Shipping fleet crippled

Published May 9, 2005

SHIPPING in Pakistan is in doldrums. The strength of our national merchant marine fleet has dwindled over the years and now comprise some 14 aged ships destined for scrap in the next couple of years. Almost $3 billion has to be paid every year to foreign flag ships for handling the country’s seaborne trade, while share of national carrier in the international cargo is 4-5 per cent.

The problems facing the development of the shipping industry are many and varied. Presently, there are some 30 countries which offer Flag of Convenience Registry. A little over 62 per cent of world tonnage is flying FOC flags. Many developed countries have adopted a system of “Second Register of Shipping” that almost constitutes a little over twenty four percent of world tonnage. These two systems of registration constitute some 86 per cent of the world tonnage.

A balance of some fourteen percent of world tonnage is under National Flag Registry and the trend is on the decline. Pakistan’s National Registry constitutes less than 0.03 per cent of the world tonnage.

The Flag of Convenience Registry is a menace to world shipping. A large number of sub-standard ships are under FOC Register. This system provides for engagement of cheap labour, low wages even non-payment of earned wages to the crew. Several ship owners have stranded their ships in foreign ports without food, water and payment of wages, unhygienic food and living conditions, easy access to maritime frauds, illegal drug and arm trafficking, etc.

There is an urgent need of lobbying amongst the countries of the world to completely eliminate the menace of sub-standard shipping under the FOC Registry in which some of the local concerns are also involved. The authorities should take initiatives against FOC Registered ships since the interest of Pakistan is considered “First” rather than any other rich person/(s) who has taken refuge under brass plates.

The maritime laws also need to be strengthened. Even after a lapse of some four years after the promulgation of the Merchant Shipping Ordinance-2001, the Ports and Shipping Wing has not framed rules, regulations and elaborations of the sections of the Ordinance which speaks volumes of the inefficiency and incompetence of the authorities concerned.

Under the prevalent global maritime scenario, it is imperative to adopt a “Second Registration System” for the growth and development of merchant marine (Shipping).

Despite the promulgation of Merchant Shipping Ordinance-2001 and a shipping policy, not a single ship has been added to merchant fleet by any private entrepreneur.

This failure of the shipping policy and the Ordinance has also been recognized by the prime minister who has directed the ports and shipping ministry that the policy and ordinance must be re-engineered, updated, changed and re-drafted.

Merchant marine is a highly sophisticated technical subject. The recent changes and developments in ship design, technological advancements, cargo handling techniques and maritime legislation warrants that unless the affairs of merchant marine are entrusted to the trained, qualified, experienced, sincere and honest professionals of merchant marine it is well nigh impossible even to dream of any development and betterment. .

Under the present Shipping Policy and Ordinance, nobody considers investment in shipping under Pakistan flag. There has to be a level playing field in the absence of which it is impossible to attract any investment in shipping.

The “First Right of Refusal” should be given to all Pakistani flag vessels instead to PNSC alone either in the National Registry System or more preferably in the “Second Registry System” to ensure investment in shipping.

A brief mention of a few of the many lacunas present in the existing Merchant Marine Ordinance-2001 and Shipping Policy is enumerated as under with recommendations to incorporate same in the amended/redrafted text in compliance with the directives of the prime minister:

a) The instruments and detailed rules under the of the provisions of the existing Ordinance and Policy be framed without any loss of time.

b) Violation of the existing rules as notified in the Gazette of Pakistan be stopped.

c) Provision for security of payment of wages, disability and death compensation and repatriation of Pakistani seafarers be made in the maritime rules.

d) Inclusion of Section 96 reference Chapter 6 which is detrimental to the interest of the professionals of merchant marine, must totally be removed. If naval officers are desirous to join merchant marine and possess Certificate of Competency then they must undergo requisite training prior to joining merchant marine and must complete the requisite sea service on board merchant ships in accordance with international maritime legislative provisions namely STCW 1995 which is ratified by Pakistan.

e) Back door entries of the pseudo-professionals who do not have the Certificate of Competency as master, mates, chief engineers and engineers should be discontinued.

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