According to Kashif Hussain, a Tribune author, there is a rush of imported containers at Pakistan’s terminals, but the storage space for them has run out. This has caused a major decrease in income for terminal operators due to a lack of clearance, which has halted the huge amount of revenue usually received by these terminals.
The Pakistan International Terminal (PICT), a private terminal at Karachi Port, has had to acquire additional space in the KPT yard adjacent to the terminal to store imported containers. However, this has resulted in rent and storage costs becoming burdensome.
The CEO of Pakistan International Container Terminal, Khurram Aziz Khan, explains that the current situation, along with the foreign exchange crisis and import barriers, has created difficulties for the terminal operators. PICT is a publicly listed company and has to take care of the interests of its shareholders, while also paying dividends on foreign shareholding, he lamented.
Khan believes that the lack of profit on their investment is making it difficult to attract foreign direct investment. He urges the government to focus on trade and industry, instead of trying to solve the foreign exchange crisis.
The export sector is also affected, as their import consignments are lying at the port, with which they have to manufacture and export products. Despite the unfavorable conditions, the terminal has waived charges of Rs 32 million, in order to provide some relief to the industry. Khan adds that KPT must also waive its storage charges on the containers.
Terminal operators themselves are facing difficulties in the clearance of spare parts, and importing spare parts from Turkey for necessary maintenance is becoming difficult.
Khan highlights the importance of renewing the terminal’s 21-year concession agreement, as he fears a monopoly forming at the port for which trade will bear the loss if this does not happen.
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