Pakistan's Maritime Training and Examination system can be rightly proud of conducting examination of seafarers compatible to world class standards, thus Pakistani qualified officers are in great demand on foreign flag vessels and now even the most reputed Maersk Line is recruiting Pakistani officers due to their quality, diligence.
Maritime community can keep its head up and face any competition for jobs. Pakistan has also qualified for the IMO white list and its renewal till 2010, as IMO auditors did find Pakistani training and examination systems compatible with developed world.
A computerised record of all certificates issued is maintained and verification is promptly adhered too. Pakistani merchant marine officers enjoy a track record of zero accidents and no fraud licenses were ever issued. The period of 2003 to 2007 saw renewal of white list, signing of CLC-92, OPRC convention and being in the list of just 13 countries adhering to ISPS code made mandatory to solas convention.
Pakistan also emerged in the list of first three countries to sign SID (Seaman identity document) convention of ILO C-185. Pakistani Seafarer have been issued machine readable SID and machine printed seafarers book. Pakistan is fully compliant to revised STCW convention.
The image of Pakistan being tarnished by western media, could not document any record of Pakistani seafarer involved in any terrorist or fraudulent practices. This fact has been acknowledged by Secretary General of IMO in a letter to US authorities for not allowing shore leave to Pakistani merchant mariners sailing on foreign flag vessels. The IMO supported that Pakistani seafarers have clean record.
I think we, Pakistanis, cause more damage to our image by calling their own country as failed state etc. I have yet to see a talk show or article where Pakistani media has highlighted the good role of Pakistani merchant mariners, our Ambassadors at High Seas on foreign flag vessels, as ship owning under Pak flag is insignificant. The leading maritime countries like Panama, Philippines, who earn billions of dollar were never publicised for issuing death licenses on mere payment of money.
We must highlight our segment of society which has kept and is keeping Pakistani flag at top, despite remaining dormant in their own country. The crusades launched locally against merchant marine has forced skilled people to get recognition abroad. Commercial maritime experts were virtually chased out by their adversaries. Page 2 of 4 The ITF showed its concern, but the clout and support enjoyed by countries involved in fraudulent practices are ignored, however a slight mishap of Pakistanis are blown out of proportion.
On the contrary Government of India has launched a "Maritime hand book" publicising the Indian merchant marine officers and their achievements. The Indian Government markets their seafarers, rather than impeding growth with beauracratic snags. Pakistani seafarers remit about 70 mill USD P.A and little effort is needed to train human resource potential of Pakistan and I am confident, if we have 50,000 seafarers the benefit to exchequer can be enhanced to 0.5 bill USD.
I find it pertinent to elaborate such frauds, highlighted by IMO/ITF and SIRC. Fraud on massive scale: A report commissioned by the International Maritime Organisation, the United Nations agency responsible for regulating world shipping, has revealed that fraud is taking place on a massive scale. This is not just in Panama, where new revelations suggest systematic abuse of the certificate issuing process, but in many other countries too.
The report, by the U.K. based Seafarers 'International Research Centre (SIRC) found 12,635 cases of forged certificates, as well as many incidents of laundering, where forgeries were used to obtain legal qualifications from authorities which failed to check the originals.
The Panama Maritime authority has launched an inquiry into the Cockroft certificate fiasco while fending off a series of other attacks over its licensing, from SIRC and elsewhere. In the Philippines, for example, Panamanian consulate officials are alleged to have been complicit in delaying documentation so that a private company could charge would be Filipino seafarers thousands of dollars for a speedier permit-issuing service.
David Cockroft General Secretary of ITF was issued certificate through a intermediary to a maritime official in Panama on payment of 4500 USD, without having been to a nautical college or seafaring experience.
Around 6000 vessels are sailing under Panama's flag of convenience, a flag, like most other FOC's register vessel for profits with little consideration for safe, responsible shipping. Panama has sacked 14 of its licensing staff, and begun blaming international inspection companies for the scandals.
Meanwhile the whole world shipping community has been thrown into a crisis of credibility. The certification scandal coincides on the one hand with publicity over the devastating findings of the international Commission on Shipping and on the other with the IMO's creation of a "While list" of flag states deemed responsible enough to issue seafaring certificates. Panama is one of 71 countries endorsed by the list.
Page 3 of 4 The SIRC report gathered feedback from 54 maritime administration, 39 percent of which said they had detected forged certificates and endorsements. More information came from 35 employers and 1,105 seafarers from six countries in south and south-east Asia and eastern Europe.
Nine percent of the seafarers admitted using fraudulent certificates, with officers and ratings equally likely to have counterfeit papers. Meanwhile 17 percent had knowingly sailed with other seafarers who were using fraudulently obtained certificates. Around 85 percent of the employers had detected fraud in the last five years.
SIRC believes these results indicate that around 40,500 people from the countries represented are sailing illegally. Counterfeit papers appear to be particularly prevalent among officers, war but the motivation for using them varies widely. Short cuts to a job at sea: Many seafarers are keen to start earning money at sea without first undergoing training, others to obtain a fast promotion. Some wish to hide details of their health or age, which might impede their chances in the job market.
When it comes to security checks, watermarks or lamination are often seen as reassurance enough, but these do not address the problem of certificates that may be issued fraudulently by maritime authorities. Some administrations verify no more than five percent of certificates issued overseas, and in any case they are unsure what signs of authenticity to look for. Others ignore the problem altogether.
SIRC has recommended the introduction of stronger anti fraud techniques, more funding for training and the provision of enhanced career opportunities for seafarers.
But who will invest in better training or security in a largely unpoliced market where corruption brings cheap labour and high profit margins? The IMO is the only industrywise international regulatory authority. Yet critics say its hands are tied by a funding system under which 158 member states pay according to the size of their fleets.
With the biggest fleet in the world, Panama pays over 15 percent of the IMO's annual budget. IMO is virtually dominated by groups and the clout of groups ensure milder actions without publicity. However in case of country like Pakistan, Bangladesh, Sri Lanka who have no clout at all, the risks are far greater for penal action and publicity.
The recent incident of holding Greek and Philippine crew of Tasman Spirit at Karachi for enquiry only, brought the Secretary General of IMO to Pakistan to ensure their release without guarantee of any compensation for pollution from the Greek Owners of Malta registered vessel.
I feel that SARC countries and other Asian countries must join hands in IMO to have some clout in IMO so that interest of developing countries can be protected. I think this may be a food for thought for Ministry of Foreign Affairs and Ministry of Ports and Shipping and Directorate General of Ports and Shipping an extension of Ministry and focal point of IMO.
All countries have permanent representatives posted at IMO eg Iran, India, Bangladesh, Saudi Arabia in addition to major maritime nations. They ensure to protect their country's maritime interest being fully conversant with constitution of IMO, professionally, academically, qualified in maritime filed, being well conversant with working of MSC, MEPC, TCC, committee and at times chairing sessions where rules are framed and made obligatory for all maritime nations.
Pakistan definitely needs to be represented permanently in all meetings a full time assignment, thus calling for appointment of a permanent representative who should be highly qualified maritime professional having experience of working of IMO. I, reluctantly propose fearing some incompetent generalist may fill this slot by pulling strings, unlike Iran, India, Saudi Arabia and major maritime countries where merit and international exposure is criteria for such appointments.
What I fear is voluntary audit scheme will be enforced by IMO and countries not represented will be targeted, thus throwing about 20,000 Pakistani seafarers jobless, although being competent, but having no clout in regulatory maritime regime ie.
IMO It is necessary to appoint skilled officers in maritime training and examination system in Pakistan as most of the officers have retired or will be retiring before VAS is enforced in 2010. Let us at last rise above the personal and vested interest for the sake of our country's credibility.
Monday, February 4, 2008
Thursday, January 17, 2008
Port marketing: organisation and planning
When we define marketing as an important function in port management we have to find an organisation system under which direct reporting of all market activities to the executive management level is ensured besides exercising direct control as far as these activities are concerned.
At the same time this organisation must ensure that all marketing activities are in line with the objective and strategies and strategies of the port management. To make this system workable, it is necessary to identify key person of the management, to whom the marketing executing has directly to report.
In the organisation chart a functional department for all marketing activities of a seaport is considered as essential requirement to fully concentrate on marketing strategy effectively increasing quantum of cargo to be handled both domestic as well as regional.
For an aggressive port marketing organisation the cost/revenue ratio for each service must be calculated. This is necessary especially when a deregulated charging practice besides the tariff will be developed and quick decisions to the benefit of the cargo volume have to be made. It is therefore necessary to have an efficient cost control system which makes it possible to relate the costs to the different port services.
PORT MARKETING STATISTICS: Port marketing data is used to define the market position and share of the port, its strategies and the marketing objectives and to control and influence the efficiency of the marketing department and the marketing mix, in order to forecast future market developments for port planning, etc.
Port statistics are therefore considered a necessary tool for efficient port management. To use this tool effectively, it is necessary to prepare the data in a comprehensive user-orientated way. The main problem for port statistics is the quality of the data-base which is available. Following types of information is needed"
(1) Quantitative statistics on the flow of cargo from the origin to the destinations which can be served by the port and the actual business handled through the port.
(2) Cost data to prepare alternative costings between different modes and ways of transport relating to the port and its competing ports.
(3) Qualitative information specially nature of cargo and its share in business.
The collection of information should be based on sources presently available. Normally ports have access to all import/export manifest data, identifying all important information on a shipment. Statistics data should be provided to the decision making levels of the port management on a regular basis in order to ensure timely planning for better economic gains.
Market share data can be based on performance figures by the other national ports. The market share thus reached however would provide a limited evidence as inland shipments carried through foreign ports would not be covered. In terms of transshipment trade for the region, it may require a separate databank to ascertain potential market share and aggressive marketing strategy to attract this growing trend of business.
This requires a number of incentive oriented steps to induce new customers using the port as transshipment hub. World seaborne trade developed slightly faster than the world gross product during most of the seventies. During the eighties considerable structural changes took place, necessitating a reorientation when preparing seaborne trade forecasts.
These forecasts appeared to indicate favourable trade developments, which badly influenced ports and shipowners, investment decisions. This is especially true for investment in large sized tankers. While seaborne trade in dry cargo commodities developed more in line with the forecast volumes, the liquid trade did not meet to the forecasted range.
This variation is mostly attributed to greater coal shipments in response to shifts in the pattern of energy sources. Coal trade more than doubled within the decade of 1910-2000.
Forecasts released in the early eighties which promised a growth in general cargo trade were considerable off course due to worse than expected economic performance and the structural changes within the general cargo sector leading to lowering production of manufactured goods.
Container traffic has grown at a rate faster than forecast. It is notable that some former projections on container trade even proved to be underestimations in respect to the subsequent developments. Container turnover figures are obtained from the data maintained by the ports.
This poses some kind of problem since ports maintain Turnover statistics in terms of TEUs handled by the port which would include empties as well as transshipment containers. Hence it will only reflect container turnover of a port and not the container trade. It is obviously not possible to equate port container turnover growth figures with container trade growth figures, but nevertheless this is often done.
The trend of container shipping in favour of bigger ships which at fewer ports stimulates feeder operation. In Europe more than one third of container traffic between European ports is deep-sea feeder traffic. Feeder operation outside Europe, especially in South East Asia, are also expanding more rapidly than total container trade.
Global container through put is estimated at 400 mill TEUs and would be 557 mill TEUs by 2010. The container volumes of middle East and South Asian 10 top ports have grown by 18.4% when compared to 14.8% for the world's top ten.
Dry bulk shipments have touched 3000 mill tons mark globally. Hong Kong in Asia has handled 21 mill TEUs whilst liquid cargo crude oil growth has been 0.8% but natural gas has registered growth of 12.3%.
Unfortunately neither of our ports are equipped to do market analysis and forecasting, there is no such department in both Pakistani Ports. Pakistani ports are thriving on captive cargo based on sustained economic growth of GDP 7%.
There is no concept to attract transshipment cargo whereas Colombo in our region handles 30% captive and 70% transshipment cargo, so is Singapore, Hong Kong and Dubai etc, thriving on transshipment business. Our port organisation needs structural changes and must embark upon marketing and induce new owners and collect data to develop ports, rather rejoicing only on captive cargo or building surplus capacity.
The corporisation of ports with restructuring the organisation by inducing qualified port management graduates, can compete in this century with new emerging ports. Gone are the days of non professionals who survive on mere lobbying and blazoning with the support of media.
How long we can sustain knowledge on the basis of father to son. Only relevant and skilled people can be best managers to give the bottom line. I strongly recommend that government must look into modern concepts of port management and surely we can learn from experience of Colombo, Dubai.
At the same time this organisation must ensure that all marketing activities are in line with the objective and strategies and strategies of the port management. To make this system workable, it is necessary to identify key person of the management, to whom the marketing executing has directly to report.
In the organisation chart a functional department for all marketing activities of a seaport is considered as essential requirement to fully concentrate on marketing strategy effectively increasing quantum of cargo to be handled both domestic as well as regional.
For an aggressive port marketing organisation the cost/revenue ratio for each service must be calculated. This is necessary especially when a deregulated charging practice besides the tariff will be developed and quick decisions to the benefit of the cargo volume have to be made. It is therefore necessary to have an efficient cost control system which makes it possible to relate the costs to the different port services.
PORT MARKETING STATISTICS: Port marketing data is used to define the market position and share of the port, its strategies and the marketing objectives and to control and influence the efficiency of the marketing department and the marketing mix, in order to forecast future market developments for port planning, etc.
Port statistics are therefore considered a necessary tool for efficient port management. To use this tool effectively, it is necessary to prepare the data in a comprehensive user-orientated way. The main problem for port statistics is the quality of the data-base which is available. Following types of information is needed"
(1) Quantitative statistics on the flow of cargo from the origin to the destinations which can be served by the port and the actual business handled through the port.
(2) Cost data to prepare alternative costings between different modes and ways of transport relating to the port and its competing ports.
(3) Qualitative information specially nature of cargo and its share in business.
The collection of information should be based on sources presently available. Normally ports have access to all import/export manifest data, identifying all important information on a shipment. Statistics data should be provided to the decision making levels of the port management on a regular basis in order to ensure timely planning for better economic gains.
Market share data can be based on performance figures by the other national ports. The market share thus reached however would provide a limited evidence as inland shipments carried through foreign ports would not be covered. In terms of transshipment trade for the region, it may require a separate databank to ascertain potential market share and aggressive marketing strategy to attract this growing trend of business.
This requires a number of incentive oriented steps to induce new customers using the port as transshipment hub. World seaborne trade developed slightly faster than the world gross product during most of the seventies. During the eighties considerable structural changes took place, necessitating a reorientation when preparing seaborne trade forecasts.
These forecasts appeared to indicate favourable trade developments, which badly influenced ports and shipowners, investment decisions. This is especially true for investment in large sized tankers. While seaborne trade in dry cargo commodities developed more in line with the forecast volumes, the liquid trade did not meet to the forecasted range.
This variation is mostly attributed to greater coal shipments in response to shifts in the pattern of energy sources. Coal trade more than doubled within the decade of 1910-2000.
Forecasts released in the early eighties which promised a growth in general cargo trade were considerable off course due to worse than expected economic performance and the structural changes within the general cargo sector leading to lowering production of manufactured goods.
Container traffic has grown at a rate faster than forecast. It is notable that some former projections on container trade even proved to be underestimations in respect to the subsequent developments. Container turnover figures are obtained from the data maintained by the ports.
This poses some kind of problem since ports maintain Turnover statistics in terms of TEUs handled by the port which would include empties as well as transshipment containers. Hence it will only reflect container turnover of a port and not the container trade. It is obviously not possible to equate port container turnover growth figures with container trade growth figures, but nevertheless this is often done.
The trend of container shipping in favour of bigger ships which at fewer ports stimulates feeder operation. In Europe more than one third of container traffic between European ports is deep-sea feeder traffic. Feeder operation outside Europe, especially in South East Asia, are also expanding more rapidly than total container trade.
Global container through put is estimated at 400 mill TEUs and would be 557 mill TEUs by 2010. The container volumes of middle East and South Asian 10 top ports have grown by 18.4% when compared to 14.8% for the world's top ten.
Dry bulk shipments have touched 3000 mill tons mark globally. Hong Kong in Asia has handled 21 mill TEUs whilst liquid cargo crude oil growth has been 0.8% but natural gas has registered growth of 12.3%.
Unfortunately neither of our ports are equipped to do market analysis and forecasting, there is no such department in both Pakistani Ports. Pakistani ports are thriving on captive cargo based on sustained economic growth of GDP 7%.
There is no concept to attract transshipment cargo whereas Colombo in our region handles 30% captive and 70% transshipment cargo, so is Singapore, Hong Kong and Dubai etc, thriving on transshipment business. Our port organisation needs structural changes and must embark upon marketing and induce new owners and collect data to develop ports, rather rejoicing only on captive cargo or building surplus capacity.
The corporisation of ports with restructuring the organisation by inducing qualified port management graduates, can compete in this century with new emerging ports. Gone are the days of non professionals who survive on mere lobbying and blazoning with the support of media.
How long we can sustain knowledge on the basis of father to son. Only relevant and skilled people can be best managers to give the bottom line. I strongly recommend that government must look into modern concepts of port management and surely we can learn from experience of Colombo, Dubai.
Wednesday, January 2, 2008
The port in the chain of transport
The term "Chain of Transport" can be defined as involving the intermediate employment of one or more means of transport between the dispatch and reception of transported goods.
A COMMON SCHEME OF CHAIN OF TRANSPORT STRUCTURE IN OVERSEAS TRADING IS REPRESENTED BELOW:
Different means of transport could be employed for pre-and on-carriage activities. Intermediate storage in inland centres might be necessary, or feeder ships could be engaged in the sea transport process. Seaports may be confronted with problems involving challenges relating to the efficiency of a seaport, and secondly, challenges for seaports and their customers resulting from the compulsory "bundling" of different traffic streams.
Specific demands are made by every individual customer on the performance structure of a seaport. The attraction of seaport is essentially dependent when it conforms as closely as possible to the requirements of each and every customer. Shipping companies also desire various facilities from a seaport such as sufficient depth of water to accommodate fully laden ships. Expectations from the ship's viewpoint directly concerning the port operating business can be summarised as:-
-- Technically qualified handling
-- Fastest possible discharging/loading, for cost and timetable reasons: and
-- Uninterrupted flow of cargoes.
Since a container ship must keep to its schedule, there must be no waiting-time in the port. The ship is not prepared to wait for the port. Nowadays the port must wait for the ship. As a rule, productivity and container-move guarantees are important factors. Not every cargo is suitable for consideration. A new kind of container terminal combination must therefore be offered, at which a ship's containers can be loaded or discharged while simultaneously goods of large volume can be rolled in and out of the ship on trailers.
Companies engaged in container handling have been increasing their efforts to reduce turn-round, increase terminal throughput, improve conditions and optimise the employment of machines and staff. While at the beginning of the container age, movements were recorded by card-index or so called stackboards, nowadays more suitable information systems are in use. They have attained an equal degree of importance with the handling itself. Where previously handling systems used to be confined to the terminal area, the modern systems seek to integrate container movement information for inland carriage as well.
EXPORT AND IMPORT BUSINESS SEEK INCREASING FREQUENCY OF SAILINGS:
Comprehensive port performance - it is in this very sector that a very large number of individual demands relating to expertise, flexibility, and reliability in cargo handling are made on the seaport by its clients:
EFFICIENT HINTERLAND CONNECTIONS:
For ships and goods, the choice of a port is not only a matter of qualitative criteria, in regions having a concentration of efficient seaports, the decisive factor in the choice of a seaport will most often be the cost.
FROM THE EXPORTER'S POINT OF VIEW, COST COMPONENTS ARE:
-- Cost of sea transport
-- Cost of hinterland transport
-- Cost of port services
In the total of the chain of transport, the proportion of transport costs to the hinterland have a particular significance. A reduction in the volume rates in many cases could lead to a proportionate increase in transport cost inland. The problem of costs looks similar from the point of view of the shipping company. A decision for or against a port is only partly influenced by the port costs.
It is evident that the demand made on a modern seaport arise from its interface function as well as from the requirements of the ship and goods. In order to keep pace with these demands, it is necessary in the first place to ensure the continual technical development of the port and secondly maintain its price competitiveness.
From the given competitive situation, a permanent stress on the technical and economic competitiveness of the seaport arises. This has led to the positive consequence that a large number of very modern ports have arisen on a coastline only a few hundred kilometers long. It is also noted that in proportion to its cost share within the chain of transport, the seaport is a relatively weak link. A fundamental structural change within the transport economy must be recognised by every seaport as a change for the future.
The transport economy is increasingly coming round to the idea of regarding the whole process of transport from producer ro consignee as one single process which makes particular ports more vulnerable. Within the complete logistical process the port can take over more tasks from its partners than it formerly did.
This corresponds once again to the demands made by customers on the port. The handling centres are increasingly becoming service centres offering complete solutions for the entire chain of transport process from producer to consignee. In this connection seaports will take over more and more distribution tasks - services which may not alter in their outward look but are apt to become increasingly important. By taking on extra tasks the port automatically wins a greater influence on the formation of the chain of transport.
Modern port installations in the conventional general cargo sector have changed considerably in comparison with former times. Further developments in handling-technology have led to ever-shorter turnaround for ships. Parallel to this, considerable storage capacities have been built up at the seaports. A marked tendency in the export industry is to have its owns export stores by sending goods to intermediate storage points at appropriate ports.
This means that in the export sector the seaport is increasingly assuming the function of a kind of buffer storage for industry. For the import sector, it is the prices on the world market which determine the demand for storage capacity. For the seaport this means that vantage points are offered which can eventually be most helpful in gaining stronger influence in the formation of the chain of transport.
The seaports have good opportunities for getting more business by offering distribution services. A port which undertakes distribution tasks for a customer will in this way be much more usefully and closely integrated into the chain of transport. The change of being a competitive port is not likely to be high when the port services are confined to purely cargo handling activities or when only occasional intermediate storage are provided.
A COMMON SCHEME OF CHAIN OF TRANSPORT STRUCTURE IN OVERSEAS TRADING IS REPRESENTED BELOW:
Different means of transport could be employed for pre-and on-carriage activities. Intermediate storage in inland centres might be necessary, or feeder ships could be engaged in the sea transport process. Seaports may be confronted with problems involving challenges relating to the efficiency of a seaport, and secondly, challenges for seaports and their customers resulting from the compulsory "bundling" of different traffic streams.
Specific demands are made by every individual customer on the performance structure of a seaport. The attraction of seaport is essentially dependent when it conforms as closely as possible to the requirements of each and every customer. Shipping companies also desire various facilities from a seaport such as sufficient depth of water to accommodate fully laden ships. Expectations from the ship's viewpoint directly concerning the port operating business can be summarised as:-
-- Technically qualified handling
-- Fastest possible discharging/loading, for cost and timetable reasons: and
-- Uninterrupted flow of cargoes.
Since a container ship must keep to its schedule, there must be no waiting-time in the port. The ship is not prepared to wait for the port. Nowadays the port must wait for the ship. As a rule, productivity and container-move guarantees are important factors. Not every cargo is suitable for consideration. A new kind of container terminal combination must therefore be offered, at which a ship's containers can be loaded or discharged while simultaneously goods of large volume can be rolled in and out of the ship on trailers.
Companies engaged in container handling have been increasing their efforts to reduce turn-round, increase terminal throughput, improve conditions and optimise the employment of machines and staff. While at the beginning of the container age, movements were recorded by card-index or so called stackboards, nowadays more suitable information systems are in use. They have attained an equal degree of importance with the handling itself. Where previously handling systems used to be confined to the terminal area, the modern systems seek to integrate container movement information for inland carriage as well.
EXPORT AND IMPORT BUSINESS SEEK INCREASING FREQUENCY OF SAILINGS:
Comprehensive port performance - it is in this very sector that a very large number of individual demands relating to expertise, flexibility, and reliability in cargo handling are made on the seaport by its clients:
EFFICIENT HINTERLAND CONNECTIONS:
For ships and goods, the choice of a port is not only a matter of qualitative criteria, in regions having a concentration of efficient seaports, the decisive factor in the choice of a seaport will most often be the cost.
FROM THE EXPORTER'S POINT OF VIEW, COST COMPONENTS ARE:
-- Cost of sea transport
-- Cost of hinterland transport
-- Cost of port services
In the total of the chain of transport, the proportion of transport costs to the hinterland have a particular significance. A reduction in the volume rates in many cases could lead to a proportionate increase in transport cost inland. The problem of costs looks similar from the point of view of the shipping company. A decision for or against a port is only partly influenced by the port costs.
It is evident that the demand made on a modern seaport arise from its interface function as well as from the requirements of the ship and goods. In order to keep pace with these demands, it is necessary in the first place to ensure the continual technical development of the port and secondly maintain its price competitiveness.
From the given competitive situation, a permanent stress on the technical and economic competitiveness of the seaport arises. This has led to the positive consequence that a large number of very modern ports have arisen on a coastline only a few hundred kilometers long. It is also noted that in proportion to its cost share within the chain of transport, the seaport is a relatively weak link. A fundamental structural change within the transport economy must be recognised by every seaport as a change for the future.
The transport economy is increasingly coming round to the idea of regarding the whole process of transport from producer ro consignee as one single process which makes particular ports more vulnerable. Within the complete logistical process the port can take over more tasks from its partners than it formerly did.
This corresponds once again to the demands made by customers on the port. The handling centres are increasingly becoming service centres offering complete solutions for the entire chain of transport process from producer to consignee. In this connection seaports will take over more and more distribution tasks - services which may not alter in their outward look but are apt to become increasingly important. By taking on extra tasks the port automatically wins a greater influence on the formation of the chain of transport.
Modern port installations in the conventional general cargo sector have changed considerably in comparison with former times. Further developments in handling-technology have led to ever-shorter turnaround for ships. Parallel to this, considerable storage capacities have been built up at the seaports. A marked tendency in the export industry is to have its owns export stores by sending goods to intermediate storage points at appropriate ports.
This means that in the export sector the seaport is increasingly assuming the function of a kind of buffer storage for industry. For the import sector, it is the prices on the world market which determine the demand for storage capacity. For the seaport this means that vantage points are offered which can eventually be most helpful in gaining stronger influence in the formation of the chain of transport.
The seaports have good opportunities for getting more business by offering distribution services. A port which undertakes distribution tasks for a customer will in this way be much more usefully and closely integrated into the chain of transport. The change of being a competitive port is not likely to be high when the port services are confined to purely cargo handling activities or when only occasional intermediate storage are provided.
Wednesday, December 26, 2007
The economics of land, sea logistics
The change from general cargo transport to container shipments resulted in historical change from craft production methods to industrial production by using containers, the general cargo transport gets attributes which are comparable to those of bulk cargo, making it possible to establish whole logistical chains from the shipper's ramp to the receiver's premises.
Due to the increasing importance of material handling costs now-a-days and transport costs the management function is more and more concerned with overall logistics.
Logistics comprise central planning and control of the movement of material and products to optimise their flow from procurement of materials through production and to the distribution to the customers. It may also be defined as the scientific planning, controlling and supervision of materials, persons, energy and information flows in systems. Surveying the logistical cost components, the inventory costs may amount up to 35% of total logistic costs.
It is important to understand that the isolated optimisation of individual functions will not result in an overall optimum solution. The objective is to achieve a high degree of overall efficiency and coordination. This is attained by optimising the interfaces between the various sections on the one hand, and suppliers, customers and providers of logistical services, on the other hand.
The isolated optimisation of single logistic components will not achieve the optimisation of the whole system. In order to reach synergy effects between the logistic components, various methods of system analysis are applied. Thus logistic is a cross section function which controls the entire flow of goods and materials. Taking these terms of reference as a starting point, attention must be paid to the application of system analysis in order to co-ordinate logistic procedures.
This external transport system starts with the interfaces of procurement at the beginning and distribution at the end of the production chain. Synergy and cost saving effects will be gained by reducing the level of inventory stocks and efficient, speedy and economic movement of materials through the system. Thus a determination of a co-ordinated procurement-orientated supply frequency will be the result.
For products which are largely identical in price and quantity, the speed and cost of delivery service are the dominant factor for their relative competitiveness.
THE DELIVERY SERVICE BASICALLY COMPRISES TWO COMPONENTS:
(1) AVAILABILITY: This is understood as the readiness of a product for delivery. A degree of availability of 100% means that the entire range of products will be immediately available: in the case of products to be made to customers specification, production and delivery can be realised within an insignificant time span.
(2) TIME OF DELIVERY: It is understood as the time span between the receipt of order and the delivery to the customers. A definite period is confirmed when accepting an order.
These two elements basically determine the level of delivery services. It should be the objective of logistics to produce the varying levels of delivery service to meet the expectations and requirements of the various markets, groups of customers or individual clients.
THE GENERAL OBJECTIVES OF LOGISTICS CAN BE SUMMARIZED AS FOLLOWS:
(1) Increase in productivity.
(2) Reduction of costs.
(3) Improvement of services.
Conventional liner shipping was dominated by the regulating factory of the shipping conference. The extent of liability along the transport chain was liner shipping company to the sea transport only. In accordance to this market organisation, improvements of transport sully were directed to the individual sections.
The signal sector thinking was encouraged by technological aspects. Heterogeneous cargo units were not suitable for a uniform transport, information and documentation system. The traditional conference system was denoted by a typical supply orientated thinking of all partners within the transport chain.
Containerisation can be split into three major phases. In the first phase cargo flows between the highly industrialised economies were containerised. During the second phase of development some ports on the routes between highly industrialised countries were included in the container transport system.
During the third traffic between highly industrialised countries and countries with rich natural resources (eg oil producing countries) were included in the containerisation process. The reason for including these trades into the containerisation was the congestion in the middle cast ports caused by the repaid growth in imports.
The container transport system was promoted from the very beginning by trucking companies, which were not bound to the routes and regulations or liner shipping. In contrast to the shipping companies their philosophy was to provide an uninterrupted house-to-house service. From the very beginning the cost aspect was one of the dominating factors within the land/sea container logistics.
In the first stage of containerisation the lack of coordination of intermodal transport has resulted in high additional costs for turnaround time of ships, inland carriers, and handling facilities in the seaports as well as in the hinterland.
THE MAJOR REASONS FOR THE INCREASING USE OF INTEGRATED INTERMODAL TRANSPORT SYSTEMS ARE:
(1) Shorter time of delivery from origin to destination.
(2) Lower costs along the whole transport chain.
(3) Greater control of costs, schedules, cargo safety and conditions.
THE ADVANTAGES AND POTENTIAL SAVINGS DEPEND TO A LARGE EXTENT ON THE FOLLOWING FOUR FACTORS:
(1) Efficiency of intermodal transport and turnaround of transfer points in terms of both costs as well as time.
(2) Efficiency of modal split of intermodal operations.
(3) Maximisation continuity of flow, particularly intermodal flow, or large scale direct transport transfer with a minimum of double handling and storage at intermodal interfaces: and
(4) Effectiveness of information and documentation control and transfer.
The most important issue of intermodal transport is effective integration of operation, control and management of the diverse modal links and facilities. This means that not every art of the transport chain can expect an optimisation of its individual operation. If the total intermodal chain of operations is to operate optimally, modal integration requires close coordination of operation, technology, information flow and control with capacities, frequencies of service, routings, and schedules well co-ordinated among interfacing modes of transport.
In other words, intermodal transport to be effective, must have a co-ordinated management or be managed as one co-ordinated transport system. The criteria which accounts for the efficiency of transport system can be derived from quantitative requirements. In this area the prime consideration is the capacity of transport system. A transport system consists of an optimal coordination of:
-- Carrier (sea and land)
-- Transport infrastructure (sea and land)
-- Terminals (handling facilities inland and at the seaports>)
Bottlenecks are bound to occur wherever the three elements-route, vehicle and handling points cannot be adjusted to each other through flexible planning and scheduling.
Due to the increasing importance of material handling costs now-a-days and transport costs the management function is more and more concerned with overall logistics.
Logistics comprise central planning and control of the movement of material and products to optimise their flow from procurement of materials through production and to the distribution to the customers. It may also be defined as the scientific planning, controlling and supervision of materials, persons, energy and information flows in systems. Surveying the logistical cost components, the inventory costs may amount up to 35% of total logistic costs.
It is important to understand that the isolated optimisation of individual functions will not result in an overall optimum solution. The objective is to achieve a high degree of overall efficiency and coordination. This is attained by optimising the interfaces between the various sections on the one hand, and suppliers, customers and providers of logistical services, on the other hand.
The isolated optimisation of single logistic components will not achieve the optimisation of the whole system. In order to reach synergy effects between the logistic components, various methods of system analysis are applied. Thus logistic is a cross section function which controls the entire flow of goods and materials. Taking these terms of reference as a starting point, attention must be paid to the application of system analysis in order to co-ordinate logistic procedures.
This external transport system starts with the interfaces of procurement at the beginning and distribution at the end of the production chain. Synergy and cost saving effects will be gained by reducing the level of inventory stocks and efficient, speedy and economic movement of materials through the system. Thus a determination of a co-ordinated procurement-orientated supply frequency will be the result.
For products which are largely identical in price and quantity, the speed and cost of delivery service are the dominant factor for their relative competitiveness.
THE DELIVERY SERVICE BASICALLY COMPRISES TWO COMPONENTS:
(1) AVAILABILITY: This is understood as the readiness of a product for delivery. A degree of availability of 100% means that the entire range of products will be immediately available: in the case of products to be made to customers specification, production and delivery can be realised within an insignificant time span.
(2) TIME OF DELIVERY: It is understood as the time span between the receipt of order and the delivery to the customers. A definite period is confirmed when accepting an order.
These two elements basically determine the level of delivery services. It should be the objective of logistics to produce the varying levels of delivery service to meet the expectations and requirements of the various markets, groups of customers or individual clients.
THE GENERAL OBJECTIVES OF LOGISTICS CAN BE SUMMARIZED AS FOLLOWS:
(1) Increase in productivity.
(2) Reduction of costs.
(3) Improvement of services.
Conventional liner shipping was dominated by the regulating factory of the shipping conference. The extent of liability along the transport chain was liner shipping company to the sea transport only. In accordance to this market organisation, improvements of transport sully were directed to the individual sections.
The signal sector thinking was encouraged by technological aspects. Heterogeneous cargo units were not suitable for a uniform transport, information and documentation system. The traditional conference system was denoted by a typical supply orientated thinking of all partners within the transport chain.
Containerisation can be split into three major phases. In the first phase cargo flows between the highly industrialised economies were containerised. During the second phase of development some ports on the routes between highly industrialised countries were included in the container transport system.
During the third traffic between highly industrialised countries and countries with rich natural resources (eg oil producing countries) were included in the containerisation process. The reason for including these trades into the containerisation was the congestion in the middle cast ports caused by the repaid growth in imports.
The container transport system was promoted from the very beginning by trucking companies, which were not bound to the routes and regulations or liner shipping. In contrast to the shipping companies their philosophy was to provide an uninterrupted house-to-house service. From the very beginning the cost aspect was one of the dominating factors within the land/sea container logistics.
In the first stage of containerisation the lack of coordination of intermodal transport has resulted in high additional costs for turnaround time of ships, inland carriers, and handling facilities in the seaports as well as in the hinterland.
THE MAJOR REASONS FOR THE INCREASING USE OF INTEGRATED INTERMODAL TRANSPORT SYSTEMS ARE:
(1) Shorter time of delivery from origin to destination.
(2) Lower costs along the whole transport chain.
(3) Greater control of costs, schedules, cargo safety and conditions.
THE ADVANTAGES AND POTENTIAL SAVINGS DEPEND TO A LARGE EXTENT ON THE FOLLOWING FOUR FACTORS:
(1) Efficiency of intermodal transport and turnaround of transfer points in terms of both costs as well as time.
(2) Efficiency of modal split of intermodal operations.
(3) Maximisation continuity of flow, particularly intermodal flow, or large scale direct transport transfer with a minimum of double handling and storage at intermodal interfaces: and
(4) Effectiveness of information and documentation control and transfer.
The most important issue of intermodal transport is effective integration of operation, control and management of the diverse modal links and facilities. This means that not every art of the transport chain can expect an optimisation of its individual operation. If the total intermodal chain of operations is to operate optimally, modal integration requires close coordination of operation, technology, information flow and control with capacities, frequencies of service, routings, and schedules well co-ordinated among interfacing modes of transport.
In other words, intermodal transport to be effective, must have a co-ordinated management or be managed as one co-ordinated transport system. The criteria which accounts for the efficiency of transport system can be derived from quantitative requirements. In this area the prime consideration is the capacity of transport system. A transport system consists of an optimal coordination of:
-- Carrier (sea and land)
-- Transport infrastructure (sea and land)
-- Terminals (handling facilities inland and at the seaports>)
Bottlenecks are bound to occur wherever the three elements-route, vehicle and handling points cannot be adjusted to each other through flexible planning and scheduling.
Thursday, December 20, 2007
The glorious history of shipping
Shipping plays a very vital and significant role in today's global economy. The transportation through sea routes is considered the most economical and cheapest mode of transport which gave rise to ship building and movement of trade by using available waterways internally for local transportation of goods and subsequently through sea for intercontinental trades.
The trade has been growing steadily with each passing day from the inception and recognition of interdependence on each others products, be it agricultural or industrial. Countries which are rich in raw materials and have surplus tend to export these resources to other countries which are industrialised and able to use theses materials to produce finished material by value addition and re-export to the needy countries.
Like-wise the countries having agro based economy, depend upon agricultural produce for export of their surplus commodities, however, the countries do face a situation of trade imbalance when their imports outweigh exports by value. Pakistan is facing trade imbalance of 8 billion plus.
Shipping has witnessed various ups and downs from the very inception of this mode of transport and has undergone various technological changes. Without shipping, intercontinental, trade, the bulk transport of raw materials and the import / export of affordable food and manufactured goods would simply not be possible.
Of all the sectors that make up the global transport infrastructure, shipping probably has the lowest public profile and the least representative public image.
Today, we live in a global world, and it is certainly true that international trade among all the nations and regions of the world is nothing new. The history of the world is a history of exploration. Conquest and trade by sea. But there is no doubt that we have now entered a new era of global interdependence from which there can be no turning back.
In today's world, national boundaries offer little impediment to multi-national corporation. The process of globalisation has been made possible by the progressive dismantling of barriers to trade and capital mobility.
Fundamental technological advances, steadily declining costs of transport, communication and computing, its integrative logic seems inexorable, its momentum irresistible.
Looking back into history, we can trace the stages through which we have progressed to arrive at this new world order. As the world became more developed, proximity to new materials and to markets became the factors that, above all others, shaped the world's economy and,. In particular, the major trade patterns and shipping routes, today, international trade has evolved to the point where almost no nation can be fully self-sufficient.
Every country is involved, at one level or another, in the process of selling what it produces and acquiring what it lacks: none can be dependent only on its domestic resources. Shipping has always provided the only really cost-effective method of bulk transport over any great distance, and the development of shipping and the establishment of a global system of trade have moved forward together, hand-in-hand.
The eternal triangle of producers, manufacturers and markers are brought together through shipping. This has always been the case and will remain so for the foreseeable future.
Advance in technology have also made shipping an increasingly efficient and swift method of transport. Over the last four decades, total seaborne trade has more than quadrupled, from less than 6 thousand billion ton-miles in 1995 to over 27 thousand billion ton-miles in 2004 and continues to grow steadily. In the context of a global economy, the contribution made by shipping as a major industry in its own right is very significant, and increasingly so for the developing world.
Maritime activity already provides an important source of income to many developing countries, Indeed, developing countries now lead the world in some of shipping's most important ancillary business, including the registration of ships, the supply of sea-going manpower and ship recycling. They also play a significant part in shipowning and operating, shipbuilding and repair and port services, among others.
The history of shipping is a glorious and proud one. There is no doubt, for example, that the magnificent square riggers of the era of sail or the early ~ century's prestigious ocean liners could stir the hearts of all hose that beheld them. But the ships of today are just as worthy of our admiration, for shipping today is in another golden age.
Ships have never been so technically advanced, never been so sophisticated, never more immense, never carrier of so much cargo, never been safer and never been so environmentally-friendly after introduction of engine powered ships, as they are today.
Ships are high value assets, with the larger of them costing over US $100/150 million to build. Ships today are modern, technologically advanced workplaces. Although general cargo ships are still largest single category, among new ships is more and more in favour of specialisation for specific trades, ie edible/non-edible product carriers to LPG/CNG carriers. Tankers make up the second largest category.
Most large modern tankers are in the 200-3 00,000 tonnage range. The world's largest ship today is a 564,765 dwt tanker. Bulk carriers are often called the workhorses of the international shipping fleet that typically transport commodities such as grain, coal and mineral ores. Passenger ships come next in the world fleet league table. One of the finest modern examples of passenger liner is the Queen Mary II, built in France for Carnival Corp's Cunard in 2004. QM2 is the largest, longest, tallest, widest ocean liner over and has cost an estimated 800 million US dollars.
But the one sector which can be said to have transformed the face of shipping, certainly in the latter half of the 20~ Century, is that of container shipping. Unheard of before the 1 960s, the containers are now ubiquitous and the standard unit of cargo for just about every form of manufactured item on the planet.
Of all the sectors that make up the global transport infrastructure, shipping probably has the lowesr public profile and the least representative public image. In terms of efficiency, safety, the environment and its contribution to global trade, shipping is unmatched by any other transport sector.
History may be the harshest of judges but this is also true that no form of commercial transport is likely to emerge to challenge shipping as the carrier of world trade in the foreseeable future.
As far as maritime security is concerned, it is appropriate to recall the words of UN Secretary General Kofi Annan in his report to the 2005 world summit: "we will not enjoy development without security, we will not enjoy security without development, and we will not either without respect for human dignity. Unless all these causes are advanced, none will succeed".
Shipping affects us all. No matter where you may be in the world, if you look around you it is almost certain that you will see something that either has been or will be transported by sea, whether in the form of raw materials, components or the finished article. The sea knows no international barriers and the ship is as important now as it ever was, perhaps more so. Standards of living in the industrialised and developed world, the jobs and livelihoods of billions in the developing world, all depend on ships and shipping.
The shipping industry remains the most neglected sector of our economy, being 100% dependent on foreign flag vessels as far as containerised trade of over 1.8 mill teas handled at both ports and also bulk trade. Having achieved a peak of 71 Pak flag vessel's of 749,046 dwt, now we are left with only 14 ships out of which 11 are nearing 30 years and that too in public sector only.
A very serious thought is necessitated by the government to plan replacement of 11 public sector ship's and inducing private sector as on the pattern of India in 1980's when new ship owners were induced by, offering loan at 4%.
It is not only freight bill of USD 2 bill burden on our exchequer, but we cant discount the fact that we are totally dependent on foreign lines, who can dictate us further making our impo/expo incompetitive and creating trade imbalance of over 10 bill USD. PNSC is the last monument of Pak Merchant Marine, thus be supported, as merchant navy club has been razed to the ground.
Indian fleet of 450 Vessel's 8.8 million gross tonnage is a good example of public and private sector co-operation. The shipping corporation of India (public sector) 80% government owned enterprise earned a profit of 2.06 billion IRS (50.8 m USD) and owns 79 vessels. It is managed by shipping professionals and board comprising commercial maritime members.
The chairman is optimistic to spend 3 billion USD to get 100 mark. SCI Chairman insists on level playing field in order compete with all players with edge on professional skills. Indian impo/expo is going to touch 1 / billion tons mark by 2010 compared to Pakistan 58 million tons which may touch 70/75 million tons by 2010.
I fail to understand, how any country can ignore this sector which is the lifeline of the country. The old adageis" who rules the sea, rules the world, ". Form a think tank of professionals and business related people to suggest how to overcome the problem of industry. There is no dearth of skilled shipping experts who may volunteer if given recognition in their country. Pakistanis have established Neptune orient line of Singapore and Abudhabi tanker company and many more.
The trade has been growing steadily with each passing day from the inception and recognition of interdependence on each others products, be it agricultural or industrial. Countries which are rich in raw materials and have surplus tend to export these resources to other countries which are industrialised and able to use theses materials to produce finished material by value addition and re-export to the needy countries.
Like-wise the countries having agro based economy, depend upon agricultural produce for export of their surplus commodities, however, the countries do face a situation of trade imbalance when their imports outweigh exports by value. Pakistan is facing trade imbalance of 8 billion plus.
Shipping has witnessed various ups and downs from the very inception of this mode of transport and has undergone various technological changes. Without shipping, intercontinental, trade, the bulk transport of raw materials and the import / export of affordable food and manufactured goods would simply not be possible.
Of all the sectors that make up the global transport infrastructure, shipping probably has the lowest public profile and the least representative public image.
Today, we live in a global world, and it is certainly true that international trade among all the nations and regions of the world is nothing new. The history of the world is a history of exploration. Conquest and trade by sea. But there is no doubt that we have now entered a new era of global interdependence from which there can be no turning back.
In today's world, national boundaries offer little impediment to multi-national corporation. The process of globalisation has been made possible by the progressive dismantling of barriers to trade and capital mobility.
Fundamental technological advances, steadily declining costs of transport, communication and computing, its integrative logic seems inexorable, its momentum irresistible.
Looking back into history, we can trace the stages through which we have progressed to arrive at this new world order. As the world became more developed, proximity to new materials and to markets became the factors that, above all others, shaped the world's economy and,. In particular, the major trade patterns and shipping routes, today, international trade has evolved to the point where almost no nation can be fully self-sufficient.
Every country is involved, at one level or another, in the process of selling what it produces and acquiring what it lacks: none can be dependent only on its domestic resources. Shipping has always provided the only really cost-effective method of bulk transport over any great distance, and the development of shipping and the establishment of a global system of trade have moved forward together, hand-in-hand.
The eternal triangle of producers, manufacturers and markers are brought together through shipping. This has always been the case and will remain so for the foreseeable future.
Advance in technology have also made shipping an increasingly efficient and swift method of transport. Over the last four decades, total seaborne trade has more than quadrupled, from less than 6 thousand billion ton-miles in 1995 to over 27 thousand billion ton-miles in 2004 and continues to grow steadily. In the context of a global economy, the contribution made by shipping as a major industry in its own right is very significant, and increasingly so for the developing world.
Maritime activity already provides an important source of income to many developing countries, Indeed, developing countries now lead the world in some of shipping's most important ancillary business, including the registration of ships, the supply of sea-going manpower and ship recycling. They also play a significant part in shipowning and operating, shipbuilding and repair and port services, among others.
The history of shipping is a glorious and proud one. There is no doubt, for example, that the magnificent square riggers of the era of sail or the early ~ century's prestigious ocean liners could stir the hearts of all hose that beheld them. But the ships of today are just as worthy of our admiration, for shipping today is in another golden age.
Ships have never been so technically advanced, never been so sophisticated, never more immense, never carrier of so much cargo, never been safer and never been so environmentally-friendly after introduction of engine powered ships, as they are today.
Ships are high value assets, with the larger of them costing over US $100/150 million to build. Ships today are modern, technologically advanced workplaces. Although general cargo ships are still largest single category, among new ships is more and more in favour of specialisation for specific trades, ie edible/non-edible product carriers to LPG/CNG carriers. Tankers make up the second largest category.
Most large modern tankers are in the 200-3 00,000 tonnage range. The world's largest ship today is a 564,765 dwt tanker. Bulk carriers are often called the workhorses of the international shipping fleet that typically transport commodities such as grain, coal and mineral ores. Passenger ships come next in the world fleet league table. One of the finest modern examples of passenger liner is the Queen Mary II, built in France for Carnival Corp's Cunard in 2004. QM2 is the largest, longest, tallest, widest ocean liner over and has cost an estimated 800 million US dollars.
But the one sector which can be said to have transformed the face of shipping, certainly in the latter half of the 20~ Century, is that of container shipping. Unheard of before the 1 960s, the containers are now ubiquitous and the standard unit of cargo for just about every form of manufactured item on the planet.
Of all the sectors that make up the global transport infrastructure, shipping probably has the lowesr public profile and the least representative public image. In terms of efficiency, safety, the environment and its contribution to global trade, shipping is unmatched by any other transport sector.
History may be the harshest of judges but this is also true that no form of commercial transport is likely to emerge to challenge shipping as the carrier of world trade in the foreseeable future.
As far as maritime security is concerned, it is appropriate to recall the words of UN Secretary General Kofi Annan in his report to the 2005 world summit: "we will not enjoy development without security, we will not enjoy security without development, and we will not either without respect for human dignity. Unless all these causes are advanced, none will succeed".
Shipping affects us all. No matter where you may be in the world, if you look around you it is almost certain that you will see something that either has been or will be transported by sea, whether in the form of raw materials, components or the finished article. The sea knows no international barriers and the ship is as important now as it ever was, perhaps more so. Standards of living in the industrialised and developed world, the jobs and livelihoods of billions in the developing world, all depend on ships and shipping.
The shipping industry remains the most neglected sector of our economy, being 100% dependent on foreign flag vessels as far as containerised trade of over 1.8 mill teas handled at both ports and also bulk trade. Having achieved a peak of 71 Pak flag vessel's of 749,046 dwt, now we are left with only 14 ships out of which 11 are nearing 30 years and that too in public sector only.
A very serious thought is necessitated by the government to plan replacement of 11 public sector ship's and inducing private sector as on the pattern of India in 1980's when new ship owners were induced by, offering loan at 4%.
It is not only freight bill of USD 2 bill burden on our exchequer, but we cant discount the fact that we are totally dependent on foreign lines, who can dictate us further making our impo/expo incompetitive and creating trade imbalance of over 10 bill USD. PNSC is the last monument of Pak Merchant Marine, thus be supported, as merchant navy club has been razed to the ground.
Indian fleet of 450 Vessel's 8.8 million gross tonnage is a good example of public and private sector co-operation. The shipping corporation of India (public sector) 80% government owned enterprise earned a profit of 2.06 billion IRS (50.8 m USD) and owns 79 vessels. It is managed by shipping professionals and board comprising commercial maritime members.
The chairman is optimistic to spend 3 billion USD to get 100 mark. SCI Chairman insists on level playing field in order compete with all players with edge on professional skills. Indian impo/expo is going to touch 1 / billion tons mark by 2010 compared to Pakistan 58 million tons which may touch 70/75 million tons by 2010.
I fail to understand, how any country can ignore this sector which is the lifeline of the country. The old adageis" who rules the sea, rules the world, ". Form a think tank of professionals and business related people to suggest how to overcome the problem of industry. There is no dearth of skilled shipping experts who may volunteer if given recognition in their country. Pakistanis have established Neptune orient line of Singapore and Abudhabi tanker company and many more.
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