Release of detained coal ship: PSM seeks federal government help

Pakistan Steel is seeking legal opinion and assistance from federal government for the release of the coal ship detained at Canadian port for past five days. Sources told Business Recorder on Monday that Pakistan Steel Mills Corporation (PSMC) has approached Ministry of Industries and Production and Ministry of Law to solve the issue.
Pakistan Steel has asked ministry of law to examine the case and advise on the issue whether Indian firm's decree can be challenged or not. After the legal opinion of ministry of law Pakistan Steel will take further steps. For this purpose Hamid Perviaz, director of PSMC, also met officials of law ministry at Islamabad on Monday and discussed the issue in detail, sources said.
A ship carrying 50,000 tons coal for Pakistan Steel, which was expected to reach Port Qasim on June 13, 2011, was detained near the Canadian shore on request of an Indian company Formento, which has a claim of $13 million and had obtained a decree from the Supreme Court of British Columbia (Canada) against Pakistan Steel.
In a letter sent to ministry of industries, PS management has requested it to take up issue with other relevant departments like ministry of foreign affairs, ministry of law and High Commission at Canada to resolve the issue of detained ship as soon as possible to avoid further losses to it. "PSMC has suggested that Pakistani High Commission at Canada should play an active role by hiring a legal counsel to put the case in the relevant court for the release of ship," sources added.
According to sources the Indian firm is trying to take delivery of the coal to sell in the market and recover its claim against Pakistan Steel. However, so far it has failed to take delivery of coal and detained ship is still at Canadian port, where demurrage is being imposed on the ship.
"Some $20,000 per day demurrage is being imposed on the detained ship, which will be paid by importer ie Pakistan Steel", sources added. A board member said that the claim of Formento is a sub judice and Pakistan Steel reserves the right to lodge an appeal based on facts. PS management is making all-out efforts for release of the ship along with coal and as part of these efforts letter has been sent to ministry of industries, he said.
"We believe that ship be will be released if serious efforts are made along with the help of victims. Therefore, Pakistan Steel is also approaching port authorities, vessel owner, shipping company and exporter to make joint efforts for release of the ship", he added.
Reportedly, some insiders of PSMC are also involved in this case, who leaked the secret information of import of coal and with the help of information, the Indian firm has take timely action, sources said.
They said that Indian firm submitted the decree just after issuance of Bill of Lending (BL) by the shipper and, after the issuance of BL, the goods are considered in the custody of importer, which is bound to make payment in favour of exporter.