Rs 90 million go in air daily

Change in NATO supplies route

By Jawwad Rizvi
LAHORE: Change of NATO supplies route from Pakistan to the Central Asian Sates (CAS) will cause some over Rs 90 million daily losses to the local economy.
Different segments of cargo business involved in the NATO supplies from Karachi ports to destination points of Afghanistan are getting good business from it on daily basis. The News has conducted a study from the different cargo companies, custom clearing agents, truckers, cargo handlers and others involved in moving the cargoes of NATO, ISAF and US government officials working in Afghanistan has found that a 20 feet cargo container creates an activity of some Rs 3 lakh for local economy other then the amount goes into the government kitty from different ways.
It has found some 300 and over cargoes containers are moving from Karachi ports to the different destinations in Afghanistan. Thus to move these containers an average economic activity in local economy is generating Rs 90 million daily. Thus in month the loss will be accumulated to Rs 2.7 billion and annual loss will be cross to Rs 32.4 billion.
On the other hand the ports have also been generating handsome amounts from the NATO, ISAF and US government officials’ cargoes in tune of port handling charges, wharfage charges, and demurrage charges as inflow of traffic at Karachi ports have substantially increased since the US intervened in Afghanistan. The News from the study has found from the different sources that almost 40 per cent of Afghan cargoes of different agencies are is clearing out of total importing cargoes container. Inflow of Afghan cargoes at the start of US arrival was almost 1000 containers when the US started setting up its bases in Afghanistan. However, now it has reduced to almost 300 containers daily. These containers bring the supportive material for the NATO and ISAF forces and US officials to run their affairs.
Interestingly, the cargo handling companies providing services to the NATO and others are many time are unaware about the cargo they were moving it from Karachi to Afghanistan.
CEO of one of the cargo company disclosed The News on the request that his name will keep secret NATO representative are deputed in the cargo companies which are providing service to the NATO. “The person directly keep liaison with the CEO while other employees remained ignorant about such move”, he added. Currently two big shipping lines of the world APL and Maersk are moving NATO, ISAF and US officials.
Another CEO of one of the largest private cargo company of Pakistan which is also dealing with the NATO supplies revealed on the condition of anonymity it will be great loss of the country when the NATO supplies will move from Pakistan to CAS. “Every state of north is offering its services to the US for NATO supplies” he said adding that the US also announced to move its NATO supplies traffic to CAS. Even Russia is also willing to provide its route for NATO supplies, he added. This shows how big economic activity is involved in it.
The role of National Logistic Company (NLC) is crucial in the all cargo traffic of NATO. No cargo company can move any cargo of NATO without the No Objection Certificate (NOC) of NLC. The NLC charge Rs 15000 to Rs 25000 for issuing ‘Covey Note’ to the transporters and private cargo company. Similarly, the NLC also charged Rs 1000 against every cargo moving to Afghanistan in tune of some security charges. On the other hand now FC is also started charging Rs 500 for each container moving to Afghanistan. An official of NLC on the request of not mention his name said the Company always exactly knows what is moving in the containers. However, many times cargo handlers was unaware about the shipments details even the people at the port also not know about the shipments details, he added. He also added a good business activity has been continued in logistic and cargo business through such supplies and it will affect if it will diverted to CAS. However, he was of the view that it is not as easy for NATO, ISAF and US officials to move their cargo from CAS as it depicting through their statements. By using Pakistan’s corridor their supplies usually reached to their destination within five to seven days from Karachi port to Afghanistan’s destination but by using CSA it will take minimum 20 days and some time more duration, he added.
If calculate the port handling charges of Pakistan International Container Terminal (PICT) is Rs 7388 for 20 feet containers and Rs 8718 from 40 feet containers. The wharfage charges at PICT including weighing and examining charges are 8379 if it clears through scanning then it become Rs 9204 for 20 feet containers. Similarly, the PICT gets huge amount in tune demurrage charges if the shipments clearance delayed.
Similarly, the cargo and trucking industry which is factually not documented anywhere so comprehensive data is not available but creating a large number employment. An average diesel consumption of for moving cargo from Karachi to Afghanistan is over 1200 litre. The government is also earning some over Rs 25 per litre from diesel. Thus the government is also getting a reasonable amount from the trade.
The drivers move NATO supplies trucks from Pakistan to Afghanistan are also charging three times more service charges then routine. Allah Muhammad running its trucks fleet from NWFP to Afghanistan initially refused to give any information by saying this is very risky business. Latter when asked again he disclosed they paid three times more wages to the drivers who drive the trucks of NATO supplies. However, he not given the rates saying it is his trade secret. The News from different other sources has found that the derivers who bring NATO supplies trucks charges Rs 1500 to 2000 per day.
General Manager Col Khalid Staff Officer of Director General NLC Major General Itiaz regarding the role of NLC in NATO supplies, he said he will not suppose to give information. “Even if I have information I will not divert it to anyone”, he added. When asked to pass on call to DG NLC, he (Col Khalid) refused and said he was not allowed to do so.
Meanwhile, The News has contacted other senior officials of NLC to ask the role of NLC in the whole supplies operations of NATO, ISAF and US government. However, no official of the NLC has come on the record saying that they were not allowed to spoke on this issue.
Brig Fahim director freight services of NLC posted at Karachi when asked about the NLC role, interestingly he replied NLC freight services does not handle NATO goods.

The news item was published in The News Islamabd front page on Jan 28 2009 and in Lahore front page on Jan 29 2009