The country’s ports not only charge the highest rates in the region but are also not equipped to meet the needs of modern maritime trade where competition, efficiency and fast turnaround of vessels are the hallmark, importers and exporters told Daily Times. Similarly, container terminals of the country are much costlier than others in the region and are burden on trade as they enhance the cost of their end products. Recently, foreign shipping lines have raised the container handling charges by 15 percent.
The lines have enhanced the handling charges of 20 feet container to Rs 7550, up by Rs 1000 and on 40 feet container increased by Rs 1500 to Rs 11,350.
According to a comparative study of tariffs of the regional ports, the Karachi Port is the costliest port of South Asia followed by Port Qasim Authority (PQA), Jawahar Lal Nehru Port (JNP) in India and Sri Lanka Port.
The other regional ports such as Singapore and Dubai are even cheaper and they provide better cargo handling and quick cargo moving equipments.
“The Pakistani port are unable to improve their working environments by inducing work culture and efficiency, which are necessary for success in this fast and modern era,” traders complained.
The trade and industry had been asking the government to bring down port and terminal charges in line with regional ports but no worth mentioning steps have been taken so far, said Anjum Nisar, president, Karachi Chamber of Commerce and Industry (KCCI).
He said as the business community is already bearing the burnt of high cost of doing business we do not except the increased rates by the foreign shipping lines, but we are going to oppose it, as the rates have been increase without any justification and KCCI will call a meeting of all stakeholders, Pakistan Shipping Agents Association and customs during current week in this regard.
Anjum underlined the need to constitute a powerful regulatory authority from Pakistan Customs to regulate the shipping lines, agents and freight forwarders. He said the proposed regulator should have the authority to cancel the license.
The official figures with regard to tariffs of ports reveal that the KPT charges $27,190 per day on an average size container ship of 35,000 gross registered tonnage (GRT).
Against this, the port charges of PQA are $25,090, JNP $23,027, Dubai $2,890, Sri Lanka $7,192 and Singapore Port $2,975. Besides, these charges, Rs 10,000 to Rs 12,000 are charged under the head of handling.
There are three container terminals in the country—two at the Karachi Port and the other at Port Qasim.
There are two types of charges—wet and dry, which vary according to the size and the cargo the ship is carrying, a spokesperson of KPT said.
Both KPT and PQA do not handle trans-shipment cargo/containers and are thriving on captive cargo related to country’s external trade.
The shipping lines have increased the charges after a year and they are applicable to the imports from Far Eastern countries only, Muhammad Rajpar, chairman Pakistan Shipping Agents Association said.
The shipping lines have long been thinking of increasing the terminal handling charges due to a host of factors like the imposition of 16 percent general sales tax (GST) on the shipping companies.
He said that in our country there are two types of terminal handling charges, one which the shipping line charges and other one is taken by the terminal of the port that is called Receiving and Delivery (R&D) charges.
The lines have enhanced the handling charges of 20 feet container to Rs 7550, up by Rs 1000 and on 40 feet container increased by Rs 1500 to Rs 11,350.
According to a comparative study of tariffs of the regional ports, the Karachi Port is the costliest port of South Asia followed by Port Qasim Authority (PQA), Jawahar Lal Nehru Port (JNP) in India and Sri Lanka Port.
The other regional ports such as Singapore and Dubai are even cheaper and they provide better cargo handling and quick cargo moving equipments.
“The Pakistani port are unable to improve their working environments by inducing work culture and efficiency, which are necessary for success in this fast and modern era,” traders complained.
The trade and industry had been asking the government to bring down port and terminal charges in line with regional ports but no worth mentioning steps have been taken so far, said Anjum Nisar, president, Karachi Chamber of Commerce and Industry (KCCI).
He said as the business community is already bearing the burnt of high cost of doing business we do not except the increased rates by the foreign shipping lines, but we are going to oppose it, as the rates have been increase without any justification and KCCI will call a meeting of all stakeholders, Pakistan Shipping Agents Association and customs during current week in this regard.
Anjum underlined the need to constitute a powerful regulatory authority from Pakistan Customs to regulate the shipping lines, agents and freight forwarders. He said the proposed regulator should have the authority to cancel the license.
The official figures with regard to tariffs of ports reveal that the KPT charges $27,190 per day on an average size container ship of 35,000 gross registered tonnage (GRT).
Against this, the port charges of PQA are $25,090, JNP $23,027, Dubai $2,890, Sri Lanka $7,192 and Singapore Port $2,975. Besides, these charges, Rs 10,000 to Rs 12,000 are charged under the head of handling.
There are three container terminals in the country—two at the Karachi Port and the other at Port Qasim.
There are two types of charges—wet and dry, which vary according to the size and the cargo the ship is carrying, a spokesperson of KPT said.
Both KPT and PQA do not handle trans-shipment cargo/containers and are thriving on captive cargo related to country’s external trade.
The shipping lines have increased the charges after a year and they are applicable to the imports from Far Eastern countries only, Muhammad Rajpar, chairman Pakistan Shipping Agents Association said.
The shipping lines have long been thinking of increasing the terminal handling charges due to a host of factors like the imposition of 16 percent general sales tax (GST) on the shipping companies.
He said that in our country there are two types of terminal handling charges, one which the shipping line charges and other one is taken by the terminal of the port that is called Receiving and Delivery (R&D) charges.