The premier port of Pakistan – Karachi Port cargoes and container handling were impacted in FY23 due to a challenging economic situation on the local and international front. The KPT expressed hope that since the economy is picking up, the next year handling data would reflect the progress. Karachi Port remained fully functional and operational round-the-clock basis, and its operations, including import and export, witnessed 41.85 million tons of Cargo and 1.93 million TEUs Containers at the end of the financial year 2022-23, whereas the same corresponding year, 2021-22 remained 51.71 million tons Cargo and 2.21 million TEUs Containers.
The breakup shows dry cargo Import and Export at the end of the financial year 2022-23 closed at 30.63 million tons against 36.64 million tons in the same year 2021-22. Similarly, in this financial year 2022-23, the Liquid bulk cargo Import and Export closed at 11.22 million tons compared to 15.07 million tons handled last year 2021-22.
The breakup also shows that the Import cargo at the end of the financial year 2022-23 closed at 29.08 million tons against 35.54 million tons in the same year 2021-22. Similarly, in the same financial year, 2022-23, Liquid bulk cargo Import registered 10.29 million tons compared to 14.07 million tons handled last year, 2021-22.
In continuation of the above, the break-up of Export cargo at the end of the financial year 2022-23 was 12.78 million tons against 16.17 million tons compared to 2021-22.
The Container handling at Karachi Port, at the end of the financial year 2022-23, the Import and Export, including all private container terminals, were 1.93 million TEUs (twenty feet equivalent unit) from 2.21 million TEUs handled last year, i.e. 2021-22. The breakdown shows that the import containers remained at 0.97 million TEUs against 1.10 million TEUs handled in the corresponding year. Similarly, the export containers were 0.97 million TEUs from 1.11 million TEUs a year ago.
Karachi Port always preferred to facilitate its Port users and the trade community through the best business policies; in this regard, KPT always endeavours to facilitate its Port users by adopting friendly business policies in line with the present government’s policies.
The port tariff:-
Meanwhile, KPT has announced a Tariff increase after a gap of 20 years. The decision to increase this has been made after carefully considering the circumstances. Over the past two decades, the costs of operations, maintenance and modernisation have significantly increased due to the prevailing inflation in the country and the escalation of USD. These factors, coupled with the need to adapt to evolving market demands and address infrastructure challenges, have necessitated a Tariff adjustment.
To determine the appropriate Tariff increase, KPT conducted extensive research and engaged all relevant stakeholders in consultations. The aim was to gather insights, understand the Port users’ concerns and expectations, and ensure that the proposed increase was fair and balanced. These engagements have shaped the decision-making process, demonstrating our commitment to being a responsible and sensitive organisation.
KPT Wet charges were reduced in the years 2003, 2006 and 2010 when compared to the year 1994. The Wet charges in the revised SRO 2023 are still less concerning Pilotage, Port dues and Berthing compared to 1994, even though the inflation has significantly increased. Further, a new slab of GRT 45,001 to 90,000 have been introduced in Port Dues and Berthing charges while capping on Port Dues, and Berthing charges on vessels of over 90,000 GRT have also been included to reduce the impact on vessels with high GRT calling at Karachi Port.
While the increase in Dry charges may have a marginal impact on certain sectors, it is important to note that the KPT has decided to either maintain or negligibly increase the Tariff structure for commodities like Edible Oil, food, grain, wheat, Ata, Seeds, Fertilizers, Meal, Pulses, Poultry feeds etc. The primary objective behind this decision is to mitigate any significant price hikes for essential goods that may burden the general public. It is pertinent to mention that KPT has decreased the Tariff on Transshipment through the Port of Karachi to attract Shipping activities, thus transforming KPT into a Modern Transshipment hub.
The increase in the Tariff will fuel the expense for future projects of KPT. The future projects are essential in keeping the infrastructure of KPT in line with the changing working environment of the Maritime sector.
We appreciate the trust and support of the Port users and stakeholders throughout this process. KPT remains committed to transparency, open communication and continuous improvement.