Shortcomings of shipping policy and ordinance-I

While framing a merchant marine policy and law, it is imperative to consider the following salient features in order to have a viable regime. To actively study the overall global scenario of world shipping; its legislation, strength and development. To take into account the national seaborne trade requirements, including that of provisions for taking active part in global seaborne trade. To ensure framing of rules and regulations in strict conformity with the requirements of International Codes, Practices and Maritime Legislation's. To ensure that the rules and regulations framed are crystal clear without any ambiguity and are fully elaborated, defined thereby leaving no avenue for administrative corruption/mis-interpretation. To appoint professional technocrats of merchant marine at the helm of affairs in the shipping organisations to ensure proper implementation of the various sections of the shipping policy and law in order to obtain optimum efficiency, profitability, expansion of merchant marine and gainful utilisation of the national and overseas finances.
To curb administrative and operational corruption, inefficiency, mal-practices and embezzlements of huge funds and award exemplary punishments to the culprits engaged in nefarious activities contrary to national interest.
To amend/alter/rescind one or more provisions of the policy and law in conformity with any change in the international rules, regulations, codes, conventions and practices since shipping is a global industry.
Unfortunately, all the above mentioned significant, salient features have totally been ignored by the Governments of Pakistan ever since the inception of Pakistan.
Consequently, shipping in Pakistan is in doldrums. Our national merchant marine fleet strength has dwindled drastically and today comprises of some fourteen aged ships destined for scrap in the next couple of years.
Pakistan since decades is forced to pay almost three billion US Dollars each year to foreign flagships to cater for its own national requirements of seaborne trade. Pakistan flagships hardly carry 4-5% of the total quantum of national seaborne trade.
The Almighty Allah has bestowed upon us a coastline of some 1,000 kilometers stretching on the shores of the Sindh and Balochistan provinces. Quite recently, all countries whose geographical parameters include navigable waters have been allowed to have exclusive economic zones subject to internationally laid down and accepted provisions. The pseudo-professionals representing Pakistan being totally ignorant of the provisions of international rules and regulations have agreed to have just 200 nautical miles zone extending into the Arabian Sea along with the shores of Pakistan. In fact, Pakistan's exclusive economic zone legally can be acclaimed and accepted up to over 280 miles in the Arabian Sea in conformity with the existing rules.
WORLD SHIPPING SCENARIO: Presently, there are some 30 countries which offer flag of convenience registry. A little over 62 percent of world tonnage is flying FOC flags. The developed countries namely Norway, Sweden, Denmark, Belgium, United Kingdom, Germany, France and others have adopted a system of "second register of shipping" that almost constitutes a little over twenty four percent of world tonnage and it has an inclining tendency. Presently, these two systems of registration constitute some eighty six percent of world tonnage.
From the above, it is evident that a balance of some fourteen percent of world tonnage is under national flag registry and its tendency is on the decline.
It is disgusting that Pakistan's national registry constitutes less than 0.03 percent of world tonnage.
It is interesting to note that the citizens of countries like Greece, Russia, Japan, USA, UK, and may others including Pakistan own huge percentages even greater than that of their own national flag ships under FOC and Second Register of Shipping.
How one can doubt the patriotic sentiments of all such citizens of the world?
They make huge investment in shipping under flags of countries other than that of their own national flag.
It is a harsh reality that rich people investing in shipping are interested to earn more profits on their investment under flags which provide more profits due to their maritime legislation including options of not declaring the source of investment, easy access of transfer of flags, insurance cover, engagement of cheap labour, stranding their ships without payment of wages to the crew, running away and seeking refuge under brass plates in cases of marine accidents, perils, pollution etc and remain anonymous thereby flouting all human norms and justice.
All these unfair means and practices can easily be had under flag of convenience registry. A recent case of grounding of m.t. Tasman Spirit which has caused serious oil pollution in Pakistani waters is one such glaring example. m.t. Tasman Spirit was flying a Maltese Flag which is a Flag of Convenience.
All know that a ship belongs to the country whose flag the ship flies. In the case of m.t. Tasman Spirit the stewards to the Government of Pakistan including the then Federal Minister of Communications repeatedly declared the tanker to be Greek.
Were the Minister, including his stewards in the Ports and Shipping Wing, were so ignorant and blind not even to see the flag and port of registry of m.t. Tasman Spirit boldly written on the stern of the tanker?
As and where a disaster occurs whether on land or sea the owner is located, interrogated and a case is lodged. Unfortunately, false justifications and statements were given by the stewards to the Government of Pakistan and false assurances were given to the nation and the affected that soon Billions of rupees shall be recovered from the Insurance, however, later all claims so declared are yet to be received.
The ownership of m.t. Tasman Spirit is still anonymous even authorities are silent.
Professional technocrats of merchant marine are aware of the name of the beneficial owner of m.t. Tasman Spirit but the atmosphere in Pakistan does not permit anyone to take the name of the beneficial owner of m.t. Tasman Spirit.
It is, therefore, under such a system of registry (FOC Registry), rich nationals of the world are interested in huge investments in shipping under the flag of convenience registry.
The flag of convenience registry is a menace to world shipping. A large number of sub-standard ships are under FOC register. This system provides engagement of cheap labour, low wages even non-payment of earned wages to the crew; several ship owners have stranded their ships in foreign ports without food, water and payment of wages, unhygienic food and living conditions, easy access to maritime frauds, illegal drug and arm trafficking etc-etc.
The International Transport Workers' Federation (ITF) of which the Pakistan Merchant Navy Officers' Association is an affiliate has waged a Campaign against the FOC ships for over fifty years. Billions of US Dollars have been recovered from the owners/their agents for the crew wages and the crews have been repatriated back to their home ports yet the ultimate aim of having a safer, cleaner and better seas has not yet been fully achieved.
There is an urgent need of political lobbying amongst the countries of the world to completely eliminate the menace of sub-standard shipping under the FOC Registry.
The Government of Pakistan is, therefore, urged upon to take initiatives against FOC Registered ships since we all are of the considered opinion that the interest of Pakistan is considered "First" rather than any other rich person/(s) who has taken refuge under brass plates.
On June 19, 2001; we had sent our views and recommendations on the proposed Shipping Policy and Shipping Ordinance to the Government of Pakistan. Consequent upon which we have also held meetings with the then Federal Minister of Communications, the Federal Secretary and the Director General Ports and Shipping. During the meetings all acquiesced with our submission and having understood to a fair degree the impact of FOC Registry and Second Register of Shipping; the induction of "Second Register of Shipping" was included in the Ordinance upon promulgation, however, all our recommendations could not be made an integral part of the Shipping Ordinance.
It is noteworthy to note that even after a lapse of some four years after the promulgation of the Merchant Shipping Ordinance-2001; the stewards to the Government in the Ports and Shipping Wing could not frame rules, regulations and elaboration's of the Sections of the Ordinance which speaks volumes of the inefficiency, incompetence of the stewards of the present Government.
Under the prevalent global maritime scenario it is imperative to adopt a "Second Registration System" for the growth and development of merchant marine (Shipping) in Pakistan.
It is highly regrettable that in spite of the promulgation of Merchant Shipping Ordinance-2001 and a Shipping Policy not a single ship has been added in Pakistan's merchant fleet by any private entrepreneur and nothing appreciable is witnessed in this most neglected sector of national economy that speaks volumes of ineffectiveness of the Policy and Ordinance.
This failure and ineffectiveness of the present shipping policy and Ordinance has also been critically observed by the Prime Minister of Pakistan who has also expressed great concern and has recently directed the stewards in the Ports and Shipping Ministry that the policy and Ordinance must be re-engineered, updated, changed and re-drafted.
Ever since the inception of Pakistan; the issue of framing a viable Shipping Policy and Act has been voiced by several Governments including the present Government of Pakistan but the state of affairs in the merchant marine is constantly deteriorating.
One major hurdle is that the position of Chief Maritime Advisor to the Government has always remained with the Chief of Naval Staff, who is neither trained nor qualified nor have any experience of commercial shipping and is seen continually sending serving and retired Commodores and Admirals from Pakistan Navy to the organisations of merchant marine.
Furthermore, it is painful to observe that huge corruption has existed in the various organisations of merchant marine.
In case the Government of Pakistan is sincere to improve merchant marine then it should consider appointment of Chief Maritime Advisor for Merchant Marine under the direct supervision of the head of State, however, for naval (warfare) activities the Chief of Naval Staff may retain this position as Chief Maritime Advisor to the Government of Pakistan.
At the time of inception of Pakistan, Merchant Shipping Act of 1923 was applicable.
In 1962 and 1967 the Government of Pakistan framed Merchant Shipping Bills to replace the then existing colonial Act of 1923; but unfortunately before the Bill could be presented in the National Assembly, the Assemblies were dissolved.
Later, in 1982 a Merchant Shipping Bill was presented on the floors of the National Assembly which was a true copy of an obsolete Merchant Shipping Act 1957 of India with the only amendment of the "Ashoka" insignia with the crescent of Pakistan and replacement of the words "India and Indian" with "Pakistan and Pakistani".
Over forty two amendments were made in the Indian Shipping Act soon after its enactment and later in seventies the Act was even revised and Indian Shipping Act-1957 was revoked; but unfortunately the stewards to the Government were ignorant of the developments.
We approached the then able member of the National Assembly Shah Baleeghuddin who pointed out this lacuna and the then Federal Minister of Communications had to cut a sorry figure and withdrew the Bill.
No action was taken against those involved in framing Pakistan Merchant Shipping Bill-1982. Millions of rupees were wasted away in terms of money and time both.
Until the promulgation of Merchant Shipping Ordinance, 2001; shipping in Pakistan was governed under an obsolete Colonial Merchant Shipping Act of 1923 that has caused havocs to Pakistan's merchant marine.
Under the need and cover of updating the Act of 1923, and in the absence of our own defined Policy and Act a number of SROs, memorandums etc were made from time to time to provide lucrative avenues to the people in the power corridors and their appointed stewards in the organisations of merchant marine.
(The writer is General Secretary, Pakistan Merchant Navy Officers' Association)
(To be concluded)