Better port connectivity with inland container networks can significantly improve productivity and efficiency for local shippers, according to Pakistani shipping experts, as global seaborne trade continues to expand.

Despite geopolitical and environmental challenges affecting key maritime routes like the Suez Canal and Red Sea, maritime trade grew by 2.4 percent in 2023, underscoring the importance of sea trade in the global supply chain, which accounts for over 80 percent of global trade volume.

Majyd Aziz, former president of the Karachi Chamber of Commerce and Industry (KCCI), highlighted the pressing need for upgrades across Pakistan’s main ports – Karachi Port Trust (KPT), Port Qasim Authority (PQA), and Gwadar Port Authority (GPA) – to handle the rising seaborne trade and traffic.

He pointed to specific improvements such as expanding berths, modernizing equipment, and addressing environmental concerns by cleaning polluted waters and planting mangroves around port areas, which can effectively address and eliminate the environmental issues caused by the coal stored in that area.

Aziz stressed that high import levels and expanding exports make efficient port operations vital to Pakistan’s economy, however, congestion and limited facilities at Karachi and Bin Qasim ports lead to delays, with ships waiting at the outer anchorage incur heavy demurrage (which must be paid in scarce US dollars) in addition to the loss of valuable time, while Gwadar Port still lacks sufficient sea traffic.

The situation is further complicated by corruption, which Aziz cited as a significant issue within port operations, affecting stakeholders at all levels.

He recommended restructuring KPT and PQA boards to include more port users and sector stakeholders rather than political appointees, along with categorizing port fees into local and foreign costs to improve financial management, which could save billions in handling costs for goods such as rapeseed, canola, wheat, coal and others, benefiting exporters, importers, and even the government.

Global shipping remains vulnerable to disruptions from climate and geopolitical tensions, impacting trade flows.

Aziz called on world leaders to ensure that supply chains are not hindered by such issues and urged comprehensive reforms within Pakistan’s maritime ecosystem to align with global standards and secure a stronger economic future.