Port Qasim to introduce open bidding for stevedoring to cut high charges

The Port Qasim Authority (PQA) has decided to introduce open bidding for stevedoring companies in an effort to reduce high handling charges linked to limited competition at its terminals, Business Recorder reported. 

The decision was shared during an inter-ministerial meeting convened to address issues faced by exporters and importers amid rising shipping costs and logistical disruptions.

Industry representatives said stevedoring charges at Port Qasim’s FAP terminal are around $8 per ton, compared to about $3 per ton at Karachi Port Trust, along with longer vessel waiting times. They also highlighted the imposition of war surcharges by shipping companies, including on cargo already in transit, increasing costs for traders.

Concerns were raised over shipping lines allowing cargo to be discharged at alternate ports, with one case involving offloading at Khor Fakkan after a voyage was cut short.

Officials said the Ministry of Maritime Affairs has engaged with shipping companies, customs authorities and industry stakeholders, but further action is needed to address the situation.

The meeting also discussed issues related to Bills of Lading being withheld due to third-party disputes, leading to delays and higher demurrage costs, with a proposal to issue a notification preventing such practices.

To address shipping-related challenges, a sub-committee has been formed comprising representatives from customs, ports authorities, shipping bodies and the private sector.

The committee will focus on issues including war surcharges, documentation disputes and disruptions to cargo movement.

Officials said efforts are also underway to engage with international insurers after Pakistani ports were classified as higher-risk locations, contributing to increased shipping costs.

PQA said it will work with terminal operators to rationalise charges and improve vessel handling, while confirming that export cargo charges at Port Qasim and Karachi Port have already been reduced by 50%.

The authority also stated that vessel berthing would be facilitated subject to space availability, with priority for export consignments such as rice.

Customs officials informed the meeting that around 2,000 containers are currently under auction, with efforts underway to speed up the process and reduce port congestion.

Karachi Port Trust also announced a full waiver of demurrage on auctionable containers if cleared within seven days, while a joint committee has been formed to resolve pending cases.