It is universally accepted that merchant marine is an index of prosperity of a nation whose geographical parameters include navigable waters. The political and/or socio--economic situation is well reflected in the strength of its merchant marine fleet. A graphical representation of the strength of Pakistan's merchant fleet clearly depicts a vivid picture of the political and/or socio-economic situation in Pakistan and is an eye-opener for every patriotic citizen of Pakistan.
STRENGTH OF PAKISTAN'S MERCHANT MARINE FLEET: After the inception of Pakistan, the business of shipping was managed by private ship owners, who built the national fleet from the scratch.
In 1963, the National Shipping Corporation was formed by the Government of Pakistan. In 1970 the fleet strength of Pakistan's merchant marine comprised 71 large ocean-going ships.
The emergence of Bangladesh in 1971 was instrumental in reducing the fleet strength of Pakistan to 57 ships. Some ships were sunk while others were captured or scrapped.
In 1974 shipping was nationalised. The then nine private shipping companies, having 26 ships, were merged to form Pakistan Shipping Corporation. The National Shipping Corporation had 25 ships at the time of nationalisation.
In 1979, the two Corporations (PSC and NSC) were merged to form Pakistan National Shipping Corporation. During the Fifth Five-Year Plan, PNSC procured 14 ships instead of the planned decision of acquisition of 19 ships causing a loss of five ships in the bureaucratic/navalocratic procedures. These ships are considered most unsuitable in all aspects.
Later, National Tanker Company was formed and procured one tanker that too has been scrapped. PNSC further procured three feeder container ships which by now have been sold out. A year back PNSC acquired three old single-hulled tankers.
The nationalised shipping corporation under the stewardship of pseudo-professionals mainly from Navy, Police and Army have lost some 64 large ocean-going ships (auctioned, including two ships lost due to sinking) and have caused colossal losses due to corruption, mis-appropriation, mal-administration, inefficiency and embezzlements of huge funds.
PNSC hardly carries less than five percent (average for the past over two decades) of the total quantum of Pakistan's seaborne trade and similarly Pakistan has to pay some three billion dollars to foreign ship owners to cater for the needs of Pakistan's seaborne trade.
The reduction in fleet strength has caused great unemployment in the ranks of merchant marine.
Merchant marine has great potential in Pakistan. Any development in this sector and gainful utilisation of nearly 1000 km. long coastline of Pakistan and the Exclusive Economic Zone (EEZ) extending 200 nautical miles in the Arabian Sea along with the coastline are considered imperative in the national interest.
WORLD TONNAGE: Overall summary: In the year 2002, the world fleet of propelled sea-going ships of not less than 1000 GT stood at 89,010 ships of 585.6 million gross tonnage's (487.5 million compensated gross tonnage's) and an average age of 22 years.
Completion during that year amounted to 1,539 ships of 33.4 million gross tonnage (21.4 million compensated gross tonnage).
In 2003, nearly 200 ships with 12.5 million GT and 15 million CGT were built and future projections further have positive indicators.
Cargo carrying ships: In 2002 the world's cargo carrying fleet stood at 46,656 ships of 821.6 million Dwt (554.6 million GT/396.2 CGT) and average age of 20 years.
Presently, there are thirty countries which offer Flags of Convenience. A little over 62% of world tonnage is flying FOC flags.
The developed countries like Norway, Sweden, Belgium, United Kingdom, Germany, France and others have adopted a system of "Second Register of Shipping" that also constitute a little over 22% of the world fleet by registration and it has an inclining tendency.
A comparative study of the above figures in tables as mentioned above confirms that countries like Greece, Japan, the USA, China-Hong Kong, South Korea, the United Kingdom, Russia, Norway etc have a defined and uptodate shipping policy and Merchant Shipping Act.
These countries also provide incentives for investment in shipping, including tax holiday; yet the nationals of these countries prefer to invest in FOC Registry and with the introduction of Second Registry System some prefer to invest in shipping in the Second Register.
==============================================
Name of Country Percentage (of world tonnage)
----------------------------------------------
Russia 2%
United States of America 2%
Italy 2%
United Kingdom 1%
Denmark DIS 1%
South Korea 1%
Saint Vincent & the Grenadines FOC 1%
German (Second Register) 1%
India 1%
Others 21%
==============================================
Others include the names of FOC flags (total 30 flags- some flags are listed in the table and the remainder flags constitute a greater percentage of the balance 21%).
=================================================
Name of Country Percentage (of world tonnage)
-------------------------------------------------
Panama (FOC) 21%
Liberia (FOC) 9%
Bahamas FOC 6%
Greece 5%
Malta FOC 4%
Cyprus FOC 4%
Singapore 4%
Norway (NIS) 3%
Hong Kong -China 3%
People Republic China 3%
Marshall Islands FOC 3%
Japan 2%
=================================================
===========================================================
Merchant Fleets of World-by Nationality of Owner 2002
Nationality of owner Merchant fleet of world-by Nationality
Denmark 2%
German 6%
Greece 17%
China 5%
India 1%
Italy 2%
Japan 14%
South Korea 3%
Norway 8%
Russia 3%
Singapore 2%
United Kingdom 3%
United States of America 6%
Hong Kong - China 4%
Taiwan 3%
Others 21%
===========================================================
It is further established that the nationals of the world do not prefer to invest large investments in shipping under their own national flags. A number of ships of Pakistani owners are under FOC register and our own nationals are reluctant to bring their ships under the Pakistani flags.
Until 2002, an obsolete Merchant Shipping Act of 1923 governed and regulated shipping in Pakistan due to which merchant marine could not flourish. We have drawn the attention of the previous governments of Pakistan but due to appointment of pseudo-professionals at the helm of the organisations of merchant marine nothing appreciable could be framed.
However, the Ministry of Communications drafted a Merchant Shipping Bill 1982 which was a true copy of an obsolete Merchant Shipping Act of India with the only amendment of the "Ashoka" insignia with the crescent of Pakistan and replacement of the words "India and Indian" with Pakistan and Pakistan.
We are extremely grateful to Shah Baleeghuddin, the then Member of the National Assembly who raised the question on the floor of the National Assembly pinpointing this lacuna and the Ministry had to cut a sorry figure and the said Bill was withdrawn.
After decades the Government of Pakistan made a Shipping Policy and a Shipping Ordinance in 2002.
We have sent our views to the Government of Pakistan. Consequent upon which we have also held meetings with the then Minister of Communications, Secretary to the Ministry of Communications, including the then Director General Ports and Shipping Wing. During the meetings all acquiesced with our viewpoint and having understood to a fair degree the impact of FOC Registry and the Second Register of Shipping; the induction of a Second Registry was included in the Ordinance upon promulgation.
However, all the recommendations could not be made an integral part of the said Ordinance. A mention of the lacunae present in the existing Merchant Marine Ordinance 2002 and Shipping Policy-2002 is briefly enumerated as under
MERCHANT FLEETS OF THE WORLD - BY REGISTRATION (2002) (a) Failure of framing of the instruments and details of the existing Ordinance;
(b) Failure to frame rules and regulations of the training, certification, appointment of officers in various positions and avoidance/violations of the existing rules as notified in the Gazette of Pakistan.
(c) The award of "First Right of Refusal" to Pakistan National Shipping Corporation instead of providing such option to "Pakistani Flag", especially for the secured cargoes of the country like crude oil, lubricants, ores, wheat and rice even when PNSC does not have enough suitable vessels of its own to carry these cargoes.
(d) Failure to include provisions for security for payment of wages, disability and death compensation and repatriation of Pakistani seafarers who are the main stakeholders in the business.
(e) Inclusion of Section 96 reference Chapter 6 is detrimental to the interest of the professionals of merchant marine. In the first place it should be deleted but considering that the Chief Advisor (Maritime Affairs) to the President of Pakistan is the Chief of Naval Staff who has deliberately included this clause to provide cover to the Naval Officers.
We strongly recommend to delete this clause from the Ordinance. However, in case the Naval Officers are adamant to join merchant marine; then they may be allowed to obtain Certificate/(s) of Competency (Deck/Engine) in various grades exactly in line with the provisions of STCW 1995 and world-wide established procedures, including that of Pakistan for qualifying CoC examinations.
Furthermore, the position of the Chief Advisor on Maritime Affairs to the President of Pakistan may be divided into two sections. One for Naval and warfare operations.
The Chief of Naval Staff is the most suitable officer whereas to develop merchant marine the position is to be given to a professional technocrat of merchant marine in the national interest.
(f) Deletion of Section 120 of Chapter 9 captioned "Engagement of Seamen" and Issuance of Seafarers Service Book to all passport holders serving on board foreign flag ships who comply with IMO Conventions regarding mandatory courses as mentioned in STCW 1995.
(g) Placement of the line "Seafarers- immigration not required" on the passport of seafarers to facilitate them to seek employment on board foreign flag ships. India has provided this facility to its seafarers; consequently thousands of Indian seafarers are procuring sea-going and shore-based employment outside India.
It is highly regrettable that in spite of the promulgation of a Shipping Ordinance and Shipping Policy in Pakistan, not a single ship has been added to Pakistan's merchant fleet by any private entrepreneur and nothing appreciable is witnessed in this most neglected sector of national economy that itself speaks volume of ineffectiveness of the Shipping Ordinance and Shipping Policy.
(h) There is a great shortage of competent professionals of the merchant marine in the organisations of merchant marine and in the government due to which we find non-existence of a machinery in Pakistani administration to incorporate the various innovations, changes and developments as are being made in maritime legislation world-wide and update Pakistan in this vital sector of national economy.
For instance, a number of IMO and ILO Conventions in sequence with merchant marine and seafarers are yet to be ratified.
The administration of the United States of America after years of excellent work has framed a Bill captioned "Oceans 21" which is a recommendation of the US Commission on Ocean Policy.
We need to update our system in the light of the above mentioned Bill.
(The writer is General Secretary, Pakistan Merchant Navy Officers' Association.)