In context of development and progress of a country, the economic contribution of seaport activity is of prime significance according to industry experts.
A country’s logistics and supply chain system not only benefits national enterprises, but also helps to speed up domestic exports. Pakistan is fortunate enough to be located in such an area where there is immense promise for development of renewable resources and the sea is the backbone of the country’s economy.
At a time when urbanization and coastal industrialization in particular is gathering steam, the socioeconomic impacts of ports are enormous. Facilitation of trade is crucial for countries to progress because extraction or manufacturing can not bear fruit unless goods are actually sold in domestic or international markets. In this regard, the role of seaports as enablers of international as well as local trade is of tremendous significance. Additionally, Pakistan and its ports act as gateways to a variety of landlocked countries to trade via sea bringing numerous benefits to the domestic economy as well.
Ports also act as crucial elements in promoting seamless economic integration. As trade flourishes both nationally as well internationally, guidelines, treaties and agreements are put in place to ensure priority cargo handling, clearance, reduced taxations and easy passage for goods. These actions reduce the barriers in shipping making products more readily available at competitive prices locally and in foreign markets as well.
Shipping through sea routes carries bulk of the cargo that moves between countries. According to industry estimates, 90% of all global trade occurs through ports which provides an overview of the importance that they have for a country and its economy.
Seaports are also influential in building infrastructure such as highways, railways and inland waterways, according to experts.
Moreover, ports also have an impact on jobs as direct employment spikes where port-related activities occur. Occupations which are indirectly related to shipping also witness a boom like insurance, banking and other related services. At the same time, shipping is also more environment friendly than other modes like railways or road transportation. With deteriorating climates across the globe, corporate commitments for green practices are playing a key role in shipments being prioritized through sea.
These factors have been contributing towards the growing significance of ports as vital pieces in the economic equation across the globe. Over the last few years numerous sea ports including Gwadar Port, Pakistan International Container Terminal, Karachi International Container Terminal, Qasim International Container Terminal and Hutchison Ports Pakistan have been developed and put into operations to facilitate the country’s economic landscape further.
Among all these, Hutchison Ports Pakistan (also known as South Asia Pakistan Terminal) is country’s first and only deep-water container terminal, which can handle multiple vessels, carrying a load of 175,000 tonnes. Offering quayside depth of 16 meters to meet the growing shipping needs in the country, Hutchison Ports Pakistan has the potential to compete with regional deep-sea transhipment hubs including Salalah Port in Oman, Nhava Sheva, Jebel Ali Port in Dubai and Mundra Port in India, when it comes to depth, handling big vessels, and technology.
Designed with state-of-the-art cranes using semi-automatic and driverless cab technology that is on par with other regional ports, when it comes to improving the competitiveness of exporters, Hutchison Ports Pakistan has the competitive edge.
In order to reshape national balanced growth and nourish a competitive environment, this port has enormous reach. Although the port has the capacity to manage the cumulative country’s throughput, the freight flow to and from the port will become an obstacle if it operates in full potential. The government needs to build more expressways to connect to highways to compete with global peers with regard to transit trade and transhipment hub in order to cope with it.
Simultaneously, in order to magnify Pakistan’s capacity, other ports should implement advanced features, rendering it a prime Asian center for trade and transport activities.
In terms of improving and monitoring port facilities, optimizing cargo handling, automating customs clearance, promoting intermodal transportation services, improving port and cargo safety, it is important to concentrate on providing smart solutions to all its seaports.