Business owners from numerous industries are raising concerns regarding rising port charges at Karachi Port Trust (KPT). According to reports, the Minister for Maritime Affairs, Qaisar Ahmed Shaikh, asserted that the government will ensure that port operations remain cost-effective.
The Minister received these concerns in a meeting he presided over in Islamabad on Wednesday. He commented on Islamabad’s commitment to creating an atmosphere conducive to business and economic growth.
He conceded that the cargo charges at the port were indeed rising and outlined how important it was to reduce the running costs of port operations. Qaisar Ahmad also highlighted how important cost-effectiveness was in ensuring that Pakistan’s trade operations remain competitive.
Both the Chambers of Commerce and Industry hosted the meeting after receiving numerous complaints regarding the high port charges at KPT. Reports revealed that yarn traders and other business associations outlined the rising cost of doing business in the country because of rising charges.
Various government officials attended the meeting and agreed on the need to mitigate the financial burden that business owners were facing. The complainants commented on how the higher port charges were reducing their export competitiveness while also detrimentally impacting importers because the higher prices cut into their profit margins.
The meeting focused on revising port tariffs to make sure that KPT’s costs are in line with those charged by other ports in the region. Officials also expressed the need to reduce delays at the port while increasing operational efficiency at the port, as per reports.
KPT officials at the meeting revealed information which implied that they were likely not to be blamed for the higher costs. KPT-operated berths have lower cumulative charges compared to other berths at Karachi Port, which are operated by foreign parties. Currently, Dubai Port operates one of the two berths at Karachi Port, while KPT manages the other.
KPT officials also asked the complainants to elaborate on the issues they faced, likely to determine which side was to be blamed for the higher costs. However, reports claim that business owners who attended the meeting, most of them via a digital link, were not able to clarify which berths were charging them higher fees.
Business owners, however, will send additional details of their complaints to the ministry. This will likely give them enough time to figure out and update their complaints to include which berths their cargoes have been docking at.
According to reports, however, the KPT delegation agreed to continue to provide high-quality service to their customers while also rationalising port charges.