Businessmen are decrying the increase in terminal fees

Businessmen called for the formation of a container terminal regulator to ensure a better working environment. Photo: Archive

KARACHI:

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Senior Vice President (SVP) Saquib Fayyaz Magoon said that the business, trade and industry community is in a state of shock and disbelief over the threefold increase in container terminal fees.

The terminal fee has been increased since Karachi Gateway Terminal Limited (KGTL) took over the management of the container terminal at Karachi Port’s East Wharf. Earlier, the charges were Rs 150 per tonne but now they have been increased to Rs 480 per tonne, he said, according to a statement released by FPCCI on Tuesday.

It demanded that KGTL rationalize container terminal rates with immediate effect and any future increase should be announced two to three months in advance. Furthermore, they should not act unilaterally without engaging in consultation with relevant stakeholders.

The FPCCI SVP emphasized that shipping lines and container terminals should be brought under a strong and effective regulatory authority to put an end to exploitation of importers and exporters.

“Trade is the backbone of any economy and traders cannot be left at the mercy of container terminals,” he added.

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KGTL Managing Director Khurram Aziz Khan visited FPCCI headquarters in Karachi to interact and get feedback from the business community about their services and charges at Karachi Port. He offered to constitute a high-profile committee of FPCCI nominees to look into traders’ complaints, grievances, issues and feedback from the apex platform.

“FPCCI is the right place to work with the trading community,” he said and elaborated on KGTL’s expansion plans to develop infrastructure at its container terminal.

“We will spend $75 million over the next two years and another $100 million over five years to bring world-class, state-of-the-art and efficient infrastructure, machinery and technology to Karachi Port,” he said.

He pointed out that KGTL had signed an agreement with the Karachi Port Trust, which is under the Ministry of Maritime Affairs. “Therefore, KGTL falls under the legal jurisdiction of Pakistan.”

Published in The Express Tribune, February 28^u2024.

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