The Karachi Port Trust (KPT) has declared eight berths of the port non-operational, for the time being, and added that it would not provide berths to 'geared container' vessels from September 1.
In a circular sent by KPT Deputy Conservator to the stakeholders on Tuesday, it has been requested that all 'geared' vessels should make necessary arrangements with the two private terminals--Pakistan International Container Terminal (PICT), and Karachi International Container Terminal (KICT)--for operating their vessels.
The circular said: " collapsing of Berth(s) No 14 & 10 at East Wharf has put KPT in a rather complex position relating to berthing of vessels. These incidents have not only damaged the Berth No 14 and 10 completely but have also destabilised the adjacent berths making them highly unsafe for berthing of vessels."
To overcome the situation emerging due to "loss of 8 operational berths", it has announced following measures, which would help KPT to maintain "Zero waiting time" and operate the port "efficiently and swiftly."
MEASURES ANNOUNCED INCLUDE:
-- Shipping agents/stevedores, desirous to shift their container terminals from East to West Wharf, are advised to contact Traffic Manager, KPT, as ample space is available for allocation.
-- Minimum manifested cargo quantity for ship to qualify for clear berth shall be 600 tons. Vessels carrying less than this quantity will be provided abreast berths and cargo shall be discharged in the barges.
-- Ships not working cargo or performing below the set norms shall be removed from the berth at their own risk/cost.
-- It is advised that 25percent to 30percent export cargoes shall be brought in and stored on the berth prior to berthing of ship. This will result in faster turnaround of vessels.
-- Ships not working cargoes or performing below the set norms shall be removed from the berth at their own risk/cost. Cargo operation on board shall not be suspended on Sundays and holidays.
-- Minimum discharging rate for various cargoes, which were circulated earlier, need to be reviewed in present scenario.
-- Handling of liquid bulk cargoes at dry Berth No 1 will not be permitted. KPT said: "We are fully aware that above measures/steps may not be encouraging for some of the shipping agents, but KPT has no option except to adopt these remedial measures in the larger interest of shipping industry and broader perspective of country's trade and economy".
In order to achieve optimum port efficiency/productivity and to avoid berthing delays, it is imperative to make collective efforts by all the concerned port users ie shipping and clearing forwarding agents, stevedores and others. It has requested cooperation from all port users and shipping industry.
Meanwhile, Pakistan Ships Agents Association (PSAA), in its first official reaction, "has noted with great concern the recent collapse of certain berths at East Wharf."
PSAA said that whilst the event itself has occurred and hence cannot be prevented, it felt that the inquiry commission ought to be broad-based under an independent convenor with representation of KPT, engineering/marine/port experts, PSAA, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI).
This commission can look into what happened, ie, causative factors and recommended corrective and preventive actions, especially in relation to other similar vulnerable assets.
It pointed out that KPT had already realised the need to reconstruct these berths, in phases over the medium term, and has begun the tender award process accordingly. The event in question means this process needs to be fast tracked and works awarded at the earliest. Since eight berths are to be reconstructed, two or three international level firms may be selected to complete the task on fast track basis, ie maximum in 18 months.
PSAA supported the berthing policy announced by KPT on August 18, 2007 and supplemented as follows: The overarching criterion should be first-come-first-served, with the following provisos:
(a) Geared container vessels should use the dedicated container terminals (PICT/KICT) for Ship-to-Ship (STS) operation whilst individual lines/agents may use their existing yards for Consignee Yard (CY)/Container Freight Station (CFS) operations. PICT/KICT should offer commercially viable rates to the lines operating geared vessels. This step will help utilise unused windows at PICT/KICT thus freeing up other berths for non-container carrying vessels.
(b) Liner vessels be given priority over tramp vessels so as the former can maintain their fixed schedules.
(c) KPT should enforce its promulgated discharge rate rules to ensure expeditious turnaround of berthed vessels. In fact, where these norms are low they may be reviewed upward in consultation with PSAA/PSC.
(d) There should only be one vessel of any one commodity, eg, sugar, fertiliser, rice, coal, etc, in port at any one time.
(e) As there are draught limitations on the remaining berths, there will be need to shift vessels, as they lighten, to another berth in order to accommodate waiting deep draught vessels. Such shifting should be at Port's convenience.
The above may only be deviated from in case of berths being vacant. On the economic impact, the PSAA said that in its estimation, the loss of capacity, till the berths are rebuilt, will be severe as KPT will be effectively left with only seven berths with draught of over 10 metres at a time when the seasonal bulk cargoes will soon be arriving, thus driving the port occupancy figure well above the circa 50 percent average.
There is, therefore, a likelihood of anchorage waiting times, congestion surcharges and demurrage bills, which will drive up the cost of trade and feed core inflation. There is also the possibility of many opportunity costs due to business transactions becoming unviable, and therefore not occurring.
PSAA has viewed this as a national level disaster in terms of its economic impact, and urged the KPT to make this clear to the Government in order to avail prompt and substantive funding assistance as well as multilateral institutions. PSAA has also offered to assist KPT in conveying this message to concerned quarters.