Our generation was witness to the peak of ship owing in the 60's, with eleven ship-owners, ie ten in private sector and one in public sector providing employment to educated and skilled seafarers. There was a time, prior to nationalisation, that ship-owner's had a total of 79 ships under Pakistan's flag.
The 1973 nationalisation and breaking of our eastern wing were the last nails in the coffin of ship-owners. It pains to see today that we are 100% dependent on foreign flag vessels for containerised and bulk cargo, with the exception of 8/10 mill tons crude oil being lifted by public sector Pak flag ships. Since two more tankers are set to be scrapped by 2010, due to CAS of the IMO convention, our share in crude lifting will also be lifted by chartered foreign-flag tankers.
There is only one ship-owing company in the public sector, with nine vessels and by 2010, we will be left with 7 vessels, 6 being over 30 years old, ready for demolition too. We, in our life time, will never see ship owing, under the Pak flag reverting to the respectable statues of 60/70's, it pains that we will be virtually left with minimal or no market share in the country's overseas trade.
Commerce and trade will be almost 100% dependent on foreign-flag ships and their dictates, thus harming our Expo/Impo both, making it un-competitive in the world market. We are in deep trouble and heading for dooms day, whilst the Ministry concerned is in deep slumber, having no expertise of maritime nor any future plans. I really wonder, why the Commerce Ministry and the Chambers of Commerce do not take up this important issue with the Government and Planning Commission to provide ship owing a loan assistance scheme for fleet expansion, as practised in India.
No serious efforts were made on our part except adhoc measures to induce ship owing under Pak flag, to facilitate boosting exports, to bridge the trade deficit of 12 billion USD. India has 9m gross tonnage fleet, but nearly 44% is expected to be phased-out by 2011/2012 and they have plans in the Ministry to expand to 11m gross tonnage by 2011/2012. In case we lack the capacity to plan, we may cut and paste Indian plans with logical amendments to suit our conditions.
Indian owners were enjoying only 14% market share in overseas trade in 2007/2008, but the same has now plunged to mere 9.5% due to recession and economic growth of 6% from 9% in the preceding year. Indian policy makers have highlighted that the Indian domestic fleet is relatively small, compared to the size of economy.
Pakistan's coal imports of about 6 million tons and growing cement exports worth 7.7 million tons in 2007/2008 and our surplus capacity to produce cement may encourage the factory owners of cement to venture into ship-owing under Pak flag, with the Government/ Planning Commission committing to the loan assistance scheme. It is surely a viable proposal for cement exporters being 6th largest exporter in the world behind Germany with 8.3 mill tons, Turkey with 10.6 mill tons and China being first with 26 mill tons. Cement factories are also major importers of coal to keep their furnace of cement plants warm, giving surplus produce to export.
The ship owning by cement factories promises a two-way trade. Furthermore with amendment in shipping protocol with India, our new private-proposed owners can benefit with Indian cargo as their fleet is lifting only 9.5% of overseas trade. Cement factory owners should form a consortium and buy some good second-hand tonnage, which is cheap now and give a kick-start to ship owning in the private sector under the Pak flag.
A feasibility study is imperative before they embark on such adventures and the Government must commit whole-hearted support by giving loan assistance to the new prospective private or public sector, both, so that we may have a moderate fleet to cater to our needs in case of any blockade or emergency and also to combat dictation by foreign flag ships, boost our exports, by offering competitive freight rates and cutting down the drain of 3.5 billion US Dollars freight cost being siphoned.
Since the Planning Commission is seriously working on a 5 years plan, it is worth consideration. Prospective ship-owners must comprehend that shipping requires a new set of skills for new comers as it is both an asset and a knowledge based business, requiring specialised commercial / technical skills to address IMO conventions, being internationally compliant Our planning commission must read the blueprint of the Indian plan of loan assistance and study their 12 billion dollar national maritime development programme (NMDP), announced in 2005 and the benefits achieved.
The Indian Government has plans to award a contract this year, worth some 4.25 billion USD on 14 projects to be completed within four years. In case we are shy to copy India, please look on the blueprints of Bangladesh, which has emerged as a shipbuilding nation, whilst years back they were only demolishing scrap vessels.
Their fleet in the private sector has grown so shipbuilding has progressed, whereas our good old Karachi shipyard stands nowhere and attending the captive business of the Pak Navy only. Pakistanis are blessed with potential, but we need consistency in our policy and placement of people on merit to draw our policy vision 2020.
The skill of policymakers need not be creative, but at least they may cut and paste the latest policy from region, as they closely addressed our needs. "Resources are limited, but creativity is unlimited". We, have a pool of creative Pakistanis that need to be harnessed strictly on merits.
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