pakistan’s international freight forwarding & logistics industry & its regional connect

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PAKISTAN’S INTERNATIONAL FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT. - PowerPoint PPT Presentation

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Page 1: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT
Page 2: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

PAKISTAN’S INTERNATIONAL FREIGHT FORWARDING &

LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

Pakistani ports are a gateway for the not only its own population of 170 million people but also represent the potential to be the natural gateway for the 20 million people in Afghanistan, 30 million in Central Asia and the 30 million in Western China, altogether an economy of 250 million people.

Page 3: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

Basic transport infrastructure:

• Sea (shipping services)

• Air (airfreight services)

• Land (road transport assets)

• Railways (rail freight)

• Waterway (rivers & canals)

• Pipe Lines (oil & gas transport)

• Transmission Lines (energy transport)

Page 4: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

Background:In early 2004 we approached the Government and mutually explored the merits of addressing the development of the country’s Logistics sector, several presentations were made resulting in a series of coordinated efforts. We identified the need to quickly create the necessary institutions as our first big challenge.

Industry’s initiative:In mid 2004 we setup the “International Road Transport & TIR Commission” at the ICC-pnc and it became the member of IRU hence also the guaranteeing national organization for the implementation of the TIR Convention. In December 2004 we set up PIFFA – Pakistan International Freight Forwarders Association. A set of “Standard Trading Conditions” were adopted and PIFFA got membership of FIATA.

Page 5: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

Government response:We then worked closely with the Government of Pakistan and got support from them for our proposals & ideas. We perused coordination with the World Bank to take these initiatives further. The World Bank started working with the Government on infrastructure development. In August 2005 the Government announced the formation of the National Trade Corridor programme. The project dealt with the upgradation of the entire logistics & transport infrastructure & services chain starting from deepening the port channels, setting up of deep draft berths, planning cargo villages at the seaports & airports, expansion of the road & highway networks, creation of new linkages, revamping of the Railways freight section, setting up container freight stations & establishing new customs stations on our northern border crossings. On the service side it covered revamping of the entire customs procedures including introduction of fully automated processing and the IC3, encouraging the freight forwarding sector i.e. PIFFA to streamline its rules & procedures and a accreditation based mechanism process was put in place.

Page 6: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

The market:

The service providers offering the logistics & transport services had limitations in the size of their economy. A World Bank funded survey conducted in January 2005 determined the annual turnover of the countries “Freight Forwarding Industry” at approx Rs 45 billion, this mainly included afreightment agreements contracted in Pakistan for exports of sea & air shipments. So we approached the Government for some quick actions.

• Freight Forwarding Services• Trucking Services• Warehousing Services

Page 7: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

National connect:

The fast and cost effective delivery of produce and products within the country has been missing.

We have an abundance of horticultural products, however more than 40% goes waste due to lack of proper reefer transport services and inadequate cold storage facilities.

The Government was advised to provide supporting capital investment for infrastructure development. Such initiatives would then draw interest and investment from the logistics service providers .

Page 8: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

Regional connect:

With the countrys own population of 170 million and after including the region, it adding up to 250 million.

The whole region is still not connected by proper logistics, therefore the potential to develop connectivity is huge.

Cashing in on its geographical advantage in the region, Karachi’s gateway potential can be optimized by pushing for a vertical connect between Karachi’s wharfs and Central Asian’s bazaars.

Page 9: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

Distances from Central Asian States to sea ports

Page 10: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT
Page 11: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

PAKISTAN’S GEO-STRATEGIC SIGNIFICANCE

K A Z A K H S T A N

UZBEKISTAN

TURKMENISTAN

I R A N

C H I N A

KYRGYZSTAN

TAJIKISTAN

RUSSIA

B L A C K S E A

T U R K E Y

URALSK AKTYUBINSK TURGAY

CHELKAR

GURYEV

ARALSK

DZHURALY

KZYL - ORDA

ARAL SEA

KARAGANDA KARKARALINKS

AYOGUZ

TALDY KURGAN

ALMA ATA

SARY - SHAGAR

KARSAKPAY

FRUNZE

NARYNE

KASHGHAR

OSHI

CHIMKENT

TASHKENT

LENINABAD

TAMDYHULAKNUKAS

URGENCH

BUKHARANAVOI

SAMARKAND

KARSHI

TERMEZ

DUSHAHB

FAIZABADKHUNJERAB

PASS

MAZAR - I - SHARIF

MARYASHKHABAD

KABUL

ISLAMABAD

JAMMU&

KASHMIRDISPUTED

TERRITORY

LAHORE

KANDHAR

HERAT

MULTAN

SUKKAR

HYDERABAD

BAM

BANDAR ABBAS

SHEERAZ

ESFAHAN

QOM

TEHRAN

TABRIZ

ERZURUM

SIVASANKARA

ISTANBOL

SHEVCHENKO

KANSNOVODSK

KERMAN

MASHAD

KARACHI

GWADAR

ARABIAN S E A

QUETTA

Ajmer

Amratsar

DEHLI

URUMQI

Persian Gulf

IRAQ

KUWAIT

OMANUAE

QA

TAR

SAUDI ARABIA

SYRIA

PA

LES

TIN

ER

ED

SE

AEGYPT

MEDITERRANEANSEA

GREECE

BULGARIA

BAGHDAD

RIYADMADINA

AMMAN

ABUDHABI

MUSCAT

CAIRO

DAMASCUSBEIRUT

GEORGIA

UKRAINE

MOLDAVIA

ROMANIA BUCHAREST

KIYEV

TBILISI

AZARBIJAN

RUSSIA

I N D I A

Mumbai

CHAHBAHER

ZAHIDAN

Road Linkages from Pakistan to the region

Page 12: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

21

PAKISTAN RAILWAYS

Havelian

Khunjerab

Jalalabad

Lahore

Amratsar

Karachi

Munaba

Gwadar

Mastung

Quetta

Mashad

Herat

Esfahan

To Turkey &Europe

Strategic Regional Railway Linkages

TaftanZahidan

Peshawar

Railway Linkages from Pakistan to the region

Page 13: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

HR availability:

PIFFA set itself the goal of training the forwarders towards achieving an International standard of professional efficiency and performance. PIFFA sought technical support from the FIATA Foundation, FIATA delivered a TOT course in November 2006 at Karachi. The local team then developed a course of 10 modules with a teach-time of 240 hours. The course was validated at the FIATA Congress in Dubai in October 2007.

Page 14: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

Beauracratic spread:

At the Government level Pakistans Logistic expanse is spread across 7 Federal Ministries.

It is now needed of the Government to put all freight transportation & logistics matters under the banner of a single ministry, the “Ministry of Freight Transport, Logistics & Ports”.

Page 15: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

To sum up the industry today:

The entry of the first “International Freight Forwarding” companies was around 1980. The next 20 years saw a steady growth of this industry. Today the sector consists of around 600 maybe 700 organizations. 450 companies are members of PIFFA and provide all types of logistics services to Pakistan's trade. Transit traffic to Afghanistan, commercial as well as military cargoes, are moved on a daily basis, however the ratification of the TIR Convention is still awaited. Meanwhile not to long ago Pakistan railways ran its inaugural train from Pakistan to Turkey.

Page 16: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

The early bird:

It is no doubt a difficult environment but companies willing to brave the opportunity by engaging will carefully selected local partners will prosper.

Page 17: PAKISTAN’S INTERNATIONAL  FREIGHT FORWARDING & LOGISTICS INDUSTRY & ITS REGIONAL CONNECT

The old sail boat jetty, Karachi port estd.1887