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‘Port users face problems as passing of bill delays’

‘Port users face problems as passing of bill delays’


KARACHI: Port users are facing problems due to non-passing of proposed Logistics Service Providers Authority Bill 2013, said Ports, Shipping and Multi-Modal Transport Sub-Committee of Karachi Chamber of Commerce and Industry Chairman Asif Nisar Vohra.

The KCCI has liaised with the National Trade and Transport Facilitation Committee (NTTFC) of the Commerce Ministry in drafting the proposed law to help provide a regulatory regime for the logistics industry, Vohra said.

“As per our understanding a summary of the approved LSPRA Bill, 2013 was already submitted by the Commerce Ministry to the Cabinet many months ago but since 2013 till today we are still awaiting for passing of the Bill while facing many operational problems on routine basis,” he added.

Firstly, due to the absence of an authority to regulate the ports and shipping sector, the shipping lines are charging exorbitant charges in the name of free competitive rates and loose cargo landing delivery orders.

In addition, high port charges are being charged as there is no fixed policy in this regard. This is adversely affecting the business in terms of flow thus creating a negative impact for the business community, he elaborated.

For instance, the KPT CY container port charges for a 20-foot and 40-foot container were Rs 1,800 and Rs 2,800 respectively. While KICT, PICT and QICT charge Rs 10,000 and Rs 15,000 for the same, Vohra said.

Same is the situation at the Off-Dock terminals: Pak Shaheen, BOML, NLC and AICT charge Rs 25,000 per metric tonne of the total charges on a 20-foot container adding up to Rs 500,000 as the average weight of goods stuffed in a 20-foot container is 20 tonnes, which is usually shared by 7-8 importers. These rates are quite high as compared to those charged by shipping lines across the world, he added.

Vohra added, “On Saturday and Sunday, shipping companies are closed due to which container detention and demurrage charges keep on increasing day to day. We request the government to expedite the LSPRA Bill to establish an Authority to regulatory body at the earliest to help check and control shipping lines and freight forwarders highhandedness,” he added.

He also asked the government to increase the time of free days of delivery order and detention charges at the CY container yard to 21 days and detention slab of not more than $5 per day after 21 days by the shipping companies. The number of demurrage free days should also be increased to around 10 days, he added.

“PIL Lines, APL, Cosco Saeed, Universal Shipping, CIM Shipping and In-shipping companies delivery order charges are Rs 16,000 and Rs 22,000; Rs 16,000 and Rs 25,000; Rs 25,000 and Rs 25,000; Rs 38,000 and Rs 52,000; Rs 21,000 and Rs 42,000 and Rs 29,000 and Rs 42,000 for a 20-foot and a 400-foot container respectively.”

The detention charges of PIL, APL, Cosco, Universal, CIM and Inshipping shipping lines for a 20-foot and 40-foot container are $8 and $15; $10, 15, 25 and $15, 25, 35; $8, 16, 32 and $16, 32, 64; $30, 60, 90 and $60, 80, 120; $30, 60 and $40, 75 and $15, 22, 40 and $30,44,80 respectively,” he said.

Vohra said that he had written a letter to Prime Minister Nawaz Sharif four months ago for the earliest passing of the LSPRA Bill 2013. “We are still looking forward to a reply from the PM,” he added.