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The most exciting project in Pakistan today is Gwadar
port and the multitude of activities associated with
it. These include a 650km coastal highway from Karachi;
an airport to handle Boeing 747s; the Mirani dam to
supply water; a tax free Special Economic Zone; an
Industrial Zone; an Export Processing Zone; an Institute
of Technology, a Vocational Training Institute; power
plants for electricity; a hospital; a college; schools;
a tourist resort; a five star hotel etc. Billions
are being spent on all these activities. The Prime
Minister and his Finance and Communications Ministers
have made powerful statements about this being virtually
the engine for the country's prosperity in the 21st
Century, a transshipment hub and a gateway to Central
Asia and beyond. Baluchistan's Governor and Chief
Minister are also loudly proclaiming the promise of
prosperity for the deprived people of the region and,
indeed, of the whole nation.
The concept is brilliant. A brand
new transshipment port at the mouth of the Persian
Gulf, linked by fast and efficient roads, railways
and pipelines to Central Asia, can change the very
concept of trade and commerce in the entire region
and bring immense prosperity to Pakistan. It has taken
years to develop the concept. Thousands of man-hours
and hundreds of meetings have led to bringing all
the interlinked projects on stream. It is indeed very
commendable.
But there is a serious flaw. What
about ships ? In all the rhetoric at the highest provincial
and federal level the word "ships" is prominently
missing. You cannot have a port without ships. Where
are the ships? Which owners are considering coming
to Gwadar ? After all, it takes them a fair while
to change their trading patterns, particularly for
transshipment. You need the main line mother ships.
And then the smaller feeder ships. Where are the incentives
for the shipowner ? Are they to go by their dismal
experiences at Karachi and Port Qasim, both of which
are inefficient, non competitive and grossly under-utilized,
with berths going a-begging ? Or is there a new regimen
in place ?
Just 25 years back Karachi was the
finest port north of Bombay. Now a number of ports
have come up in the region, several of them far more
efficient, economical and ship- owner friendly. They
do not have the oppressive rules and regulations that
Karachi is chained by. Nor the gleeful parasites from
the FIA, Customs Intelligence, Dock Security, Coast
Guards, MSA, Naval Intelligence and other agencies
swarming over visiting ships under the grossly misused
garb of "national security". Nor do they
face extra-ordinary charges which make Karachi's tariffs
one of the worst in the world. Just one example may
suffice. For almost 30 years Karachi is charging shipowners
and agents about a dollar a ton towards a charge called
the "dock labour cess." This charge, unique
to Karachi, non-existent anywhere in the world, goes
towards paying a quasi-mafia of 4,700 workers approximately
Rs. 15,000 a month each. Nobody wants these workers,
who are costing almost Rs. 700 million a year for
doing nothing. Everyone knows they are a parasite,
their shenanigans chasing shipowners way. But despite
all the pleadings of shipowners and agents and, indeed,
of the port management itself, neither the communications
nor finance nor law ministries have applied themselves
to removing this aberration from the charges which
shipowners have been forced to pay for 30 years. Such
charges have priced Karachi port out of the regional
market. Superimposed are the plethora of abrasive
regulations which, compared to other ports in the
region, are so offensive that shipowners shy away
from Karachi and go instead to friendlier, cheaper,
more efficient ports, of which there are plenty in
the region. It is these user-friendly ports which
are the competition to Gwadar as a transshipment hub.
As for the Central Asian trade, Iranian ports like
Bandar Abbas are already well-linked to Central Asia
by road and rail. Not forgetting the new port that
the Indians are building in Iran, next to our border
and close to Gwadar, to minimize Gwadar's advantages.
Besides inducing foreign shipowners,
a port also thrives on the myriads of needs of its
own national fleet and maritime craft. The pitiful
state of our two ports in surpassed only by the pathetic
state of our shipping fleet. From a proud fleet of
a hundred ships in 1971 we are now down to a miserable
dozen, most of which are old, dilapidated and on their
way to the breakers yard as well. By comparison Bangladesh,
which had zero ships in 1971, today has over 200.
Iran, Kuwait, the UAE, Saudi Arabia and India all
have fleets larger than ours. Gwadar will be denied
the vital advantage of a home fleet as it attempts
to become the engine of our nation's prosperity.
A port needs many other things besides
ships. It needs efficient pilots,tugs, pilot boats
and port management staff. As a planned "landlord"
port it needs private sector shipping agents and clearing
and forwarding agents; banks to handle ship and cargo
transactions; stevedores ; shipchandlers and tally
men; dock labour; gantry and crane operators; cargo
brokers and surveyors; all of whom must come from
some where. A good port must also have bunker and
water suppliers; classification surveyors; dry docks;
repair and maintenance facilities; stores and spares;
not forgetting lawyers and courts to handle the inevitable
cargo claims; and user friendly bureaucrats to regulate
the port's activities in a competent manner.
With all the hinterland infrastructure
planned to be in place in just over a year's time,
serious attention must be paid immediately on how
to make the port of Gwadar work, how to get ships
to come, how to draw new business. If this is left
unattended, it will only add Gwadar to the list of
several thousand ports around the world bereft of
shipping business. Like Islamabad's beautiful Convention
Centre which has fine exhibition halls, luxury seating,
excellent air-conditioning, and other facilities –
but no Conventions - this would become another white
elephant with no ships – just lovely jetties
and sheds and roads and runways and housing estates.
At best it may induce some ships away from Karachi
and Port Qasim, both of which can ill afford to lose
any of their already dwindling business. Nothing could
be more damaging than to add to the unemployment in
Karachi at the cost of making Gwadar operational.
Not forgetting the effect it would have on inter Provincial
harmony.
The remedies are there, of course.
It needs the will, combined with a very high degree
of professionalism. In today's world, professionalism
in even the simplest of activities is a must. And
a good port is a very complex operation. Alas, such
professionalism is sadly lacking even at the highest
levels. The Law Ministry has lawyers, draftsmen and
judges. The Health Ministry has doctors. Education
has teachers and professors. Finance, Economic and
Planning have professional expertise. Defence has
generals and admirals. The ministry running shipping
does not have a single mariner – yes, not a
single mariner. It has an outstanding police officer
heading it, with fine officers of the Secretariat,
DMG and other groups assisting him. But no mariners.
Nobody who knows ships. Or ports. Or the maritime
industry. No wonder they drift aimlessly while the
entire shipping industry has slowly died away. A dozen
or more Master Mariners, Chief Engineers and commercial
shipping men need to be inducted at all levels in
the ministry, who can at least begin to speak the
mariners language in Islamabad's bureaucratic corridors.
This is simple enough to do. The prevailing ills of
bad regulations and oppressive charges can also be
easily done away with through sheer professionalism.
For Gwadar to really take off, a
piece-meal approach will not work. A re-appraisal
of the entire merchant shipping industry is necessary,
which again is simple to do, but only by professionals.
The recently enacted and very shoddy Shipping Ordinance
has killed any possibility of a revival of shipowning
in Pakistan, as is obvious from the fact that not
a single shipowner has expressed an interest to fly
the Pakistan flag since its enactment. And the entire
manning of the ports and shipping organizations needs
revamping. The PNSC, with a tiny fleet, has a Vice
Admiral (that's a Corps Commander's rank!) out of
a total of seven admirals working in Ports and Shipping
at Karachi. Some of them are outstanding officers,
others marginal. But their training and background
does not prepare them for working in the shipping
industry. None of them would qualify for an equivalent
job anywhere in the world, the world in which Gwadar
and our maritime industry have to compete for business.
It is like putting an airline pilot or a heart surgeon
in command of an army corp. He may be outstanding
in his field, but will inevitably be a disaster for
the army. The same is true for the shipping industry.
Perhaps a professional high level maritime authority
needs to be established, to oversee the working of
the entire industry, to revamp its archaic regulations
and to entice new business to Pakistan.
The stakes are very high. The
government has pledged billions of the nation's scarce
resources towards the viable dream of a thriving port
at Gwadar for national prosperity. It now needs nothing
more than introducing professionalism at every level
in the maritime field. Otherwise the nations hopes
and dreams will surely founder on the craggy coast
of Baluchistan.
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