Strengthening Infrastructure Construction to Enhance Shipping Competitiveness

by Mariam Raheem

ISLAMABAD,Jul.20(Gwadar Pro) -To enhance the competitiveness of shipping companies in the international market, Pakistan needs to work on infrastructure development. Key players in the sector such as the port and airport operators, cargo handling companies, freight forwarders, customs brokers, internal transport enterprises, ship chandlers have to adopt best practices to develop a highly competitive logistics chain compared with the best in the world.

The above views were expressed by Mr. Mubashar Hussain, Director Supply Chairman Management, PKG International Shipping & Logistics Pvt in an interview with Gwadar Pro recently. He further maintained that with the completion of some CPEC projects like road infrastructure, Pakistan’s logistics industry is gaining momentum in general and so is the situation of logistics companies, however, due to the lack of global standard articulated trucks and inadequate infrastructure, a lot is required to be done.

Pakistan's current infrastructure is still inadequate in several areas. Improving basic infrastructure is a key component that will directly and substantially affect its global competitiveness. "Currently we are working on many CPEC projects including special economic zones, hydro projects, transmission lines projects, road projects and power sector projects. It may be noted that most large shipments from China to Pakistan belong to power sector projects and industrial shipments. We are hopeful that the volume of the shipments will increase with better control of the epidemic in the future." Mubashar Hussain stated.

It is learned that Pakistan's exports to China have enhanced by 34 percent to $2.33 billion in the year 2020-21 as compared to $1.74 billion in the previous FY, increasing by $586 million which shows great potential. Pakistan exports many items to China like salt, sulphur, earth, stone, plaster, lime and cement, articles of apparel, knit or crocheted, machinery, nuclear reactors, boilers, raw hides and skins (other than furskins) and leather. He explained that since the freight increased during the epidemic, they need to restrict their imports and exports to essential commodities and products. The taxes and tariffs should be reduced by both governments by closely working with each other to support their logistics sector.

Regarding the development of China's automated port progress, Mubashar Hussain highlighted that automation ensures rapid and flawless functions as these are controlled by the current and latest technology. “Automation is however preferred and a function that we should support. Pakistan is already making progress by following the advanced standards of automation already in place in China and is also working with Chinese experts to realize them. Automation will help and improve our logistics functions especially at the ports and at the points of loading and unloading.”