Goods transporters strike: exporters suffer Rs 6 billion loss a day

11 May, 2017

The continuing strike of the goods transporters left at least 10,000 cargo containers clogged at seaports and inflicted Rs 50 million demurrages on importers, sources told on Wednesday. Exporters reckon around Rs 6 billion of loss a day from the transporters' strike, asking the premier to step in to resolve the issue that grew following the Sindh High Court orders to ban the heavy traffic in the city around the clock.
"The strike continues into the second day and will carry on till the transporters demands," Spokesman for Pakistan Goods Transporters Alliance, Agha Jawad Raza told Business Recorder, saying the transporters have suffered at Rs 4 billion of loss after taking their carriers off the road.
"In the wake of strike, 10,000 cargo containers are stuck at all four terminals of seaports at present," senior vice chairman, All Pakistan Customs Agents Association (APCAA), Arshad Jamal told Business Recorder, fearing the terminals will become chocked with more discharges of import cargo from vessels if the strike continues further.
"Amid transporters' strike and unavailability of transport, export worth Rs 6 billion has affecting on daily basis. Export consignments are ready for shipments but containers and transport is not available to exporters and factories," Chairman Pakistan Apparel Forum, Muhammad Jawed Bilwani told Business Recorder.
Arshad Jamal blamed the Sindh government for the chaos that unleashed with transporters' inevitable strike, saying that the provincial authorities have no plans for spending of infrastructure cess to develop exclusive routes to the harbour for cargo supplies. He said that the Sindh government accumulates Rs 100 million of infrastructure cess from importers and exporters every day.
With the Sindh High Court's orders to ban heavy traffic movements in the city, he said, the transport fair has scaled up between Rs 15,000 and Rs 20,000 per 20-feet container at Karachi ports. Similarly, cargo supply charges mounted to Rs 30, 000 from Rs 12, 000 at Port Qasim. The transportation cost now grows by 150 percent in the city. "Terminals are facing high yard density surging to an alarming scale," he showed concerns, saying that "the strike has widely disturbed the harbours' operations". He anticipated the terminals will lose space with soaring congestion from import cargo if the strike continued into coming days. "Even the transporters' demands are met; the terminals operations will take some time to normality".
"One round of negotiations with Sindh Transport Minister, Nasir Shah, who sought six hours till 11 pm to respond to the transporters demands," Agha Jawad said, adding that the minister promised to involve the Chief Minister Sindh to resolve the issue. He said that there are 60,000 registered goods carriers which all are off the road because of strike against the court's directives.
"The next round of talks is expected at 11 pm to discuss the matter," he said, adding that the transporters are stuck to their primary demands including the transfer of a case, which imposed a ban on the heavy traffic movements in the city on a 24-hour basis, to any other court for a review. The second is the removal of DIG traffic from his post.
"Prime Minister of Pakistan to take immediate cognizance of extreme disturbance in handling export containers on daily basis and their inaccessibility to reach at the ports of Karachi due to transporters' strike and unavailability of transport," Javed Bilwani appealed keeping in view the delaying exports shipments.
Fearing the alarming situation for the export-oriented sector in the wake of transporters strike, he said that the industry may reach its closure for cancellation of global orders from delayed shipping. "If export shipment containers could not reach timely at ports, the vessels will leave the Karachi ports without loading containers, leading to heavy financial losses to exports and loss of orders which will also tarnish the image of Pakistan in the eyes of countries around the globe".

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