Key Takeaways
- Federal Minister Muhammad Junaid Anwar Chaudhry announced a unified transshipment incentive package.
- The incentives aim to reduce cargo handling costs and attract regional shipping traffic.
- KPT and PQA will offer various concessions including reductions in wet charges, wharfage fees, storage fees, and terminal handling charges.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry has unveiled a unified transshipment incentive package designed to cut cargo handling costs and boost regional shipping traffic at Karachi Port and Port Qasim.
The incentives are jointly introduced by the Karachi Port Trust (KPT), Port Qasim Authority (PQA) and their container terminal operators, aiming to make Pakistan’s ports more competitive in the maritime sector.
According to Chaudhry, the incentive framework introduces a slab-based concession on Port Wet Charges for vessels carrying transhipment cargo. Vessels with 5-10% transshipment cargo will receive a 20% concession, increasing to 30%, 50%, and 70% for 11-25%, 26-50%, and 50-90% respectively (minimum 2,000 TEUs for container vessels).
For vessels carrying 90-100% transshipment cargo (minimum 3,500 TEUs for container vessels), the concession is set at 80%. KPT will provide wharfage concessions ranging from 20% to 80%, with free storage periods of up to 14 days and an additional 30 days at TPX cargo area under agent responsibility.
PQA, on the other hand, will grant a 100% wharfage concession along with 7 days of free storage extendable to 21 days for cargo movement under agent responsibility.
To complement these port incentives, Pakistan’s four major container terminals have also announced significant reductions in Terminal Handling Charges (THC). KICT, SAPTL, KGTL, and QICT will offer THC concessions ranging from 10% on 5-10% of transshipment cargo manifest to up to 25% for more than 25%.
The incentives apply to both 20-foot and 40-foot containers and significantly reduce the overall handling cost for shipping lines. Chaudhry stated, 'The new framework replaces all previous transhipment concession notifications and SROs with a single, transparent and performance-based regime applicable at both Karachi Port and Port Qasim.'
These measures are expected to enhance Pakistan’s port competitiveness and attract more regional shipping traffic.
