Pakistan Unveils Major Port Incentives to Attract Transshipment Trade.
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The federal government on Wednesday unveiled a unified transshipment incentive package aimed at reducing cargo handling costs at Karachi Port and Port Qasim, as part of strategic efforts to position Pakistan as a regional transshipment hub and attract greater shipping traffic.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the package, which has been jointly introduced by the Karachi Port Trust (KPT), Port Qasim Authority (PQA), and their respective container terminal operators.
Comprehensive Tariff Concessions
The incentive framework offers significant reductions in port wet charges, wharfage, storage fees, and terminal handling charges (THC) for containerised, bulk, and break-bulk transshipment cargo.
Under the slab-based concession structure for port wet charges:
- 5% to 10% Transshipment Cargo: 20% concession.
- 11% to 25% Transshipment Cargo: 30% concession.
- 26% to 50% Transshipment Cargo: 50% concession.
- 50% to 90% Transshipment Cargo: 70% concession (subject to a minimum volume of 2,000 TEUs for container vessels).
- 90% to 100% Transshipment Cargo: 80% concession (subject to a minimum volume of 3,500 TEUs for container vessels).
Minister Junaid Chaudhry emphasized that the new policy replaces all previous standalone notifications and SROs with a unified, transparent, performance-based regime designed to lower operational overheads for international shipping lines.
Terminal-Specific Storage & Handling Benefits
To complement the port dues concessions, individual port authorities and private terminal operators have announced tailored operational incentives:
- Karachi Port Trust (KPT): KPT will grant wharfage concessions ranging from 20% to 80% based on transshipment volume thresholds. Additionally, it provides 14 days of free storage at container terminals and 30 days of free storage at the Thole Produce Yard (TPX) cargo area under shipping agent responsibility.
- Port Qasim Authority (PQA): PQA is granting a 100% concession on wharfage charges alongside seven days of free terminal storage, extendable up to 21 days for cargo managed under agent supervision.
- Container Terminal Operators: Major operators—including Karachi International Container Terminal (KICT), South Asia Pakistan Terminals (SAPTL), Karachi Gateway Terminal Limited (KGTL), and Qasim International Container Terminal (QICT)—have extended direct discounts on Terminal Handling Charges for both 20-foot and 40-foot transshipment containers.
KPT Chairman Rear Admiral (Retd) Shahid Ahmed noted that the unified regime is expected to cut vessel turnaround times, attract new mainline container services, and significantly scale up regional transshipment volumes passing through Pakistani waters.
