Insecurity mars Afghan transit trade

Published December 1, 2008

The country is fast losing revenue, it earns through offering logistics under Afghan transit goods because of growing insecurity in the bordering tribal region.

A highway linking Peshawar with Kabul is the fastest and cost-effective route, as trucks, carrying goods from Karachi can reach the Afghan capital within just four days.

Afghan importers prefer this route to import goods from Pakistan and for transportation of ‘Goods in Transit to Afghanistan (GITA)’. Almost 75 per cent of goods meant for Nato forces in Afghanistan are being carried through the same route, virtually making it as a life line for the multinational forces fighting against Taliban across the boarder.

However, the recent spate of kidnappings and looting of Nato goods in Jamrud, a sub-division of Khyber tribal region located on the Peshawar-Kabul Highway is proving to be a stumbling block in increasing trade.

Over the last one and half months, at least 25 people, mostly involved in cross-border trade have been kidnapped from Peshawar-Kabul Highway in Jamrud area, located at a stone throw distance from Peshawar.

Last month the militants looted 14 trucks that included two Humvee vehicles meant for US troops in Afghanistan.

Even the custom staff at Torkhum boarder was kidnapped last week and their whereabouts still unknown.

The truck convoys going from Peshawar to Torkhum are escorted by the security personnel. But, the drivers complain that they have to wait for at least seven to 10 days to be included in the convoy that increases cost of transportation.

“I am waiting for my turn for the last seven days,” said a driver, who had parked his vehicle at a warehouse on Ring Road, a stopover for the transporters heading towards Afghanistan.

The security arrangements, he said, are essential, but they are not adequate and hampering swift movement of goods across the border.

Zia-ul-Haq Sarhadi, Chairman Frontier Custom Agents Group, says “these subversive activities are disrupting business activities”.

He said the flow of all type of consignments to Afghanistan via Torkhum has declined for the last couple of months. About 300 to 350 trucks carrying export goods, GITA and Nato shipments would cross the Torkhum border on daily basis when the situation was normal. The number has reduced by almost 50 per cent.

Pakistan is providing logistic services to Afghanistan since 1965 under an agreement, as all the Afghan consignments reaching Karachi seaport are moved to Afghanistan via land routes of Torkhum and Chaman. Apart from offering direct and indirect employment to more than 25,000 people from Karachi to Torkhum, this transit business is also a major source of earning for different entities such as Pakistan Railways (PR) and National Logistic Cell (NLC).

The PR’s freight business alone from the GITA is estimated at Rs1 billion annually, according to Mr Sarhadi. And the earning of the NLC, which also carries GITA goods from Karachi to Peshawar for their onward transportation across the border, is almost double of the PR’s revenue because of comparatively high charges.Mr Sarhadi says security holds the key for growth in the transit business.

The security problems seem to be a major factor for delay in bringing into operation the recently built border terminal located in the troubled Jamrud region. It was to start functioning in December 2006.

The station -- Khyber Border Terminal NLC -- is the first-ever facility, set up by the military-owned freight handling company for clearance of Afghan-bound consignments.

“The transit business involves cash transactions that becomes difficult to handle because of existing insecurity,” says a customs clearing agent, adding “in the present circumstances, it seems next to impossible to operate this station.

Capt (Retd) Tariq Hayat, the Political Agent Khyber Tribal region, told Dawn that the administration has taken a number of steps to ensure safety of goods passing through the troubled areas by mobilising additional contingents of Frontier Corps and Khasadar force.

“Even today (Thursday) 244 trucks carrying goods for NATO forces have crossed the border and still we have a backlog of 120 vehicles at Torkhum; that means the situation is not that much critical as being propagated,” informed Mr Hayat.

Referring to NLC terminal in Jamrud, he said: “There is no issue of security at all.” “It is situated next to the military base and the managers at the station never mentioned the security as an impediment in making the facility operational,” clarified Mr Hayat, adding “there may be some operational issues for delay in its commencement..”

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