The draft National Transport Policy (NTP), prepared by the Ministry of Commerce, has proposed establishment of a transport ministry that co-ordinate policy and undertake measures on the pattern of developed countries, documents available with this correspondent reveal.
The Economic Co-ordination Committee of the Cabinet considered the summary of the draft transport policy and constituted a committee in March 2011, headed by Deputy Chairman Planning Commission, Advisor to Prime Minister on Petroleum and Natural Resources, Secretaries of commerce, industries and communications divisions to review the draft policy.
The draft policy, which identified major issues related to transport sector, acknowledges the lack of co-ordination, co-operation and sharing of information for encouraging development and improvement in infrastructure provision and operations to optimise customer service, reduce duplication, reduce destructive competition, minimise total costs and maximise social and economic return on investment.
The policy also acknowledges inadequate and inappropriate institutional capacity and maintenance, which have led to poor conditions of infrastructure assets like roads, highways and rail. Trucking industry is unorganised and is a source of high cost externalities, which weigh negatively on the economy. The policy proposes prioritising maintenance and developing a sustainable cost model that relies primarily on user charges.
Pakistan Railways is in poor shape and in need of repair and maintenance, curtailing operation deficit, improvement in declining traffic and low level of quality in services, modernising very old infrastructure along with inefficient rolling stock and outdated supporting infrastructure and human resources.
The policy suggests that the railways must operate along commercial lines, ie use commercial management practices including cost recovery and financial viability in monetary and assessing costs. It also suggests focusing on providing core railway services and divest non-core activities. Expand the role of the private sector through PPPs, private sector involvement and increased financial participation.
About Ports and shipping, there is evidence of high charges relative to revenue, abnormal levels of profit and inconsistent investment decision resulting from high traffic growth estimates, absence of real competition and a lack of development co-ordination among the ports. A master plan for the entire shipping industry is required.
It was proposed in the policy to update an integrated port master plan and techniques such as opportunity cost and cost benefit ratio. Pakistan National Shipping Corporation (PNSC) is to compete on an even basis with all competitors for providing transport and freight services to government cargo.
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