The Geo-Physical Location of Karachi Port as "Gateway " to "CIS" and The Role of The World Bank 
By : Bashir Ahmed

Introduction

As we step into the new millennium, the information technology has already made the trading around the world without boundary.

The suppliers and the consumers , through the information technology , get the moment to moment demand and the supply information, of the global markets without any pause , anywhere and everywhere and even in their bed rooms .

The bridging of the demand and the supply but still needs the safe transportation ensuring and aiming at the Secured, All times, Fast and the Economical cargo movement , from the suppliers  to the consumers.

The consumers always demand the right products , at the right price , at the right time and the at right place. The goods suppliers always honor the demand of the consumers. This , but always is not an easy task .The diversified , slow and the fast modes, port to port , terminal to terminal , border to border and the point to point limitation of transports, the rapidly changing tastes and the fashions, the odd locations of the pickup and of the delivery points, the seasonal demands and the supplies , have always posed a big challenge to trade, industry, transport , the consignors and the consignees. The "demand" and the "supply " , as the market forces, during all the ages have ruled the world economy .

In the new millennium , the "demand " and the " supply ", it is said will even divert many of the struggles and the battles, between the nations, from the war fields to the market places.

The transporters , with the passage of time , have acquired the role of the logistics managers .

The logistics managers , now , using their knowledge and skill , keep the cargo moving, worldwide under the " safe " arrangements from the "supplier " to the " consumers" .

This is an un-ending task and keeps the logistics managers busy in studying and in exploring , the better to best solutions for averting the struggles to take place in the markets.

To achieve the objectives of the "safe" transport, I feel , that the K.K.H route, still needs introduction and also streamlining of the working procedures, for the smooth flow of the cargo, for the benefit of Pakistan and of the " CIS " region.

The quadrilateral agreement K.K.H and the Karachi ports :

A quadrilateral agreement, during November 1998, was signed, in Islamabad, amongst Kazakhstan, Kyrgyzstan, China and Pakistan , to avail the trade and transit, facilities through the Karakurram Highway and the ports, in Karachi .

The Karakurram Highway ( K. K. H / silk route ) provides the shortest Karachi sea ports link to Xinjxian/ china and the " CIS " countries , as under :

Via Karakurram Kighway : (Karachi / Gilgit / Khunjerab / ........)

1. Karachi / Urumqi (Xinjian / China) = 4292 km
2. Karachi / Bishkek ( via Naryn ) = 3434 km
3. Karachi / Bishkek ( via Andizhan) = 3690 km
4. Karachi / Almaty = 3708 km
5. Karachi / Tashkent = 3610 km
6. Karachi / Dushanbe = 3770 km

The distances to the "CIS" destinations , through other possible routes, are as under :

Via Afghanistan: (karachi / chaman / kandahr / herat / kushka)

1. Karachi / Kushka = 1658 km
2. Karachi / Asghabad = 2316 km
3. Karachi / Tashkent = 2946 km
4. Karachi / Almaty = 3935 km
5. Karachi / Bishkek = 3655 km
6. Karachi / Dushanbe = 3051 km

Via Afghanistan: (karachi / chaman / kandahar / kabul / termez)

1. Karachi / Tashkent = 2812 km
2. Karachi / Almaty = 3801 km
3. Karachi / Bishkek = 3521 km
4. Karachi / Dushanbe = 2193 km

Via Afghanistan : (karachi / peshawar / kabul / termez )

1. Karachi / Termez = 2318 km
2. Karachi / Tashkent = 3162 km
3. Karachi / Almaty = 4151 km
4. Karachi / Bishkek = 3871 km
5. Karachi / Dushanbe = 2543 km

Via Iran : (karachi / quetta / zahidan / badjgiran / asghabad /...)

1. Karachi / asghabad = 2690 km
2. Karachi / tashkent = 3999 km
3. Karachi / almaty = 4988 km
4. Karachi / bishkek = 4708 km
5. Karachi / dushanbe = 5075 km
6. Karachi / baku = 4025 km

Through Bander Abbas (port ), Iran to :

1. Baku (Azerbaijan) ....... = 2390 km
2. Asghabad (Turkemenistan) = 1695 km
3. Tashkent (Uzbekistan) ..... = 3004 km
4. Alma ata (Kazakistan).... = 3993 km
5. Bishkek (Kyrghistan)..... = 3713 km
6. Moscow (Russia) .... = 6365 km (via tashkent)

The traffic in transit under the quadrilateral agreement among the contracting parties shall be carried out by the carriers holding " The International Road Transit Permit " (IRTP) issued by the executive bodies authorized by the competent ministries of the contracting parties.

The executive bodies authorized by the competent ministries are as follows :

• China Department of Communication of Xinjian Uygur autonomous region
• Kazakhstan Transport Inspection, Ministry of Transport and Communications
• Kyrgyzstan Union of International Transport of Kyrgyzintrans of the Ministry of Transport and Communication
• Pakistan National Highway Authority, Ministry of Communication
• K.K.K Routing and the Border Customs Posts 

The contracting parties agreed that the carriers engaged in the traffic in transit, may operate on sectors or opt the entire route of the described routes.

The variation and addition to the border posts and land routes may be agreed upon amongst the competent ministries of the contracting parties from time to time.

At present, the routing will be as under :

1. Karachi Sea Ports ( Pakistan ) to Peshawar ( N-55) or 
2. Karachi sea ports to Islamabad / Rawalpindi dry port ( N-5 or Motorways ) to Hassanabdal-Gilgit-Sust ( Pakistan )-Khunjerab (China) -Kashgar-Torugart (China  -Torugart ( Kyrgyzstan)-Khorgos(Kazakhstan)-Khorgos (China) , and vice versa.

The border posts, at present are as under:

• China:  Khunjerab , Torugart and Khorgos
• Pakistan Sust and Karachi sea ports
• Kyrgyzstan Torugart and Ak-jol
• Kazakhstan: Kordai and Khorgos

Rawalpindi Dry Port as the Transport Hub to Supplement the Quadrilateral Agreement 

The "CIS" trade, under the quadrilateral agreement , through the Karakurram highway , may take place any time , once the road transport permits, by the four (4) governments entering into the agreement, are issued to their respective approved road transport carriers . 

It is hoped that lot of in transit cargo, both ways, will have to be handled through the Krakurram highway.

In order to achieve the objectives of the "safe" transportation, for the traffic in transit , under the quadrilateral agreement, the multi-modal transport system, based upon the combination of road, rail, sea and or air will have to be involved .

The Rawalpindi dry port , as the transport/ transshipment hub, therefore, will have to be operated for road / rail and rail / road the transportation between Rawalpindi dry port / Karachi port (s) and vice a versa .

Down transit:

The down transit may consist of raw wool, cotton, hides / skins, metal scraps, garlic, fruits etc. etc. The cargo arriving through the Karakurram highway for the purpose of in transit via Pakistan through the port of Karachi may be brought, under customs escort / or as arranged, through the trucks loaded at the point of origin, to Rawalpindi dry port for unloading / safe in transit storage.

The cargo, after customs formalities, as applied/ adopted for cargo in transit, in Rawalpindi dry port, may be dispatched to Karachi sea port by rail wagons for onwards shipments by sea through Karachi /Bin Qasim sea ports.

Up transit:

The up transit may consist of sugar, tea, rice, vehicles, spare parts chemicals medicines and the consumer items. The cargo arriving in the port of Karachi / Bin Qasim, for, in transit through the Karakurram highway, after in transit customs formalities in Karachi may be railed to Rawalpindi dry port.

The cargo upon arrival through rail wagons in Rawalpindi dry port, should be unloaded and warehoused for transport , after customs formalities, through NACTO or the available nominated trucks for in transit delivery to the " CIS " destination (s) through the recognized route (s) and the customs border posts (s) .

In both the cases the services of the international freight forwarders / customs house agents will have to be involved in Rawalpindi dry port and Karachi sea port. 

All charges relating to in transit formalities will be to the account of the shippers or the consignees, as arranged / agreed between the sellers and the buyers. 

For transportation via K.K.H Who should do what ?

1. We must get ready for the smooth cargo flow , for the "CIS" region , through the Karakurram highway and other routes , via Pakistan , as and when available.
   
   The following steps are proposed.
   
   The Central Board of Revenue Islamabad,  The customs authorities , in Pakistan, in order to avoid the delay, once the permits are issued, it is proposed , may finalize the transit procedures and issue the necessary notifications , so that the transit cargo, under the agreement, could move immediately, safely and swiftly .
2. The Customs Houses: the entire intransit operation ( up and down both ) will involve the:

1. Customs house in Karachi sea port
2. Customs house in Rawalpindi dry port
3. Customs posts of the border for entry and exit

These customs houses must also be notified by the Central Board of Revenue, Islamabad to get ready to handle the K.K.H transit ( up / down ) traffic , upon arrival 

3. Karachi Port Trust ( KPT ) / (PQA): The Karachi Port Trust, to supplement the transshipment activities of the port and to minimize the charges for the transshipment of mother vessels , in addition to the cargo for home consumption , must attract cargo in transit through Pakistan for CIS, Xinjian / China and other destinations .

1. It is ,therefore , proposed that:
   
   For the "CIS" cargo , the Afghan intransit cargo KPT storage tariff may be applied.
2. To minimize the handling cost and to maximize the safe storage facilities , for the CIS intransit cargo landed / stored in any shed, within KPT. area ( east / west wharf / without shifting to any transit shed ) , may apply the special afghan intransit storage tariff, to all such shipments 
   
   it is hoped that KPT / PQA ( if necessary ) will also issue necessary notifications for this purpose 
3. Rawalpindi Dry port: Rawalpindi dry port, as the hub for the KKH transit cargo , should embark upon the plan to cope with the requirements of the safe intransit storage etc. while the cargo is in its custody. 
   Rawalpindi dryport should also come out with their tariffs , on special concessional rates, for the safe intransit storage of the cargo.
4. Pakistan Railways: Pakistan railway will have to ensure that the rail wagons, ( for containerized or conventional cargo ) on demand in Rawalpindi dry port or in Karachi sea port, are made available for the express cargo movement between Rawalpindi dry port and Karachi sea port and vice versa. On goods / special tariff rates " NATCO " / other approved carriers of the respective governments these approved road transport carriers , once the permits are issued to them , may transport the goods from / to Rawalpindi dry port to /from the places in CIS / Xinjian 
5. The international freight forwarders role and the KKH for the muli-modal transport system: the services of the international freight forwarders cannot be ignored. The international freight forwarders , as the logistics managers, world wide and also in Pakistan , therefore , will have to ensure the " through transport " of the CIS shipments, all the way from/to the place of origin / destination through the KKH.
6. The Pakistan International Freight Forwarders Council (PIFFC): is the professional body of the international freight forwarders in Pakistan . The " PIFFC " is affiliated with the international federation of freight forwarders association (FIATA) , based in Zurich / Switzerland.
   The " FIATA " is recognized globally and also by the International Chamber of Commerce (ICC) Paris. 

Pakistan / CIS Regional trade and the Quadrilateral agreement .

Pakistan , in order to promote trade, transport and transit under the quadrilateral agreement , must examine the possibilities , by removing tariff and non-tariff barriers, to boost the Pak-CIS intra-regional trade. 

The " CIS" is a good emerging consumer market for Pakistan products also .Pakistan, to boost the purchasing power of the CIS, therefore, should examine to benefit from the resources available in the following "CIS" countries:

Azerbaijan: Grains, cotton, rice, fruits, vegetables, (70% of the land is irrigated)Industry: oil, iron, aluminium metals, synyhtic rubber, textiles.

Kirghistan:Livestock, mechanised grain production, mineral springs Industry: sugar, refineries, tanneries, hosiery, hydro electric power, engineering goods. 

Kazakhistan: Grain, cotton, livestock (sheep),Industry: coal, tungten, oil, heavy engineering, chemicals, textiles, sugar, meat processing etc:

Turkmenistan: Cotton, wool, karakul, astrakhan fur, Industry: minerals, chemicals, salt mines, oil etc.

Tajikistan: Agriculture, gissar sheep prized for its meat, Industry: mining, electro chemical complex, power.

Uzbekistan: Intensive farming with artificial irrigation Cotton, rice Industry: oil, coal, copper, gold (60% of former USSR), Pakistan , in the wake of the growing world competition , will have to find the new markets and also the new products , to boost our exports and the production .

The "CIS" and the "ECO" fellow members with Pakistan, on account of their population , area and the strategic location , offer the excellent market opportunities , for our products. The "CIS"/ "ECO" region, with its unique cultural and historical background , after regaining their freedom ,from the former USSR's seventy (70) years long rule , once again have emerged as the virgin markets to absorb all types of consumer and other goods.

Pakistan , therefore, must benefit from this closely located potential market . We, for this purpose , will have to streamline our transport and the trading systems so that we could find the edge over the world markets , in the newly emerging CIS markets. The Economic Co-operation Organization (ECO) , now comprises upon the following ten(10) member states :

Country population area capital

The "ECO" is a sizeable regional market .We , in Pakistan , at this juncture when we are

• preparing ourselves to enter , with grace and honor, into the new mellenium 
• using all our ways and means to boost our exports of all 
• traditional and non-traditional items to the 
• old and the new markets,

We cannot ignore the "ECO" / CIS states . 

According to the surveys, these countries have every chance of developing :

• Firstly into economically prosperous region with growing trade relations due to their deposits of raw materials.
• Secondly , these states have a great interest in diversifying their economic co-operation which was formerly fixed on Rusia only.
• Thirdly , there is considerable economic and political interest not only in CIS but also in the adjacent countries for revitalizing , their old traditions of culture ,trade and transport .

We , therefore , will have to boost our exports to the "ECO"/ CIS region. Allow duty drawbacks on almost all exportable items , in the normal way , except on items like cement , cigarette , cereal , candy , tofees , chewing gum etc. For which other special pre-cautions , will have to be taken.  Pakistan , unfortunately , due to lack of the :

• Availability of the exchangeable hard currency , with the "ECO" / CIS states
• Proper banking system
• Transport & transit facilities

have still not been able to achieve any satisfying results , in the CIS markets , as it was expected during 1991 / 1992. We ,therefore, must hang our heads and join our hands , for our successful entry into the CIS market. We must also consider the "ECO" regional trade , against the local currencies. 

As per information appearing in " Business Recorder Karachi " dated 12 November 1999, National Bank of Pakistan (NBP) and The Muslim Commercial Bank (MCB) are going to open their branches in Almaty ( Kazakhstan ) 

This is a good news and it is hoped that the bank branches , soon , will be opened, not only in Almaty but in other CIS countries also.

We , in Pakistan , to the "ECO" member states , can export through the following routing possibilities:

1. By rail road over land routes via Chaman / kandahar, Quetta / zahidan, Peshawar / jalalabad,  The karakurram highway.

2. By sea via karachi / bander abbas and through the turkish / european sea ports.

Pakistan Railways - the ECO/CIS 

The Pakistan railways can offer its transport services to the Central Asian / ECO members states through the following routes:

1. Karachi - quetta (dryport) - kohitaftan - zahidan 1,435 km (for all central asian destinations)

2. Karachi - chaman 840 km (to kushka (turkemanistan) via kandahr / herat and to termez - uzbekistan via kandahr / kabul)

3. Karachi - peshawar (dryport) 1,735 km (to termiz, (uzbekistan) via jalalabad/kabul)

4. Karachi - rawalpindi (dryport) 1,568 km (to almaty and other central destinations)

The Pakistan Railway, to attract the transportation of cargo, intransit and otherwise will have to improve its services by :

1. Reducing the transit time 

2. Ensuring safety of cargo while in their custody 

3. Introducing special freight tariff freights for
   a. Containerized cargo 
   b. Conventional cargo on the basis of 1x40' ft. Trailer - load i.e. either weight upto 20m. tons or volume up to 60m3.

4. Providing better storage and crane / fork lift facilities in karachi, quetta, chaman, peshawar and rawalpindi.

Pakistan railways must rise to the occasion so that:

• It could improve its budget conditions through more traffic.

• Help the central asian republics by providing the multimodal transport network through the port of Karachi for their global trade.

• The Pakistan economic conditions could see the boost through added cargo movement.

The World Bank, CIS and the KKH 

The Islamic Development bank had organized the investment conferences , from 16-21 September, 1999, in Asghabad , bishkek , almaty, akmola and baku. These conferences were attended by delegates from almost all the members of the OIC countries.During the course of these conferences , it was revealed that there exist lot of investment opportunities , in many fields ,including tourism and transport , in the CIS. It is proposed that the World Bank, as an international association for development and reconstruction , in the light of the recommendations of the Islamic Development Bank Jeddah and other international organizations , should embark upon plans so that the economic activities , in the CISregion , could be accelerated as early as possible.

In the field of cargo movement v/o " Sojuzvneshtrans", Moscow , during the former USSR days used to handle the international transport , almost of the entire CIS region .The chaman / kandahar / herat/ torghundi / kushka ( turkhemenistan ) route, during 1969 / 78 , was also used for Pakistan and the then "USSR" import and export trade, on a large scale.

Now, since after the independence of the CIS , each state has its own international trade handling system .The transport and the international trade handling system , within the newly independent CIS states , still being , in the initial stages , needs the help and assistance of the experts , in these fields to update their working system to achieve the objectives of the "safe" transportation .

For this purpose , workshops and seminars , covering subject as:

• Removal of the tariff and non-tariff barriers 

• Streamlining, mul-timodal transport systems through the freight forwarders services and 

• The ECO Passage Document (EPD) already approved by the heads of the customs authorities of the ECO member states and of the "International Road Transport Permits" (IRPT) , agreed under the quadrilateral agreement .

Within the CIS/Pakistan region, are introduced, possible , as early as possible . 

The regional peace and harmony , through the intra regional trade , we understand , now-a-days , is playing a vital role within the fast emerging "global village " .

Let us ,therefore, make the CIS /Pakistan , also a region of peace and prosperity , through the promotion of the intra regional and of the global trade .

The world bank , on account of its resources , surely, can play an important role on this account.