Slow sugar offloading chokes Karachi port operations

Slow sugar imports and discharge by the Trading Corporation of Pakistan (TCP) have created congestion at Karachi port, delaying cargo offloading for other sectors and triggering heavy demurrage payments, sources told NewzTodays.

Officials said Karachi port can handle up to 4,500 metric tons of sugar per day, but current operations remain far below capacity. The underutilization has resulted in ships carrying other commodities waiting longer for berthing and discharge, driving up storage and demurrage costs.

Private-sector importers have lodged complaints against TCP, saying the sluggish pace of sugar offloading has disrupted port schedules and forced them to bear substantial losses. “Vessels are being delayed unnecessarily because TCP consignments are not moving fast enough,” one importer said.

During a high-level meeting held in Islamabad, TCP officials explained that higher sugar imports would push up storage costs amid low domestic demand. They maintained that the corporation was deliberately managing smaller shipments to prevent excessive stock build-up in the market.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, who chaired the meeting, emphasized that the government had already decided to shift 60 percent of sugar imports to Gwadar Port to ease pressure on Karachi’s terminals. He offered TCP reduced handling charges if it utilized Gwadar’s capacity for incoming sugar cargoes.

The Ministry of Maritime Affairs later issued a statement confirming that corrective measures had been initiated to streamline sugar and cement handling operations at both Port Qasim and Karachi Port following reports of severe congestion. The review meeting also assessed the impact on export shipments, particularly of cement and clinker.

Senior officials, including Secretary Maritime Affairs Syed Zafar Ali Shah, Secretary Commerce Jawad Paul, Port Qasim Authority Chairman Rear Admiral (Retd.) Syed Moazzam Ilyas, Acting Karachi Port Trust Chairman Rear Admiral Atiq-ur-Rehman, and TCP Chief Executive Syed Rafeo Bashir Shah attended the meeting. Representatives of the Cement Exporters Association, led by Arif Habib, also participated.

The minister underlined the need for coordinated logistics planning, urging all ports to enhance operational efficiency and synchronize discharge schedules to avoid future bottlenecks. “Improving discharge performance is vital to prevent port congestion, which delays exports and inflates costs,” he said.

Officials informed the meeting that sugar was being unloaded at rates below the port’s discharge potential of 4,000 to 4,500 tons per day. The Port Qasim Authority was directed to fully utilize its capacity and ensure consistent sugar unloading to restore operational flow.

Participants reviewed directives from the Prime Minister’s Office calling for Gwadar Port’s greater use to distribute import traffic more evenly. The meeting also agreed that all vessels at Karachi and Port Qasim would follow a strict first-come, first-served berthing policy to ensure fairness and efficiency.

The TCP was instructed to enhance operational planning, better coordinate vessel arrivals, and maintain continuous communication with port authorities to minimize future congestion. Both the Karachi Port Trust and Port Qasim Authority were tasked with enforcing discharge benchmarks and applying penalties in cases of avoidable delay.

The Maritime Affairs Ministry directed all relevant agencies, including TCP and state importers, to align freight movement and scheduling with national logistics plans ahead of cargo arrivals. The minister praised the constructive engagement of participants and stressed that adherence to the new performance standards would be key to sustaining port efficiency and preventing a recurrence of similar disruptions.

Port congestion has become a growing concern for Pakistan’s maritime trade. According to port data, vessel turnaround time at Karachi has lengthened by nearly 25 percent over the past six months due to delayed cargo discharge and increased import volumes.

The shift of import activity to Gwadar, analysts say, could relieve Karachi’s terminals if implemented effectively, provided logistical connectivity is strengthened through road and rail links under the national transport strategy.