National Transport Policy
Prepared by
The Chartered Institute of Logistics & Transport Pakistan (CILT)
formerly
The Chartered Institute of Transport Pakistan (CIT)
October 1998

Contents

1.  Forward

6.  Maritime Transport

2.  Preamble

7.  Aviation

3.  Common Policy Matters

8.  Multimodal Transport

4.  Roads & Road Transport

9.  Acknowledgment

5.  Railways

 

  Forward                                                                                                         go back

Chartered Institute of Transport Pakistan is a professional body of transporters with a membership of over 900. The Institute has been rendering yeomen but a silent service for the cause of transport during the last 20 years. Because of the profound knowledge and rational views of CIT organizations at international level, the Institute has an advisory role on transport issues to governments and legislatures. Similar offer by CIT Pakistan in the past was not reciprocated. It is a happy augury that the present government has realized the importance of CIT Pakistan as an advisory body.

In June 1998 the Ministry of Communication has given a mandate to CIT Pakistan to draft a National Integrated Transport Policy. It is coincidental that CIT had already undertaken this task in 1997 as part of service to the national transport sector. After receipt of the mandate from the Government, the earlier draft has been updated and modified. All the five modes of transport (Road, Rail, Maritime, Aviation and Multimodal) have been considered on a standard pattern of "Current Status" and "Policy Guidelines and Recommendations. The current status provides a back-ground information whereas the second part incorporates a comprehensive material for drafting an Integrated Transport Policy for Pakistan. In spite of the importance and role of transport for economic progress of any country such a policy has not been evolved so far. We hope that this effort of CIT will result in enunciation of the National Transport Policy without further delay. 

The following members of CIT with an intimate knowledge of various modes of transport have contributed their precious time and effort in compiling this policy paper:

a)   Road Transport
i. Brig(R) S. S. A. Qasim, Hon. FCIT
ii. Dr. M. Tahir Soomro, FCIT

b) Rail Transport
      Mr. M. Junaid Qureshi, MCIT

c) Maritime
      i. Capt. Khawaja Raffat Zaheer, FCIT
      ii. Mr. Javaid Mansoor, FCIT

d) Aviation
      i. Mr. Badshah Gul, FCIT
      ii. Mr. N. H. Hanafi, FCIT

e) Multimodal Transport
      Mr. Bashir Ahmed, FCIT

Engr. Zaheer Mirza, FCIT as a senior consultant of Pakistan and Fellow of the Institute has also offered valuable advice.

I would like to thank all the above members and congratulate them on their commendable effort in drafting this policy.

Chairman CIT Pakistan

 

Preamble                                                                                                        go back

1.   A strong economy is the major objective of any government. Good communications and efficient transport systems is a necessary prerequisite for a strong economy. Therefore, importance and role of transport for economic progress of Pakistan can not be over emphasized. Development of an Integrated Transport System can take place only within the frame work of a clearly formulated National Transport Policy. In spite of this, a coherent and Integrated Transport Policy has not been finalized so far. Consequently transport sector has not found its due importance and priority in our Five Year Plans.

2.   Apart from the importance of transport for national development and economic progress of a country, movement of people and goods in the modern world has become a highly specialized subject. This trend of improvement in establishment, operation and maintenance of transport infrastructure will continue during the new Millennium. It is therefore necessary that a clearly laid out national policy should be enunciated by the government as early as possible so that Pakistan enters the 21st Century with a clear cut perception of its role in the development of the national economy.

3.   In the absence of a transport policy, the progress of transport during the last 50 years has been erratic and unbalanced. Nevertheless it is a credit to the managers of various modes of transport in Pakistan that the country has made a significant economic progress. With a clearly enunciated transport policy, Pakistan has the potential to accelerate the pace of progress and make up for the lost time.

4.   While framing the National Transport Policy the following elements have been kept in mind:

a) Transport is complex in terms of its technology and operational characteristics. It is further complicated by joint involvement of private and public sector enterprises, which gives rise to a multitude of problems. It is therefore important to identify the root cause of the problem and focus on alleviating the major difficulties.
b)  An integrated transport policy is not the panacea of all ills. Problems are bound to persist and efforts should be made to create institutional arrangements to continuously monitor each sector and identify any serious problem in its initial stage before it gets out of hand.
c)  Transport is a specialized field, which requires expertise, adequate experience and professionalism.
d)  The policy must have a scientific bias which should be tempered with political realities and popular public support. It should be consistent, politically acceptable and realistic within the framework of the available resources. It should be in line with the socio­economic conditions prevailing in the country.
e)  As transport is on the Concurrent List of Pakistan’s Constitution, implementation of road transport policy should be decentralized to the Provinces.
f)  Transport infrastructure is highly capital intensive and requires large investment spread over decades. Stress should be laid on achieving maximum benefits from the huge investments made in these projects which have long gestation periods (7-10 years).
g)  The goal must be to run the entire integrated transport system and each individual transport mode with the utmost efficiency and economy.
h)  Deregulation of the industry is necessary to harness the full potential of the private sector in providing a dynamic, competitive and efficient system.
i)  Privatization has become an essential element of transport policy.
j)    The transport sector by virtue of its very nature is fragmented. It is therefore necessary to ensure maximum coordination, not only within the individual mode but also amongst the various transport modes.
k)   For providing quality transportation services the system must be self-sustaining and the user must pay the full cost of the transportation service.
l)  Environmental aspect should have a high priority in framing the national transport policy.
m)  Transporters operating services to educational institutions at concessional rates should be adequately compensated for the service.

5.   The principal aim of this National Integrated Transport Policy is to provide Pakistan with the framework for building a modern integrated transport system, which will assist the nation’s march towards progress and prosperity in the twenty-first century. This policy document provides guidelines, which if implemented, would ensure that Pakistan will have a network of integrated transport system and an improved functioning of the distribution logistics chain.

6.   Like all other spheres of human activities, National Transport Policy is not a Magna Carta. It has to be modified, adjusted and brought up to date from time to tithe. It is therefore recommended that National Transport Policy should under-go periodic review and necessary modifications and improvements made.

7.   It may be added that National Transport Policy laid down by the Government of Pakistan has to be given a practical shape and implemented as a part of the National Development Plan flamed on a Five Yearly basis. The implementing agencies may be either at the governmental level (Federal, Provincial or Local Bodies) or under the private sector. In the context of the present international trend towards privatization and deregulation, bulk of the implementation for different modes of transport will have to be under-taken by the private sector.

8.   It is imperative that an integrated transport policy must be evolved. Otherwise disintegration of individual modes may ensue.

9.   The policy for different modes of transport has been enunciated under the following heads:

a)  Common Policy Matters for transport sector as a whole.
b)  Roads and Road Transport.
c)  Railways
d)  Maritime Transport including Ports and Shipping
e)  Aviation including Air Transport (Airlines) and ground facilities
f)   Multimodal Transport

Common Policy Matters                                                                              go back

1.   All modes of transport have a role to play in movement of men and material. A common transport policy applicable to all modes is to move people and goods efficiently, economically and safely in an environmentally sustainable framework.

2.   Development of all modes of transport should be under a fair and impartial regime. Individual modes should not receive any preferential treatment.

3.   The implementation of the policy should recognize and preserve inherent advantages of each mode. Further it should be guided by market forces and ensure fair wages as well as equitable working conditions.

4.   The objective of the Integrated Transport Policy should be to meet the commercial needs of Pakistan, and encourage tourism. The dictates of national defense and emergencies should also be kept in mind.

5.   Transport as a whole be declared an “Industry” imbibed with all the freedoms and privileges which accrue to an industry.

6.   Transport should be placed under one ministry to ensure a coordinated and cost effective development of all the modes according to their inherent advantages and disadvantages. Ministry of Transport should have a simple and functional organization.

7.   In the past transport infrastructure has been the sole responsible of public sector. Under the revised policy, private sector also should play its part in infrastructure development.

8.   Under the new transport policy, public sector elements of transport industry should be competitive. Hence they should not be subjected to Red Tape and Governmental interference but should be given full commercial freedom.

9.   With the emphasis on privatization and deregulation in the transport sector, all existing laws (Acts / Ordinances) under which different modes of transport are operating have to be reviewed and modified. This is a very important task which has to be under-taken by the Transport Ministry.

10. Safety is an important element of all modes of transport. It is therefore essential that a ~ingle Safety Board under the Ministry of Transport should be established to ensure a coordinated approach and achieve economy.

11. Without financial provision, transport policy cannot be implemented. It is therefore imperative that adequate financial allocation must be made for each mode by the public or private sector. Financing of transport infrastructure may have to be made on a BOT, BOO or BOOT basis.

 

Roads and Road Transport                                                                        go back

Current Status

1.  Roads and Road Transport are a vital element of the transport sector and cover the following:

a)  Roads
b)  Highways and Motorways
c)  Road Transport which includes both Passenger and Freight
d) Urban Transport including Mass Transit System

2.   Roads and Road Transport are on Concurrent List of Pakistan’s constitution and are being coordinated by the Ministry of Communications at the Federal Level and the respective Provincial Governments for Provinces.

3.   Current state of Road Sector in Pakistan is as under:

a)   The existing road net-work is only 145,000 kms which gives a density of 0.18 km per square km of the area as compared to 0.5 kms / sq.km which is considered as the bare minimum for sustaining the economic development of a country.

b)   The major deficiency is in case of rural/farm-to-market roads.

c)   The existing physical state of primary and secondary road network is far below the acceptable standards due to lack of proper quality control for construction and maintenance.

d)   A major problem is the extent of encroachments both on urban as well as intercity roads.

e)   Another serious problem is of truck over-loading which is resulting in heavy damage to roads.

f)    The following deficiencies are creating increasing traffic congestion, accidents and environmental problems:

         I.     High level of motor vehicle growth
         II.    Lack of pedestrian facilities
         III.   Lack of road safety awareness
         IV.  Increasing number of traffic violations
         V.   Poor enforcement of traffic regulations
         VI.  Lack of traffic control devices
         VII. Uncontrolled parking
         VIII. Non-availability of bypass routes
          IX. Lack of interagency coordination
          X.  Lack of priority based on demand

4.   Current status of highways and motorways is as under:

a)   Lahore - Islamabad Motorway is completed and was opened to traffic in November 1997.
b)   Islamabad - Peshawar Motorway is under construction.
c)   Various other highway projects are in different stages of completion by the National Highway Authority.

5.   The Road Transport Corporations working under the respective Provincial Governments have been abolished and a new pattern for Road Passenger Transport has not yet emerged.

6.   Urban Transport System in Pakistan is the most disorganized. Although, Pakistan has many urban areas of over a million population and Karachi is one of the mega cities of the world, no Mass Transit System exists in the country in spite of the fact that a National Mass Transit Authority was established about 3 years back.

Policy Guidelines

7.   Roads and Highways

a)   Roads of Pakistan should be classified as follows:-

      I.      National Highways and Motorways
      II.      Strategic roads in the border areas
      Ill.      Provincial roads
      IV.      Local bodies roads
      V.      Rural access & Farm to Market Roads (FMR)

b)     Maintenance and up-keep of the roads must be ensured with a planned program

c)     Responsibility for construction and maintenance of the roads should be as under

I.       National highways, motorways and strategic roads - Federal Government
II.       Provincial roads including farm to market roads respective Provincial Governments
III.     Local body roads including the Metropolitan areas (where more than one type of a local body e.g. cantonment boards, autonomous bodies etc. are operating) - local body concerned

d)   Road Maintenance Fund should be established

e)   Because of the limitation of financial resources, priorities for construction and development of roads should be clearly spelt out and adhered to.

f)     Privatization of Road Maintenance should be resorted to under a phased programme

g)   Toll Ways should be established on selected highways

h)   56,000 kms of canal roads should be opened to the public.

i)    All village/farm-to-market roads, in the first instance be constructed as gravel roads as per specifications developed by the National Transport Research Centre (NTRC) which costs only 1/8th Of a comparable black top road but provide equally dependable all-weather connection. Their improvement to higher specification may be undertaken by stages.

8.   Road Network and Land Use

      Transport and land use have a direct and intimate link. The following policy measures should be incorporated:

a)   Development and implementation of a zoning plan to separate incompatible and conflicting land use and the traffic they generate.
b)   Land use should be planned with the aim of minimizing travel and maximizing accessibility to public transport.
c)  Activities which generate substantial traffic should be located adjacent to roads most suited to the type of traffic expected.
d)  Appropriate traffic planning for different land uses as Residential Areas, Industrial Areas, Commercial / Retail Areas, Recretational Areas etc., should be taken care of.
e)   Land-use and highway requirements change over a period of time. Hence spare capacity should be designed into road network to enable such changes to be accommodated without detrimental effects upon road safety.
f) Unauthorized developments, such as roadside advertising boards, illegal encroachments, stalls etc which create unsafe traffic conditions should be removed and the sites monitored to prevent their reappearance.

9.   Other essential policy measures are as under:

a)   Highways must be built to international standards and material used in toad construction must be of high quality standards.

b)   Quality control must be entrusted to qualified consultants.

c)   Land selection for highway alignment must be done after a thorough investigation and analysis to ensure that road will not collapse due to soil condition etc.

d)   Poor drainage plays a major mole in causing road damage Proper drainage should be provided by correct designing and ensuring suitable curvature on road surface.

e)   Drainage ditches must be designed to accommodate the expected rainfall to prevent structural damage to the road.

f)    All roads must be constructed at a suitable height above the ground level in order to avoid stagnant water.

g)   All roads must be properly compacted, pressed and tested before handing over for heavy traffic.

h)    Safety fences and barriers should be designed to absorb impact with as little risk of injury to vehicle occupants as possible.

i)     Great care should be taken in the positioning of road side features, which may either obstruct visibility, lead to accidents or increase accident severity.

j)     Adequate visibility at intersections is crucial to road safety.

k)    Dual carriage-ways for heavy load traffic from Karachi to Peshawar and bypass roads in and around the small and big towns situated on the main highways must be provided.

10.  Road Transport:

j)     The most critical problem facing the inter-city road transport, both passenger and goods, is safety. The rate of road accidents is still very high as compared to the developed countries. The root cause of accidents is the road-user and other factors such as quality of roads and vehicle fitness etc. have only marginal effect. Control of the road-user can only be ensured through education and enforcement. Strict enforcement of the National Highway Safety Ordinance 1997 should be ensured. This Ordinance may be modified by the Provinces if necessary.

k)    Heavy Goods Vehicles - Operation of heavy road vehicles should be carefully controlled. Enforcement of regulations and traffic management should be used to minimize their danger in sensitive locations such as residential areas. Control imposed under Ordinance No. L-IlI of 1997 to restrict axle weights should be strictly enforced so that roads are not damaged.

11. Road Safety:

a)   Start road safety education in schools and the media.

b)   Instructor Training schools need to be set-up to train the persons engaged in driver’s training.

c)    The cadre of traffic police up to Deputy Inspector General level in each province must be separated and given extensive training in traffic management, safe driving, traffic laws and accident investigation to ensure development of the required level of professionalism.

d)    Speed limits prescribed in the Fifth Schedule of National Highway Safety Ordinance 1997 must be enforced.

e)    Comprehensive revision of traffic laws to bring them at par with international standards especially with regard to driver testing and adjudication processes must be taken up on top priority basis.

f)      Draft Road Safety Act which updates the Motor Vehicles Ordinance 1979 should be finalized and promulgated at an early date.

12. Automobile industry has a major role in the road sector and should adopt fallowing measures:

a)   Increase productivity by gradually modernizing equipment, mechanized operation and improve labour management.

b)   The trucking industry is operating with 9 ton Bedford truck as its main stock. The vehicle is very expensive to operate as it is too small, fuel in-efficient and under powered to be economically used for long-haul. These problems are exasperated by overloading to dangerous level resulting in very high axle loads. This has serious repercussion on deterioration of roads and the vehicle itself. Lately bigger trucks and trailers have been introduced but rate of induction is very slow. There is urgent need to encourage use of bigger trucks and trailers to reduce the transportation costs and minimize the damage to road system.

c)    Freight carrying vehicles should be standardized and their progressive manufacture in the country should be arranged on a planned basis.

d)   To ensure standardization, Passenger carrying vehicles of the following four sizes should be manufactured in Pakistan

I.      Mini Bus
II.      Midi Bus
III.      Large Bus
IV.      Double Decker Bus

a)   Authority for Design Approval of Trailers and Vehicles being manufactured in the country should be established.

Urban Transport

13. Urban Transport Policy for Pakistan should have the following objectives:

a)    Maximizing the use of existing road space.

b)   Improving the performance by implementing Mass Transit Systems wherever warranted.

c)    Minimize the overall cost of public transport.

d)    Provide quality of service that users can afford.

e)   Minimize accidents and harmful effects of pollution.

f)    Improve the bus system.

g)   Build a transit way network in selected corridors as per adopted priorities and opportunities for financing, depending upon travel demand trends relative to capacity requirements and the performance of the system.

14. The following policy guidelines are laid down for implementation of urban transport policy:

a)   All cities with a population of 100,000 should have an urban transport system.

b)   All Metropolitan areas with a population of one million and above should have a mass transit system.

c)    Metropolitan areas with a population of five million and above should have the bus system complemented by light rail/bus ways.

d)    Development of an Urban Transport Master Plan for all urban areas vide a), b) and c) above should be made mandatory.

e)   As urban transport has to be mainly bus based, present bus system should be improved and a bus passenger ratio of 1x1000 (mini bus / midi bus / large buses) should be used for planning purposes.

f)    All Urban Transport should be operated by private sector with close support and coordination of official agencies.

g)   Infrastructure (bus depots, bus terminal and bus stops) should be developed by public sector and leased to private sector companies operating the buses. Infrastructure of KTC, SRTC, PUTC, PRTB and GTS should not be disposed off but leased to private sector operators.

Ii)   Rail based urban transport in Metropolitan areas should be on a BOT / BOO basis.

i)    Double Decker buses should be introduced in cities with Mass Transit Systems. As technology and facilities for manufacturer of double Decker buses is available in Pakistan, these buses should be progressively introduced in all urban areas with a Mass Transit System.

j)     It should be mandatory to reserve land for urban transport infrastructure in the newly developed urban areas of Pakistan.

k)   Road Passenger Transport should be a Provincial Subject

l)    The following guidelines should be given to the Provinces:

I.  Operating standardized vehicles as prescribed in this policy document.
II.  Development of infrastructure e.g. bus depots, bus stands and termini and
maintenance facilities.
III.  Enforcement of Laws relating to Motor Vehicles, Road Safety and Accidents.
IV. Ensuring environmental policy in respect of road transport.
V.  Coordination with neighboring provinces for long distance intercity operations.

15. The following additional recommendations should be incorporated in the Urban Transport Policy:

a)    Institutional development through creation of Metropolitan Transport Agencies in major cities.

b)    Development of a Transport Information Management System to act as a monitoring agency.

c)    Environmental Impact Study should be made mandatory for all major transport infrastructure.

d)    As buses will continue to be the main mode of passenger transport, bus priority measures should be incorporated in the Urban Transport System.

e)    Incentives should be offered to local industry for manufacture of low cost, high capacity buses for urban areas;

f)     Establishment of intercity bus terminals in cities of over 1 million should be made mandatory.

Railways                                                                                                        go back

Current Status

1.   Pakistan Railways (PR) are the life line of the country catering to all its needs for large scale movements of freight as well as passenger traffic, thereby contributing to economic growth and promoting national integration. Railway’s in any country has a defined role and the status is determined by classifying it either as a public utility service or a commercial organization. Railway’s is ideally suited for countries like Pakistan where distances are great and the land is linked to the sea port in the southern edge of the country. The basic objective of Pakistan Railways is to transport men and material. There are, however, certain sections of Railways which, though uneconomical, are being operated for strategic reasons or because of the absence of alternate means of transport as public service. Thus Railways in Pakistan is also a public utility service.

2.   Up to the sixties, the governments were clear that railway’s was the most cost-effective mode of long-distance transportation. Passenger trains as well as freight services were running with profit as a result of adequate investment. Subsequent decrease in investment, however, contributed to the over-aging of railway assets resulting in deteriorating operational capacity. The Railways which should have been carrying bulk of cargo for upcountry markets from Karachi carry only 7 to 8 percent upcountry-bound freight containers and 13 percent of bulk freight.

3.   Priorities of the Government have changed after seventies when the emphasis shifted to the road sector. Due to the reduced investment in Railway sector by the successive Governments, the system has resulted in frightening decline and Pakistan Railways has failed to expand or improve its network and lack of resources has resulted in closure of some of the sections.

4.   A Task force on Pakistan Railways was therefore constituted by the Prime Minister in March 1997 which was required to make specific recommendations for the restructuring and reform of railways in order to achieve a balanced and consistent development of the railroad sector. The Task Force submitted the following recommendations:

a)   Merge the Ministries of Railways and Communications to become Ministry of Transport.

b)   Make the Railway Board a separate powerful body at Lahore.

c)      Reconstitute the Railway Board comprising members from Private Sector.

d)   Mandate the Privatization Commission to:

I.       Privatize PR activities and assets
II.       Establish a Railway Regulatory Authority

e)   Mandate the re-constituted Railway Board to:

I.        Implement short term stabilization measures
II.       Corporatize and un-bundle PR
III.      Reorganize PR management and organization to facilitate the privatization process
IV.      Identify surplus labour for transfer to Railway Restructuring Authority
V.       Divest ancillary services such as railway police, school and medical facilities
VI.       Privatize Maintenance Workshops & services as well as Carriage Factories

f)    Ministry of Transport to establish Railway Restructuring Authority to handle redundant labour and receive sale proceeds of surplus railway land and other assets.

g)   Decide which agency will sell surplus railway land.

h)   Ministry of Transport to prepare legislation for the above.

i)    Implementation of the Open Access Policy (already announced in January 1996) to solicit Private Sector Participation in core operations, with the induction of Railway Equipment Company (RECO) in the short-term for the transportation of oil as a priority matter.

Policy Guidelines

5.   Reorganization of Railway Structure based on the Recommendations of the Task Force is in progress. It is therefore desirable that no further policy changes are introduced in the railways until the re-structuring is completed and the revised system is tried-out for at least 5 years.

6.   Ministry of Transport should be established and undertake the tasks vide paras 5(f) and (h) above.

7.   The following recommendations are submitted for consideration by the reconstituted Railway Organization:

a)   Railways should operate entirely as a commercial organization so that they can recapture their due share of freight movement and passenger traffic which has been lost to the road sector during the last 20 years.

b)   They should concentrate on movement of freight trains (both for containers and bulk cargo) and improve passenger trains.

c)    Replacement of over-aged railway assets with the help of private sector.

8.   Review of Railway Act 1890

        Law Ministry should undertake a comprehensive review of the Railway Act to determine its appropriateness for the privatized railway industry in Pakistan. This review should highlight additions (especially in terms of defining the regulatory regime) and deletions, so that a single Railway Act could provide the legal framework for the entire restructuring and reform programme.

9.   To reduce the losses, Pakistan Railways should adopt following measures:

a)   Short Term:

I.    Privatize sale of tickets on branch lines and the cleanliness of stations
and the coaches
II.   The participation of private sector in the movement of oil and other cargo should be encouraged
III.   The bulk traffic moving beyond a distance of 500 KM should be moved by Rail. This will reduce the burden on roads
IV.   The passenger services be improved by making the trains fast, convenient and comfortable
V.    The Reservation system should be computerized
VI.  To overcome managerial problems the competent and efficient officers should be utilized on appropriate posts. The Transportation and Commercial group officers inducted in Railways through Civil Services who get administrative training in Civil Service Academy should be utilized to manage the freight, passenger sectors, other Commercial activities and on the management posts of General cadre. The title of this service group should be changed to call it as “Railway Management Group” instead of Railways (TC) group. The in service training should be arranged on regular basis at all levels.

b)  Long Term:

I.     The doubling of track between Lodhran and Rawalpindi via Multan.
II.    The four wheel freight wagons be replaced by eight wheelers -
III.   Air-conditioned passenger coaches be introduced on all main trains
IV.  The Track and Signaling be improved to run the passenger trains at a speed of 160 KM

Maritime Transport                                                                                      go back

Current Status

1.   Maritime Transport is controlled by the Ministry of Communications at Islamabad. All the field organs of Ports and Shipping, however, are located in Karachi Ports & Shipping, Mercantile Marine Department and both major ports. PNSC and Private Sector Shipping Organizations are also located in Karachi.

2.   Gwadar, a mini port and some other fishing harbours (Pasni, Jiwani, Somiani and Ormara) are located on the Makran Coast.

3.   Karachi Port as well as Port Qasim have a large number of development projects in hand.

4.   Pakistan Flag Merchant Fleet has diminished in size from about 71 vessels in 1971 to 1 8 vessels currently.

5.   Pakistan Flag Vessels currently transport less than 8 percent of total national sea borne foreign trade.

Policy Recommendations

6.   Ports

      The following policy guidelines be incorporated for establishment of new ports and modernization and operation of existing ports in Pakistan:

a)   As the need for a third major port for Pakistan has been established, recommendations on Gwadar Port should be implemented.

b)  Development, establishment and modernization of smaller ports by the Provincial governments of Sindh and Balochistan may be permitted subject to proper feasibility.

c)   The decision taken by the GOP in October, 1997 that all ports in Pakistan will function and be administered under the “Landlord Port” concept has been welcomed by all concerned. This decision must be implemented without further delay to ensure that all port services are expeditiously privatized.

d)   The development plans of KPT and PQA, which have been prepared for implementation, should be completed according to schedule. Better coordination between the development plans of KPT and PQA should be ensured by the Ports and Shipping Wing so that they are complementary and in the best national interest.

e)  Development plans of Port Qasim should focus on proper land utilization to develop the area for port based industries in order to promote export potential of the country.

f)    All future development projects of port infrastructure at KPT and PQA including cargo handling terminals and other ancillary facilities and services must be established exclusively in the private sector.

g)   The antiquated Dock Labor Board in Karachi must be abolished and labor laws applicable to port workers in Pakistani ports, streamlined and modernized.

h)   The environmental conditions at Karachi Port are in a deplorable state. All civic bodies including KDA, KMC, KWSB and Industries should cooperate with the port authorities for minimizing the environmental degradation of KPT as well as PQA.

i) Environmental aspect should be duly considered for all future establishment and development of ports.

j)    New legislation should be enacted to revise the out dated Karachi Port Act in keeping with the present requirements.

k) Appropriate measures should be adopted to reduce the port operating cost and port tariffs as far as possible to make Pakistani Ports competitive with other ports of the region.

1)   There should be no duty on the harbor crafts used for port services and the container or cargo handling equipment used within ports, container freight stations and the dry ports.

7. Shipping:

a)   New Merchant Shipping Act should be enacted at the earliest to enable regulation of shipping in accordance with the latest international conventions and practices.

b)   Merchant fleet of Pakistan should be expanded to carry due share of national sea-borne trade and to participate in the international trade by providing suitable incentives to the private sector to acquire ships under the national flag.

c)   There should be no restrictions as to type, age, size and class of the vessels for purchase, sale or registration under Pakistan flag. The ships owned by a company registered in Pakistan should be registered on payment of due registration fee. Temporary registration of bare boat chartered vessels by Pakistani companies should also be allowed in accordance with the international practices on payment of prescribed registration fee.

d)   There should be no customs duty or sales tax on ships registered in Pakistan. Pakistan flag vessels, when sold for demolition in local market, should be subject to custom duty levied on weight of ship and not on value of ship.

e)   Sale and transfer of Pakistani registered ships to foreign interests should be allowed and the vessels’ should be deleted from the Pakistani register after following the prescribed procedures.