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Goods movement paralysed by strike

By Parvaiz Ishfaq Rana and Aamir Shafaat Khan 2017-05-16
KARACHI: A strike by goods` carriers entered into its eighth day on Monday, hindering the movement of goods to and from ports and depriving factories of muchneeded raw material.

The wholesale commodity market has managed so far reflected in price stability, but traders believe the situation could not be sustained for long with expected customers` influx close to Ramazan.

Goods` carriers went on strike last Monday against a ban imposed by the Sindh High Court (SHC) on the movement of heavy vehicles in Karachi during the day. The strike was later joined by 14 other transport bodies.

About 7,000 to 8,000 containers carrying raw material, imported food and other items travel daily from the Karachi port to Port Qasim, Landhi and Korangi industrial areas a distance of about 35 kilometres.

An alternative route given by the deputy inspector-general of traffic police was rejected by the transporters, who complained that the new route was long and would increase the costoftransportation.

In a hearing on Saturday, the SHC ordered the stakeholders toset up a committee to frame terms of reference (TOR) and suggest routes for heavy vehicles. The next hearing is scheduled for May 20.

Nisar Hussain Jafri, the chairman of newly formed Pakistan Goods Transporters Alliance, said that on Sunday they met Mayor Karachi Wasim Akhtar and finalised the TOR and suggessions which would soon be submitted to the SHC.

However, Mr Jafri reiterated his stance that transporters never asked for any change in the route.

He said transporters had been fol-lowing a 2007 Supreme Court order given by the then acting chief justice Rana Bhagwandas under which heavy vehicles were allowed to move within city`s jurisdiction from 11pm to 6am.

He regretted that the SHC banned heavy vehicles` movement on a plea that they were passing through residential areas. Mr Jafri argued that even the new, long route involving Northern Bypass was passing through residential areas.

The stakeholders` committee has suggested that NorthernBypass should be used for heavy vehicles moving out of Karachi for other parts of the country.

However, the intercity transport should be allowed to move on one of the following three routes leading to Korangi and Landhi industrial areas: first, from Sher Shah, SITE, Liaquatabad, Rashid Minhas Road to Sharea Faisal; second, from Shaheed-i-Millat Road to Sharea Faisal; and third, from Mai Kolachi, Bilawal House Chowrangi, Seaview Road, Do Darya to Korangi industrial area.Meanwhile, a spokesman of the Karachi port told Dawn that from Tuesday (today) no vessel could be given berth for unloading of containers at its two container terminals, i.e. Karachi International Container Terminal (KICT) and Pakistan International Container Terminal.

However, he said the KICT could use some space. For the last eight days, the import of cargo was being unloaded but no export cargo could be loaded as no containers reached the Karachi port.

The industry is claiming that on an average about R s6bn losses were being suffered per day on account of exports alone. Mohammad Jawed Bilwani, the chairman of Pakistan Apparel Forum, said industrial units were facing storage problems as goods could not be moved out of their premises.

Exporters were facing expiry of letter of credits and could lose order,he said,addingthatthe perishable cargo has been hit the worst.

In the commodity marl(et wholesalers of imported grams and pulses sounded alarm over depleting stocks in Dandia Bazaar (Jodia Bazaar) ahead of Ramazan as a sizable quantity these commodities is lying at the port following a strike by goods transporters from May 8, 2017.

The arrival of essential goods from up-country has also been suspendedfor the last eight days due to a ban on the entry of goods carriers in Karachi.

`Around 500-700 containers carrying pulses from Australia, Myanmar, USA and Canada are awaiting clearance at the port, Chairman Karachi Wholesalers Grocers Association (KWGA) Anis Majeed said.

Imports of pulses swelled to 956,376 tonnes ($696m) in July-March 2016-17 from 695,898 tonnes ($444m) in the same period last fiscal.

`Heavy imports have kept the prices of pulses stable sofar,` he added.

`Stocks of imported pulses are gradually coming to an end due to non-arrival of goods from the port,` he said.

He feared serious shortage in case the imported goods remain stuck at the port.

Imported pulses (whole) arrive at the port and are then transported to the mills located in Punjab and Hyderabad for processing, however many of these mills are now closed as they have run out of stocks, he informed.

So far, the wholesale prices of various essential commodities including pul-ses, flour, wheat, rice, etc, have remained unchanged.

Retailers in various areas said the prices of almost all the commodities have been static and marl(ets are not facing any kind of shortage.

They added the markets cannot sustain this situation for long especially when Ramazan buying picks up pace. Traders said due to transporters` strike, some Suzuki van drivers are cashing in on the situation by demanding higher pricesfor lifting goods from Dandia Bazaar to various areas of the marl(ets.

Suzulci van drivers are demanding Rs3,000-3,500 for bringing goods to Saddar Market from Dandia Bazaar which was Rs1,500-2,000 prior to goods` transporters strike, the said.

Arrival of commodities from up-country has not been affected. Wholesalers manage small commercial vehicles to bring the goods from the outskirts of the city.