ISLAMABAD: Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry on Wednesday announced a unified transshipment incentive package offering major concessions at Karachi Port and Port Qasim to cut cargo handling costs and attract regional shipping traffic.
The package, jointly introduced by the Karachi Port Trust (KPT), Port Qasim Authority (PQA) and their container terminal operators, includes reductions in wet charges, wharfage, storage fees and terminal handling charges for containerised, bulk and break-bulk transshipment cargo.
Giving details of the framework, Chaudhry said the incentive framework introduces a slab-based concession on Port Wet Charges for vessels carrying transshipment cargo (containerised and bulk/break bulk cargo). Vessels with 5-10 per cent transshipment cargo will receive a 20 per cent concession, increasing to 30 per cent for 11-25 per cent, 50 per cent for 26-50 per cent, 70 per cent for vessels carrying 50-90 per cent transshipment cargo (minimum 2,000 TEUs for container vessels) and 80 per cent for vessels carrying 90-100 per cent transshipment cargo (minimum 3,500 TEUs for container vessels).
In addition, KPT will provide Wharfage concessions ranging from 20 per cent to 80 per cent (for 70 per cent, minimum 2,000 TEUs for container vessels whilst for 80 per cent minimum 3,500 TEUs for container vessels),14 days of free storage at terminals and 30 days of free storage at the TPX cargo area of KPT under agent responsibility. PQA will grant 100 per cent Wharfage concession together with seven days of free storage at terminals, extendable to 21 days at PQA for cargo movement under agent responsibility.
To complement the port incentives, Pakistan’s four major container terminals have also announced substantial reductions in Terminal Handling Charges (THC) for transshipment containers. Karachi International Container Terminal (KICT), South Asia Pakistan Terminals (SAPTL), Karachi Gateway Terminal Limited (KGTL) of Karachi Port Trust whilst Qasim International Container Terminal (QICT) of Port Qasim Authority will offer Terminal Handling Charges (THC) concessions of 10 per cent on 5-10 per cent of Transshipment Cargo manifest, 20 per cent on 11-25 per cent of Transshipment Cargo manifest and up to 25 per cent for more than 25 per cent of Transshipment Cargo manifest. These incentives apply to both 20- and 40-feet containers and significantly reduce the overall handling cost for shipping lines.
The minister said the new framework replaces all previous transshipment concession notifications and SROs with a single, transparent and performance-based regime applicable at both Karachi Port and Port Qasim.
KPT Chairman Rear Admiral (r) Shahid Ahmed said the package is expected to lower transshipment costs, attract additional mainline shipping services, improve vessel turnaround times and increase regional cargo volumes through Pakistani ports.
