Thursday 20 November 08 - 14:06
 

News Asia

Pakistan's port operations criticised

A report compiled by the Pakistan’s Competitiveness Support Fund has warned that high costs at its ports could actually be damaging world trade.

"High port costs and high port profits, resulting in higher charges for users, do not contribute to the goals of a sound overall economic policy, increasing openness to the world economy and stimulating trade," the report said.

The research also recognised that dwell times for inbound containers were too long and that this contributed to congested terminals, while the relatively shallow draught at Pakistan's ports will also limit future connections as larger vessels are deployed. It suggested that there was a need for additional facilities to be established.

The damning report labelled the supporting logistics sector as weak, fragmented and relatively underdeveloped, and although cargo handling charges were comparable with other ports, shipping charges were labelled as too high.

While port authorities have bathed in unnaturally good profit, the report questioned whether this was desirable given the other deficiencies.

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