Ports and shipping being a vital sector and backbone of the country's economy in handling its trade through sea routes, has throughout been given utmost importance by the present Government. The Ministry has been pursuing the policies envisioned by the President and Prime Minister so as to make the sector compatible to the modern times.
Though sky is the ultimate limit, yet the government has significantly contributed to re-invigorate this sector in terms of its operation and profiteering, whereas a lot is on the cards to be implemented to make the sector more competitive in the region.
RATIFICATION OF CIVIL LIABILITY CONVENTION (CLC) 92 Upon inception of the present Government, the ghost of M.T. Tasman Spirit and its resulted disaster, which had adversely affected the country's beaches and ecological system, was lingering in the air.
The Government by virtue of it interest and initiative became able to have Civil Liability Convention (CLC) 92 ratified, for effecting compensation of oil spills, which was pending since last many years.
The Government has also embarked upon initiating efforts to become member of FUND-92 Convention to cover additional oil spills compensation up to 311 million US dollars. Since this Convention requires contribution from the importers of oil, the Government is negotiating with Refineries and other importing houses through Ministry of Petroleum to become member of this Convention.
RE-EMERGENCE OF PRIVATE SHIP-OWNING INDUSTRY UNDER PAKISTAN FLAG The Government has been acting as facilitator for the stakeholders and the trade by providing them the prudent guidelines so as to restore their confidence in the ship-owning business which had earlier shaken by 1970s nationalisation policy.
Besides, realising that the ship-owning under Pakistani flag, particularly in post WTO Regime, has not taken off despite efforts by allowing incentives to private sector entrepreneurs in the past, the Government with the positive encouragement from Prime Minister formed Ship Advisory Committee to come up with concrete proposals for consideration so that the private ship-owning under Pakistani flag could be put into place.
Accordingly, the proposal so formulated have been submitted for the Prime Minister's consideration and approval. Meanwhile, some of the demands of the prospective ship-owners were met and conveyed to the stake-holders by the Minister for Ports and Shipping in press conference of 29th June, 2006.
Resultant to such confidence boosting steps, the Government has been able to register one private sector vessel namely, MEGA-I, under the Pak flag. More are in the pipeline.
However, most of the prospective ship-owners are awaiting the ratification of the amendments in the Pakistan India Shipping Protocol, which would ultimately provide the better shipping prospects in the region. With this, the government has eventually become successful in marking re-emergence of private ship-owning under Pak flag.
REDUCTION IN PORT TARIFF In consideration that our ports are expensive in the region, a lot has been done, since the inception of the present Government, for reduction of port tariff. Both Port Qasim and Karachi Port were made to understand that at such expensive tariffs, their ports could not be able to compete regionally.
Resultantly, they had to reduce tariff by 25% on all Pakistani flag vessels and on those foreign flag vessels which carry 80% Pakistani compliment on-board so as to encourage employment of Pakistani seafarers on foreign flag vessels.
It is anticipated that most of the foreign flag vessels will respond positively to this decision, for getting the offered tariff concessions, thereby increasing the employment opportunities for the Pakistani seafarers which in the post 9/11 scenario are on the decline.
PORT DEVELOPMENT PROJECTS The government has undertaken various projects of important nature relating to the Ports' sector and the allied industry.
(A) KARACHI PORT At KPT, two container terminals in private sector ie PICT and KICT, equipped with modern gantry cranes have been established to enhance container handling. Even for the existing container terminal at West Wharf, expansion project has been approved and additional space provided.
This, resultantly, has enhanced the capacity of Karachi Port, which is now handling 32 million tons of cargo along with 1.1 million TEUs of containers. There are a number of projects undertaken by KPT so as to meet futuristic vision of container handling.
In this respect, a deep water port catering upto 18 meters draft is in advance stage of being built to meet the needs of 2010. Other projects being implemented by KPT include development of cargo village, development of food street, establishment of water jet fountain and port tower complex to improve the skyline as well as provide facilities to inhabitants of Karachi.
Considering the international trend where port authorities indulge in development of the city infrastructure, KPT was directed by the government to participate in Karachi package and assist in improvement of road network which not only would benefit Karachi Port but would also ease out traffic jams and provide convenience to Karachiites.
KPT has thus engaged itself in construction of fly-over at Karachi, widening of M.T. Khan Road, Mai Kolachi Road and M.A. Jinnah Road and construction of underpasses at various locations and a three tier flyover at Hino Chowk.
(B) PORT QASIM Similar developments are also the hall-mark of Port Qasim which is emerging as the largest industrial hub port of South East Asia - on the pattern of Jubail (S.A.) Jable-e-Ali. Over the period of time, Port Qasim has expanded its base and cargo handling capacity, which presently is around 23.6 million tons along with 0.6 million TEUs container handling capacity.
Moreover, a number of projects have been initiated by the Government, by inducing private entrepreneurs. These projects include, second container terminal, liquid cargo terminal, LPG terminal, second oil jetty, grain and fertiliser terminal, coal, cement and clinker terminal, etc.
Besides, the Government has successfully concluded an agreement with EMAAR, for development of 12000 acres of industrial zones, which will have positive impact on the country's economy.
The Government has also allocated 100 acres of land in Port Qasim at a distance of 18 KM from Karachi Airport, so as to establish a media city therein, the work on which is in progress. Upon establishment the project would be first of its kind undertaken for the benefit of journalists and associated members of the community.
(C) GWADAR PORT The construction work on first phase of the deep water port project at Gwadar has been completed, whereas the port offering three multi-purpose berths and a channel of 11.5 meters draft which will accommodate vessels of 50,000 tonnes dead-weight, will be made operational very shortly.
The channel has further been deepened to 14.5 million, through additional dredging. Besides, Phase-II of the project shall commence on completion of Phase-I and its related infrastructure and will be offered for private sector participation on BOO/BOT basis.
ISSUANCE OF MACHINE READABLE SEAFARERS IDENTIFICATION DOCUMENT (SID) AND CLASSIFIED SEAMEN SERVICE BOOK (SSB) In order to address the security concerns and to safeguard the employment opportunity for Pakistani seafarers, the Government has been able to put in place a system issuing the Machine Readable Seafarers Identification Document (SID) through NADRA and the Seamen Service Book (SSB) printed from the Printing Corporation of Pakistan press. In doing so, the Government has been able to restore the respect for the documents world-wide.
SETTING UP OF ENGINEERING UNIVERSITY WITH FACULTY ON MARINE SCIENCES Conscious of the fact that it is almost impossible to survive in the modern times without having compatible knowledge and training in the related fields and realising that aggressive research in all fields of modern sciences is essential prerequisite for progress, the government initially desired to upgrade the Pakistan Marine Academy (PMA) to Marine University.
However, with the involvement of Higher Education Commission (HEC), it subsequently emerged that a full-fledged Engineering University having a comprehensive faculty on Marine Sciences would be more appropriate. The Engineering University has been inaugurated by the Prime Minister and now its functional aspects are being looked into and taken care of by the HEC in assistance with the PMA and the Ministry of Ports and Shipping.
The work for improvement in the existing facilities, up-gradation of simulators and laboratories, construction of new infrastructure etc would start from January, 2007. Selection of faculty and commencement of classes would follow.
COMPLIANCE OF THE ISPS CODE Post 9/11, the world has been very conscious of the security concerns which they even extended up to the world maritime sector. Consequently, and ISPS Code was designed under IMO, whereby all the maritime nation are required to be compliant to that for the safety of the crew, cargo, vessels and the ports of destinations.
Incompliant States would naturally lose the business. Feeling this pressure, the government initiated efforts and ultimately was successful in making all its ports and shipping facilities compliant to the ISPS Code before the cut off date of 30th June, 2004. This achievement was not only appreciated locally, but the Secretary General, IMO, at the very official forum, also applauded Pakistan's early compliance of the Code.
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