The federal government is all set to privatise Karachi Dock Labour Board within next six months and in this regard has finalised negotiations with the World Bank for $600 million soft loan to finance the process.
"The KDLB is going to have new boss from private sector and the World Bank is loaning 600 million dollars to Karachi Port Trust at a nominal interest rate. It can be termed a loan-cum-grant," Ports and Shipping Minister Dr Fahim-ud-Din Ansari told Business Recorder on Thursday.
The minister said, "yes the Board was being wound up. When reminded that private companies would own the dockers, he said, it was a kind of 'privatisation'. "Activity of the KDLB would be outsourced to the private sector through an open bidding," he said.
KPT would use the $600 million loan for meeting the expenses required for completing the privatisation process, the minister added. "Under the concept of a landlord port we are planning to outsource the KDLB which is a source of smuggling, drug trafficking... it has become a nuisance," the minister said.
When asked if the new development was likely to make a large number of labourers devoid of their livelihood, Dr Fahim said, "They are not being rendered jobless. We will give them alternative jobs as they will have private firms as a new boss," he added.
Previously, the stevedoring companies had to consult with the Board for employing the dockers but after sell-off of the KDLB they would need to contact the private firms, said the federal minister.
To a query on transfer of money, the minister said the bank would make payment to the KPT after general elections in the country. "Political uncertainty in the country delayed the loaning process and the bank will make the payment after elections," he added. He said the bank was in direct contacts with the KPT and had determined a long payback time for the loan. "The loaning process will also include the ministries of commerce and ports and shipping as a formal procedure," said the minister.
When asked why the KDLB, which was constituted under Clause-4 of the Dock Workers (Regulation of Employment) Scheme to ensure greater regularity of employment for dockers and speedy transit of goods through the port in 1973, was being privatised, Ansari claimed the Board had outdated and become a "mafia".
"Internationally the concept of doing business has changed and in the new doctrine of ports and shipping there is no room for any institution like KDLB," maintained the federal minister.
The minister said global economy in the future would be greatly dependent on ports and shipping. Meanwhile, Haji Mohammad Hilal, Senior Vice President Collective Bargaining Agent (CBA) warned of a strong resistance if the government went on with sell-off of the KDLB. "We do not know about any such planning and would fully resist if the government did that," Hilal warned.
The CBA official, however, said a few days back a WB team had visited the port and KDLB and KPT offices and invited the CBA for meeting but the labour representative body had refused to meet them. "The World Bank has never been our well wisher, so why should we meet them. We are also busy in preparations for CBA referendum," Hilal added.
The CBA official outrightly rejected the impression that KDLB was a 'mafia' and involved in drug trafficking or smuggling. "No, not at all. This is a baseless allegation. The dockers have nothing to do with the nature of cargo inside a container," he argued. Duty of the dockers was not more than loading and discharging the cargo without knowing that what sort of commodity was being imported or exported, he said.