'Go-slow policy' challenge

The Federation of Pakistan Chambers of Commerce and Industry is concerned at the "go-slow policy" adopted by the Karachi Dock Labour Board as reported in Business Recorder. This policy was adopted by the Labour Board's workers at the Karachi Port from Dec26 to 30. Going slow is an industrial action through which employees do perform their duties but with the intent to reduce efficiency or productivity. It is usually applied as a pressure tactic for the acceptance of their demands. FPCCI senior vice president Khalid Tawab urged all sides to amicably resolve their issues and stressed that the Labour Board should refrain from extreme measures and agitation as the country can ill-afford such disruption. The go-slow has resulted in serious congestion at the port with vessels having to wait for several days for want of berthing space, and cargoes piling up inside the port awaiting clearance, causing serious losses to trade and to the economy. The backlog resulting from this disruption is still being felt at the Karachi Port. Let us explore the origins of the Karachi Dock Labour Board and to the issues related to the troubles.

The Board finds its origins in the pre-mechanized era of ship handling when the loading and discharge of cargoes from freight vessels was done by way of physically handling of the cargoes. Traditionally, ships' cargo was hoisted in large cargo nets that were hoisted under a crane's hook and first lifted and then lowered into place either in the vessel's hatch or on the quay deck. The dock labour would physically carry these pallets, bales, barrels, cases and sacks onto or off the net and stack them in an orderly fashion. This was back breaking work that required dock workers to shift cargoes quickly in order to minimise the time that the vessel remained at port while it waited for the loading and discharge operation to conclude. At times this required the vessel to remain in port for several weeks. Regardless of how swiftly the dock workers managed the discharge and loadings, the logic behind physically shifting cargos remained an inefficient and inhumane concept.

With the advent of intermodal freight handling through containerised cargoes in the 1950s, the need for physically handling these cargoes subsided and cargos loaded into standardised containers dramatically reduced transport costs, supported the post-war boom in international trade and was a major element in globalisation. Containerisation did away with the manual sorting of most cargo shipments within the port area and moved this activity to the off-dock warehousing. As the economics of intermodal cargo handling became apparent to businesses the world over, it displaced many thousands of dock workers who formerly handled break bulk cargo. Containerisation also witnessed a swift reduction in congestion at ports, significantly shortening shipping times and was key for the reduction of cargo losses from damage and pilferage.

In response to the Dock Strike of 1945, the British Parliament introduced the "Dock Workers' (Regulation of Employment) Scheme" in 1947. The scheme was administered by the National Dock Labour Board and was financed by a levy on the employers. The board was responsible for keeping a register of employers and workers, paying wages and attendance money, controlling the hiring of labour and was responsible for discipline. The British National Dock Labour Scheme was abolished in 1989 by the Conservative government under Margaret Thatcher whose Employment Secretary, Norman Fowler, told MPs that the scheme had become "a total anachronism" and that it stood in the way of a modern and efficient ports industry.

With respect to dock labour, the Port of Karachi has remained stuck in the 1960s with the unnecessary burden of the Karachi Dock Labour Board. The government of Pakistan promulgated the Dock Workers (Regulation of Employment) Act, 1974, to regulate the activities of dock workers and to improve their standards of living. At present, there are about 2,800 workers registered with the Labour Board. The scheme introduced under this Act requires that a payment of cess be made to the Board for cargo handling at the Karachi Port. This cess is charged at the rate of Rs 48 per metric ton for general cargo and at Rs 800 per TEU for containerised cargo. In addition to this cess, gangs of dock workers are required to be hired in shifts for the length of the vessel's stay at the port. The cumulative cost for containerised cargo comes to about Rs 1,300 per TEU. This cost is eventually transferred to the owner of the cargo who will naturally pass on the cost to the person next in the supply chain, thus increasing the overall cost of transportation for the economy.

The two container terminals currently fully operational at the port, KICT and PICT, handle a cumulative volume of about 1.9 million TEUs per annum. At Rs 1,300 per TEU the Labour Board charge comes to approximately Rs 2.47 billion per year. This number translates to about Rs 882,000 per worker per year, given a total of about 2,800 workers registered with Labour Board at present. It must be kept in mind that these numbers only relate to the two container terminals occupying seven berths at Karachi Port and not to the other shipping activities at the other 23 berths of the port. To sum up, approximately Rs 882,000 is paid per worker per annum for doing no work at all, resulting in a straight line loss of approximately Rs 2.47 billion to the economy. With another container terminal coming into full operations by February at the KPT's flagship project, the Pakistan Deep Water Container Port, this loss to the economy is set to increase exponentially. It is the need of the hour to direct government policy towards avoidance of this loss to the economy of Pakistan. The mostly bulk cargo loading and discharge at the other non-containerised berths is also undertaken through mechanical rather than physical means, thus rendering the entire Labour Board scheme irrational and out of date.

No charges related to dock workers are prevalent at the Port Bin Qasim situated at a distance of about 48 kms from the Karachi Port as it does not fall within the jurisdiction notified by the government for the imposition of a Labour Board charge. Even liquid cargo including crude oil, molasses and petro products, handled at the Karachi Port are exempt from the Labour Board levies, given the logic that these are not physically handled and instead pumped through pipelines.

Similarly, in the case of containerised cargo, no physical handling is required with the container terminal operator managing all loading and discharge to and from the vessel by deploying cranes. The aim of the game for container terminal operators is to keep costs down and to ensure a swift turnaround times for vessels. Dock workers physically handling cargos cannot and does not factor into this equation. If this is the case, where the KDLB is paid for each container handled at the Karachi Port thus increasing overall costs.

It is time that the government of Pakistan took a cue from the British Conservative government of 1989. It should rethink the Labour Board scheme has already proved to be an anachronism and which stands in the way of turning the Karachi Port into a modern and efficient port. A compulsory payment for no work done cannot be justified on the grounds that it is backed by legislated. The legislation may have been relevant when it was formalised. However, times and methods have changed since then and so should the legislation. These unskilled workers need to be eased into skilled trades so that they can also contribute towards the uplift of the economy of Pakistan.

The Federal Minister of Ports and Shipping personally intervened to normalise the port operation, as reported in the print media.

It is food for thought for Ministry of Ports and Shipping to take a policy decision which may be a win-win situation for all stakeholders. In 2006, some initiative was taken, but it was left half way, without resolving the issue. At KCCI, trade complains of high handling cost, thus, issue may be amicably resolved, so that extra burden on trade is minimized.

KETI BANDAR - PART OF CPEC

Prime Minister Nawaz Sharif, as per top news item in Business Recorder of 20th December, 2016, has directed the inclusion of KCR and Keti Bandar, part of CPEC KCR had been and still a most viable project as per study of JICA, to cater the needs of Karachi Suburbs. It was well utilized before its closure, so, it may be gift to Karachiites, a city of 25 million people, with no mass transit, congested roads with rickety buses. Railway must remove the encroachment first. As far as Keti Bandar is concerned, in past I, recall Mr. Gilani the Prime Minister-elect of Pakistan People Party (PPP) in his opening speech promised to give nation a new port Keti Bandar along with 100 days priority agenda, however, the government failed miserably to deliver on any agenda item.

It is a welcome sign for all Pakistanis in particular for seafaring community and maritime professionals that Prime Minister Nawaz Sharif has promised to give a kick start subject to approval of joint co-operation committee, but Chinese will insist for feasibility study.

Port Qasim was also conceived in the 70's and it is likely to turn into Industrial Hub Portby 2025. Whilst Port Qasim is helping the nation but it is seriously affected by silting due to be in the proximity of Indus Delta and South West Monsoon. The annual maintenance dredging cost runs into 1 billion rupees to maintain 12.0 meter draft. The plans are on way to deepen the port to 14 meter costing about 140 million US dollar. Present annual dredging BOQ is 5 million cubic meter and when dredged further, it is estimated that annual maintenance dredging will be around 10 million cubic meter thus costing in excess of 2-3 billions rupees to maintain the desired depth. When Port Qasim was conceived i.e. returning to old medieval site of Indus River Port Dewal, which was conquered by Mohammad in Qasim (a history of Indis by J.C. Powell, A Voyage on Indus by Alexander Burnes 1831).

The initial planners and hydrographers at the time of conceiving the Port faltered and could not rightly estimate the annual maintenance dredging quantum and cost which was far low comparing as of today's 5/USD per cubic meter Furthermore channel is 40 km with sharp bends restricting night navigation, when compared to Karachi, Pakistan Deep water container Port and Gwadar of 3.5 krn, where vessel can berth/sail 24/7/365. Time is money for ships and ship owners of today and economy of scale is the key to profitability, thus deep drafts are required. Non availability of night navigation for deep draft and long channels are considered as disadvantage in Port planning. I, sincerely hope that proper feasibility study of Keti Bandar may be carried out.

 

It is presumed that planners of Keti Bandar may study the geological history of Indus delta, coastal hydraulic survey, currents, littoral drift, hydraulic model studies, coastal geomorphology, Alexander Burnes surveys of river Indus and earthquake epic center and geologic structure of Indus Basin whilst carrying out hydrographic survey, wave patterns, forming of breakers in monsoon and the coast being low and not except at close quarters for safety of navigation.

 

Whilst referring to Indus Delta Map Keti Bandar is approachable via Hajamaro Creek, which runs beyond Ghora Bari. Since no hydrographic and other studies are available which were carried out in last decade, it could be any body's guess that how much dredging will be required to meet today's generation vessels of 14/16 meter draft and thereafter quantum of annual maintenance dredging to maintain the channel.

It is presumed that a proper feasibility by competent hydrographers and port consultants be carried out evaluating dredging and maintenance cost bearing in mind high cost at Port Qasim. The other aspect to be borne in mind is excellent hinter land connectivity before port is built. We must learn from the experience of Gwadar port, which is still handicapped due to nonexistent hinterland connectivity. It is imperative that hard core professionals having experience of port development may be engaged and this assignment of national importance may not be left at the mercy of generalist having no track of maritime faculty.

We must also learn from the experience of dredging cost at Port Qasim that of our neighbors i.e. India, Bangladesh and Thailand etc. The Hoogly River has silted Kolkatta Port thus forcing development of new port of Haldia at the mouth of Hoogly, Mumbai offshore port, Colombo south port, Chittagong offshore port at Juldia, so has been the case in Bangkok, where new port has been developed at the mouth of the river to cater deep draft vessels of 4th and fifth generation.

The next generation vessels are post Panamax needing 16/18 meter depth and futuristic vision is Suezmax, Malaca Max of 21 meter, thus in all probability  a site which is prone to heavy siltation being in Indus Delta costing billions in dredging and thereafter incurring annual maintenance dredging cost of billions, may only be considered after hydrographic surveys and financial feasibility to cater deep draft vessels of future.

We, must have more ports to develop the region and to cater our futuristic needs. Port development is a science and all issues have to be addressed professionally to cater the futuristic development in the maritime industry. India has 12 major ports and 185 small ports and they are investing 15 billion US dollar in port sector and 12 billion dollar in developing quadruple triangle i.e. logistics connecting all major cities to cater over 1 billion tons of Impo/Expo by 2020. India is improving its inland water ways and launched Sagar Mela Project.

It is a welcome announcement, however, a proper latest feasibility be carried out bearing in mind that it may take 10 years to port be operational from the drawing board, thus ships calling after a decade and their specification be bench marked to make a success story for our future generation.

Since a policy statement has been made thus same must be duly supported with credible latest studies, thus it is expected that the democratic government will make all plans public and will consider the views of local expertise available in selection of site.

Needless to mention as per historical fact the River Indus had many ports in the past i,e. Patala. Debal, Lahori Bandar, Shah Bandar, Gharo, Keti Bandar, Vikar, Daragi and Bambhore, these ports were destroyed due to the ravages of Indus river or by the change of its course, thus we must learn from the history and a very scientific and cautious approach is recommended in selecting the site of new port.

Meantime, we must concentrate to make new commercial Port Pakistan deep water container f ort and Gwadar fully operational and optimum utilization of Karachi and Port Qasim. It is equally important to do traffic fore casting and our needs for 25/50 years.

Pakistan growth is hanged on CPEC thus, we may embark on project with caution. God Bless Pakistan.

Captain Anwar Shah Interview Published in Pakistan & Gulf Economist, December 2016.

PAGE: WOULD YOU EXPLAIN THE PORT OPERATIONS AT KARACHI PORT AND HOW YOU ARE DESCRIBING IT AS THE MOST EXPENSIVE PORT IN THE REGION?

CAPT. ANWAR SHAH: Ports play an integral role in the economy of any nation. Pakistan is blessed with a coastline that stretches 1,046 Kms with the Karachi Port being the largest port in the country. Karachi Port Trust (KPT) claims to have handled a record 50.05 million tons of cargo during fiscal 2015-16 up 15.25% from 43.42 million tons in 2014-15.

With KPT handling over 70% by value and over 60% by weight of all sea-borne trade in Pakistan, shipping lines and trade bodies continue to question the efficiency and cost of this handling. At purchasing power parity, the period during 2015 and 2016 has globally witnessed some of the lowest shipment charges in history. However, cargo handling at Karachi arguably remains one of the most expensive in the South Asia region.

PAGE: DO YOU THINK THAT OUTSOURCING OF PORT AND SHIPPING SERVICES WOULD BENEFIT TO THE ECONOMY?

CAPT. ANWAR SHAH: The early 1980s witnessed a new trend in the global ports sector with major ports migrating towards the landlord port concept to improve cargo handling and rationalization of pass on costs. Over the period, major ports have either outsourced cargo handling to terminals specializing in such handling or have outright sold port infrastructure to private entrepreneurs specializing in the handling of large volumes of specific class of goods owned both by themselves and by others.

Ports authorities in Pakistan unfortunately have yet to awaken to the logic and benefit behind these concept resulting in by far some of the highest levels of inefficiency, pilferage, damage, loss of opportunity and costs in the region.

PAGE: WHAT IS YOUR VISION FOR IMPROVING PORT AND SHIPPING INDUSTRY IN PAKISTAN AND TO COPE WITH THE ISSUE OF CONGESTION AT PORTS?

CAPT. ANWAR SHAH: The Karachi Port Trust (KPT) in 2007 embarked on a venture to building the Pakistan Deep Water Container Port (PDWCP). The project was envisioned to have berths specifically designed to handle the largest container vessels afloat in the world and to have yard operations using the latest equipment, processes and technology available anywhere in the world. All of this would have been a very first in the region.

In 2007, Hong Kong based Hutchison Port Holdings (HPH) and KPT signed an agreement to construct the first phase of PDWCP at Keamari in Karachi. The terminal was to originally commence operations in 2010 after a three years construction period. Under the agreement KPT was responsible for providing the infrastructure whereas HPH as the, terminal operator would building the yard and equip the terminal with the latest technology.

This terminal was planned to relieve insistent congestion witnessed at KPT. Both container ships and their containerized cargos were suffering delays due to congestion. Vessels had to wait at the outer anchorage while berths at which they could come alongside become available. The large number of small ships calling at the port in Karachi strained its vintage infrastructure. Large ships that offer economies of scale could not call at the port due to the inherent limitations of crumbling berths, shallow rning circles, small cargo handling cranes, redundant processes and incapable port staff.

Containers once off-loaded from vessels had to sit at the port for days awaiting customs backlogs and limitations of yard space and long gate procedures. The customs clearing process, by and lage, left a lot to be desired and scrupulous officers regularly bringing a bad name to the organization. The land side handling was plagued with cargo losses due to damage and pilferage.

These and other inefficiencies result in the high cost of shipments, both imports and exports. This in turn generally increases the cost of doing business in the country thus enticing businesses, both big and small to dodge the taxation system and to compromise on quality of products and to ignore environmental considerations. Individual business and their respective trade organizations have regularly questioned why port in Pakistan continue to remain expensive while the global trend has been for reductions in cost incurred at ports.

PAGE: YOUR COMMENTS ON THE PLANNED PDWCP PORT IN THE DEEP SEA?

CAPT. ANWAR SHAH: The PDWCP, was planned to fill the gap at the port of Karachi resulting from use of old infrastructure and process. The project would have resolved the limitations issues by providing containerized vessels shortest streaming times to berths capable of handling the largest containerized vessels. The berths were planned to be equipped with the largest and most technologically advanced cranes. The yard was to have the latest systems and processes and most efficient customs procedures akin to those at global modern terminals.

Feeder vessels previously calling at the old berths at the Karachi port cold continue to do so if they wishes. Shipping lines willing to upgrade their vessel size to large panamax and port-panamax sized vessels could enjoy economies of scale offered by these large ships.

To put things into perspective, the total container handling capacity in Pakistan before the first phase of the PDWCP was about 2.5 million TEUs per annum while terminals handled in excess of 2.8 million TEUs in 2015. The handling over designed capacity have heavily constrained terminals doing more long term harm than good. Current terminals are also constrained to handle vessels over 8,000 TEUs whereas the average is in the region of vessels sized about 3,500 TEUs. The first phase of the PDWCP was designed to handle the Triple-E class of container ships, the largest afloat anywhere in the world today.

While embarking on building the first phase of the PDWCP, KPT has been wounded by numerous obstacles, most of which are said to be self-inflicted. In the view of many, KPT has been wounded by numerous obstacles, most of which are said to be self-inflicted.  In the view of many , KPT HAS BITTEN OFF WAYS MORE THAN IT CAN CHEW, PDWCP project being the largest. Persistent delays in providing the KPT’s 100 years plus history. Delays in providing infrastructure to the operator has left the terminal project in a sorry state and unable to commence operations even after almost 10 years from the signing of the agreement in 2007.

PAGE: WHY THE NEWLY CONCEIVED PORT IS GETTING DELAYED?

CAPT. ANWAR SHAH: With more than a year having passed since the terminal operator imported major equipment in 2015 the start of operations is nowhere in sight. KPT has yet to commence dredging of the navigation channel and customs have yet to notify the terminal as a landing place for loading and unloading of containers from shops at the terminal.

Sources within the shipping sector have confirmed that the operator has completed its obligations in advance of KPT’s long delayed works and awaits the notification form Customs and KPT’s dredging.

KPT has invested over $800 million into the project with HPH investing over $600 million, despite the huge investment into this project and even after a lapse of over nine years since the singing of the agreement, the local economy remains deprived of the benefit that should have started to accrue from the project that currently said to providing employment to over 350 employees and when fully operational this number is expected to increase to over 1,500 direct employees.

PAGE: WHAT IS THE CURRENT STATUS OF THE NEW PORT?

CAPT. ANWAR SHAH: The sources within the shipping sector confirm that since august this year the operator is ready to start operations of the first phase of the project and has had to cancel commencement of operations at least three times due to delays from KPT and customs.  It remains to be seen if the Ministry of Ports and Shipping is able to take stock of the situation and whether it can play a role in getting the project on track and operational.

This project was seen to be positioned to facilitate China-Pakistan economic corridor (CPEC) by way of efficiently handing the imports required by projects within CPEC. PDWCP itself not being a part of CPEC would be instrumental in the success of Gwadar during the initial years when PDWCP could act as a hub port of Gwadar and handle the feeder trade to Gwadar port.

Delays to the PDWCP project need to be investigated as these will have a follow-on effect for the Pakistani economy as a whole. The benefits from such a major project of national importance should have started to accrue to the economy way back in 2011.

It would be extremely difficult to estimate the quantum of losses inflicted to the economy by these delays however, a conservative estimate of the loss suffered by KPT alone as a result of delays to the project exceeds $150 million due to the loss of rent, royalty and port dues. Somewhere in the corridors of power, these questions need to be taken up and addressed towards attempt to set right a project of strategic national importance. Foreign and national ship owners and lines are riled over KPT increase in port tariff. It is virtually doubled after lifting cap on ships. My humble recommendation that KPT may revert to its existing tarrif, as hike has made it very expensive in the region being benchmarked to Colombo and India.

Life time achievement award was conferred by admiral Muhammad Zakaullah Chief of Naval Staff to Captain Anwar Shah on his meritorious services to Pakistan.

On the occasion of honouring Veteran Mariners / Annual Dinner 2016 of Master Mariners Society of Pakistan

Chief of Naval Staff being Chief Patron MMSP, was chief guest at Master Mariners Society of Pakistan ANNUAL DINNER 2016 and Life time achievement award to Veteran Mariners  at Maritime Museum Convention Hall Karachi on 26th April, 2016.

The President Capt. Haleem Siddiqui in his inaugural address, welcoming the Chief Guest, valued invitees and honorable members of the society, deliberated the role of eminent mariners prior inception and thereafter 1947 to-date. He lauded the role of Master Mariners, who not only contributed in the establishment of Merchant Marine in the newly conceived State of Pakistan, but were called upon by emerging countries viz Singapore, Saudi Arabia, Malaysia and Sri Lanka to build their fleet and Ports. This honour was bestowed and today the largest Shipping Line.

NOL was established by a Pakistani Master Mariner. The President touched in detail, independently the services rendered by the Master Mariners from 1947 todate highlighting all. He made it abundantly clear that merit was the only choice in those days, so professionals of repute earned recognition locally and abroad both. The President requested the Chief Guest to facilitate recognition Merchant Mariners on merits, so that Master Mariners may be able to give their professional acumen as a value added product in the growth. The president also appreciated the services of Capt. Anwar Shah  Ex-DG. Ports & Shipping / Chairman Gwader Port and lauded that he is the first Pakistani to become the governor of World Maritime University Sweden, a singular achievement. Capt. Shah’s role as share holder director of PNSC was also dilated upon. The President raised the burning issue of Maritime administration, which has become dysfunctional due to non presence of technical staff  and not complying to IMO requirement, being a serious default , thus urged the authorities to ensure filling slots in Maritime administration, port state control expeditiously.

Chief of Naval Staff conferred Life time achievement award to Capt. Anwar Shah for his meritorious services  to Maritime fraternity. It was an honour that Capt. Haleem A. Siddiqui was conferred Life time achievement award  of Lloyd’s List, a singular achievement.

The plight of PMA Cadets was also highlighted and impressed upon Government to take corrective measures.

Chief of Naval Staff  responded to the call of President to work together for betterment of Maritime Industry and Fraternity. CNS was also pleased to see harmony amongst Mariners.

PORT STATE CONTROL AND MEMORANDUM OF UNDERSTANDING CAPT. ANWAR SHAH

Shipping is the most international business in the world. It cannot operate globally under any unitary regulatory control of an individual state. It has to comply with common standards developed at international forum; and that forum is now IMO – International Maritime Organization, a specialized agency of the United Nations.

However, IMO is not an international government. It cannot enforce any compliance. That has to be done by the Member States. Once the common standards are adopted on the floor of IMO in the shape of an international convention, it is now for the Member States to accept those conventions by becoming parties to the conventions. It then becomes the legal and moral obligation of the relevant state to transpose the provisions of such conventions into national legislation - that is to give force of law within its jurisdiction. The Member State will then enforce it within their jurisdiction as part of their national law.

Every sea-going ship has to be registered in a country to fly its flag. Through the process of registration it gains its identity. The certificate of registry will have its name, port of registry, flag, IMO number, call sign, MMSI number, dimension and tonnage, name of the owners etc. In old days it was customary to have the name of the master endorsed on Certificate of Registry but it is not necessary now. It is also not necessary to show financial status with respect to any mortgage because the transcript of the ship (obtainable from the registrar) will clearly show this information.

A ship registered in Pakistan will be referred to as a Pakistani ship and shall fly its flag. This ship will comply with Pakistan rules and regulations for maritime and shipping, no matter where the ship is. In addition, when in a foreign port, the ship shall also comply with the requirements of the host state. This is why the ship flies a courtesy flag of the port state. Hopefully the statutory requirements will be similar as both flag state and the port state will have their requirements derived from common IMO conventions.

By now it is clear that every state will have two different modes of control and enforcement - one as Flag State on its own ships and the other as Port State on visiting foreign ships. Together they create a safety net that rogue ship-owners and sub-standard ships cannot dodge. The port state control (PSC) must be exercised as a hand of cooperation to the flag state. Supposing we board a German ship in Pakistan to exercise Port State Control the underlying message to German Administration will be “Don’t worry, we will ensure safety compliance on your behalf. Your lives are equally important as ours. We will do everything that you would have done”. It is very important to impose equal standards (to own ships as well as foreign ships) so that none can blame you for double standards.

There is another big question. Can a flag state think that it need not comply with the requirements of a particular convention because the state is not a party to the said convention? No, because its ships will be subjected to those requirements when it enters the jurisdiction of a port state that is a party to that convention. This is because the convention requires every party state to enforce the requirements without any favorable treatment to a ship from a non-party state. If a ship is to trade freely around the world it has to comply with the requirements of all conventions in force. It is better to be an active player than sitting on the sidelines – I mean it is better to become a party to the convention if, in any case, I have to meet the requirements. There is no way to operate a sub-standard ship on the plea of not being a party to the convention.

During the Port State Control the inspector should explain all deficiencies in a manner that ship can get them rectified. In case of serious deficiency, conditions should be attached for their rectification within a given period. The authorities at next port of call may be alerted where necessary. Ship may be detained only – “when allowing the ship to proceed to sea may mean serious threat to life, property or environment”. Such ships must remove all defects and deficiencies before being allowed to proceed to sea.  

Port State Control inspectors should always remember to make correct reference to each and every deficiency. Such references may normally relate to international conventions for common understanding of all concerned. However, in respect of detention, it is very important to make reference to provisions of national law. This is because if the ship-owner wants to challenge the detention (through local agents) the court shall go by the law of the land.

Another thing must be clearly understood. Detention is not arrest. A ship may be arrested against claims only on the order of a court. It got nothing to do with the safety standard of the ship. Detention is an administrative/ executive function of the Administration and cannot be linked with any commercial outcome. That is why port authority cannot conduct Port State Control (because the port authority collects charges for extra stay, even if it is due to detention). It is done by the Administration of the State to which the port belongs.

Now we shall focus on Memorandum of understanding which stands for Memorandum of Understanding. There is no reference to any Memorandum of understanding in any of the international conventions. Such Memorandum of standings are normally signed by a group of countries in an area/ region. It is to coordinate Port State Control inspections in a rational way so that unnecessary repetitions can be avoided. It also keeps Member States informed of status of ships visiting the area so that more specific actions can be taken against rogue ship-owners and sub-standard ships. Paris Memorandum of standing puts together a large number of European States and this has made life difficult for substandard ships to operate in Europe. Similarly Tokyo Memorandum of standing together a number of states in the Far-East. It is not a must for states to join some Memorandum of standing. Every sovereign state can exercise its inherent right independently. However, Memorandum of understanding allows regional countries to share each other’s experience to work together for common goals. Memorandum of understandings utilise common forms and coding system. It is interesting to note that United

States has not joined any Memorandum of understanding. They conduct Port State Control on foreign ships through their Coastguard. Canada is a member of both Paris and Tokyo Memorandum of understandings (Paris Memorandum of understanding for Atlantic coast and Tokyo Memorandum of understanding for Pacific coast).

Finally we shall talk about Classification Societies/ Recognized Organizations. They are like independent standard institutes. A ship remains classed with a Society so long it meets the laid down standards. In the charter market it matters a lot if the ship is classed with a reputable society. Because these societies are fair and independent, many flag states delegate lot of statutory survey, audit and certification with them. It must be clearly understood that only functions can be delegated and not the responsibility. It is for this reason that flag state must retain a supervisory role to ensure proper compliance of statutory functions. Because Classification Societies would not like to displease their clients, Port State Control cannot be exercised by Class Societies.

Classification was never a compulsory requirement. Now it has become. Though SOLAS, LL and MARPOL give lot of requirements yet, it does not provide a complete code for construction of ships. Classification Societies also have requirements relating to inspection of every part, component and equipment at least once every five years. IMO has finally done something sensible by introducing in SOLAS-74 Part-A1 Reg. 3-1 that a ship to which the Convention applies shall be designed, built and maintained, including its mechanical and electrical components, in compliance with the requirements of a recognized organization.   

In Pakistan, Director General of Ports & Shipping is the focal point of U.N. International Maritime Organization, thus incumbent on them to participate in Maritime Safety Committee meetings twice a year and Assembly too, enable remain aware of new convention of IMO and ratify them through MOFA note of verbally. Pakistan has yet to ratify many IMO conventions.