Shipping industry is a game changer

It is a pity that while so much is being said and written about the poor state of national economy, a great opportunity that can contribute towards its betterment continues to remain unexploited; even unmentioned. The shipping industry has the potential to become a major and sustainable contributor to the economy, especially when it comes to the issue of balance of payment.
Unfortunately, no in-depth study has ever been carried out to understand the working of this particular industry in Pakistan’s specific context and how we can benefit from it. The result is that shipping policies announced from time to time bore no result. The focus of official policies has always been on increasing private ships under the national flag. Had there been a study, we would have known that shipping is not just about owning the ships; it is much more than that. Bulk of the modern shipping industry is run in the private sector where the sole motive is to make profit. It is for this reason that a large number of ship-owners do not manage their ships but give them to independent ship management companies for cost-effective management. This highlights the importance of efficient running of the ships. Pakistan may not have much to offer when it comes to ship-owning, but it has some unique advantages to offer cost-effective ship services. These advantages include the close vicinity of a terminating shipping lane where ships pass its coast twice and can call Pakistani ports with little diversion, and a ship demolition yard that can provide recycled machinery and spare parts. Much more critical is the availability of local manpower for both ship and shore use along with training and certification capability for labour force.
If these advantages are utilised intelligently, Pakistan can provide cost-effective ship services, like repairs, supplies, crew change, etc., and can become one of the most sought after destinations for ship services.
Once vessels start calling Pakistani ports for such services, it will facilitate large-scale employment of Pakistani seafarers and will lead to the establishment of ship management companies in the country. These ship management firms will give us some kind of a much needed say in the affairs of international shipping. To achieve the above, a paradigm shift is required in our approach towards the neglected shipping industry. Instead of ‘ship-owning’, our focus should shift to ‘ship services’, and towards the efficient removal of irritants in the way of the delivery of these services.
Unlike ‘ship-owning’, ‘ship services’ are not affected much by the ups and downs of business and can provide a sustainable source of foreign exchange earning to the country.
MUHAMMAD MOHSIN ZAIDI
KARACHI