Meteorological reports and data confirms that due to El-Nino effect in the Pacific and the Bay of Bengal, India and Pakistan may have 40% drier monsoon, thus a likelihood of a drought, even Australia will be affected thus they have lowered their wheat production by 15%, so are Indians equally worried tightening their belts and taking preventive measures. Hope it is not the same drought of 2009, as we and India had suffered.
Monsoon period in subcontinent is officially declared from 15th May to 15th September, thus warning finishing boats and small crafts to venture in Arabian sea and Western Ghats of India ie Kerala, Mumbai gets extensive showers and sea swell increases at Karachi and Mumbai. In case of Karachi, the rainfall record is minimal and it rains due to low pressure being formed in Rajhistan, as Karachi has neither mountains nor vegetation/forest.
Monsoon is said to be friendly to Congress/Ghandhis and PPP/Bhuttos, however, it appears that Modi and Nawaz Sharif may find it unfriendly this year due to weather phenomena. India has coastline of 7500 kilometres and also has more than 5000 kilometres inland waterways, with headquarters at Noda, Delhi. For some reason the just short insinuating that monsoons in India by habit are pro-Congress, anti Hinduvta in lighter vein. If India gets a drought it is historic that peasants attack grain traders for practicing witchcraft. I refer to David Hardiman's book on 1832 food scarcity in India in his famous book "History of the subordinated". Modi has increased diesel prices and his budget could not be free of his bete noires prescription. The spin doctors in India and Pakistan give our PM credit for launching metro, bullet trains etc, robbing their predecessors share of brownie points. Modi and Nawaz will have to tackle daylight robberies, if hit by drought. Premier Indian historians "D.D. Kasambi" recorded that since last 2000 years peasants in India suffered misery due to usury. I, sincerely hope that our government has contingency plans to deal with drought in Pakistan, if the predictions of meteorologist come true.
Modi was visiting Brazil and he did manage to form BRICS Bank headquartered at Shanghai China, at their 2010 world expo in Pudong development zone whilst ensuring the first President to be Indian and Brazilian Chairman. China has agreed to pay 41 billion USD whilst others will pay 18 billion USD, raising capital to 100 billion USD. Putin/Chinese/Indians/Brazilians have set the ball rolling finding a substitute to Breton Woods, World Bank and IMF, thus forging ahead for multipolar world from unipolar, as Putin fears sanctions from west due to Ukraine crises. Chinese feel that BRICS Bank will reduce western dominance of Global financial system and West-dominated multilateral agencies.
The countries around the world may find new refuge for borrowing in case of poor economy, without dictations of the West. It is a good omen for underdeveloped world to set itself free from clutches of the World Bank/IMF. BRICS nations are 41.6% of world population and 25% of the world territory, contributing 19.8% to world's GDP. It consists of Brazil, Russia, China, India and South Africa but seems Indonesia too. China has consolidated its 7% GDP growth, whilst Indians are trying to manage around 5% GDP if monsoons fail, they may reel around 4%. Indians are fearing inflation to rise from 5.4 to 8.5% as that of Pakistan if monsoon is dry, we may hope for the best.
It was shocking in my study tour of Europe recently to see growing of opium in fields from Vienna to Budapest, but Austrians claim that they use it in their sweet dish only and being fully aware that it can be misused, thus they keep a strict eye, however, opium fields in Fata/Afghanistan and South America were burned due to pressure from West, which can't control its populace from producing marijuana. Surprisingly our anti narcotic force reported in Senate Standing Committee recently that since last few years west has encouraged poppy cultivation in Afghanistan on area of 6500 hectares and proceeds are used for war on terror and funding of TTP. What a double standard of West. Hope BRICS may give some relief to poor countries from dictations of West and its double-standard
India being part of BRICS and Modi elected as leader by referendum has set itself on growth trajectory inducing FDI and facilitating local and foreign entrepreneurs to invest in Indian economy. India inherited 50,000 miles of Rail Roads from their colonial Masters in 1947 against our 5000 mils, but as of today Indians have 133000 miles of track, lifting 2.6 million tons freight and 23 millions passengers. Indian Railway is said to be doing well, but need renovation/investment as 93% of Railway income is spent on operation, thus leaving minimal for development. India is seeking 93 billion USD in their five-year plan to replace 25% century-old bridges, signalling system and cater to freight lifting from Ports to remove congestion at their major Ports. The logistic cost in India and Thailand is 16% and in our case it is 29%, however when bench marked to US/Japan/UK/Europe where logistic cost is only 6% compared to 29% in Pakistan (source World Bank). We inherited 5000 miles of rail track but reduced rail road to 2000 miles. So sad!
India's budget 2014 announced by Finance Minister Arun Jatley gave a booster dose to maritime sector, whereas in Pakistan Budget 2014 concessions allowed in Shipping Policy 2001 stands withdrawn and 10% withholding tax is imposed, what a contrast in mindset. Needless to mention that Shipping Policy 2001 and Merchant Shipping Ordnance 2001 was gift of Nawaz Sharif Government to Maritime Sector, as I was nominated as member of five-man task force in 1996 and chaired again in 2006 to amend the policy to induce entrepreneurs. Indians are now allowed to register their ships in tax-free overseas jurisdiction without opening subsidiaries there in a bid to increase national tonnage. This scheme will allow ship owners sitting in India to register their ships abroad, to be known as Indian controlled fleet. Indian ship owners may raise cheap funds from International lenders; however, there shall be stipulation to hire certain percentage of Indians on ships to improve employment. Indians are worried with high logistic cost thus out to use the cheapest mode of Inland water transportation, a project of national water ways - one on Ganges will be developed from Allahabad to Haldia, a distance of 1620 km enabling coasters of 1500 DWT tonnage to navigate commercially. The project may take 5 years at the cost of Rs 4200 crores. The searching question is, can Modi clean the Ganges, India's biggest sewerage line snaking around northern India from Himalayas to Bay of Bengal about 2500 miles. 400 million people live near it in 50 towns, pumping untreated sewerage hazardous chemical 2.7 billion liters, whereas treatment facility is only 1.2 billion liters. Swiss may help as their all lakes are 99% potable water. We are no different as all our rivers are polluted and Karachi harbour receives 472 MGD untreated waste water depriving naval commercial ships of 30% of their life, causing erosion and blocking sea water suction, based on report to Senate standing committee in 2006. The sewerage is pumped through three nalas. KWSB has treatment capacity of only 151 mgd but treats only 55 mgd. PSDP has no allocation for water and sewerage plants at Karachi. Indians will also be unfolding ship building policies soon. Indians will use Gujarat temp plate of Modi for PNT development. It is planned to set up 16 new port projects providing rail infrastructure to connect hinterland, thus decongesting their ports. Indian customs will clear goods 24x7. Indian finance minister has allocated Rs 5000 crore to make available scientific warehousing infrastructure in the country, to improve the shelf life of Agriculture produce thus improving the revenue to the farmers. (Source International Shipping News - 11.07.2014)
It really saddens me to hear that our conceived projects like Nandipur have been made prematurely operational thus giving a worldwide shame on our planning and project management. No headway at Gwadar, except MoUs. My searching query is why can't we learn from our neighbours and our leaders should serve rather trying to become Kings or Caliphs.
Feudalism is Pakistan's serious problem, French and Indians have resolved it, but no route map for us. French gave up on August 4, 1789, whilst Indians in Nehru's land reforms of 1952. Feudalism in Europe originated after fall of Roman Empire, it was divided into three estates, nobility or feudal lords being first, clergy the second, followed by the rest of people, a true replica of today's Pakistan. Although feudalism in Pakistan has changed its character, it is still politically, socially and culturally dominant in Parliament and Governance. Feudalism remains unchanged in Sindh and Southern Punjab, with Sardars and Maliks in KPK/Balochistan. Sindh and south of Punjab feudal lords claiming to be descendents of the Sufi Saints, have said to be inherited spiritual power, which is great hindrance in the development of society. If a Mughal Rip Wan Wickle wake up in Pakistan, he would not be out of place in Pakistan. There is no hope that these feudal lords will realise the changing situation globally, which has no space for the redundant institution of feudalism and feudal mindset. It has become outdated and lost its utility as same was sponsored by Mughals and Britishers. When feudalism is abolished in Pakistan, then only talented people will emerge and contribute to the development of society. If it is not done voluntarily, perhaps violence may come in the end to eliminate it. Louis XIV, the most powerful French ruler weakened the feudal and clergy both by asking them to live at the court of Versailles and spend lot of money to maintain their standards. This is most respectable solution for our feudal even today, as they will not be hurt.
I, as a common and patriotic Pakistani have no ambition, but do look for change, so that posterity may get out of the clutches of feudalism and Pakistan may have a route map at least to grow as India, China and Korea or say Malaysia in the region. Let us ponder as to how find a solution to our misery only think tank of academics may put us on right course, before obituary is written. I have noted with heavy heart that attitude at top is "who cares" what you may say or write for the good of the country. It is incumbent to appoint right people for the right job. Let us learn from India and at least copy and paste their reforms or that of Malaysia, China or Korea.
I conclude to say that we are at point of no return, thus all may club to take country towards progress by neutralising the feudal and clergy both. Pakistan is calling its sons/daughters to contribute. I, compliment government for setting land port authority establishing dry ports at Chaman, Torkham and Wagah, to be completed in 36 months, for promotion of trade through our 3 corridors, as advised by World Bank years back.
Sunday, August 3, 2014
Sunday, June 29, 2014
New 'axix of reform'
Asia's, three economies are suddenly experiencing a burst of change that could alter the growth trajectory for the worlds' most populous region. We are going to see the birth of a new "axix of reform", one which could revive the global economy. The month of May recorded Indian export of 28 billion USD compared to 24 billion USD last year and imports were 39 billion USD, reducing the trade deficit. Indian Ports of Kandla and Cochin handled 70 million ton each imp/Exp against our total 70 million ton Imp/Exp from our two ports.
China's XI Jinping, India's Narendar Modi and Japan's Shinze Abe are simultaneously sketching out vague - but - promising plans to revitalise their rigid economics. It is not a co-ordinated process - more of a serendipitous coincidence, driven by a dire need for change in all three nations. Still, the possibilities are enticing. A truly dynamic and innovative Asia would raise living standards for billions and fresh hope for a world wondering where all its big growth engines went. India and China trade is 80 billion USD, likely to triple, where as our trade with China hinges at 6 billion USD, tilted in favour of China. China is said to be helping India to explore 80 billion tons of untapped mineral resources. Bangladesh too has signed agreement with China to develop deep water port near Cox Bazar to boost their economy. Interestingly Bangladesh has 21 billion USD reserves..
With Asia's giants forming a new group from "BRICS" to "CIJ", they are in grip of reformers, prospects have certainly improved. Not only India and China now led by men that have spelled out so ambitious reform agenda, removing red tapes and firing slow civil servant golfers, but so in Japan, with abenomics ticking away background too "whilst the challenges and macro structure of China and India are different, if both leaderships deliver a long awaited reforms, the resurrection of the "Chindia" reconstruct may provide a surprisingly compelling boost to the emerging markets story, at just the point when many in the markets have dismissed the opportunity. The South Korean Leadership is committed to wholesale turn around, whilst we remain in deep slumber sleeping on pillow of "MoU" only.
If leaders may deliver by combined efforts, it may offer a tremendous boost to world economy. The need for change is broadly accepted across their populace excluding us.
It will also offer a striking counterpart to the USA and Europe, where reform fatigue rules debate from Washington to Brussels. Now West will learn from Asia and its growth reality China is bent upon holding 7.5 percent GDP Growth, whereas Modi may face tough resistance from civil servants who are slow and said to be corrupt and not receptive to innovation or change axis of reform is worth watching, as it may become growth driver of the world economy.
The Middle East is in serious turmoil as Iraq is heading for new demography as Libya, Syria etc. Capacity in the seaports and airports in the Middle East is growing faster than regional trade, potentially jeopardising the viability of billions of dollars worth of new investment in transportation infrastructure. Gulf countries investment in logistics based on logic of carrying out niche as trading posts between Africa and Asia. Dubai Jebel Ali Port accounts half of the regions seaport capacity, but many other gulf countries are copying Dubai template thus capacity will increase from 40 million TEU to 100 million TEUs incoming decade, the trade is not growing by 10% to fill the increased capacity at gulf ports. The capacity planning in Middle East is dysfunctional, not co-ordinated and mismanaged. The risk of over-capacity in Middle East is so imminent, as deep water port of Colombo built and operated by China Merchants will induce most of the Indian trade from Middle Eastern hubs. The over-capacity in Middle East gulf of states is at serious risk as investment in ports have long gestation period, and if remains unutilised, the Gulf States like Koreans may use the new capacities for entertainment not for logistics.
The new deep sea port of Colombo is able to berth and service the new mega size Class-E and Class EEE container ships with carrying capacity of 13000 to 18000 TEUS. The growth in Asia will support movement of containers on super ships for the sake of economy of scale and Colombo being on main East and West route, all mother ships will call, thus feedering to Indian and other regional ports. The Colombo Port handles 70 percent transshipment cargo and handles only 30 percent captive cargo and presently handling 7 million plus TEU likely to attain 10 million. Indians are worried due to feedering cost from Colombo thus may opt for barges being pushed by tugs for feedering to shallow draught ports on Indian coast thus copying the Mississippi river as pattern of pushing barges, cutting the cost.
Sadly Pakistan's ports only handle captive cargo except some transit cargo to Afghanistan. The delayed Pakistan deep sea water port may be functional by 2015 due to lacklustre attitude of Karachi port management, it was conceived in 2006 to be completed by 2009, but now it may be partly functional by 2015. We are planning energy by using coal, the only Pakistan bulk terminal of marine services group, which too is delayed may handle 5 million tons, against our prospective requirement of 15/20 million tons of coal. Gadani Port is still to take off to cater our coal handling. Sadly despite handing over Gwadar to new concessionaire, nothing is visible on the ground, even no road link via Surab to National highway. We see many inaugurations but sadly ground reality is different. Why can't we make efforts to induce land-locked Central Asian State cargo to our ports and become hub of land-locked countries? I feel our planners may seriously ponder on transshipment cargo rather captive cargo only. PNSC is the only silver lining in our maritime industry making profit being in public sector. Planning Commission is well advised to take serious note of growth in Asia and work seriously to get a slice out of it, so that our youth may find new avenues as population continuous to grow. Let us target min 6 percent GDP growth and pay full attention to our Maritime Sector for accelerating and giving a kick start to our economy. It saddens me, when I read growth studies in Asia, excluding Pakistan.
China's XI Jinping, India's Narendar Modi and Japan's Shinze Abe are simultaneously sketching out vague - but - promising plans to revitalise their rigid economics. It is not a co-ordinated process - more of a serendipitous coincidence, driven by a dire need for change in all three nations. Still, the possibilities are enticing. A truly dynamic and innovative Asia would raise living standards for billions and fresh hope for a world wondering where all its big growth engines went. India and China trade is 80 billion USD, likely to triple, where as our trade with China hinges at 6 billion USD, tilted in favour of China. China is said to be helping India to explore 80 billion tons of untapped mineral resources. Bangladesh too has signed agreement with China to develop deep water port near Cox Bazar to boost their economy. Interestingly Bangladesh has 21 billion USD reserves..
With Asia's giants forming a new group from "BRICS" to "CIJ", they are in grip of reformers, prospects have certainly improved. Not only India and China now led by men that have spelled out so ambitious reform agenda, removing red tapes and firing slow civil servant golfers, but so in Japan, with abenomics ticking away background too "whilst the challenges and macro structure of China and India are different, if both leaderships deliver a long awaited reforms, the resurrection of the "Chindia" reconstruct may provide a surprisingly compelling boost to the emerging markets story, at just the point when many in the markets have dismissed the opportunity. The South Korean Leadership is committed to wholesale turn around, whilst we remain in deep slumber sleeping on pillow of "MoU" only.
If leaders may deliver by combined efforts, it may offer a tremendous boost to world economy. The need for change is broadly accepted across their populace excluding us.
It will also offer a striking counterpart to the USA and Europe, where reform fatigue rules debate from Washington to Brussels. Now West will learn from Asia and its growth reality China is bent upon holding 7.5 percent GDP Growth, whereas Modi may face tough resistance from civil servants who are slow and said to be corrupt and not receptive to innovation or change axis of reform is worth watching, as it may become growth driver of the world economy.
The Middle East is in serious turmoil as Iraq is heading for new demography as Libya, Syria etc. Capacity in the seaports and airports in the Middle East is growing faster than regional trade, potentially jeopardising the viability of billions of dollars worth of new investment in transportation infrastructure. Gulf countries investment in logistics based on logic of carrying out niche as trading posts between Africa and Asia. Dubai Jebel Ali Port accounts half of the regions seaport capacity, but many other gulf countries are copying Dubai template thus capacity will increase from 40 million TEU to 100 million TEUs incoming decade, the trade is not growing by 10% to fill the increased capacity at gulf ports. The capacity planning in Middle East is dysfunctional, not co-ordinated and mismanaged. The risk of over-capacity in Middle East is so imminent, as deep water port of Colombo built and operated by China Merchants will induce most of the Indian trade from Middle Eastern hubs. The over-capacity in Middle East gulf of states is at serious risk as investment in ports have long gestation period, and if remains unutilised, the Gulf States like Koreans may use the new capacities for entertainment not for logistics.
The new deep sea port of Colombo is able to berth and service the new mega size Class-E and Class EEE container ships with carrying capacity of 13000 to 18000 TEUS. The growth in Asia will support movement of containers on super ships for the sake of economy of scale and Colombo being on main East and West route, all mother ships will call, thus feedering to Indian and other regional ports. The Colombo Port handles 70 percent transshipment cargo and handles only 30 percent captive cargo and presently handling 7 million plus TEU likely to attain 10 million. Indians are worried due to feedering cost from Colombo thus may opt for barges being pushed by tugs for feedering to shallow draught ports on Indian coast thus copying the Mississippi river as pattern of pushing barges, cutting the cost.
Sadly Pakistan's ports only handle captive cargo except some transit cargo to Afghanistan. The delayed Pakistan deep sea water port may be functional by 2015 due to lacklustre attitude of Karachi port management, it was conceived in 2006 to be completed by 2009, but now it may be partly functional by 2015. We are planning energy by using coal, the only Pakistan bulk terminal of marine services group, which too is delayed may handle 5 million tons, against our prospective requirement of 15/20 million tons of coal. Gadani Port is still to take off to cater our coal handling. Sadly despite handing over Gwadar to new concessionaire, nothing is visible on the ground, even no road link via Surab to National highway. We see many inaugurations but sadly ground reality is different. Why can't we make efforts to induce land-locked Central Asian State cargo to our ports and become hub of land-locked countries? I feel our planners may seriously ponder on transshipment cargo rather captive cargo only. PNSC is the only silver lining in our maritime industry making profit being in public sector. Planning Commission is well advised to take serious note of growth in Asia and work seriously to get a slice out of it, so that our youth may find new avenues as population continuous to grow. Let us target min 6 percent GDP growth and pay full attention to our Maritime Sector for accelerating and giving a kick start to our economy. It saddens me, when I read growth studies in Asia, excluding Pakistan.
Sunday, May 25, 2014
Maritime in limbo
The maritime administration can be defined as that branch, department or organ of the Government which deals with Maritime matters. The role and function can be categorised under the distinct heading:
1) Function and obligations of a Coastal State.
2) Port State functions and obligations.
3) Role of flag state.
4) Maritime treaties and protocols of IMO/ILO
5) Requirement of survey/audit/certification and other documents.
6) Phasing in and implementation of revised STCW 2010 from STCW 95
7) Conducting examination of navigating and engineering officers.
Sadly, when I pen this article our maritime administration is virtually dysfunctional without surveyors and examiners to comply with IMO/ILO conventions, The Maritime Safety Committee of IMO meeting in May, 2014 has made IMO Audit mandatory from January 2015, Pakistan was not even represented. We, are at high risk of being removed from white list, thus jeopardising the employment of Pak Seafarers, unless we act now to put our system in order. Our Academy Cadet Officers are wandering for jobs and certification in absence of qualified Surveyors / Examiners. Sadly, there is no permanent Director General of Ports and Shipping to act as focal point of International Maritime Organisation and ILO. I, recall that I inherited Directorate of Ports and Shipping as Director General in partly dysfunctional state in 2003, but I was able to convince the Minister of Communication, who incidentally was Ivy League MBA, who comprehended the issue and agreed despite opposition by Secretary of Police cadre thus, we manned the Directorate and won international recognition and appreciation by accession of civil liability convention of 92 and OPRC ratification and also ISPS code being amongst the first ten countries. Unfortunately the Directorate declined from 2007 to-date it is in shambles. The plight of Marine Academy Cadet Officers remain unnoticed, despite protest and press conferences in civilised manner. It is a wake-up call for Ministry to resolve the issue by giving due recognition to plight of sufferers by appointing a qualified Director General, Examiners and Surveyors to meet IMO/ILO obligation.
The word "Administration" ordinarily means the conduct and execution of the role and functions of an office project or institution and in broader terms it normally refers to the Government. The work "Maritime Administration" would refer to that department, Directorate or agency of the Government that oversees the shipping and maritime activities. When we say "Maritime Safety Administration" we mean the Administration that looks after the safety at sea and protection of the marine environment. In this case the word "Safety" relates to safety of life, property and environment at sea. However, when we refer to maritime administration we cover a broader range of subjects that will also include economic and developmental aspects of shipping. In Pakistan, Director General of Ports and Shipping was established in 1962, is responsible for Maritime administration being signatory to 27 IMO conventions and to act as regulator for Ports and Shipping industry based at Karachi.
I, now try to identify the range of activities that will fall under the purview of maritime administration. They can be summarised as: (1) Registration of Ships, (2) Tonnage measurement, (3) Registration/deletion of mortgage and issue of transcript, (4) Survey and certification of ships including of approval of plans and manuals ( L. L. SOLAS, MARPOL, etc; (5) Examination and certification of marine personnel (STCW 95), (6) Article of Agreement (Crew Agreement), health, hygiene and safety at work, (7) Registration, survey and certification of fishing vessels, (8) Examination and certification of fishing vessel personnel (STCW-F) (9)Registration of yachts and pleasure craft, regulate pleasure industry as required for safety including training requirement for persons serving on yachts, (10) Safety of inland shipping (rivers and lakes), (11) Type-test and approval of locally manufactured marine equipment and safety appliances including approval of life raft service stations and workshop that services and certifies fire fighting installations and appliances, (12) Safety of offshore rigs and mobile units, (13) Recognition of classification societies and delegation of certain functions with monitoring provisions, (14) casualty investigation, (15) Representation and co-ordination with IMO/ILO/ITU/ INMARSAT/IALA/IHO/UNCTAD and other international bodies, (16) promotional aspects such as training facilities, ship building and repair facilities, ship breaking industry, acquisition policy, protection, incentive, subsidy etc; (17) Port state control (inspection of safety standards of foreign flag ships) and random inspection of own ships, (18) regulate handling of dangerous goods in ports and harbours, (19) Survey coastal water and provide charts and data for own waters, (20) Provide necessary navigational aids and facilities along the coast, (21) Develop VTS, broadcast weather and navigational warnings and provide radio medical service, (22) Provide (humanitarian) SAR along the coast, (23) Combat accidental pollution with legal measures to recover damages, (24) removal of wrecks with legal measures for recovery of cost, (25) Prevent unlawful activities such as slave trade, human trade in illegal immigrants, piracy, terrorism, drug trafficking etc; (26) Intervene in certain cases, (27) Protect and preserve living, mineral and other resources within the EEZ or Continental shelf.
The State is also expected to operate safe and efficient port facilities in its own interest to meet the needs of trade and commerce. The primary role of the Port Authority (the administration of the port) is to provide service to the Port users. Though the Port Authority shall control all movements within the port and look after safety of all such operations, the ultimate responsibility of maritime safety and protection of the environment will still rest with the national Maritime Administration ie Directorate General of Ports and Shipping. The Port authorities do not approve intervention and acts as independent authority in contravention of IMO conventions, thus side lining the role of Directorate as regulator of Ports and Shipping and merely reducing the role as non-entity with support of Ministry at Islamabad.
In order to accomplish the role as a coastal state, specially those relating to SAR, contingency plan to combat pollution, prevention of unlawful acts and intervention etc, it is necessary to have a disciplined multiple role organisation in line with Defence services. Most countries have recognised this factor and developed "Coastguard"/MSA as a paramilitary organisation. Normally in peacetime the Coastguard will work under the transport (ministry or department) but as a law enforcing agency will also maintain link and co-ordination with police, justice, treasury, fishery, etc. The Coastguard/MSA is essential for protection of fisheries and other economic interest within the EEZ, However in case of war the Coastguard/MSA often becomes a part of the navy and may be used for coastal defence and port security. In Pakistan the role is assigned to MSA, which also do not co-0rdinate with Directorate.
The role and responsibility of an administration must not be mixed up with that of a commercial company (even though it may be state-owned). All efforts should be made to keep the company free of bureaucratic controls and interference. The success of any commercial venture will depend on the autonomy and freedom to take its own business decisions. The Government ( the Minister as well as the civil servants) or man in uniform should not get involved in the management and operation of the company if they become a party to the management and operation of the company, the chain of accountability will be lost. The Minister being the public representative and acting in the public interest, he should appoint a capable and competent person having commercial shipping background as the Director General. The Director General should be directly responsible to the Minister for the performance of the Directorate and the minister will remain answerable to the public through the parliament.
1) Function and obligations of a Coastal State.
2) Port State functions and obligations.
3) Role of flag state.
4) Maritime treaties and protocols of IMO/ILO
5) Requirement of survey/audit/certification and other documents.
6) Phasing in and implementation of revised STCW 2010 from STCW 95
7) Conducting examination of navigating and engineering officers.
Sadly, when I pen this article our maritime administration is virtually dysfunctional without surveyors and examiners to comply with IMO/ILO conventions, The Maritime Safety Committee of IMO meeting in May, 2014 has made IMO Audit mandatory from January 2015, Pakistan was not even represented. We, are at high risk of being removed from white list, thus jeopardising the employment of Pak Seafarers, unless we act now to put our system in order. Our Academy Cadet Officers are wandering for jobs and certification in absence of qualified Surveyors / Examiners. Sadly, there is no permanent Director General of Ports and Shipping to act as focal point of International Maritime Organisation and ILO. I, recall that I inherited Directorate of Ports and Shipping as Director General in partly dysfunctional state in 2003, but I was able to convince the Minister of Communication, who incidentally was Ivy League MBA, who comprehended the issue and agreed despite opposition by Secretary of Police cadre thus, we manned the Directorate and won international recognition and appreciation by accession of civil liability convention of 92 and OPRC ratification and also ISPS code being amongst the first ten countries. Unfortunately the Directorate declined from 2007 to-date it is in shambles. The plight of Marine Academy Cadet Officers remain unnoticed, despite protest and press conferences in civilised manner. It is a wake-up call for Ministry to resolve the issue by giving due recognition to plight of sufferers by appointing a qualified Director General, Examiners and Surveyors to meet IMO/ILO obligation.
The word "Administration" ordinarily means the conduct and execution of the role and functions of an office project or institution and in broader terms it normally refers to the Government. The work "Maritime Administration" would refer to that department, Directorate or agency of the Government that oversees the shipping and maritime activities. When we say "Maritime Safety Administration" we mean the Administration that looks after the safety at sea and protection of the marine environment. In this case the word "Safety" relates to safety of life, property and environment at sea. However, when we refer to maritime administration we cover a broader range of subjects that will also include economic and developmental aspects of shipping. In Pakistan, Director General of Ports and Shipping was established in 1962, is responsible for Maritime administration being signatory to 27 IMO conventions and to act as regulator for Ports and Shipping industry based at Karachi.
I, now try to identify the range of activities that will fall under the purview of maritime administration. They can be summarised as: (1) Registration of Ships, (2) Tonnage measurement, (3) Registration/deletion of mortgage and issue of transcript, (4) Survey and certification of ships including of approval of plans and manuals ( L. L. SOLAS, MARPOL, etc; (5) Examination and certification of marine personnel (STCW 95), (6) Article of Agreement (Crew Agreement), health, hygiene and safety at work, (7) Registration, survey and certification of fishing vessels, (8) Examination and certification of fishing vessel personnel (STCW-F) (9)Registration of yachts and pleasure craft, regulate pleasure industry as required for safety including training requirement for persons serving on yachts, (10) Safety of inland shipping (rivers and lakes), (11) Type-test and approval of locally manufactured marine equipment and safety appliances including approval of life raft service stations and workshop that services and certifies fire fighting installations and appliances, (12) Safety of offshore rigs and mobile units, (13) Recognition of classification societies and delegation of certain functions with monitoring provisions, (14) casualty investigation, (15) Representation and co-ordination with IMO/ILO/ITU/ INMARSAT/IALA/IHO/UNCTAD and other international bodies, (16) promotional aspects such as training facilities, ship building and repair facilities, ship breaking industry, acquisition policy, protection, incentive, subsidy etc; (17) Port state control (inspection of safety standards of foreign flag ships) and random inspection of own ships, (18) regulate handling of dangerous goods in ports and harbours, (19) Survey coastal water and provide charts and data for own waters, (20) Provide necessary navigational aids and facilities along the coast, (21) Develop VTS, broadcast weather and navigational warnings and provide radio medical service, (22) Provide (humanitarian) SAR along the coast, (23) Combat accidental pollution with legal measures to recover damages, (24) removal of wrecks with legal measures for recovery of cost, (25) Prevent unlawful activities such as slave trade, human trade in illegal immigrants, piracy, terrorism, drug trafficking etc; (26) Intervene in certain cases, (27) Protect and preserve living, mineral and other resources within the EEZ or Continental shelf.
The State is also expected to operate safe and efficient port facilities in its own interest to meet the needs of trade and commerce. The primary role of the Port Authority (the administration of the port) is to provide service to the Port users. Though the Port Authority shall control all movements within the port and look after safety of all such operations, the ultimate responsibility of maritime safety and protection of the environment will still rest with the national Maritime Administration ie Directorate General of Ports and Shipping. The Port authorities do not approve intervention and acts as independent authority in contravention of IMO conventions, thus side lining the role of Directorate as regulator of Ports and Shipping and merely reducing the role as non-entity with support of Ministry at Islamabad.
In order to accomplish the role as a coastal state, specially those relating to SAR, contingency plan to combat pollution, prevention of unlawful acts and intervention etc, it is necessary to have a disciplined multiple role organisation in line with Defence services. Most countries have recognised this factor and developed "Coastguard"/MSA as a paramilitary organisation. Normally in peacetime the Coastguard will work under the transport (ministry or department) but as a law enforcing agency will also maintain link and co-ordination with police, justice, treasury, fishery, etc. The Coastguard/MSA is essential for protection of fisheries and other economic interest within the EEZ, However in case of war the Coastguard/MSA often becomes a part of the navy and may be used for coastal defence and port security. In Pakistan the role is assigned to MSA, which also do not co-0rdinate with Directorate.
The role and responsibility of an administration must not be mixed up with that of a commercial company (even though it may be state-owned). All efforts should be made to keep the company free of bureaucratic controls and interference. The success of any commercial venture will depend on the autonomy and freedom to take its own business decisions. The Government ( the Minister as well as the civil servants) or man in uniform should not get involved in the management and operation of the company if they become a party to the management and operation of the company, the chain of accountability will be lost. The Minister being the public representative and acting in the public interest, he should appoint a capable and competent person having commercial shipping background as the Director General. The Director General should be directly responsible to the Minister for the performance of the Directorate and the minister will remain answerable to the public through the parliament.
Sunday, April 6, 2014
Port development in Pakistan
Port benefits are increasingly distributed across different actors and concern a geography that transcends the local community. This trend skews the assessment of the benefits of port investments, where the local impacts can be much less significant than the regional or national. Ports are considered as funnels to economic development since they act as a catalyst and incite development to take place in specific economic sectors and locations nearby ports or along corridors. The economic benefits of port can be categorised as direct, indirect and induced. The economic benefits of ports are usually measured at an aggregate level by indicators such as value added, employment and investment. This can evolve through different methodologies. In our case we failed to make it value added, although FDI (foreign direct investment) on BOT (build-operate-transfer) basis of investment was induced. Port activities have multiplier effects within an economy and the container terminals Karachi International Container Terminal (KICT), Pakistan International Container Terminal (PICT), Port Qasim International Container Terminal (QICT) are living example in our case.
With the settling of global supply and transport chains, there is a mismatch between the port benefits. On aggregate level port investments do have economic benefits, the spatial and sectoral distribution of these benefits is far less evident.
Significant increase in port throughput , particularly in the containerised sector, did put pressure on existing facilities and thus PICT, KICT, QICT developed the existing facilities, except Gwadar and Pakistan Deep Water Container Port (PDWCP) at Keamari are new port infrastructure. Port development and world trade are interrelated. Seaborne trade has increased substantially due to massive redistribution of manufacturing to low-cost locations such as China, India, Bangladesh and Vietnam, allowing these countries to reduce the dependence on agriculture. We have miserably failed to take advantage of this development in Pakistan. Due to technical changes, ie growth in ship size to achieve economies of scale with post-Panamax vessel, special carriers of Car and Bulkers, ports have to respond to technical and market developments by upgrading facilities as the Karachi Port Trust (KPT) has invested in PDWCP attracting foreign investment, but due to delays in completion, it is hoped that we have not lost the window of opportunity to Sohar or Salalah or west coast Indian ports.
The shipping companies and terminal operators have engaged in strategic alliances as well as merger and acquisitions. The goal is to provide a level of vertical and horizontal integration, thus improving the port performance chains. This has led to setting of inland terminals by QICT and PICT at Prem Nagar in Lahore.
When Gwadar was conceived, obviously feasibility, economic viability and return on investment as reflected in the internal rate of return (IRR) must have been worked out as investment in port has long gestation period. The concessionaire, PSAI from Singapore, signed the concession agreement in [2006], however, except staged handling of a vessel from PNSC, at the time of inauguration in 2007, there has been no serious activity. The viability of Gwadar has been in focus from the start. Ports developed to support industries and population centres, the obviously missing cogs in the wheel of long-term infrastructure development for Gwadar.
I have been associated with Gwadar, in its primary stage and relinquished my role prior to signing of concession agreement with PSAI. A lot more brain power and long-term hard work are needed to make Gwadar work for Pakistan and the region. The recommendations of the relevant consultants may have been suspect from the start, leading to the current predicament. It is reported in the media that PSAI has relinquished the concession in favour of the Chinese. It is hoped that this is not same old medicine in new bottles and that there is substance to this change to bring in the cogs to the whole wheel of port infrastructure development. We have to recognise and painfully accept the ground realities and plan for the long-term, instead of staging short-term appeasement moves, with no concrete plans. We should join hands to make Gwadar operational and I volunteer on gratis basis to assist in realising dream of Gwadar may come true in my life time, as precedent auditing on behalf of International Maritime Organisation as their expert on secretary general panel of experts for standards of training, certification and watch keeping, placing Pakistan on IMO white list on gratis basis, issuing compliance certificate so that Pakistani seafarer can be employed on foreign flag ships.
KICT, PICT. QICT increased their volume of handling. The PDWCP conceived in 2006 to be completed by 2009, did suffer significant delay but concessionaire have continued their support of KPT to bring about the vision of the most advanced deep sea port in the West Indian subcontinent region, despite failures by the KPT to stay on the agreed time line. This is a good news despite delays and the long wait and the port will be operational by end 2015, heralding a new era for post- Panamax vessel to call Karachi, Pakistan.
Overall, except for Gwadar, we in Pakistan developed existing facilities for containerised cargo to cater for volume of 2.1 million TEU, whilst Sohar in Oman developed and now handling container vessels of deep draft to cater for Sohar industrial Zone. Interestingly, the CEO at Sohar Port is a Pakistani Merchant Mariner. The volume has increased due to shifting of cargo from Mina Qaboos Muscat port. It is a food for thought that Sohar is operational but Gwadar with better location is idle. We have to work harder to find out the reasons.
Although KPT failed to keep its agreed time line but PDWCP will become functional by end 2015, if KPT lives to its commitment and we don't lose the advantage of developing a deep water port, catering to post-Panamax vessel on the economy of scale, offering depth of 16 meter, whereas Karachi and Port Qasim remain restricted to 12 to 13 metres. KPT since December 2013 has no trustees, thus decisions are being delayed awaiting appointment. There are no committees of trustees functional up-to-date. Ad hocism may delay projects, which is the case in all Public Sector Organisation.
Our Planners for future development of port may bear in mind, economic changes, technical changes and organisational changes world-wide as we have to compete with Salalah, Sohar, Jabel Ali and West Coast Indian ports. It was heartening to note from media report that a shipyard is planned at Gwadar and Port Qasim. The Port plan has provision for shipyard, and I wish well to our Finance Minister, hope he may complete appointment of trustees at KPT for smooth operation.
With the settling of global supply and transport chains, there is a mismatch between the port benefits. On aggregate level port investments do have economic benefits, the spatial and sectoral distribution of these benefits is far less evident.
Significant increase in port throughput , particularly in the containerised sector, did put pressure on existing facilities and thus PICT, KICT, QICT developed the existing facilities, except Gwadar and Pakistan Deep Water Container Port (PDWCP) at Keamari are new port infrastructure. Port development and world trade are interrelated. Seaborne trade has increased substantially due to massive redistribution of manufacturing to low-cost locations such as China, India, Bangladesh and Vietnam, allowing these countries to reduce the dependence on agriculture. We have miserably failed to take advantage of this development in Pakistan. Due to technical changes, ie growth in ship size to achieve economies of scale with post-Panamax vessel, special carriers of Car and Bulkers, ports have to respond to technical and market developments by upgrading facilities as the Karachi Port Trust (KPT) has invested in PDWCP attracting foreign investment, but due to delays in completion, it is hoped that we have not lost the window of opportunity to Sohar or Salalah or west coast Indian ports.
The shipping companies and terminal operators have engaged in strategic alliances as well as merger and acquisitions. The goal is to provide a level of vertical and horizontal integration, thus improving the port performance chains. This has led to setting of inland terminals by QICT and PICT at Prem Nagar in Lahore.
When Gwadar was conceived, obviously feasibility, economic viability and return on investment as reflected in the internal rate of return (IRR) must have been worked out as investment in port has long gestation period. The concessionaire, PSAI from Singapore, signed the concession agreement in [2006], however, except staged handling of a vessel from PNSC, at the time of inauguration in 2007, there has been no serious activity. The viability of Gwadar has been in focus from the start. Ports developed to support industries and population centres, the obviously missing cogs in the wheel of long-term infrastructure development for Gwadar.
I have been associated with Gwadar, in its primary stage and relinquished my role prior to signing of concession agreement with PSAI. A lot more brain power and long-term hard work are needed to make Gwadar work for Pakistan and the region. The recommendations of the relevant consultants may have been suspect from the start, leading to the current predicament. It is reported in the media that PSAI has relinquished the concession in favour of the Chinese. It is hoped that this is not same old medicine in new bottles and that there is substance to this change to bring in the cogs to the whole wheel of port infrastructure development. We have to recognise and painfully accept the ground realities and plan for the long-term, instead of staging short-term appeasement moves, with no concrete plans. We should join hands to make Gwadar operational and I volunteer on gratis basis to assist in realising dream of Gwadar may come true in my life time, as precedent auditing on behalf of International Maritime Organisation as their expert on secretary general panel of experts for standards of training, certification and watch keeping, placing Pakistan on IMO white list on gratis basis, issuing compliance certificate so that Pakistani seafarer can be employed on foreign flag ships.
KICT, PICT. QICT increased their volume of handling. The PDWCP conceived in 2006 to be completed by 2009, did suffer significant delay but concessionaire have continued their support of KPT to bring about the vision of the most advanced deep sea port in the West Indian subcontinent region, despite failures by the KPT to stay on the agreed time line. This is a good news despite delays and the long wait and the port will be operational by end 2015, heralding a new era for post- Panamax vessel to call Karachi, Pakistan.
Overall, except for Gwadar, we in Pakistan developed existing facilities for containerised cargo to cater for volume of 2.1 million TEU, whilst Sohar in Oman developed and now handling container vessels of deep draft to cater for Sohar industrial Zone. Interestingly, the CEO at Sohar Port is a Pakistani Merchant Mariner. The volume has increased due to shifting of cargo from Mina Qaboos Muscat port. It is a food for thought that Sohar is operational but Gwadar with better location is idle. We have to work harder to find out the reasons.
Although KPT failed to keep its agreed time line but PDWCP will become functional by end 2015, if KPT lives to its commitment and we don't lose the advantage of developing a deep water port, catering to post-Panamax vessel on the economy of scale, offering depth of 16 meter, whereas Karachi and Port Qasim remain restricted to 12 to 13 metres. KPT since December 2013 has no trustees, thus decisions are being delayed awaiting appointment. There are no committees of trustees functional up-to-date. Ad hocism may delay projects, which is the case in all Public Sector Organisation.
Our Planners for future development of port may bear in mind, economic changes, technical changes and organisational changes world-wide as we have to compete with Salalah, Sohar, Jabel Ali and West Coast Indian ports. It was heartening to note from media report that a shipyard is planned at Gwadar and Port Qasim. The Port plan has provision for shipyard, and I wish well to our Finance Minister, hope he may complete appointment of trustees at KPT for smooth operation.
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