Single regulatory authority a must to save traders' investment, time

KARACHI - Traders and exporters have appealed the government to take freight forwarders, shipping agents, terminal operators and KPT under one regulatory authority so that traders investment and time could be saved. They said that the biggest issue the traders are facing at the ports is the discrepancy and overrating in charges which are highly unjustifiable and meant to inflict them, moreover, no shipping company consider their request to deal them fairly by saying that they are not under any obligation. Pakistans exports will suffer another jolt due to sudden and abrupt increase in the Terminal Handling Charges (THC) by shipping companies from April 01, 2009, while due to the prevailing economic crises and ever-increasing cost of manufacturing, Pakistans exporters are already facing tough competition in global export market. Chairman Shipping Committee Karachi Chamber of Commerce (KCCI) and Industry Nasir Mehmood, while talking to The Nation, said that one representative from KCCI and one from the government should be in the regulatory authority to facilitate traders. However, we have approached even PM to make our life easier at port handling but that is of no avail, he said. He further said that Chairperson KPT is not in their contact and we are demanding liaison between the traders and port authorities, adding that the terminal operators at KICT and PICT place their containers at KPTs space where are being charged again and this double-charging irks traders and increase the cost of doing business. He alleged that no body from KPT is in communication with them and that invigorates their torment, while at Port Qasim the customs unnecessarily put their containers on examination which results in the delay and then they are charged for that, thus this practice of customs must be stopped immediately. 'The key problem for us these days is that we are being charged unlawfully by Mass line shipping company some Rs 35,000 to 40,000 in the name of late charges, but the fact is that such delay is done from the Customs as they are more happy to put their containers on examination even when there is no need of that, he added. Such is the case for last 2 to 3 months and we did not find ay remedy from any authority be it governmental or ports, he added. It is pertinent to mention that even Federation of Pakistan Chambers and Commerce and Industry (FPCCI) which is an apex body represents the entire private sector including all chambers of commerce and trade associations in Pakistan, does not have any representation in any board including Karachi Port Trust, Port Qasim Authority, Gawadar Port Authority and Pakistan National Shipping Corporation. The members of FPCCI told The Nation about the core issues as the wharfage at Karachi port is being charged along with R & D at its terminals, while in actual there should be one charge only and in case the services are provided by terminal operators only R & D should be charged or wharfage only. The charges at terminal operators are rather expensive which should be rationalised, while no rent in the other heads should be charge in case of demurrage. They said that Karachi Dak Labour Board must be dissolved as the labour employed by the board is unskilled and lot of exports cargo has been lost because of this unskilled labour. In the present global scenario, port tariffs in Pakistan are extremely higher in comparison of regional competitors, therefore, these charges must be reduced at least by 25 percent in order to make exports competitive, they added. One of the central appeals of the traders is that after getting examining order from the customs authorities, if terminal operator fails to ground the container within 24 hours, who is bound as per contract to ground within 6 hours, must waive delay charges (demurrage), and waiver of demurrage should be provided in case of the failure of terminal operator or custom authorities or the shipping line.

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