KARACHI: Despite the technological development in local ports and shipping industry, laws regarding seaborne trade in the country seem to have been outdated.
Consequently, a majority of the prevailing disputes endangering seaborne trade in Pakistan have failed to achieve an amicable solution. The stakeholders and analysts believe that there is a pressing need to update, through amendment, the relevant rules and regulations, the absence of which is posing an incipient threat to local ports and shipping industry.
A lingering dispute between Lucky Cement and the Karachi Dock Labour Board over the issue of employment at Karachi Port cements the aforementioned claim. The labourers, referring to the KDLB Act 1973, have demanded operators of Lucky Cement to hire their working gangs for handling ships at the facility; however the latter finds no logic for manual work at the fully-automated facility.
According to dock worker, the labourer-friendly KDLB Act does not allow parties at Karachi Port to employ workers not registered with the Board regardless of the nature of work.
The case has lingered in local courts with handling of ship and cargo at the dedicated facility witnessing intermittent dockers’ strikes and the resultant stoppages of work.
The standoff and incidents like work halt at the cement ships by the protesting labourers have gained momentum, something that inarguably reflects negatively on the cost of doing business in the country. Thanks to the port penalties like ship demurrage, port demurrage etc.
Analysts believe that such developments and quarrels are not only posing risk to the country’s seaborne trade, but are also inflicting an irreparable reputation damage on the crises-hit Pakistan.
The authorities have again acted apathetically and no concrete measures have been taken to form an amicable and sustainable solution to the row. The recently-commissioned grain, fertiliser and storage terminal at Port Qasim has also fallen victim to the same dispute faced by Lucky Cement.
According to sources, the country’s first dedicated Grain and Fertiliser Terminal, which was constructed by a three-member joint venture at a mammoth cost of $ 135 million, could not start smooth cargo handling on Wednesday. They said that the terminal, which is envisaged to help the funds-starved government save at least Rs 6.0 billion annually on account of logistics costs and shipping freight,
was scheduled to start cargo handling on December 1, 2010 with the arrival of Greece-flagged M/v S.D Glory bringing around 49,000 tonnes of canola seed from Vancour. M/v S.D Glory arrived at Port Qasim on Tuesday and was berthed at the newly-built terminal at around 1 pm on Wednesday, but a protest by a union of the labourers marred the smooth startup.
Over a dozen vehicles of law enforcement agencies from Pakistan Rangers and police rushed to the Terminal in the afternoon to control a possible law and order situation. “The stevedores are demanding work at the terminal, while the operators say that they need no manual work at the automated facility,” said an official privy to the issue.
However, sources said, the port operators employing daily wagers had managed to start work at the terminal with dozens of dock workers protesting outside till the filing of this report. “The Rangers and police are there to maintain law and order as the dockers are still protesting,” they added.
Grain, Fertiliser Terminal, developed by Fauji Akbar Portia (FAP), Fauji Foundation and National Bank of Pakistan on built-operate-transfer basis, has a declared four million tonnes of annual throughput capacity and the ability to accommodate vessels of 80,000 DWT.
