Trade via shipping to be increased to 40% by 2020

[LRE]

By Ijaz Kakakhel

ISLAMABAD: The government has prepared a comprehensive plan for improvement in Maritime Industry under which the shipping activities would be enhanced to 40 percent on Pakistani ships by 2020, which at present is only 3 percent, sources told Daily Times here on Friday.

For development of the maritime industry the government already established a task force. The task force in their meeting discussed the problems confronting the industry and their solutions. The task force considered a proposal of enhancing trade by 40 percent through Pakistan ships, which at present stand only for 3 percent, the sources maintained.

According to the sources, no ship has been registered under Pakistan flag and the task force has recommended amendment to the Shipping Ordinance 2001 to facilitate private sector ship owning. After scrapping four ships, the corporation presently owns only 11 ships and was planning to induct more ships in the Pakistan National Shipping Corporation (PNSC) fleet.

The sources further said that owing to ageing fleet, more ships would be scrapped and the PNSC would be allowed to purchase new ships to continue its operations. Due to global recession, the number of PNSC ships declined from 15 to 11 from March 2009 onwards

On contact Deputy Chairman Planning Commission, Sardar Aseff Ahmad Ali, told Daily Times that the government inked several trade agreements with neighboring countries including Afghanistan, China, Central Asian States. He suggested that non-conventional ways of improving existing infrastructure encompassing all sectors including highways, trucking, ports and maritime transport, air transport and railways.

He said that the Force on National Trade Corridor Improvement Programme (NTCIP) actively pursuing the policy of development of maritime industry along with other source of transportation including rail, roads and air. He said that the NTCIP focused to address the challenges of modernization and streamlining transport logistics, practices and customs.

The Government has signed the bilateral trade agreements with Afghanistan and such agreements are also in pipeline with other neighbors as well. Improved delivery of rail services, modernized trucking industry, reduced cost of transportation and safe, secure and reliable National Highway System could help getting the desired results, he maintained. Karachi Port Trust (KPT), Port Qasim (PQ), and Gwadar Port Authority needed further efficiency, reduced freight charges and enhanced management to attract the customers, he added. The construction of Gwader airport, he said is a step towards this progress.

The construction of cool chain systems equipped with modern state of the art technologies along with the National Trade Corridor (NTC) would help enhance the export of perishables.

The sources claimed that the higher tariff badly affected the shipping activities by Pakistani ships and said tariffs were unrealistic, Inflated tariffs severely damage exports and increase cost of imports.

For comparison, the sources said that Karchi Port cost $25000, Neva $20000, Colombo $6400, Jebal Ali $5800, Khrfakhan $4400. The Federal Excise Duty (FED) 16 percent introduced on 13th June 2009 defeats very basis of tariff reduction.

The task force in its recent meeting suggested abolishment of 16 percent FED on ships tariff (wet charges) non refundable. It also suggested that the ports must reduce tariffs to competitive level i.e. by 70 percent approximate, the sources maintained.


http://www.dailytimes.com.pk/default.asp...2009_pg5_1