investment in future phases of the PDWCP.
KPT and the Government of Pakistan need to carry out bold and concerted effort to examine the customs laws and regulations and the standard operating procedures to iron out any irregularities, bottlenecks that has hampered the transit trade for Afghan and Central Asian cargo in the past. These issues should not be allowed to replicate to hamstrung the development of the PDWCP. Further any issues, laws, procedures, and other obstacles to attracting trans-shipment cargo in the regions should be removed. This initiative is urgently needed before the PDWCP Phase I opens in 2015. As I mentioned above, the success of Dubai is not an accident. It is through sheer hard work and proper execution of co-ordinated plans.
I am confident that those in the corridors of power in Islamabad will have the foresight to ensure that the money spent on the PDWCP will be well worth the effort and bring about jobs and welfare benefits to the aam admi (general populace). It will also make many Pakistanis proud in the maritime world. The window of opportunity to act is narrow and there should be no more Nato - no action talk only.
(The writer is shareholder member board Pakistan National Shipping Corporation and Maritime Adviser to Karachi Chamber of Commerce and Industry)
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