Gwadar Port: Bizenjo welcomes input from business community

18 Oct, 2016

Federal Minister for Ports and Shipping Mir Hasil Khan Bizenjo has assured the business and industrial community that he would welcome all the input at the provincial and federal levels from the local industrialists across Pakistan to benefit them from Gwadar Port. "Success of Chinese-administered Gwadar Port depends solely on the inputs from the local industrialists who should review the planned facilities and accordingly give inputs for further improvements," he urged speaking to the members of Karachi Chambers of Commerce and Industry (KCCI).
He said that the Ministry of Ports and Shipping would ensure that all required facilities remain available at the Gwadar Port for local industrialists belonging to any part of Pakistan. On the concerns expressed by KCCI vis-à-vis inactive ports and shipping committee since its formation by former minister Kamran Michael, Bizenjo assured them of activating the committee immediately. He said he would personally preside over the committee meeting after October 30. He said the issues being faced by business and industrialist community in dealing with port authorities and shipping companies "would be thoroughly discussed at the meeting. He called for efficient port operations in Pakistan because, presently, it takes five to ten days or even more to get a container cleared from ports in Karachi due to manual examination and obsolete scanners.
"Such container is released within half an hour at many efficient ports around the world because of their focus on automation and availability of smart scanners. We cannot compete in any field if our port activities are slow," he said, adding that the business community should come forward to give suggestions on improving the port operations.
On KCCI's representation at Karachi Port Trust and Port Qasim Authority, Hasil Khan assured similar representation in the Board of Gwadar Port as well. He said ports and shipping sector could only be strengthened with the cooperation of business community.
Chairman Businessmen Group (BMG) and former President KCCI Siraj Kassam Teli, in his remarks, pointed out that Karachi, with a massive population of more than 22.5 million, had been facing many issues because federal government constantly neglect the city whereas the business and industrial community was also suffering badly because of the discriminatory taxation system.
"Despite having been neglected and discriminated against, Karachi continues to contribute massive revenue of more than 65 percent to the national exchequer," Teli said and urged the FBR to devise a system to analyse the city-wise revenue contribution which would obviously negate all the claims being made by those individuals who usually refuse to accept Karachi's contribution and come up with lame excuses that Karachi's contribution was mainly due to the ports and head offices of companies etc.
He requested the minister to raise voice for the rights of Karachi and make sure that the federal government give due importance to the financial and industrial hub of Pakistan. Expressing concerns on government's plans to shift four departments of State Bank of Pakistan (SBP) from Karachi to Lahore, he said, "We are unable to understand this decision as State Bank has remained in Karachi since Pakistan's inception and even after the capital of the country was shifted to Islamabad, the SBP's headquarter continued to operate from Karachi." He asked the Minister to take up this matter also with the Federal Government and urge them not to take such steps.
He urged Bizenjo to ensure that the interest of business and industrial community of Pakistan is protected in CPEC and Gwadar Port. While drawing his attention towards the construction of Deep Sea Port, Teli pointed out that no road network to Karachi deep sea port existed that must be completed forthwith as the project was nearing completion. He said that Northern and Southern Bypasses were available to cater to the massive port traffic but the transporters avoid using northern bypass due to security issues, which resulted in diverting the heavy traffic on the streets of Karachi. He requested the Minister to ask Sindh government, Police and Rangers to ensure complete security on the northern bypass as well because it would help restore the confidence of transporters and also help ease the issue of traffic congestion.
He further recommended that KPT or the ministry of ports and shipping should construct a special road from port to northern bypass only for heavy traffic which would minimise constant traffic jams and reduce transportation time, besides saving the roads of Karachi from further damages due to movement of heavy vehicles.
Former President of KCCI Zubair Motiwala asked Bizenjo to tell relevant authorities to effectively negotiate with the Chinese government to make sure that the Pakistani business community also benefits more from China Pakistan Economic Corridor (CPEC), Gwadar Ports and the planned Special Economic Zones.
"Alongside it, the logistics from Karachi and Gwadar have to be improved whereas a cargo train service must also be initiated which will be very viable as compared to road networks," he proposed asking the ministry of ports and shipping to maintain equilibrium amongst all ports of Pakistan. President KCCI Shamim Ahmed Firpo expressed profound concern over exorbitant charges by port authorities, shipping lines, and terminal operators whose charges were too high as compared to other ports of the region.
"The exorbitant and varying charges by shipping lines under different heads have to be brought down to a uniform level in order to bring down the cost of doing business," he said pointing out that Pakistan's sea port charges were one of the highest in the South Asian region which discouraged cost-efficient shipping lines from taking cargo to and from Pakistan resulting in a demand/supply gap and higher transportation costs for the trader.
Referring to a recent study, he said, Karachi's two ports' charges are estimated to be three times more than that of Sri Lanka's, and seven times more as compared to that of Singapore. "Such problems should be addressed at the earliest, if we want to see Pakistan rapidly become a hub of regional trade," he urged. He was of the view that Logistic Service Providers Authority (LSPRA) Bill 2013 was pending to date, resulting in intensifying the hardships for the business community. The government must approve the LSPRA Bill at the earliest to regulate terminal operators, shipping lines and port operations. Senior Vice President KCCI Asif Nisar, Vice President Muhammad Younus Soomro, former Presidents KCCI Tahir Khaliq and KCCI Managing Committee members were also present at the meeting.

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