Pakistan cuts port charges by up to 80% to boost transshipment

Pakistan has announced major reductions in port handling charges and free-storage incentives for transshipment cargo as part of a new policy aimed at turning the country into a regional transshipment hub, Maritime Affairs Minister Junaid Anwar Chaudhry said Wednesday.

The government has approved discounts of up to 80% on port handling charges for transshipment vessels, with ships carrying larger volumes of such cargo eligible for greater incentives, Chaudhry said while announcing the package.

The measures are aimed at improving the competitiveness of Karachi’s ports by lowering operating costs, reducing vessel turnaround times and attracting more regional transshipment cargo.

At Karachi Port, wharfage charges for transshipment cargo will be reduced by 20% to 80%, while such cargo will receive 14 days of free storage. Cargo stored in the TPX area will be eligible for 30 days of free storage.

At Port Qasim, the government has approved a 100% waiver of wharfage charges for transshipment cargo. Terminal operators will also provide seven days of free storage, with the possibility of extending the period to 21 days.

Container terminal operators have agreed to reduce terminal handling charges by up to 25%, further lowering logistics costs for shipping lines, the minister said.

Rear Admiral (Retd.) Shahid Ahmed said the package would lead to a significant reduction in vessel turnaround times, improving the efficiency and attractiveness of Pakistani ports for regional shipping.

The chairman of the Karachi Port Trust said vessels carrying larger volumes of transshipment cargo would receive additional incentives under the new framework.

The government has also decided to abolish all previous statutory regulatory orders and notifications related to transshipment and replace them with a unified policy framework, Chaudhry said. The move is intended to simplify procedures and improve the ease of doing business in the maritime sector.

Chaudhry said reforms led by the chairmen of Karachi Port and Port Qasim had helped promote port trade and strengthen Pakistan’s maritime logistics sector.

Editorial note: I changed “historic” and similar promotional wording to more neutral AP-style language where possible. I also changed “wharfage charges will be reduced by 20% to 80%” to retain the stated range without implying every charge will receive the maximum reduction.