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Adoption of shipping policy welcomed

MUZAFFAR QURESHI

KARACHI: The shipping sector has welcomed the adoption of the Shipping Policy for 2000 and Merchant Shipping Ordinance by the Cabinet Committee on Ports and Shipping (CCoPS) and said that the enforcement of the new shipping documents would result in creating a national merchant navy and turning the ports cost-effective.

Farouq Rahimtoola, chairman Pakistan Ships Agents Association (PSAA), and Farrukh Qaisar, Chairman All Pakistan Shipping Association (APSA), especially lauded the Chief Executive's directive that the management of the Karachi Port and Port Qasim be corporatised to encourage private sector's participation in their projects.

Farouq Rahimtoola said that this was the first time in the history of the country that a shipping policy had been approved by the government. A policy was drafted in the previous government's regime but it was never presented to the cabinet for enforcement.

The new policy will usher a revolution in the ports and shipping sector and would help to establish a national shipping fleet in the private sector which was the dire need of the economy as at present over 90 percent of imports and exports were carried by foreign shipping which every now and then arbitrarily increased freight making national exports uncompetitive in the world market.

Farouq lauded the provision of First Right of Refusal for cargo provided to the PNSC and Pakistan flag vessels in the new policy and said that permission for buying an oil tanker by the PNSC was also a positive move. The new policy would govern all aspects of ship-owning, chartering, training and recruiting of crew, he added.

The PSAA chairman welcomed the adoption of the Merchant Shipping Ordinance 2000 and said that the new statute would replace the outdated Merchant Shipping Act of 1923. The new ordinance would update the rules in the shipping sector as shipping through containers had not existed at the time of framing of the old Act.

Farrukh Qaisar said that the shipping policy, which contained a number of suggestions made by his association to the Chief Executive would go a long way in the development of ports and shipping sector.

He said that the new policy had upheld the landlord concept for the ports leaving the execution of projects in the private sector which had been an outstanding demand of the shipping sector. He expressed the hope that with the participation of the private sector in the development and management of ports both the major ports of Karachi would become cost-effective.

Farrukh said that the chief executive while presiding over the CCoPS had stressed the need for corporatising the Karachi Port Trust and Port Qasim Authority which would expedite the development of infrastructures to facilitate the port-users.

He said that under the new policy the ports would have their own arrangements to provide utilities to the port-users instead of leaving the task of supplying water and roads to the civic bodies which were not very efficient.