Inland Waterways Part II
Reducing Cost of Doing Business by lowering Freight & Transportation Charges
Mr Arshad Abbasi , renowned Inland Waterway expert , has opined that the maritime or blue economy can be synergised with and expanded by inland water transportation (IWT). In his professional view all shipments from Peshawar to Karachi can be transported via “Barges”. Inland waterway had a glorious past but somehow the road transport cartels suffocated both rail and water transport.
Railway versus River transportation in Pakistan
The much touted $8 billion railway track from Karachi to Peshawar may be shelved as part of any Inland Waterway program which will help alleviate poverty, generate numerous technical employment opportunities , save highways and roads from environmental degradation and reduce transportation costs by a third. Reducing transportation and freight and logistic costs North to South will be drastically slashed .India’s seaports are in the South , West and East whereas Pakistan’s seaports are in the South. On account of such logistic convenience inland waterways have been significantly developed recently in India with World Bank funding and support. Mr Arshad Abbasi estimates that the development cost of inland waterways from the coastal region uptil Peshawar will be in the range of $ 400 million and is likely to receive funding from the World Bank whereas the rail transport project will cost $ 8 billion apart from financially burdening the economy. The Pakistan Navy Hydrographic Department has carried out survey of rivers for the purpose of inland waterway development. Essentially inland waterways comes within the domain of Ministry of Maritime Affairs . The Adani Ports Group and SEZ (APSEZ’s) Mundra Port handled over 15,000 container trains in the financial year 2023 with the number of double-stack container trains handled growing by 4.3%. Double stack loading of containers on trains ensures transportation of containers and cargoes in an energy efficient and environmentally friendly manner. The use of rail transport reduces the carbon footprint of freight transport and the efficient handling of container trains reduces the need for additional truck transport thereby eliminating carbon emissions.The APSEZ being India’s largest port developer and operator boasts 11 strategically located ports and terminals on the west coast (Mundra, Dahej, Tuna, Hazira, Mormugao, and Dighi) and the east coast (Dhamra, Gangavaram, Krishnapatnam, Ennore, Karaikal, and Kattupalli) handling 24 % of the country’s total port volumes.The APSEZ has established the Mundra Special Economic Zone (SEZ) in Gujarat, a vast economic hub covering over 8,000 hectares responsible for delivering integrated port and logistics facilities and logistic services from port gate to the customers location . The concept of Mundra SEZ, a multi-product SEZ, Free Trade, Warehousing Zone and Domestic Industrial Zone ensures diverse opportunities for businesses and industries.
Competitive Freight & Logistic Costs
As per ” Rule of thumb ” according to the Asian Development Bank’s assessment one liter of fuel moves 24 tons through one kilometer on the road, 95 km on rail and 215 kilometers on water. Savings for Pakistan’s economy are obvious. The huge fuel import bill can decrease thereby conserving precious foreign exchange. In the past Pakistan utilised its rivers for inland transportation but somehow this mode of transport went into oblivion. The time is opportune for its revival as it will enhance exports. Significantly lesser energy consumption, lower noise pollution and reduced carbon footprint is the hallmark of waterway transport. Inland waterways being a greener and more reliable way of moving freight can combat the negative impact of climate change and protect the environment. Pakistan definitely needs to establish real time Special Economic Zone at its ports and set up integrated multi modal , train and inland waterway transportation freight infrastructure to eliminate its increasing carbon footprint. By doing so Pakistan would qualify for carbon resilience financing rather then face consequences in the coming years when its ships would be levied punitive financial charges by European ports for not using green fuels. Cutting a tree and replacing it with 10 trees is no remedy as it is only a tree which is 20 years old which can sequester carbon. Mangroves in harbour waters are excellent in sequestering carbon and mangrove (halophytic) conservation should be a leading initiative of the policy makers.
Authored by Nadir Mumtaz
Credit ; https://youtu.be/zBVE2N3z_dU?si=LZRtusHKsEkQWMFR
https://www.bajajbroking.in/blog/adani-ports-special-economic-zone
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