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.
Sunday, May 25, 2014
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.
Sunday, August 4, 2013
MLC - 2006: Recruitment and placement services
It is for quite some time that I have been writing on the subject of ILO Maritime Labour Convention-2006 but I do not think the Government has yet taken any action. Time is running out. The Convention comes into force in August. Even if we fail to become a Party State before the instrument enters into force, we still have to comply with it. The bare minimum that the government (Department of Shipping) can do is to authorise the recognised Classification Societies to survey our ships and issue certificates of compliance so that Pakistani ships are not harassed or detained at foreign ports.
The focus of this article is on a particular provision of the convention known as Recruitment and Placement Services. As per SOLAS-74, ISM Code and STCW Convention there is no separate entity known as manning agent. It remains the integral function of the ISM certified company because it is a part of the safe management of ships. However, while adopting ILO-MLC-2006 the delegates realised the reality that the ship-management companies are located in London, Glasgow, Hamburg, Hong Kong, Singapore and Cyprus but they recruit seafarers from Philippines, Indonesia, Bangladesh and Myanmar through their agents. If the seafarers are eventually deprived or stranded abroad the national government of the seafarers have no direct control and cannot exert any influence or resolve the matter. So, they introduced the system of RPS so that local agents of the ship-management companies are duly licensed by the maritime administration in that country. In any unfortunate situation the first point of contact for the administration shall be the RPS. Now we can understand the importance of RPS and this must be dealt with by the Government (Department of Shipping) directly and never to be delegated to RO or Classification Societies.
The Department issuing RPS licence/certificate must ensure that:
--- Each RPS is a company registered in Pakistan with its principal office of business located within Pakistan;
--- The RPS has a highest qualified sea-going officer (master or chief engineer) in its full time employment to look after manning matters;
--- The RPS office and contact (visiting, postal and electronic) of responsible person must always be available to the Department;
--- One of the first thing the RPS should do - establish the genuine existence/ presence of the ship and its ISM company when they receive order for selection of crew;
--- The RPS should ask for a copy of the SMD issued by the Flag State;
--- The RPS shall not charge any fees or remuneration from the seafarer. It shall receive fees from the employer;
--- The RPS shall select seafarers with valid competency certificates, medical fitness certificate and other documents as required in Pakistan and the Flag State;
--- RPS shall check and ensure that all required documents are genuine;
--- Where necessary the RPS shall obtain Flag State Endorsements;
--- No person shall be employed without being duly signed on A/A or other acceptable agreement;
--- No temporary repair party or anyone else (not required by SMD) can be signed on as Supernumerary unless permission is obtained from the Department;
--- The RPS shall always make available to the Government details of all persons employed through them;
--- The RPS shall give undertaking that it shall do everything possible within its means to ensure that seafarers are paid regularly and that they are repatriated at the end of the contract;
--- The RPS shall keep the department informed of any accident or casualty or any dispute or disciplinary matter involving any Pakistani seafarer;
--- The RPS shall maintain a quality management system with good record-keeping;
--- The RPS shall comply with all other requirements considered necessary by the government or comply with code of conduct, if one made by the Government;
--- Apart from the registration fees, the RPS shall submit in favour of the government a bank guarantee of such amount as determined by the Government.
The government should immediately establish its guidelines (taking the above stated points into consideration) and grant RPS licence so that licensed RPS can notify and link up with major ship-management companies for employment of Pakistani seafarer. Please note the foreign ship-owners and ship-management companies will only recruit through licensed RPS. Existence of no RPS in Pakistan may mean end of employment of Pakistani seafarers on foreign ships. I hope everybody understands the urgency of the situation.
The focus of this article is on a particular provision of the convention known as Recruitment and Placement Services. As per SOLAS-74, ISM Code and STCW Convention there is no separate entity known as manning agent. It remains the integral function of the ISM certified company because it is a part of the safe management of ships. However, while adopting ILO-MLC-2006 the delegates realised the reality that the ship-management companies are located in London, Glasgow, Hamburg, Hong Kong, Singapore and Cyprus but they recruit seafarers from Philippines, Indonesia, Bangladesh and Myanmar through their agents. If the seafarers are eventually deprived or stranded abroad the national government of the seafarers have no direct control and cannot exert any influence or resolve the matter. So, they introduced the system of RPS so that local agents of the ship-management companies are duly licensed by the maritime administration in that country. In any unfortunate situation the first point of contact for the administration shall be the RPS. Now we can understand the importance of RPS and this must be dealt with by the Government (Department of Shipping) directly and never to be delegated to RO or Classification Societies.
The Department issuing RPS licence/certificate must ensure that:
--- Each RPS is a company registered in Pakistan with its principal office of business located within Pakistan;
--- The RPS has a highest qualified sea-going officer (master or chief engineer) in its full time employment to look after manning matters;
--- The RPS office and contact (visiting, postal and electronic) of responsible person must always be available to the Department;
--- One of the first thing the RPS should do - establish the genuine existence/ presence of the ship and its ISM company when they receive order for selection of crew;
--- The RPS should ask for a copy of the SMD issued by the Flag State;
--- The RPS shall not charge any fees or remuneration from the seafarer. It shall receive fees from the employer;
--- The RPS shall select seafarers with valid competency certificates, medical fitness certificate and other documents as required in Pakistan and the Flag State;
--- RPS shall check and ensure that all required documents are genuine;
--- Where necessary the RPS shall obtain Flag State Endorsements;
--- No person shall be employed without being duly signed on A/A or other acceptable agreement;
--- No temporary repair party or anyone else (not required by SMD) can be signed on as Supernumerary unless permission is obtained from the Department;
--- The RPS shall always make available to the Government details of all persons employed through them;
--- The RPS shall give undertaking that it shall do everything possible within its means to ensure that seafarers are paid regularly and that they are repatriated at the end of the contract;
--- The RPS shall keep the department informed of any accident or casualty or any dispute or disciplinary matter involving any Pakistani seafarer;
--- The RPS shall maintain a quality management system with good record-keeping;
--- The RPS shall comply with all other requirements considered necessary by the government or comply with code of conduct, if one made by the Government;
--- Apart from the registration fees, the RPS shall submit in favour of the government a bank guarantee of such amount as determined by the Government.
The government should immediately establish its guidelines (taking the above stated points into consideration) and grant RPS licence so that licensed RPS can notify and link up with major ship-management companies for employment of Pakistani seafarer. Please note the foreign ship-owners and ship-management companies will only recruit through licensed RPS. Existence of no RPS in Pakistan may mean end of employment of Pakistani seafarers on foreign ships. I hope everybody understands the urgency of the situation.
Wednesday, July 31, 2013
The PDWCP: Karachi's sleeping beauty
In business lexicon a "sleeping beauty" is known as either a company that is considered prime for take-over and has not yet been approached by an acquiring company or an economic opportunity that has escaped the attention of prospective entrepreneurs, of which full potential is yet to be developed.
Dubai is now a much-talked-about success story around the world with very developed infrastructure, port and airports. Many commentators and policymakers have opined that Dubai's success defies common sense and prevailing advice. The late Sheikh Rashid Bin Saeed Al Maktoum, then Ruler of Dubai wanted Jebel Ali port to be planned for 32 berths when his British advisors proposed only four. All of Dubai success did not happen by accident. Outsiders did not see the hard work by his sons, especially Sheikh Mohammed, who was crown prince at that time. It is through sheer hard work but most important, it is through co-ordinated execution of coherent plans. While the port was being built, the Ruler and his aides ensured that there was a comprehensive review of what was needed to make the port successful. These include the software, a comprehensive review of customs procedures, rules and laws. More important, Sheikh Mohammed was entrusted with ensuring that development of the surrounding infrastructure such as warehouses, roads, vehicles traffic were planned and executed in co-ordination. The late Sheikh Rashid Bin Saeed Al Maktoum recognised Jebel Ali to be the sleeping beauty of Dubai and it is the success we witnessed today that proves his foresight and wisdom.
This brings to mind Karachi's possible sleeping beauty - the Pakistan Deep Water Container Port (PDWCP) - which is being constructed at Keamari in Karachi. I am given to understand from several sources that Phase I of this project is forecast to open for business around early 2015 and would cost in excess of US $1 billion. Karachi, the location of this port, was chosen to leverage a number of physical and economic synergies that would be available to the project given that Karachi is a mega city where the basic support infrastructure required for doing business would already be available to the PDWCP. This project has the potential to become a centre of economic activity without the need for relocation of people and support infrastructure. The port infrastructure is being completed by the Karachi Port Trust (KPT) and envisages several phases, which will add up to 12 million TEUs (twenty foot equivalent boxes) to the handling capacity of Karachi Port. Phase I is designed to handle 3.1 million TEUs. PDWCP is expected to be the most advanced port in the West Indian region both in terms of the technologies that it is expected to use and also in terms of the equipment that is planned to be deployed at this port. This grand vision of KPT and the Government of Pakistan must be applauded as a long-term vision has been taken into consideration in the development of this project rather than the short-term knee jerk solutions that we have inadvertently become accustomed to over the years. However, before I announced myself as a proud Pakistani, I have to call to caution.
I have pointed out before and I want to be longwinded again. The infrastructure around the new port will not support the capacity of the PDWCP. There has been talk of a much vaunted idea of building a cross-harbour bridge since 2006, when the PDWCP was been mooted. This proposed suspension bridge is planned to connect Keamari with Manora thus saving around an hour of travel time to locations such as Javed Bahria and opening up potential for real estate development on the other side of the Karachi Harbour. However, the cost estimated at that time of US $600 million is prohibitive and bogged down on issue of recovery of costs. Such grandiose pine-in-the-sky plans should be abandoned and we need to have our feet placed firmly on the ground. KPT would be well advised to take a practical view of the situation by focusing time and money on improving the current infrastructure for the purposes of the PDWCP instead of spending unfounded direction on the suspension bridge.
Energies and resources (tangible and intangible) need to be channelled towards projects that would create business opportunities and jobs thus adding economic value to the overall logistics supply chain. The PDWCP is set to evolve as a new centre of economic activity creating more than a thousand new jobs directly and innumerable indirectly. The port would capitalise upon the possibility of turning Karachi into a trans-shipment hub in the region catering towards the logistics needs for the Middle East and western Indian regions. This should be possible if we get out bearings right and stay the course throughout the voyage; this ball is in KPT's court.
To describe the roads within 5 kilometres of the entrance of Phase I as a nightmare is perhaps a clear understatement. There are three potential routes for container traffic to enter and leave the planned PDWCP. First, there is the road on the west side along the oil pier and exit to the M.A. Jinnah Road via Khamis Gate intersection. This route is so narrow that two trucks travelling in the opposite directions cannot pass each other without a slow display of tight manoeuvring skills of the drivers. Such a dramatic scene is hardly one that any international container terminal will want to show the world. Second, there is the eastbound road towards Bilawal House, passing a daily retinue of coal and old trucks, loading and unloading. It is a daily bustling bazaar where at its peak hundreds of trucks jostled for manoeuvring space to get out of the lock jam. Thirdly, there is the route through the area of the liquid bulk storage north of the second option, passing heavily populated areas. This narrative is just to give a flavour of the scale of the foreseeable serious problems of congestion, queues and delays that may be faced by the operators of the port unless KPT springs into action to upgrade the road infrastructure require for smooth operations of the port. The problem requires mega efforts. Urgent efforts are needed to find and build alternative roads along the coast to allow for the efficient evacuation of container traffic.
The lock jam arising from the handling of coal, liquid and container cargo in one location is symptomatic of lack of comprehensive planning. Each cargo type and terminal was allowed to grow organically, and ad hoc solutions developed, resulting in the current situation. There needs to be more long-term, more macro thinking on the separation of the types of cargo handling. More important, other building the terminals, planning of the surrounding and support infrastructure needs to be planned and built hand in hand. The shifting of coal and other dirty cargo handling from the densely populated areas of Karachi to Port Qasim has indeed been long overdue and in the meantime has augmented to Karachi's pollution and respiratory health woes. Concrete actions need to be taken immediately to take a long-term view of this situation.
I hope that the winds of change in Islamabad will provide a fresh impetus to efforts to make absolutely sure that the PDWCP will not be an example of shining steel and concrete, but could not realise its full potential. Indeed, it would be a national shame if the PDWCP build to handle millions of TEUs, could only handle minimal traffic. If such a situation arises, those at the helm of affairs would need to stand answerable to how hundreds of millions of dollars were spent sans the necessary planning.
At the same time, as I have advocated strongly, there is a need for a Deep Sea Port Act to bring together the efforts of concerned to ensure its success. Such an initiative will give due recognition to all those who toiled very hard in small and big ways for the national good. More important, such legislation should also push efforts in supporting directions. There is a need to bring customs procedures that are commensurate with a deep sea port and facilitate any trans-shipment of cargo. They should provide the means to help the operator market the PDWCP to international shipping lines. The legislation should also be far sighted enough to provide for better financial and other incentives for further investment in future phases of the PDWCP.
KPT and the Government of Pakistan need to carry out bold and concerted effort to examine the customs laws and regulations and the standard operating procedures to iron out any irregularities, bottlenecks that has hampered the transit trade for Afghan and Central Asian cargo in the past. These issues should not be allowed to replicate to hamstrung the development of the PDWCP. Further any issues, laws, procedures, and other obstacles to attracting trans-shipment cargo in the regions should be removed. This initiative is urgently needed before the PDWCP Phase I opens in 2015. As I mentioned above, the success of Dubai is not an accident. It is through sheer hard work and proper execution of co-ordinated plans.
I am confident that those in the corridors of power in Islamabad will have the foresight to ensure that the money spent on the PDWCP will be well worth the effort and bring about jobs and welfare benefits to the aam admi (general populace). It will also make many Pakistanis proud in the maritime world. The window of opportunity to act is narrow and there should be no more Nato - no action talk only.
Dubai is now a much-talked-about success story around the world with very developed infrastructure, port and airports. Many commentators and policymakers have opined that Dubai's success defies common sense and prevailing advice. The late Sheikh Rashid Bin Saeed Al Maktoum, then Ruler of Dubai wanted Jebel Ali port to be planned for 32 berths when his British advisors proposed only four. All of Dubai success did not happen by accident. Outsiders did not see the hard work by his sons, especially Sheikh Mohammed, who was crown prince at that time. It is through sheer hard work but most important, it is through co-ordinated execution of coherent plans. While the port was being built, the Ruler and his aides ensured that there was a comprehensive review of what was needed to make the port successful. These include the software, a comprehensive review of customs procedures, rules and laws. More important, Sheikh Mohammed was entrusted with ensuring that development of the surrounding infrastructure such as warehouses, roads, vehicles traffic were planned and executed in co-ordination. The late Sheikh Rashid Bin Saeed Al Maktoum recognised Jebel Ali to be the sleeping beauty of Dubai and it is the success we witnessed today that proves his foresight and wisdom.
This brings to mind Karachi's possible sleeping beauty - the Pakistan Deep Water Container Port (PDWCP) - which is being constructed at Keamari in Karachi. I am given to understand from several sources that Phase I of this project is forecast to open for business around early 2015 and would cost in excess of US $1 billion. Karachi, the location of this port, was chosen to leverage a number of physical and economic synergies that would be available to the project given that Karachi is a mega city where the basic support infrastructure required for doing business would already be available to the PDWCP. This project has the potential to become a centre of economic activity without the need for relocation of people and support infrastructure. The port infrastructure is being completed by the Karachi Port Trust (KPT) and envisages several phases, which will add up to 12 million TEUs (twenty foot equivalent boxes) to the handling capacity of Karachi Port. Phase I is designed to handle 3.1 million TEUs. PDWCP is expected to be the most advanced port in the West Indian region both in terms of the technologies that it is expected to use and also in terms of the equipment that is planned to be deployed at this port. This grand vision of KPT and the Government of Pakistan must be applauded as a long-term vision has been taken into consideration in the development of this project rather than the short-term knee jerk solutions that we have inadvertently become accustomed to over the years. However, before I announced myself as a proud Pakistani, I have to call to caution.
I have pointed out before and I want to be longwinded again. The infrastructure around the new port will not support the capacity of the PDWCP. There has been talk of a much vaunted idea of building a cross-harbour bridge since 2006, when the PDWCP was been mooted. This proposed suspension bridge is planned to connect Keamari with Manora thus saving around an hour of travel time to locations such as Javed Bahria and opening up potential for real estate development on the other side of the Karachi Harbour. However, the cost estimated at that time of US $600 million is prohibitive and bogged down on issue of recovery of costs. Such grandiose pine-in-the-sky plans should be abandoned and we need to have our feet placed firmly on the ground. KPT would be well advised to take a practical view of the situation by focusing time and money on improving the current infrastructure for the purposes of the PDWCP instead of spending unfounded direction on the suspension bridge.
Energies and resources (tangible and intangible) need to be channelled towards projects that would create business opportunities and jobs thus adding economic value to the overall logistics supply chain. The PDWCP is set to evolve as a new centre of economic activity creating more than a thousand new jobs directly and innumerable indirectly. The port would capitalise upon the possibility of turning Karachi into a trans-shipment hub in the region catering towards the logistics needs for the Middle East and western Indian regions. This should be possible if we get out bearings right and stay the course throughout the voyage; this ball is in KPT's court.
To describe the roads within 5 kilometres of the entrance of Phase I as a nightmare is perhaps a clear understatement. There are three potential routes for container traffic to enter and leave the planned PDWCP. First, there is the road on the west side along the oil pier and exit to the M.A. Jinnah Road via Khamis Gate intersection. This route is so narrow that two trucks travelling in the opposite directions cannot pass each other without a slow display of tight manoeuvring skills of the drivers. Such a dramatic scene is hardly one that any international container terminal will want to show the world. Second, there is the eastbound road towards Bilawal House, passing a daily retinue of coal and old trucks, loading and unloading. It is a daily bustling bazaar where at its peak hundreds of trucks jostled for manoeuvring space to get out of the lock jam. Thirdly, there is the route through the area of the liquid bulk storage north of the second option, passing heavily populated areas. This narrative is just to give a flavour of the scale of the foreseeable serious problems of congestion, queues and delays that may be faced by the operators of the port unless KPT springs into action to upgrade the road infrastructure require for smooth operations of the port. The problem requires mega efforts. Urgent efforts are needed to find and build alternative roads along the coast to allow for the efficient evacuation of container traffic.
The lock jam arising from the handling of coal, liquid and container cargo in one location is symptomatic of lack of comprehensive planning. Each cargo type and terminal was allowed to grow organically, and ad hoc solutions developed, resulting in the current situation. There needs to be more long-term, more macro thinking on the separation of the types of cargo handling. More important, other building the terminals, planning of the surrounding and support infrastructure needs to be planned and built hand in hand. The shifting of coal and other dirty cargo handling from the densely populated areas of Karachi to Port Qasim has indeed been long overdue and in the meantime has augmented to Karachi's pollution and respiratory health woes. Concrete actions need to be taken immediately to take a long-term view of this situation.
I hope that the winds of change in Islamabad will provide a fresh impetus to efforts to make absolutely sure that the PDWCP will not be an example of shining steel and concrete, but could not realise its full potential. Indeed, it would be a national shame if the PDWCP build to handle millions of TEUs, could only handle minimal traffic. If such a situation arises, those at the helm of affairs would need to stand answerable to how hundreds of millions of dollars were spent sans the necessary planning.
At the same time, as I have advocated strongly, there is a need for a Deep Sea Port Act to bring together the efforts of concerned to ensure its success. Such an initiative will give due recognition to all those who toiled very hard in small and big ways for the national good. More important, such legislation should also push efforts in supporting directions. There is a need to bring customs procedures that are commensurate with a deep sea port and facilitate any trans-shipment of cargo. They should provide the means to help the operator market the PDWCP to international shipping lines. The legislation should also be far sighted enough to provide for better financial and other incentives for further investment in future phases of the PDWCP.
KPT and the Government of Pakistan need to carry out bold and concerted effort to examine the customs laws and regulations and the standard operating procedures to iron out any irregularities, bottlenecks that has hampered the transit trade for Afghan and Central Asian cargo in the past. These issues should not be allowed to replicate to hamstrung the development of the PDWCP. Further any issues, laws, procedures, and other obstacles to attracting trans-shipment cargo in the regions should be removed. This initiative is urgently needed before the PDWCP Phase I opens in 2015. As I mentioned above, the success of Dubai is not an accident. It is through sheer hard work and proper execution of co-ordinated plans.
I am confident that those in the corridors of power in Islamabad will have the foresight to ensure that the money spent on the PDWCP will be well worth the effort and bring about jobs and welfare benefits to the aam admi (general populace). It will also make many Pakistanis proud in the maritime world. The window of opportunity to act is narrow and there should be no more Nato - no action talk only.
Sunday, April 3, 2011
Why not co-exist
India is set on growth trajectory despite scandals and corruption, whilst we are going full speed astern, although we have the same mindset, culture, agriculture, corruption and close proximity with a common spoken language as lingua franca, which is the binding factor and strong force of communication.
Pakistanis are fascinated by Indian movies so are the Indians with our TV serials. During my last visit recently I gathered the impression whilst meeting with government officials and literary circles that there exists a strong desire for co-operation, travel, communication, exchange of views and comprehension of improving the relations, barring radicals on both ends of divide.
There has been a real effort made as a second track diplomacy. Unfortunate, however, Bombay incident distanced us. However, I recall that all Pakistanis vehemently condemned the barbaric act and I in person called my friend secretary Transport, Chairman SCI and others with whom I interacted at IMO London meetings to enquire about their welfare. We were equally disturbed, thus I wrote a column in Indian papers not only condemning the attack but sympathising with grieved families.
However now WikiLeaks reflects different home-grown perspectives, which Indians may realise as the verity. The debated sell-out of Raymond Davis is not too different from defection of Major Rajbender Singh of RAW via Khatmandu to USA and a lady of national security in 2006 as reported. The problem of sell-out is equally ingrained on both sides, if we peep into the history and culture of Sub-continent. Let us give a chance to cricket diplomacy, once again and avail this God-sent opportunity to reduce tension.
There are many issues that need to be resolved, be they the Indus Basin Water, rights of lower riparian, trade volume in favour of India and the long outstanding issue of Kashmir. I remain committed that all problems, if not resolved, can be eased to some extent by people-to-people contact instead of being left to hawks or doves on both ends of the divide.
I am sure that reason can wrestle with terrors and overthrow them. The conflicts, which attract more attention in the news tend either to be political and military in nature, or they involve the struggle between people and the natural environment when, in floods, drought and plague, it turns hostile. But behind these, and detached from them because it is a struggle whose proportions are those of history itself, is another struggle, a profound and consequential one because it shapes long-term human destinies.
This is the struggle of ideas, expressing itself in terms of ideologies, politics and the consequential framework, which determines belief and moralities. Our understanding of the human situation, and the choices we make in managing the unruly and difficult complexities of social existence, are founded on ideas - usually, ideas systematised into theories.
Ultimately it is ideas that drive nations and people to peace or war, which shapes systems under which they live and which determines how the world's scarce resources are shared among them. Ideas matter, so does the question of reason, by which ideas live and die.
Indian and Pakistani governments must comprehend that reason is the armament of ideas, the weapon employed in conflicts between viewpoints. Reason is an absolute which rightly used, can settle disputes and guide us to truth instead of post modernist views that authorities are more powerful than reason, such as race, tradition, nature or supernatural entities.
The muddle is in the thinking of policy makers on both ends of the divide, they offer a list of virtues, emotion and faith. I feel that all but the last, if un-governed by reason, are exactly the stuff which fuels fanaticism on both sides and ends up in holy/territorial wars. The Europeans at last, after many feuds, have learned to co-exist, why can't we see the light of reason to stay as good neighbours respecting mutual sovereignty.
The world is changing the arch-enemies, Russians and Americans are talking about 'no visa regime' and EU and Russia are on the same page to avoid stereotypes of confrontation that will be dispelled by human-to-human contact, for a better understanding to shun the political propaganda. A visa regime is, fundamentally, a political statement by the government of two countries. It is their way of indicating the relationship they wish to maintain.
It is not security concern which governs the practice of rigid visa controls together with the barbaric requirement of Police reporting. It is their political resolve to keep the peoples apart and retain a tight grip of information. I had travelled in India honourably exempted from police reporting.
However, in March, on an invitation from the Chairman of Shipping Corporation of India, I was promptly issued a police reporting visa, thus the only option I had was to decline to travel due to the indignity reporting to police as I am a respectable citizen, not a criminal.
The High Commissioner of India is a polite diplomat in true sense of the word, who tries to improve relations, by interacting with bureaucrats more loyal than the king, who score points by inserting police reporting/delaying to humiliate and deter people-to-people contacts. The attitude may not be different at Pakistan High Commission in Delhi, but our High Commissioner is equally competent, as I know.
After partition there was no visa regime for travel between India and Pakistan, but on July 18, 1948, India unilaterally announced the imposition of permit system, confined to western border. Inter-dominion conference was held at Lahore on 22-23 July 1948 and India explained that the requirement of permit was to regulate a two-way traffic as opposed to one way traffic. Pakistan's cabinet decided on September 4, 1948 to impose permit system, on eastern as well western borders retaliating to the Indian move.
The proponent of permit system as per history is Vallabhai Patel who feared that some of the Muslims were returning to India and asking Sharnarthees to vacate their occupied houses. This is said to have caused Nehru's dismay. In 1952 came the India-Pakistan Passport, replaced in 1965 by International Passport. It is time for both governments to take an overview of these curbs, in light of the realities of 2011. The public opinion in both countries asserts itself jointly and in organised manner to end the partition of hearts and minds.
I was the proponent of Pakistan-India Shipping Protocol and the same was signed in 2006 after three years of negotiations, which yielded positive results to mutual advantage. In fact, our PNSC benefited more than the Indians. I also presented a feasibility study to Indian minister in Delhi for starting Karachi-Mumbai ferry service, but since I relinquished my charge in 2007, no progress has been made.
The ferry service is an economically viable operation and I presented the same to the managers of Aman Ki Asha to follow up. The direct route will boost trade instead of trading through Colombo and Dubai, and freight will be economical. India must also remove the non-tariff barriers to offset the balance of trade in favour of India.
The cement exporters are keen to export cement to India due to their massive growth and having surplus capacity. There are ample opportunities to cooperate, like Indian merchant ships are short of qualified officers and have allowed Indian ship-owners to recruit from 16 countries; Pakistan has a surplus, of such qualified cadres and Indian appetite can be met.
We have to give a kick-start, so that a new day dawns on the sub-continent with common people freely visiting Saarc countries and not only the privileged, politicians and business community who pay 2000 to 3000 dollars to get a two-year Saarc visa, a discrimination. We must dispel suspicion and allow free travel and no visa regime as that proposed by Russia and EU. We need the will to make it happen, as I feel that it is the desire of masses on both ends of the divide, due to cultural ties and gastronomic habits, relishing the same recipe of sumptuous foods. Let us join hands to pull down the obscene barriers and contend to remove the occlusive seal.
Pakistanis are fascinated by Indian movies so are the Indians with our TV serials. During my last visit recently I gathered the impression whilst meeting with government officials and literary circles that there exists a strong desire for co-operation, travel, communication, exchange of views and comprehension of improving the relations, barring radicals on both ends of divide.
There has been a real effort made as a second track diplomacy. Unfortunate, however, Bombay incident distanced us. However, I recall that all Pakistanis vehemently condemned the barbaric act and I in person called my friend secretary Transport, Chairman SCI and others with whom I interacted at IMO London meetings to enquire about their welfare. We were equally disturbed, thus I wrote a column in Indian papers not only condemning the attack but sympathising with grieved families.
However now WikiLeaks reflects different home-grown perspectives, which Indians may realise as the verity. The debated sell-out of Raymond Davis is not too different from defection of Major Rajbender Singh of RAW via Khatmandu to USA and a lady of national security in 2006 as reported. The problem of sell-out is equally ingrained on both sides, if we peep into the history and culture of Sub-continent. Let us give a chance to cricket diplomacy, once again and avail this God-sent opportunity to reduce tension.
There are many issues that need to be resolved, be they the Indus Basin Water, rights of lower riparian, trade volume in favour of India and the long outstanding issue of Kashmir. I remain committed that all problems, if not resolved, can be eased to some extent by people-to-people contact instead of being left to hawks or doves on both ends of the divide.
I am sure that reason can wrestle with terrors and overthrow them. The conflicts, which attract more attention in the news tend either to be political and military in nature, or they involve the struggle between people and the natural environment when, in floods, drought and plague, it turns hostile. But behind these, and detached from them because it is a struggle whose proportions are those of history itself, is another struggle, a profound and consequential one because it shapes long-term human destinies.
This is the struggle of ideas, expressing itself in terms of ideologies, politics and the consequential framework, which determines belief and moralities. Our understanding of the human situation, and the choices we make in managing the unruly and difficult complexities of social existence, are founded on ideas - usually, ideas systematised into theories.
Ultimately it is ideas that drive nations and people to peace or war, which shapes systems under which they live and which determines how the world's scarce resources are shared among them. Ideas matter, so does the question of reason, by which ideas live and die.
Indian and Pakistani governments must comprehend that reason is the armament of ideas, the weapon employed in conflicts between viewpoints. Reason is an absolute which rightly used, can settle disputes and guide us to truth instead of post modernist views that authorities are more powerful than reason, such as race, tradition, nature or supernatural entities.
The muddle is in the thinking of policy makers on both ends of the divide, they offer a list of virtues, emotion and faith. I feel that all but the last, if un-governed by reason, are exactly the stuff which fuels fanaticism on both sides and ends up in holy/territorial wars. The Europeans at last, after many feuds, have learned to co-exist, why can't we see the light of reason to stay as good neighbours respecting mutual sovereignty.
The world is changing the arch-enemies, Russians and Americans are talking about 'no visa regime' and EU and Russia are on the same page to avoid stereotypes of confrontation that will be dispelled by human-to-human contact, for a better understanding to shun the political propaganda. A visa regime is, fundamentally, a political statement by the government of two countries. It is their way of indicating the relationship they wish to maintain.
It is not security concern which governs the practice of rigid visa controls together with the barbaric requirement of Police reporting. It is their political resolve to keep the peoples apart and retain a tight grip of information. I had travelled in India honourably exempted from police reporting.
However, in March, on an invitation from the Chairman of Shipping Corporation of India, I was promptly issued a police reporting visa, thus the only option I had was to decline to travel due to the indignity reporting to police as I am a respectable citizen, not a criminal.
The High Commissioner of India is a polite diplomat in true sense of the word, who tries to improve relations, by interacting with bureaucrats more loyal than the king, who score points by inserting police reporting/delaying to humiliate and deter people-to-people contacts. The attitude may not be different at Pakistan High Commission in Delhi, but our High Commissioner is equally competent, as I know.
After partition there was no visa regime for travel between India and Pakistan, but on July 18, 1948, India unilaterally announced the imposition of permit system, confined to western border. Inter-dominion conference was held at Lahore on 22-23 July 1948 and India explained that the requirement of permit was to regulate a two-way traffic as opposed to one way traffic. Pakistan's cabinet decided on September 4, 1948 to impose permit system, on eastern as well western borders retaliating to the Indian move.
The proponent of permit system as per history is Vallabhai Patel who feared that some of the Muslims were returning to India and asking Sharnarthees to vacate their occupied houses. This is said to have caused Nehru's dismay. In 1952 came the India-Pakistan Passport, replaced in 1965 by International Passport. It is time for both governments to take an overview of these curbs, in light of the realities of 2011. The public opinion in both countries asserts itself jointly and in organised manner to end the partition of hearts and minds.
I was the proponent of Pakistan-India Shipping Protocol and the same was signed in 2006 after three years of negotiations, which yielded positive results to mutual advantage. In fact, our PNSC benefited more than the Indians. I also presented a feasibility study to Indian minister in Delhi for starting Karachi-Mumbai ferry service, but since I relinquished my charge in 2007, no progress has been made.
The ferry service is an economically viable operation and I presented the same to the managers of Aman Ki Asha to follow up. The direct route will boost trade instead of trading through Colombo and Dubai, and freight will be economical. India must also remove the non-tariff barriers to offset the balance of trade in favour of India.
The cement exporters are keen to export cement to India due to their massive growth and having surplus capacity. There are ample opportunities to cooperate, like Indian merchant ships are short of qualified officers and have allowed Indian ship-owners to recruit from 16 countries; Pakistan has a surplus, of such qualified cadres and Indian appetite can be met.
We have to give a kick-start, so that a new day dawns on the sub-continent with common people freely visiting Saarc countries and not only the privileged, politicians and business community who pay 2000 to 3000 dollars to get a two-year Saarc visa, a discrimination. We must dispel suspicion and allow free travel and no visa regime as that proposed by Russia and EU. We need the will to make it happen, as I feel that it is the desire of masses on both ends of the divide, due to cultural ties and gastronomic habits, relishing the same recipe of sumptuous foods. Let us join hands to pull down the obscene barriers and contend to remove the occlusive seal.
Thursday, March 17, 2011
Why high-seas piracy is here to stay
India is set on growth trajectory despite scandals and corruption, whilst we are going full speed astern, although we have the same mindset, culture, agriculture, corruption and close proximity with a common spoken language as lingua franca, which is the binding factor and strong force of communication.
Pakistanis are fascinated by Indian movies so are the Indians with our TV serials. During my last visit recently I gathered the impression whilst meeting with government officials and literary circles that there exists a strong desire for co-operation, travel, communication, exchange of views and comprehension of improving the relations, barring radicals on both ends of divide.
There has been a real effort made as a second track diplomacy. Unfortunate, however, Bombay incident distanced us. However, I recall that all Pakistanis vehemently condemned the barbaric act and I in person called my friend secretary Transport, Chairman SCI and others with whom I interacted at IMO London meetings to enquire about their welfare. We were equally disturbed, thus I wrote a column in Indian papers not only condemning the attack but sympathising with grieved families.
However now WikiLeaks reflects different home-grown perspectives, which Indians may realise as the verity. The debated sell-out of Raymond Davis is not too different from defection of Major Rajbender Singh of RAW via Khatmandu to USA and a lady of national security in 2006 as reported. The problem of sell-out is equally ingrained on both sides, if we peep into the history and culture of Sub-continent. Let us give a chance to cricket diplomacy, once again and avail this God-sent opportunity to reduce tension.
There are many issues that need to be resolved, be they the Indus Basin Water, rights of lower riparian, trade volume in favour of India and the long outstanding issue of Kashmir. I remain committed that all problems, if not resolved, can be eased to some extent by people-to-people contact instead of being left to hawks or doves on both ends of the divide.
I am sure that reason can wrestle with terrors and overthrow them. The conflicts, which attract more attention in the news tend either to be political and military in nature, or they involve the struggle between people and the natural environment when, in floods, drought and plague, it turns hostile. But behind these, and detached from them because it is a struggle whose proportions are those of history itself, is another struggle, a profound and consequential one because it shapes long-term human destinies.
This is the struggle of ideas, expressing itself in terms of ideologies, politics and the consequential framework, which determines belief and moralities. Our understanding of the human situation, and the choices we make in managing the unruly and difficult complexities of social existence, are founded on ideas - usually, ideas systematised into theories.
Ultimately it is ideas that drive nations and people to peace or war, which shapes systems under which they live and which determines how the world's scarce resources are shared among them. Ideas matter, so does the question of reason, by which ideas live and die.
Indian and Pakistani governments must comprehend that reason is the armament of ideas, the weapon employed in conflicts between viewpoints. Reason is an absolute which rightly used, can settle disputes and guide us to truth instead of post modernist views that authorities are more powerful than reason, such as race, tradition, nature or supernatural entities.
The muddle is in the thinking of policy makers on both ends of the divide, they offer a list of virtues, emotion and faith. I feel that all but the last, if un-governed by reason, are exactly the stuff which fuels fanaticism on both sides and ends up in holy/territorial wars. The Europeans at last, after many feuds, have learned to co-exist, why can't we see the light of reason to stay as good neighbours respecting mutual sovereignty.
The world is changing the arch-enemies, Russians and Americans are talking about 'no visa regime' and EU and Russia are on the same page to avoid stereotypes of confrontation that will be dispelled by human-to-human contact, for a better understanding to shun the political propaganda. A visa regime is, fundamentally, a political statement by the government of two countries. It is their way of indicating the relationship they wish to maintain.
It is not security concern which governs the practice of rigid visa controls together with the barbaric requirement of Police reporting. It is their political resolve to keep the peoples apart and retain a tight grip of information. I had travelled in India honourably exempted from police reporting.
However, in March, on an invitation from the Chairman of Shipping Corporation of India, I was promptly issued a police reporting visa, thus the only option I had was to decline to travel due to the indignity reporting to police as I am a respectable citizen, not a criminal.
The High Commissioner of India is a polite diplomat in true sense of the word, who tries to improve relations, by interacting with bureaucrats more loyal than the king, who score points by inserting police reporting/delaying to humiliate and deter people-to-people contacts. The attitude may not be different at Pakistan High Commission in Delhi, but our High Commissioner is equally competent, as I know.
After partition there was no visa regime for travel between India and Pakistan, but on July 18, 1948, India unilaterally announced the imposition of permit system, confined to western border. Inter-dominion conference was held at Lahore on 22-23 July 1948 and India explained that the requirement of permit was to regulate a two-way traffic as opposed to one way traffic. Pakistan's cabinet decided on September 4, 1948 to impose permit system, on eastern as well western borders retaliating to the Indian move.
The proponent of permit system as per history is Vallabhai Patel who feared that some of the Muslims were returning to India and asking Sharnarthees to vacate their occupied houses. This is said to have caused Nehru's dismay. In 1952 came the India-Pakistan Passport, replaced in 1965 by International Passport. It is time for both governments to take an overview of these curbs, in light of the realities of 2011. The public opinion in both countries asserts itself jointly and in organised manner to end the partition of hearts and minds.
I was the proponent of Pakistan-India Shipping Protocol and the same was signed in 2006 after three years of negotiations, which yielded positive results to mutual advantage. In fact, our PNSC benefited more than the Indians. I also presented a feasibility study to Indian minister in Delhi for starting Karachi-Mumbai ferry service, but since I relinquished my charge in 2007, no progress has been made.
The ferry service is an economically viable operation and I presented the same to the managers of Aman Ki Asha to follow up. The direct route will boost trade instead of trading through Colombo and Dubai, and freight will be economical. India must also remove the non-tariff barriers to offset the balance of trade in favour of India.
The cement exporters are keen to export cement to India due to their massive growth and having surplus capacity. There are ample opportunities to cooperate, like Indian merchant ships are short of qualified officers and have allowed Indian ship-owners to recruit from 16 countries; Pakistan has a surplus, of such qualified cadres and Indian appetite can be met.
We have to give a kick-start, so that a new day dawns on the sub-continent with common people freely visiting Saarc countries and not only the privileged, politicians and business community who pay 2000 to 3000 dollars to get a two-year Saarc visa, a discrimination. We must dispel suspicion and allow free travel and no visa regime as that proposed by Russia and EU. We need the will to make it happen, as I feel that it is the desire of masses on both ends of the divide, due to cultural ties and gastronomic habits, relishing the same recipe of sumptuous foods. Let us join hands to pull down the obscene barriers and contend to remove the occlusive seal.
Pakistanis are fascinated by Indian movies so are the Indians with our TV serials. During my last visit recently I gathered the impression whilst meeting with government officials and literary circles that there exists a strong desire for co-operation, travel, communication, exchange of views and comprehension of improving the relations, barring radicals on both ends of divide.
There has been a real effort made as a second track diplomacy. Unfortunate, however, Bombay incident distanced us. However, I recall that all Pakistanis vehemently condemned the barbaric act and I in person called my friend secretary Transport, Chairman SCI and others with whom I interacted at IMO London meetings to enquire about their welfare. We were equally disturbed, thus I wrote a column in Indian papers not only condemning the attack but sympathising with grieved families.
However now WikiLeaks reflects different home-grown perspectives, which Indians may realise as the verity. The debated sell-out of Raymond Davis is not too different from defection of Major Rajbender Singh of RAW via Khatmandu to USA and a lady of national security in 2006 as reported. The problem of sell-out is equally ingrained on both sides, if we peep into the history and culture of Sub-continent. Let us give a chance to cricket diplomacy, once again and avail this God-sent opportunity to reduce tension.
There are many issues that need to be resolved, be they the Indus Basin Water, rights of lower riparian, trade volume in favour of India and the long outstanding issue of Kashmir. I remain committed that all problems, if not resolved, can be eased to some extent by people-to-people contact instead of being left to hawks or doves on both ends of the divide.
I am sure that reason can wrestle with terrors and overthrow them. The conflicts, which attract more attention in the news tend either to be political and military in nature, or they involve the struggle between people and the natural environment when, in floods, drought and plague, it turns hostile. But behind these, and detached from them because it is a struggle whose proportions are those of history itself, is another struggle, a profound and consequential one because it shapes long-term human destinies.
This is the struggle of ideas, expressing itself in terms of ideologies, politics and the consequential framework, which determines belief and moralities. Our understanding of the human situation, and the choices we make in managing the unruly and difficult complexities of social existence, are founded on ideas - usually, ideas systematised into theories.
Ultimately it is ideas that drive nations and people to peace or war, which shapes systems under which they live and which determines how the world's scarce resources are shared among them. Ideas matter, so does the question of reason, by which ideas live and die.
Indian and Pakistani governments must comprehend that reason is the armament of ideas, the weapon employed in conflicts between viewpoints. Reason is an absolute which rightly used, can settle disputes and guide us to truth instead of post modernist views that authorities are more powerful than reason, such as race, tradition, nature or supernatural entities.
The muddle is in the thinking of policy makers on both ends of the divide, they offer a list of virtues, emotion and faith. I feel that all but the last, if un-governed by reason, are exactly the stuff which fuels fanaticism on both sides and ends up in holy/territorial wars. The Europeans at last, after many feuds, have learned to co-exist, why can't we see the light of reason to stay as good neighbours respecting mutual sovereignty.
The world is changing the arch-enemies, Russians and Americans are talking about 'no visa regime' and EU and Russia are on the same page to avoid stereotypes of confrontation that will be dispelled by human-to-human contact, for a better understanding to shun the political propaganda. A visa regime is, fundamentally, a political statement by the government of two countries. It is their way of indicating the relationship they wish to maintain.
It is not security concern which governs the practice of rigid visa controls together with the barbaric requirement of Police reporting. It is their political resolve to keep the peoples apart and retain a tight grip of information. I had travelled in India honourably exempted from police reporting.
However, in March, on an invitation from the Chairman of Shipping Corporation of India, I was promptly issued a police reporting visa, thus the only option I had was to decline to travel due to the indignity reporting to police as I am a respectable citizen, not a criminal.
The High Commissioner of India is a polite diplomat in true sense of the word, who tries to improve relations, by interacting with bureaucrats more loyal than the king, who score points by inserting police reporting/delaying to humiliate and deter people-to-people contacts. The attitude may not be different at Pakistan High Commission in Delhi, but our High Commissioner is equally competent, as I know.
After partition there was no visa regime for travel between India and Pakistan, but on July 18, 1948, India unilaterally announced the imposition of permit system, confined to western border. Inter-dominion conference was held at Lahore on 22-23 July 1948 and India explained that the requirement of permit was to regulate a two-way traffic as opposed to one way traffic. Pakistan's cabinet decided on September 4, 1948 to impose permit system, on eastern as well western borders retaliating to the Indian move.
The proponent of permit system as per history is Vallabhai Patel who feared that some of the Muslims were returning to India and asking Sharnarthees to vacate their occupied houses. This is said to have caused Nehru's dismay. In 1952 came the India-Pakistan Passport, replaced in 1965 by International Passport. It is time for both governments to take an overview of these curbs, in light of the realities of 2011. The public opinion in both countries asserts itself jointly and in organised manner to end the partition of hearts and minds.
I was the proponent of Pakistan-India Shipping Protocol and the same was signed in 2006 after three years of negotiations, which yielded positive results to mutual advantage. In fact, our PNSC benefited more than the Indians. I also presented a feasibility study to Indian minister in Delhi for starting Karachi-Mumbai ferry service, but since I relinquished my charge in 2007, no progress has been made.
The ferry service is an economically viable operation and I presented the same to the managers of Aman Ki Asha to follow up. The direct route will boost trade instead of trading through Colombo and Dubai, and freight will be economical. India must also remove the non-tariff barriers to offset the balance of trade in favour of India.
The cement exporters are keen to export cement to India due to their massive growth and having surplus capacity. There are ample opportunities to cooperate, like Indian merchant ships are short of qualified officers and have allowed Indian ship-owners to recruit from 16 countries; Pakistan has a surplus, of such qualified cadres and Indian appetite can be met.
We have to give a kick-start, so that a new day dawns on the sub-continent with common people freely visiting Saarc countries and not only the privileged, politicians and business community who pay 2000 to 3000 dollars to get a two-year Saarc visa, a discrimination. We must dispel suspicion and allow free travel and no visa regime as that proposed by Russia and EU. We need the will to make it happen, as I feel that it is the desire of masses on both ends of the divide, due to cultural ties and gastronomic habits, relishing the same recipe of sumptuous foods. Let us join hands to pull down the obscene barriers and contend to remove the occlusive seal.
Friday, February 25, 2011
Performance of ports
I reiterate what I wrote in my earlier article published in Business Recorderthat deepwater Port Act be enacted and Customs Act be amended to help transshipment, so also the other legal instruments to make it compliant to the international standards before Karachi deepwater port becomes functional, hopefully in 2012/13.
It amazed me that most of the developing countries have initiated studies, realising that the law plays a significant role in the economic performance of the states and its ports. Having been associated with a study, I was amazed that even the Gulf states now realise that their ports required compliance with the international standards to remain competitive, hence they honoured the agreements or contracts that the ports have entered into through membership in the IMO, WTO and the UN.
The study is to deliberate on international and national laws as well as the different regulations applicable to the ports of the country to determine the manner and extent that the various laws and regulations influence the economic performance of the different ports of the country.
I was pleased when after the publication of my article for enacting deepwater Port Act, I was invited by the Chairperson of Karachi Port for discussion. I re-emphasised the importance of enacting deepwater Port Act and compliance of international laws etc, I sincerely hope some headway has been made, which frankly I am not aware of.
It is well recognised that the legal environment constitutes a factor that effects the operation of business. Several approaches measure the extent and quality of influence that laws have on economic development. One simplistic approach is to consider laws based on books, that indicators of a law are identified and the presence or absence of indicators then explains the influence that the law has on economic performance. It is assumed that the admiralty or maritime law that relates to port operations are the solution.
Another, but sound approach is to consider the extent that laws are effectively enforced. The presence of laws does not necessarily translate into law enforcement. It is imperative to collect data measuring the effectiveness of the rule of law, the presence or absence of corruption, low levels of contract repudiation and incidence of government expropriation.
The key players must be monitored so that objectives of the law in supporting port operations are obtained. The presence of high level of corruption hampers the effective implementations of laws, providing barriers to the achievement of economic development of the ports.
In our case, although we have the obsolete local laws, the enforcement or monitoring is not visible due to poor human resource and lack of professionalism in ports and the ministry both. The comprehension of international regulations and enforcement of law is minimal.
It was an education to learn during the study that implementation of laws and economic performance is cyclical, it also dawned upon me that there is a strong association between legality and economic development, a linear regression coefficient reflects that for every one percent increase in legality, there is a corresponding four and three quarter increase in gross national products, this was revealed by an economist friend of mine at WMU, Sweden, based on study conducted of legality variables on economic development in forty nine countries.
Some of our sane elements of the society and the judiciary are right, when they say that there can't be meaningful development, unless the GDP growth is addressed in the land of pure. I fully endorse the view that after seeing the study, shown to me by the economist friend.
The foreign entrepreneurs even don't agree to arbitration in Pakistan as our act is that of 1940, thus arbitration is carried out as per the English common law and new act of 1996 or as per the Swiss law, thus the investors are reluctant to abide by obsolete law, its poor enforcement and delayed justice. I am hopeful that now the independent judiciary will deliver to gain the confidence of investors.
It is also true that wealthy nations have resources to afford better legal institutions thus historically the law has served to protect and regulate the economic activities in consideration of private and public interest. According to my economist colleagues and jurists actually industrialisation was spurred by the development of law and legal enforcement mechanisms that protects private business endeavours.
Law and legal institutions are key to sustained economic growth, as it provides secure atmosphere conducive to the growth and expansion of port operations and port-related business such as shipping activities on an international scale, which means that there is need for laws that protect and regulate the various legal relations between the parties.
My association as advisor to Karachi Chamber brought to my notice the sufferings of many exporters due to lack of understanding of documentation and infringements of negotiable instrument act, where the bills of lading created complex problem for the trade. We have been continuously pursuing with the government for National Tariff authority to regulate the unscrupulous agents and forwarders, fleecing the trade.
There appears to be some light at the end of the tunnel now, as the Ministry of Commerce and Ports and Shipping have belatedly comprehended the issues raised by the KCCI. Port operations involve the engagement in a plethora of contracts between the shipper, the shipping companies, the loading and unloading of cargo with port and private terminals, storage of goods in port facilities, the insurance of the cargo being transported.
The ports are flooded with continuous entry and exit of goods while proposed deepwater port becomes regional transshipment hub. It will bring in the foreigners. As a result, there will be increasing demand for international standards for the safety and security of ports.
International law is a body of laws applicable and binding upon all states. International law is a normative system and its mechanism provides for common good. The international law, covering ports includes: shipping laws, laws of the sea, conventions on port operations enforced by the UN, WTO, ILO, the ratified 27 conventions of IMO by Pakistan, domestic laws and the regulatory regime.
I sincerely propose that in order to determine the effects of laws, regulations and security procedures on economic development of Pakistani ports, with the objective of determining the influence of law on the economic performance of ports and also to identify lack of normative systems, as to my experience it is in quandary, thus be identified and addressed.
The significance of our study should be how to achieve the set goals and targets for our ports. I am sure that the ministry may chart a course, which will be compatible to region and the world. I must admit that my partial submission and association has educated me on the role of legality with economic development of ports and states.
It amazed me that most of the developing countries have initiated studies, realising that the law plays a significant role in the economic performance of the states and its ports. Having been associated with a study, I was amazed that even the Gulf states now realise that their ports required compliance with the international standards to remain competitive, hence they honoured the agreements or contracts that the ports have entered into through membership in the IMO, WTO and the UN.
The study is to deliberate on international and national laws as well as the different regulations applicable to the ports of the country to determine the manner and extent that the various laws and regulations influence the economic performance of the different ports of the country.
I was pleased when after the publication of my article for enacting deepwater Port Act, I was invited by the Chairperson of Karachi Port for discussion. I re-emphasised the importance of enacting deepwater Port Act and compliance of international laws etc, I sincerely hope some headway has been made, which frankly I am not aware of.
It is well recognised that the legal environment constitutes a factor that effects the operation of business. Several approaches measure the extent and quality of influence that laws have on economic development. One simplistic approach is to consider laws based on books, that indicators of a law are identified and the presence or absence of indicators then explains the influence that the law has on economic performance. It is assumed that the admiralty or maritime law that relates to port operations are the solution.
Another, but sound approach is to consider the extent that laws are effectively enforced. The presence of laws does not necessarily translate into law enforcement. It is imperative to collect data measuring the effectiveness of the rule of law, the presence or absence of corruption, low levels of contract repudiation and incidence of government expropriation.
The key players must be monitored so that objectives of the law in supporting port operations are obtained. The presence of high level of corruption hampers the effective implementations of laws, providing barriers to the achievement of economic development of the ports.
In our case, although we have the obsolete local laws, the enforcement or monitoring is not visible due to poor human resource and lack of professionalism in ports and the ministry both. The comprehension of international regulations and enforcement of law is minimal.
It was an education to learn during the study that implementation of laws and economic performance is cyclical, it also dawned upon me that there is a strong association between legality and economic development, a linear regression coefficient reflects that for every one percent increase in legality, there is a corresponding four and three quarter increase in gross national products, this was revealed by an economist friend of mine at WMU, Sweden, based on study conducted of legality variables on economic development in forty nine countries.
Some of our sane elements of the society and the judiciary are right, when they say that there can't be meaningful development, unless the GDP growth is addressed in the land of pure. I fully endorse the view that after seeing the study, shown to me by the economist friend.
The foreign entrepreneurs even don't agree to arbitration in Pakistan as our act is that of 1940, thus arbitration is carried out as per the English common law and new act of 1996 or as per the Swiss law, thus the investors are reluctant to abide by obsolete law, its poor enforcement and delayed justice. I am hopeful that now the independent judiciary will deliver to gain the confidence of investors.
It is also true that wealthy nations have resources to afford better legal institutions thus historically the law has served to protect and regulate the economic activities in consideration of private and public interest. According to my economist colleagues and jurists actually industrialisation was spurred by the development of law and legal enforcement mechanisms that protects private business endeavours.
Law and legal institutions are key to sustained economic growth, as it provides secure atmosphere conducive to the growth and expansion of port operations and port-related business such as shipping activities on an international scale, which means that there is need for laws that protect and regulate the various legal relations between the parties.
My association as advisor to Karachi Chamber brought to my notice the sufferings of many exporters due to lack of understanding of documentation and infringements of negotiable instrument act, where the bills of lading created complex problem for the trade. We have been continuously pursuing with the government for National Tariff authority to regulate the unscrupulous agents and forwarders, fleecing the trade.
There appears to be some light at the end of the tunnel now, as the Ministry of Commerce and Ports and Shipping have belatedly comprehended the issues raised by the KCCI. Port operations involve the engagement in a plethora of contracts between the shipper, the shipping companies, the loading and unloading of cargo with port and private terminals, storage of goods in port facilities, the insurance of the cargo being transported.
The ports are flooded with continuous entry and exit of goods while proposed deepwater port becomes regional transshipment hub. It will bring in the foreigners. As a result, there will be increasing demand for international standards for the safety and security of ports.
International law is a body of laws applicable and binding upon all states. International law is a normative system and its mechanism provides for common good. The international law, covering ports includes: shipping laws, laws of the sea, conventions on port operations enforced by the UN, WTO, ILO, the ratified 27 conventions of IMO by Pakistan, domestic laws and the regulatory regime.
I sincerely propose that in order to determine the effects of laws, regulations and security procedures on economic development of Pakistani ports, with the objective of determining the influence of law on the economic performance of ports and also to identify lack of normative systems, as to my experience it is in quandary, thus be identified and addressed.
The significance of our study should be how to achieve the set goals and targets for our ports. I am sure that the ministry may chart a course, which will be compatible to region and the world. I must admit that my partial submission and association has educated me on the role of legality with economic development of ports and states.
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