NATIONAL TRANSPORT POLICY
PREPARED BY
THE CHARTERED INSTITUTE OF TRANSPORT PAKISTAN
OCTOBER, 1998
CONTENTS
S.NO.
Subject
Page
01
Foreword
1
02
Preamble
2-3
03
Common Policy Matters
4
04
Roads and Road Transport
5-9
05
Railways
10-12
06
Maritime Transport
13-15
07
Aviation
16-17
08
Multimodal Tansport
18-20
09
Acknowledgement
21
2
FOREWORD
Chartered Institute of Transport Pakistan is a professional body of transportants with a
membership of over 900. The Institute has been rendering yeoman 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 a 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 , Ministry of Communications has given a mandate to CIT Pakistan to draft a
National Integrated Transport Policy. It is coincidential that CIT had already undertaken this task
in 1977 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". Current status provides a back ground information whereas the second part
incorporates a comprehensive material for drafting an Integrated Transport Policy for Pakistan.
Inspite 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 m odes of transport have
contributed their precious time and effort in compiling this policy paper:
a.
Road Transport
i. Brig (Rtd) 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
3
d.
Aviation:
i. Mr. Badshah Gul, FCIT
ii. Mr. N.H. Hanif, 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
4
PREMBLE
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 emphasised. Development of an Integrated
Transport System can take place only within the frame work of a clearly
formulated National Transport Policy. Inspite of this, a coherent and Integrated
Transport Policy has not been finalised so far. Consequently transport sector has
not found its due importance and priority in our Five Year Plans.
2.
A part 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
5
and realistic within the framework of the available resources. It should be in line
with the socio economic conditions prevailing in the country.
e) As transport is on the Concurrent List of Pakistan’s Constitution, implementation
of road transport policy should be decentralised 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 (710) 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) Privatisation 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 services.
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 services.
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 national’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 upto date from time to
time. It is therefore recommended that National Transport Policy should under go
periodic review and necessary modifications and improvements made.
6
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 framed 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 privatisation and de regulation, 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 ensure.
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
7
COMMON POLICY MATTERS
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
dis-advantages. 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 privatisation 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 any important element of all modes of transport. It is therefore essential
that a single 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.
8
ROADS AND ROAD TRANSPORT
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 km/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/frame 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
9
4.
II.
Lack of pedestrian facilities
III.
Lack o f road safety awareness
IV.
Increasing number of traffic violations
V.
Poor enforcement o f 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
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 dis-organized. Although Pakistan
has many urban areas of over a million population and Karachi is one of the mega
cities of the w orld, no Mass Transit System exists in the country inspite of the
fact that a National Mass Transit Authority was established about 3 years back. T
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
III.
Provincial roads
IV.
Local bodies roads
10
V.
Rural access and 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)
Privatisation 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 high
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 sue 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, Recreational Areas etc. should be
taken care of
11
9.
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.
Other essential policy measures are as under:
a)
Highways must be built international standards and material used in road
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 role in causing road damage. Proper drainage should
be provided by correct designing and ensure 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 handling 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 in 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
a)
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
12
enforcement of the National Highway Safety Ordinance 1997 should be ensured.
This Ordinance may be modified by the Provinces if necessary.
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 upto 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 professsionalism.
d)
Speed limits prescribed in the Fifty Schedule of National Highhway 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
following 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
13
III.
Large Bus
IV.
Double Decker Bus
f)
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 where ever
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 transitway 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 Termini and Bus Stops) should be developed by
14
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.
h)
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 standards 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 neighbouring provinces for long distance inter city 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 inter city bus terminals in cities over 1 million should be made
mandatory.
15
RAILWAYS
Current Status
1.
Pakistan Railways are the life line of the country catering to all its needs for large
scale movements of freights as well as passenger traffic, thereby contributing to
economic growth and promoting national integration. Railways 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. Railways 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.
Upto the sixties, the governments were clear that railways 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 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 Railways Board comprising members from Private Sector.
d)
Mandate the Privitization Commission to:
I.
Privatize PR activities and assets
II.
Establish a Railway Regulatory Authority
16
e)
Mandate the re-constituted Railway Board to:
I.
Implement short term stabilization measures
II.
Corporatize and unbundle 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 policy school and medical facilities
VI.
Privatise Maintenance Workshops and 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 railways 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 restructuring is completed and the revised
system is tried out for atleast 5 years.
6.
Ministry of Transport should be established and under take the tasks vide paras
5(f) and (h) above.
7.
The following recommendations are submitted for consideration by the
reconstituted Railway Organisation:
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
17
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 over come managerial problems the competent and efficient officers should be
utilised 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 (T,C) group. The in service training
should be arranged on regular basis at all levels.
b.
Long Term:
I.
The doubling of tract 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 a ll main trains
IV.
KM
The tract and Signaling be improved to run the passenger trains at a speed of 160
18
MARITIME TRANSPORT
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-DG, Ports and 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 Markran Coast.
3.
Karac hi Port as well as Port Qasim have a large number of development projejcts
in hand.
4.
Pakistan Flag Merchant Fleet has diminished in size from about 71 vessels in
1971 to 18 vessels currently.
5.
Pakistan Flag Vessels currently transport less than 8 percent of total national
seaborne 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 be implemented.
b)
Development, establishment and modernization of smaller ports by the Provincial
governments of Sindh and Balochistan may be permitted subject to proper
feasibilty.
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 POA, which have been prepared for
implementation, should be completed according to schedule. Better coordination
between the development plans of KPT and POA 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
19
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 Pakistan 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 minimising 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 empetitive with other ports
of the region.
l)
There should be no duty on the harbour 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 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 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
shall 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.
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e)
Sale and transfer of Pakistani registered ships to foreign interests should be
allowed and the vessels shall be deleted from the Pakistani register after following
the prescribed procedures.
f)
A system of fixed income tax shall been forced based on Gross Registered
Tonnage of the ship.
g)
The investors should be immune from declaring the source of funds for
investment in shipping.
h)
Pakistani flag ship owning companies should be allowed to open and operate
foreign currency accounts in Pakistan in accordance with section 4 of the
"Protection of Economic Reforms Act-1992".
i)
Pakistani Shipping companies and Multimodal Transport Operators (MTO’s)
should be encouraged to provide multimodal transport services at par with
international practices.
j)
The facilities for maritime training of merchant marine officers and seamen
should be expanded and improved to impart quality training to meet the
requirements of national and international shipping industry by:
I.
Expanding and improving maritime training institution in private sector;
II.
Making better use of the facilities at Pakistan Marine Academy and raising the
academic standard of its training: and
III.
Establishing Maritime Training College for post sea training of officers of
merchant marine.
k)
Pakistani flag vessels should have priority over foreign flag carriers for
transportation of public sector cargo under FOB, C&F or CIF terms irrespective
of the ownership of the vessel. However, there should be no reservation for
private sector cargo.
l)
Ship building capacity and repair facilities in the country should be expanded in
collaboration with the private sector to cater for the intended growth of merchant
fleet of Pakistan in an efficient manner.
m)
Shipping should be treated as an industry in Pakistan and should enjoy all benefits
and privileges offered and/or that which may be offered in future to other
industries.
n)
Necessary provisions should be made in the Merchant Shipping Act for
registration of ships based o Bare Boot Charter or suitable amendments made in
the CBR regulations to enable operations of these ships under the same tax
liability as applicable to the owned ships registered in Pakistan.
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o)
For ships operated by Pakistani companies under Time charter or Voyage charter
the tax liability should be determined at a float rate based on ships GRT for each
loaded voyage performed.
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AVIATION
Current Status
1.
Aviation in Pakistan is currently under the Ministry of Defence
2.
All airports and related ground infrastructure are in the public sector. Civil
Aviation Authority (CAA) is responsible for the following:
a)
Planning, Construction, maintenance and operation of airports and aerodromes
b)
Air Traffic Control and Communication Services and airspace management of
civil airports and aerodromes
c)
Air routes in Pakistan
d)
Regulation and Control of all Civil Aviation activities
e)
Regulation of maintenance and operation of aircraft.
f)
Accident Investigation
3.
While PIAC is entirely a public sector concern, recently a few airlines have also
been established in the private sector.
4.
Air Transport (Airlines). Following policy recommendations are made:
a)
Aviation should be classified as an industry to encourage private sector
participation
b)
International air transportation by both Pakistan registered and foreign registered
carriers be offered equal opportunity to conduct business as provided in various
multilateral and bilateral agreements to which Pakistan is a signatory.
c)
Other provisions are elaborated as under:
I. Competition between Pakistani air carriers on international routes be avoided and
routes awarded on the basis of equipment suitability and financial standing. This
will facilitate capability to compete with foreign air carriers.
II. Foreign air carriers be encouraged to fly through the national airspace by the most
direct route
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III. Open sky policy may be introduced for end to end traffic on a reciprocal basis so
as to obtain an increase of aircraft on airports and passengers in their terminals
IV. Traffic to and from third countries be permitted conditionally
V. The protection available to PIA be reviewed keeping in mind the requirements of
open skies policy.
VI. Induction of private airlines be left to the market forces. The regulation of aircraft
maintenance and operations should be the only concern of aviation authorities.
VII.General aviation be encouraged to cater for charters, tourism, aerial
survey/photography, air ambulance/evacuation in emergencies and training.
VIII. Domestic Air Transport be completely de regulated to allow market forces to
determine the fares and rates to be levied on all the routes.
IX. Accident investigation should be separated and placed directly under the minister
in charge of transport.
5. Airports and Ground Facilities As provision of airports and related facilities are
capital intensive, the following policy matters should be adopted.
a)
Existing airports be improved in accordance with the present and future traffic
demand keeping in view the airports own economics of operations.
b)
Construction of new airports may be undertaken based entirely on economic
viability of the project.
c)
The five major airports (Karachi, Lahore, Islamabad, Peshawar and Quetta)
should have adequate fuel supply storage and distribution system to ensure un
interrupted aircraft operations.
d)
Government should delete aviation fuel cost effect from the national budget and
allow the aviation sector to import its own fuel and fix the cost for supply to
airlines on the basis of regional average.
e)
Aviation charges (which include air navigation, landing and housing and avio
bridges charges etc) be rationalised to make them competitive with airports in the
region.
f)
Aircraft handling charges be controlled by the airport and not be left to the
companies providing the services.
g)
Cargo handling facilities be developed at all the major airports in accordance with
the present and future demand
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h)
The airport management should be vested with all the powers to ensure
commercialisation of the terminal and the Aviation Security should be provided in
accordance with the relevant ICAO Annex and Security Manual so as to avoid
conflict of interest.
i)
Aviation portion of meteorological department be placed under the Transport
Ministry so as to ensure coordinated development of aviation meteorology
j)
Airports may be privatised or alternately they may be handed over to the
Provincial Governments with the Federal Government only looking into the safely
aspects of the airport layout.
k)
Air Traffic Control Service and communications and provision of Radio and
Navigational aids may either be made a separate autonomous body, integrated
with the ministry, or privatised
l)
Aviation Security Practice should not be detrimental to un interrupted airport
operation and optimum commercialization.
6.
Duties and Taxes: Custom duties on the following items should be reviewed and
rationalized in line with international standards:
a)
Aircraft, Engines and spares
b)
Aircraft Handling equipment and other related items including training equipment
c)
Fire Crash Tenders and fire extinguishing agents
d)
Radio, Navigation, Communications and Landings Aids (both airborne and
ground equipment)
e)
Runway Lighting Systems
f)
Visual Approach Indicators
g)
MET equipment for determining weather and visibility
h)
Electronic and mechanical equipment used in the terminals
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MULTIMODAL TRANSPORT
Current Status
1.
After containerization as a means of door to door international trade was firmly
established in the 70’s , Multimodal Transport System was a logical sequence.
Thus the concept of Integrated Transport System came into being. It was
formalized as an organ of United Nationals Conference for Trade and
Development (UNCTAD). Thereafter International Multimodal Transport
Association (IMTA) was established at Geneva and the Rules for this Association
were framed in 1993.
2.
International Multimodal Transport Association (IMTA) has a close link with
International Freight Forwarders Association (FIATA). Standard Conditions
governing the FIATA Wayybill (FWB) subject to the UNCTAD/ICC
(International Chamber of Commerece) Rules for Multimodal Transport
Documents have been issued in 1997.
3.
Pakistan Freight Forwarders Council is a Member of FIATA and thus Pakistan is
affiliated with the IMTA.
4.
Although Multimodal Transport has been firmly established at international level
during the last two decades, Pakistan is lagging behind. This is mainly due to very
slow progress in the establishment of Container Terminals in our ports.
5.
With the commissioning of Qasim International Container Terminal (QICT) and
the expected inauguration of Karachi International Container Terminal in KPT by
the end of 1998, Multimodal Transport in Pakistan has come of age.
6.
Another commendable development in the field of Multimodal Transport
Operation is the establishment of National Trade and Transport Facilitation
Committee (NTTFC) to promote national and international trade of Pakistan. This
Committee has a four fold objective of facilitation, regulation, policy
development and training.
Policy Recommendations
7.
The following policy measure should be adopted:
a)
Advantages of Multimodal Transport should be widely propagated to all
concerned individuals and organizations
b)
The concept of Multimodal Transport (MT) should be fully integreated in the
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system for international trade from and to Pakistan
c)
Legislation for carriage of goods through Multimodal Network should be
finalized as per recommendations of 1994 UNCTAD Conference and subsequent
World Bank Study of 1996.
d)
Legislation is necessary to cover the following aspects:
I.
Liability and contract of carriage
II.
Insurance of cargo in transit.
III.
Customs duty for short landed cargo
IV.
Contract carriage liability provisions for actual and contractual operaters in road,
rail and sea modes of transport.
8.
Establishment of Infrastructure for MT. Following essential infrastructure
should be established/expanded.
a)
Inland Container Depots (ICD) should be established at focal points relevant to
KPT, PQA and Customs. Ministries of Railways, Communications and
Commerce should have their own focal points to deal with matters related to
Multimodal Transport
b)
Additional Dry Ports should be setup after due consideration
c)
New Container Terminals on the principle of demand and supply to be established
d)
As Container handling equipment is a prime requisite for the MT, the same should
be provided both at the ports as well as the ICD ‘s and Dry Ports.
9.
All MT operations including development of infrastructure should be privatized.
10.
Establishment of Multimodal Transport Operators (MTO’s) in due course of time
should be incorporated as a policy measures.
11.
Education and Training As Education and Training is an essential requirement
for all transport operations in general and Multimodal Transport in particular, the
following should be adopted as a matter of policy:
a)
Ministry of Education should take measures to introduce Transport Education at
Diploma Degree and Post Graduate Levels.
b)
The syllabi for these courses should cover all modes of transport including
Multimodal Transport and should be formulated in consultation with the Ministry
of Transport.
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c)
Qualilfication in Transport Education should be made mandatory for employment
in the transport industry.
d)
As Electronic DATA interchange (EDI) is an essential component of MT
Operation, it should be given due share in the syllabus for Transport Education.
e)
On job training should be organized by transport industry
12.
Other policy matters for MT are as under:
a)
A National Coordinator Committee to promote Multimodal Transport should be
appointed to monitor implementation and ensure coordinated progress.
b)
The streamlining and rationalizing of customs procedures and regulations in line
with the requirements for the introduction of Multimodal Transport. A number of
regulatory controls exist which impede the flow of goods from seaports to and
from inland destination, which should be reviewed.
c)
Significant changes have to be made in Pakistan’s transport related legislation and
recommend measures to achieve intermodal alignment and international
compatibility.
d)
Multimodal transport operators should be registered to ensure stability and quality
of services.
e)
The prevailing trade and banking procedures in the country should be improved to
meet the needs of Multimodal Transport in Pakistan
f)
The private sector should be fully involved in the promotion and development of
the Multimodal Transport System in the country.
g)
The new world trade data interchange system be adopted in Pakistan to enable the
essential informational flow necessary to support multimodal transport.
h)
The Pakistan International Freight Forwarders’ Council (PIFFC), the organization
of multimodal transport operators and groups of other transport intermediaries
should adopt a set of minimum standards for their operation and conduct. The
standards should also clearly set out their professional and financial qualifications
and establish a code of professional conduct. The new standard trading conditions
will make them reliable partners for foreign counterparts/clients.
i)
The current Pakistan legislation does not consider freight forwarders as carriers.
Because of lack of appropriate multimodal transport legislation, these freight
forwarders cannot offer comprehensive multimodal transport operations. In this
regard reference should be made to the UNCTAD Minimum Standards for
transport operators.
j)
The freight forwarders, NVOCCs and transport operators of the country should
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reorganize themselves on modern lines and adopt standard rules of operation.
k)
Ports should work round the clock to expedite cargo handling operation with in
the port and reduce expensive delays.
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ACKNOWLEDGEMENT
The CIT Committee for drafting the National Integrated Transport Policy gratefully
acknowledge the wealth of information contained in the following reports and reference
documents from which valuable information and suggestions have been incorporated in this CIT
Policy Document:
a)
National Transport Policy (Draft) prepared by Mr. M.Sadiq Swati, Senior Chief
National Transport Research Centre, Islamabad, January, 1992.
b)
Various reports submitted by the following UNDP/UNCTAD experts assigned to
the Pakistan Trade facilitation programme in 1992-1994:
Mr. Stig Lofberg
Freight Forwarding Consultant
Mr. Gosta Roos
Trade facilitation
Professior Gerard Autchter
Transport Legislation
Mr. Hugh Townsend
Container Operations
c)
A presentation on Privatisation Strategies for Pakistan Railways made to Khawaja
Mohammad Asif, Chairman Privatization Commission by Zarghoon Railroad
Transport (Pvt) Ltd., dated May 13, 1997.
d)
The Report of the Task Force on the Railways prepared by Mr. Javed Burki,
Secretary Ministry of Economics Affairs dated June 9,997.
e)
Pakistan Transport News Journal of the Chartered Institute of Transport Pakistan,
November 1997.
f)
Report of the Prime Minister’s Task Force on Ports and Shipping under the
Chairmanship of Capt. Haleem A. Siddiqui, Federal Minister of State for Water
and Power.
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