Study AirCargo Pakistan

Government of Pakistan Ministry of Commerce

Study on Creation / Improvement of Cargo Handling Facilities at Airports in Pakistan

Syed Irtiqa Ahmed Zaidi Javaid Mansoor National Consultant(UNDP-TIHP) Executive Secretary (NTTFC) Ministry of Commerce Ministry of Commerce Islamabad Karachi

September 01, 2006

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Acknowledgement The study team acknowledges with thanks the support and information provided by the stakeholders such as officials of Civil Aviation Authority, Export Promotion Bureau, Federal Bureau of Statistics, Pakistan Customs, Pakistan Revenue Automation Ltd., Pakistan Horticultural Development and Export Board, Gwadar Development Authority, Gwadar Port Authority, Karachi Port Trust, Port Qasim Authority, Pakistan International Airlines, Shaheen Airport Services, Gerry’s Dnata, DHL Services, Sialkot International Airport, Federation of Pakistan Chambers of Commerce and Industry, Pakistan International Freight Forwarders Association, Air Cargo Agents Association of Pakistan, Pakistan Bedwear Exporters Association, Karachi Chamber of Commerce and Industry, Lahore Chamber of Commerce and Industry, Islamabad Chamber of Commerce and Industry, Rawalpindi Chamber of Commerce and Industry, Sialkot Chamber of Commerce and Industry, Faisalabad Chamber of Commerce and Industry, Multan Chamber of Commerce and Industry, Sarhad Chamber of Commerce and Industry, Chamber of Commerce and Industry Quetta, and Gwadar Chamber of Commerce and Industry for preparation of this report.

Disclaimer The views expressed in this report are those of the authors or cited sources and do not necessarily reflect the views of the Ministry of Commerce, Government of Pakistan.

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Abbreviations and Acronyms ACAAP Air Cargo Agents Association of Pakistan AFU Air Freight Unit ASF Airport Security Force CAA Civil Aviation Authority CAR Central Asian Republics CARE Customs Administrative Reforms CCIQ Chamber of Commerce and Industry Quetta EPB Export Promotion Bureau FBS Federal Bureau of Statistics FPCCI Federation of Pakistan Chamber of Commerce and Industry GCCI Gwadar Chamber of Commerce and Industry GDA Gwadar Development Authority GPA Gwadar Port Authority IATA International Air Transport Association ICCI Islamabad Chamber of Commerce and Industry KPT Karachi Port Trust LCCI Lahore Chamber of Commerce and Industry MCCI Multan Chamber of Commerce and Industry NTCIP National Trade Corridor Implementation Programme PACCS Pakistan Customs Computerized System PHDEB Pakistan Horticultural Development and Export Board PIA Pakistan International Airlines PMD Pakistan Meteorological Department PQA Port Qasim Authority PRAL Pakistan Revenue Automation Ltd. SCCI Sarhad Chamber of Commerce and Industry RCCI Rawalpindi Chamber of Commerce and Industry SAPS Shaheen Airport Services Ltd. SBP State Bank of Pakistan SCCI Sialkot Chamber of Commerce and Industry SIAL Sialkot International Airport (Pvt) Ltd. TIHP Trade Initiatives from Human Development Perspective UNDP United Nation Development Programme

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Contents Page

Acknowledgement .............................................................................................................. 1

Disclaimer ........................................................................................................................... 1

Abbreviations and Acronyms ............................................................................................. 2

Contents .............................................................................................................................. 3

Executive Summary ............................................................................................................ 4

1. Introduction..................................................................................................................... 9

2. International Trade of Pakistan..................................................................................... 10

3. Transport of Cargo by Air............................................................................................. 13

4. Jinnah International Airport, Karachi ........................................................................... 17

5. Allama Iqbal International Airport, Lahore .................................................................. 24

6. Islamabad International Airport.................................................................................... 29

7. Peshawar International Airport ………………………………………...…………34

8. Sialkot International Airport ......................................................................................... 38

9. Multan International Airport......................................................................................... 40

10. Faisalabad International Airport ................................................................................. 42

11. Quetta International Airport........................................................................................ 44

12. Gwadar International Airport...................................................................................... 46

13. Air Cargo Business Process ........................................................................................ 51

14. Recommendations....................................................................................................... 53

Annex-I ............................................................................................................................. 56

Annex-II …………………………………………………………………………………57

Annex-III ………………………………………………………………………………...58

Executive Summary The exports of Pakistan have grown from US$ 9.135 billion in 2001-02 to US$ 16.469 billion in 2005-06 at an average annual rate of 15.9%. During the same period the imports have increased at even faster rate of 28.9% from US$ 10,340 billion to US$ 28.581 billion. To overcome the increasing trade gap the government is adopting all measures to encourage growth in exports. About 95% trade of Pakistan is carried out by sea. However, expensive articles, perishable goods and items requiring quick delivery are sent by air in spite of much higher freight rates. Although in terms of weight the share of exports sent by air is about 1.3%, in value terms it is estimated to be about 8%. There are 42 civil airports in Pakistan, out of which 10 are categorized as international airports. The share of cargo handled at these airports during 2004-05 is shown in Table 1.1. Considering the volume of cargo handled by them and the potential for future growth the following were selected for the study:

Karachi Islamabad Faisalabad Quetta Lahore Peshawar Multan Gwadar

The share of cargo handled at these airports during 2004-05 is shown in Table 1.1. Table 1.1: Share of Cargo Handled during 2004-05

(Percent)Airport International Domestic Total

Karachi 58.361 47.419 54.634Lahore 24.291 29.271 25.988Islamabad 13.133 17.010 14.454Peshawar 4.078 2.518 3.546Multan 0.098 1.258 0.493Faisalabad 0.006 1.080 0.372Quetta 0.032 1.289 0.461Gwadar 0.001 0.060 0.021Turbat 0.000 0.094 0.032Pasni 0.000 0.007 0.002

Total 100 100 100 Source: CAA Construction of Sialkot airport is nearing completion and will commence cargo operations in 2007. This airport was also surveyed to explore its potential. Considering the growth of air traffic it is estimated that the total air cargo will increase from about 330,000 tonnes in 2004-05 to about 866,000 tonnes in 2015-16. The main constraint on volume of cargo lifted from the airports is the capacity and number of aircrafts operating from there. The facilities at the airports affect the efficiency with which the cargo is handled and processed. Capacity to lift the cargo can be increased only by attracting more airlines to operate their services. It has been pointed out by the stakeholders that the foreign airlines are not attracted to call at Pakistani airports because of the relatively high landing charges and the fuel prices.

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The main purpose of sending cargo by air is to ensure expeditious delivery of cargo. Security of air flights has now become a major concern. In case of cargo not being scanned or physically checked against explosives it is required to be detained at the airport for 24 hours cooling period, which defeats the purpose of sending the cargo by air. Physical examination causes damage and makes the goods liable for pilferage. Modern cargo scanning equipment capable of detecting explosives has therefore become an essential requirement for handling of cargo at the airports. Most of the airports lack this. Cargo handling terminals, especially those of Pakistan International Airlines (PIA), do not have adequate capacity for handling the cargo. At present PIA transports over 50% of the air cargo. Special attention is needed to expand and modernize the cargo terminals at Karachi, Islamabad and Peshawar. There is demand from the exporters for cold rooms to be provided for transport of perishable commodities. Where these facilities have been provided these are not being used. The traders complain that the facilities do not have a temperature controlled environment. There is a need for careful assessment of the type and extent of facilities required and then arrange accordingly. The time involved in completion of various business processes at the airports is unduly long. Pakistan Customs Computerized System (PACCS) introduced by Customs at the container terminals needs to be extended to all airports and the IT systems of Civil Aviation Authority (CAA), airlines, cargo handling agent and air cargo agents integrated with it. The exporters have complained of lack of suitable lockers with strong rooms at Karachi, Lahore and Peshawar airports for keeping gems and jewelry and other valuables. There are also complaints of excessive charges by PIA for carriage of such items. CAA does not levy any throughput charges for the exports. It levies throughput charges at the rate of 2% of International Air Transport Association (IATA) tariff for the air freight on the normal imports and 5% of IATA tariff on imports requiring immediate clearance. Actual freight paid on these consignments is usually much less than the IATA tariff and there are complaints from the air cargo agents on behalf of the importers that the charges levied by CAA are excessive. Because of the geographical location of Pakistan there is great opportunity for exploiting sea-air multi-modal transport to Central Asian Republics (CAR). But this requires streamlining of related systems and procedures for quick transfer of cargo from sea ports to airport and promotion of regular air services to CAR. In light of the survey of the above mentioned airports and discussions with the stakeholders the following are recommended: Recommendations General

1. PACCS may be introduced by Pakistan Customs at all airports and IT systems of CAA, airlines, air cargo agents and cargo handling agents may be integrated with it to function as a Single Window.

2. Aircraft landing charges and fuel prices charged at Pakistani airports may be

compared with the regional airports and rationalized to make them comparable with the charges at the regional airports.

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3. CAA may establish suitable adjudication mechanism at each airport for quick

resolution of disputes relating to throughput charges.

4. Modern scanners of adequate capacity for the cargo load may be installed at all airports for screening of cargo.

5. All stakeholders should be consulted during the planning stages of new airports

at Islamabad and Gwadar and new terminal facilities at other ports to ensure that the cargo handling facilities are adequate and in keeping with the latest cargo handling practices and regulatory requirements.

6. PIA may introduce appropriate security arrangements in its aircraft for transport

of gems and jewelry at a reasonable cost.

7. The procedures of all organizations involved in transport supply chain may be streamlined to facilitate development of sea-air-road multi-modal transport logistics.

Karachi Airport 8. To eliminate damage and pilferage of cargo the backyard area of airlines

warehouses in CAA Cargo Complex Air Freight Unit (AFU) may be covered with sheds and caged. The sheds in examination area of AFU also need to be extended on both sides to cover the open area between the shed and the airline warehouses and the open space for receiving the cargo. Security against pilferage may be strengthened. A modern scanner of adequate capacity may be installed.

9. PIA Cargo Complex may be expanded to integrate all export, import and

domestic cargo operations at one place. Necessary funding arrangement for early execution of this expansion may be made. There should be suitable provision for temperature controlled cool rooms for perishable commodities, chiller room for medicines, strong room with lockers for valuables, modern scanners and closed circuit TV monitoring.

10. The scattered cargo handling facilities at Karachi Airport may be integrated by

developing a Cargo Village with modern warehousing and cold storage, and all other modern equipment required in such a facility. Necessary offices, other amenities and parking spaces may also be provided.

Lahore Airport 11. Construction of a permanent Customs block at the Cargo Complex of Allama

Iqbal International Airport may be taken in hand immediately. In the meanwhile suitable offices may be made available for the Customs staff to carry out their functions in a comfortable environment.

12. Suitable cold rooms for perishable commodities, chillers for medicines, strong

rooms with lockers, scanners, and close circuit TV surveillance may be provided in the warehouses of all cargo handling agents including PIA. Separate space may be allocated for hazardous cargo.

13. Banking facilities, offices for air cargo agents, rest rooms for drivers, parking area

for container trailers and other necessary amenities may be provided.

Islamabad Airport

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14. PIA Cargo Terminal may be expanded by getting some more space allocated for it from the airport apron area, and the layout of the terminal improved on scientific lines to enable proper segregation, sorting, examination and flow of cargo. Weighbridge and modern scanner of adequate capacity may be provided. Close circuit TV surveillance may be introduced. Separate provision may be made for handling livestock and hazardous cargo.

15. At the new Islamabad Airport a modern cargo complex may be built along with

the airport terminal during the initial stages of building the airport. All stakeholders may be consulted during the planning stage.

Peshawar Airport 16. To meet immediate requirement of smoothly handling PIA cargo suitable

arrangements on mutually acceptable terms may be worked out between PIA and Shaheen Airport Services (SAPS) to make use of the spare capacity in SAPS premises for handling export cargo of PIA.

17. Arrangements may be worked out by the Ministry of Defence in coordination with

CAA, Airport Security Force (ASF), Army and Air Force to expand the Peshawar Airport Terminal as proposed by CAA Works Section, Peshawar Airport and all modern facilities may be provided in the expanded cargo terminal.

Sialkot Airport 18. Sialkot International Airport (Pvt.) Limited (SIAL) may be provided all the facilities

for efficient operation of Sialkot Airport as agreed in the Memorandum of Understanding between SIAL and the Government of Pakistan.

Multan Airport 19. Runway may be extended and new cargo terminal built as already approved by

the Government.

20. Modern scanner, weighbridge, Closed Circuit TV and other modern facilities may be provided in the new cargo terminal.

Faisalabad Airport 21. Cargo shed may be shifted close to the apron, if practicable.

Quetta Airport 22. Installation of larger capacity modern scanner and weighbridge may be

considered on the basis of operational requirements.

Gwadar Airport 23. At Gwadar basic issues relate to development of infrastructure for attracting

industrial and commercial activities. The important actions that need to be taken are:

(i) Curb escalation of land prices by restricting transfer of property and

making it incumbent on the allottees to establish within a specified period the enterprise for which the land has been allotted.

(ii) Establish a polytechnic institute for training of craftsmen like electricians,

masons, plumbers, carpenters, mechanics etc. so that the development activities can take place.

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(iii) Make the industrial area a Free Trade Zone exempted from levy of Customs duty and other taxes like Jabal Ali in Dubai to attract investment.

24. New Airport may be built to commence operation when the industry starts to take

off and a modern cargo complex may be built along with the airport.

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1. Introduction 1.1 The 5th meeting on National Trade Corridor Improvement Programme (NTCIP) was held on 25th March, 2006 in Islamabad under the chairmanship of the Prime Minister. The Prime Minister asked all relevant agencies to move promptly on re-designing of procedures and processes, strengthening of infrastructure i.e. roads, railways, airports and ports to improve the logistics chain with a view to reducing the cost of doing business, facilitating trade and investment in Pakistan, and increasing competitiveness of Pakistani products in global markets. With regard to improvement in cargo handling facilities, the Prime Minister was pleased to direct Ministry of Commerce to prepare a strategy to forecast growth of air cargo so that infrastructure development could keep pace with such growth, and with the specific requirements of different regions. 1.2 In order to discuss projections about the future requirements of air cargo facilities at airports, a meeting of key stakeholders was held in Islamabad under the chairmanship of Secretary Commerce on 29th April, 2006. List of participant of the meeting is at Annex-I. After having thorough deliberation on relevant issues, the meeting decided that a detailed study may be carried out by hiring a Consultant for a four weeks period. The meeting discussed and finalized the Terms of Reference (ToR) of the study (Annex-II). Secretary Commerce asked the participants to provide all relevant information to the Consultancy Firm, when the firm approaches them for the purpose. 1.3 Ministry of Commerce invited applications from consultants by advertisement through press, for conducting this study. As adequate response was not received from private sector for carrying out this study, the Ministry of Commerce decided to utilize the expertise of its own staff. The following officers volunteered to carryout this assignment in addition to their own duties, free of cost:-

1. Syed Irtiqa Ahmed Zaidi, National Consultant (UNDP-TIHP) Ministry of Commerce, Islamabad.

2. Mr. Javaid Mansoor, Executive Secretary, National Trade & Transport Facilitation Committee (NTTFC), Ministry of Commerce, Karachi.

1.4 All 9 international airports mentioned in the report were visited by the team comprising above officers and the issues discussed with the stakeholder. As the recommendations emerging from the report mainly concerned CAA, PIA and ACAAP the Draft Report was forwarded to them for comments and discussed with the concerned officials. The additional information provided by the stakeholders has been incorporated in the Report.

2. International Trade of Pakistan 2.1 Since 2001-02 the exports of Pakistan have been growing consistently at an average annual rate of 15.9%. During the same period the imports have increased at even faster rate of 28.9%. This has resulted in the trade deficit increasing to US$11.712 billion during 2005-06. To overcome this situation the government has adopted a trade policy to encourage growth in exports and curtail increase in imports. Table 2.1: Exports and Imports of Pakistan

5101520253035

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Bill

ion

US

$

Exports Imports

(Billion US $) Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06Exports 9.202 9.135 11.160 12.313 14.391 16.469Imports 10.729 10.340 12.220 15.592 20.598 28.581 Source: State Bank of Pakistan 2.2 Sea offers the cheapest mode of transport. For the countries not connected by land the only alternative is transport by air, which is relatively very expensive. Over 95% trade of Pakistan is carried by sea. Table 2.2: Trade of Pakistan through Sea

(Million tonnes) Ports 2000-01 2001-02 2002-03 2003-04 2004-05Karachi Port - Imports 20.063 20.330 19.636 21.732 22.100 - Exports 5.918 6.362 6.273 6.081 6.515Total (Imports & Exports) 25.981 26.692 25.909 27.813 28.615Port Qasim - Imports 11.977 11.082 12.255 11.745 16.506 - Exports 2.196 2.870 3.891 3.892 4.773Total (Imports & Exports) 14.173 13.952 16.146 15.637 21.279Total Trade by Sea - Imports 32.040 31.412 31.891 33.477 38.606 - Exports 8.114 9.232 10.164 9.973 11.288Total (Imports & Exports) 40.154 40.644 42.055 43.450 49.894 Source: KPT and PQA

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Table 2.3: Exports from Pakistan Figures in 'Million Dollars

S. No. Commodities 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 A Textile & Garments 6,115 5,997 7,458 8,252 8,9261 Raw cotton 139 25 49 48 1102 Yarn 1,145 981 976 1,162 1,0873 Fabrics 1,104 1,203 1,405 1,766 2,0504 Garments 1,738 1,721 2,239 2,452 2,7235 Madeups (incl. Bedwear) 1,076 1,269 1,689 1,800 1,9166 Towels 242 268 375 404 5207 Tents & Canvas 49 50 73 75 678 Art Silk & Synthetic Textile 545 410 574 471 3009 Other textiles 77 71 77 75

B Other core cate153

gories 2,129 2,080 2,252 2,411 3,1901 Rice 526 448 555 634 933

2 Leather & leather products(incl. footwear) 693 672 695 744 938

3 Sports goods 271 304 335 325 3074 Wool & wool products 290 251 223 234 280

I Carpets & rugs tapestry 289 250 221 231 278 II Raw wool & animal hairs 1 1 2 2 2

5 Surgical instruments 124 145 150 133 1836 Petroleum & petroleum products 184 191 249 294 4767 Molasses 41 69 45 47 7

C Development / Cate2

goris 571 616 852 832 1,0981 Fish & fish preparations 138 126 134 153 1392 Fruits & Vegetables 104 106 115 134 126

I Fruits 79 83 83 103 91

II Vegetables (excl. dried leguminous) 22 19 26 26 21

III Fruit & Vegetable Juices 3 4 5 6 143 Wheat (un-milled) 11 71 130 6

4 Chemical & Pharmaceuticals (including Urea) 164 153 261 263 453

5 Engineering Group 83 90 133 177 274 I Engineering Goods 44 51 74 100 182

II Metal manufacturing (incl. house equipmenst) 13 14 29 47 58

III Cutlery 26 25 30 30 34

6 Marble & Granite / ONYX Manufacture 19 16 18 18 15

7 Gems Jewellery 26 28 25 28 28 IT Services 19 20 21 33 469 Poultry / Eggs Albumen etc. 2 3 5 5 3

10 Meat & meat preparation 5 4 11 15 18 D All others 386 442 598 818 1,178

1 Guar & guar products 21 16 24 20 262 Cement 1 3 11 27 613 Sugar 1 7 25 14 Oil, seed, nuts & kernals 12 21 7 11 22

5 Animal casings / guts / stomach / bladder etc 10 9 10 14 1

6 Handicrafts NS 16 20 27 15 127 Others 326 371 512 705 1,025

TOTAL 9,202 9,135 11,160 12,313 14,391

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Source: Export Promotion Bureau

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2.3 Trade with Afghanistan and some trade with China, Iran and India is carried out by land routes, but the statistics for the volume of this trade are not readily available. 2.4 Air is the most expensive mode of transport and is used mainly for transport of gems, jewellery and other expensive articles to avoid blockage of capital over prolonged period, perishable commodities to avoid damage to cargo, and items with tight delivery schedules to meet the required delivery dates. The volume of trade by air during 2004-05 amounted to a little over 0.4% of the total trade measured by weight. The share in imports was less than 0.2%. But the share in exports was about 1.3%. Exact figures for the value of exports by air could not be obtained. However, on the basis of limited information, the share of exports by air in terms of value is estimated at over 8 % of the total export value. Table 2.4: Total Trade of Pakistan by Air

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05Loaded 117,810 108,445 121,923 144,855 146,494Un-loaded 53,577 47,573 52,257 55,500 70,163Transit 960 573 595 613 408Total 172,347 349,550 174,775 200,968 217,065 Source: Civil Aviation Authority 2.5 The horticultural products, such as fruits, vegetables and flowers, are perishable commodities that have to be delivered to destination within a limited period and in controlled environment to ensure delivery in good condition without any damage. The floriculture has not yet advanced sufficiently for export to international market. The fruits and vegetables are being exported in substantial volumes. Besides the major commodities indicated in Table 2.5, Pakistan exported during 2004-05 about 66,000 tonnes of other fresh fruits and about 30,000 tonnes of various fresh vegetables Table 2.5: Major Fruit and Vegetable Exports from Pakistan

(Tonnes)Commodity 2000-01 2001-02 2002-03 2003-04 2004-05Kinnows 97,028 121,692 94,806 149,587 74,507Mangoes 53,444 47,541 58,844 77,468 48,811Dates (fresh) 6,622 4,654 3,353 2,645 4,108Dates (dried) 73,334 72,879 67,791 62,784 79,946Apples 1,475 818 250 97 100Potatoes 58,450 56,987 57,663 56,042 20,762Onions 77,168 53,378 58,636 49,078 29,597Total 367,521 357,949 341,343 397,701 257,831 Source: Federal Bureau of Statistics through PHDEB

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3. Transport of Cargo by Air 3.1 At present there are 42 civil airports in Pakistan. A few of these are non-operational and some have very limited local passenger services. Many of these are also joint facilities for the civil as well as air force operations. The following are designated as the international airports: Karachi Peshawar Quetta Pasni Lahore Faisalabad Gwadar Islamabad Multan Turbat 3.2 Very limited services are operated from Turbat and Pasni. No international cargo is transported from these airports and the domestic cargo is negligible. Therefore these airports were not covered by this study. An international airport in the private sector is being developed by Sialkot Chamber of Commerce and Industry. This facility was also surveyed during the study. 3.3 The total cargo transported from all the international airports of Pakistan is indicated in Table 3.1. Table 3.1: Total Cargo Handled at All Airports in Pakistan

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 117,810 108,445 121,923 144,855 146,494 Transit 960 573 595 613 408 Total 172,347 156,591 174,775 200,968 217,065 DomesticLoaded 39,922 40,608 47,017 48,991 56,337

Un-loaded 39,922 40,608 47,017 48,991 56,337 Total 79,844 81,216 94,034 97,982 112,674 Int'l + Domestic (incl. Transit)Loaded 157,732 149,053 168,940 193,846 202,831 Un-loaded 93,499 88,181 99,274 104,491 126,500 Total 252,191 237,807 268,809 298,950 329,739

-50,000

100,000150,000200,000250,000300,000350,000

2000-01

2001-02

2002-03

2003-04

2004-05

International

Domestic

Int'l +domestic(incl. Transit)

Source: Civil Aviation Authority 3.4 The wide bodied passenger aircrafts have spare capacity in the hold for carriage of cargo. These aircraft are, therefore, operated in passenger-cum-cargo mode and are the main carriers of cargo on scheduled services. To meet additional demand a few carriers like Lufthansa have introduced cargo services. Some other operators have also introduced chartered flights to meet seasonal demands for transport of cargo. 3.5 There are complaints from exporters and air cargo agents that many international airlines have withdrawn from calling Pakistani airports because of high landing charges of CAA for aircrafts and high fuel price in Pakistan, thereby reducing the availability of cargo space for transport of international cargo by air. However, no statistics were available to determine the cargo that could not be air freighted because of non-availability of cargo space. An evaluation of the landing charges and fuel prices payable in the airports of regional countries needs to be carried out and suitable measures adopted to attract foreign airlines to call at Pakistani airports. 3.6 Karachi, Lahore, Islamabad and Peshawar are the main airports for transport of cargo, both domestic and international. The major airlines and operators that have been operating from these airports and the cargo lifted by them is indicated in Table 3.2.

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Table 3.2: Cargo Transported by Major Airlines / Operators during 2004-05

(Tonnes)Airline / Operator Karachi Islamabad Lahore Peshawar

AERO ASIA 6,627 2,128 3,396 474AIR BLUE - 1,448 - 653AIR SOFIA (DHL) - - 5,274 -BRITISH AIRWAYS - 2,949 - -CARGOLUX AIRLINES 4,630 - - -CATHAY PACIFIC AIRWAYS 4,748 - - -EMIRATES AIRLINES 21,106 5,040 7,602 1,220GULF AIR 4,058 2,933 3,523 1,110KUWAIT AIRWAYS - 1,018 - -LUFTHANSA - - 5,753 -PIA 85,240 27,500 39,590 4,762QATAR AIRWAYS - 1,207 2,018 1,601ROYAL AIRLINE 9,582 - 7,327 -SAUDI ARABIAN AIRLINES 7,414 2,454 3,057 1,566SHAHEEN AIRLINE - 611 - 290SWISS AIR 8,677 - - -THAI AIRWAYS . 4,952 - 4,522 -

Source: Civil Aviation Authority 3.7 The other important factor affecting the transport of cargo by air is the availability of cargo handling facilities at the airports. At all the airports there are constraints of space for handling the cargo. PIA and Aero Asia handle their own cargo, while Air Blue and foreign airlines make use of the services of the cargo handling agents like SAPS and Gerry’s Dnata. Because of lack of integration of operations the available facilities are not efficiently utilized. All airports require modern cargo handling facilities extending over much larger area. 3.8 Security has become an important issue for international transport of cargo, especially by air. Unless the cargo is screened through a modern screening machine capable of detecting explosives the cargo has to be held back at the airport for 24 hours cooling period. This defeats the very objective of quick delivery through air shipment. Many of the cargo handling facilities at the airports lack suitable screening machines. Physical examination of cargo damages packaging, and also makes the cargo susceptible to pilferage affecting its acceptability by the importer. 3.9 Fruits and vegetables are an important export commodity of Pakistan. Because of their perishable nature a substantial quantity of fruits and vegetables meant for distant destinations is transported by air. The Table 3.3 shows the estimated quantity exported by air. Table 3.3: Estimated Exports of Fruits and Vegetables by Air during 2004-05

(Tonnes)Commodity Karachi Lahore Islamabad Multan Peshawar QuettaMango 20,000 8,500 2,500 1,000 2,000 0Dates fresh 3,500 0 0 0 0 0Other fresh fruits 10,000 3,000 1,000 0 250 NegligibleFresh vegetables 10,000 3,000 1,000 0 4,000 NegligibleTotal 43,500 14,500 4,500 1,000 6,250 Negligible Source: Market sources through PHDEB 3.10 To maintain fruits and vegetables in good condition these must not be exposed to hot weather for prolonged period and stored in cool and dry environment,

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preferably in a cold room cooled to the required temperature. The fruits and vegetables exporters complain that the airports do not have satisfactory cold storage arrangements and export consignments get damaged, especially when these are held back because of lack of space in the aircraft or missing a flight. The representatives of CAA and ACAAP have stated that where such facilities have been provided those are not being utilized. Therefore provision of such facilities needs to be decided after careful evaluation of actual requirements. 3.11 Lack of suitable lockers and strong rooms meeting the international aviation standards is an issue of particular concern to the gem and jewelry exporters. They also complain of lack of secure arrangements for carriage of such valuables in PIA aircraft, high freight charges and the necessity of carrying the items in person or on payment of air fare for the escort. Secure arrangements for transport of gems and jewelry, export of which is being promoted by the Government of Pakistan, need to be developed. 3.12 CAA does not levy any throughput charges for the exports. It levies throughput charges at the rate of 2% of IATA tariff for the air freight on the normal imports and 5% of IATA tariff on imports requiring immediate clearance. Actual freight paid on these consignments is usually much less than the IATA tariff and there are complaints from the air cargo agents on behalf of the importers that the charges levied by CAA are excessive. An adjudication mechanism needs to be put in place at each airport to quickly resolve these disputes. 3.13 Sialkot International Airport being developed by the private sector is expected to commence cargo operations by end 2006 or beginning of 2007. Sialkot Chamber of Commerce and Industry (SCCI) claims that at present over 40 tonnes per day of commodities manufactured in Sialkot are being exported by air through various airports of Pakistan. After the Sialkot airport comes in operation they will be able to quadruple these exports within the projected 10 years. The success of Sialkot international Airport will depend very much on the ability of Sialkot Airport management to attract adequate cargo and passenger flights to various export destinations. Figure 3.1: Projected Transport of Cargo by Air

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Years

Tonn

es

International

Domestic

Int'l +Domestic

3.14 On the basis of projected growth of cargo traffic at various airports and new traffic that would be generated by increased exports from Sialkot airport it has been estimated that the domestic air cargo and imports of air cargo will grow annually at average rate of 8.5%, while the exports by air will grow at the rate of 10%. With this

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projected growth the total air cargo will increase from about 330,000 tonnes in 2004-05 to about 866,000 tonnes in 2015-16. Cargo handling facilities have therefore to be created to meet this volume of air cargo. 3.15 The above projections have not taken in consideration the sea-air multi-modal transport of cargo to Central Asian Republics using the ports in Pakistan as the interchange point. Pakistani ports could serve as a convenient interchange point provided an efficient logistics supply chain is developed, whereby the urgent delivery cargo arriving by sea or air could be transferred to the other mode of transport within hours with the minimum essential processing formalities. This would also require frequent air services to various destinations in CAR. At present Dubai is serving as a hub for such multi-modal transport, where transfer from sea to air takes place within hours. 3.16 An integrated computerized business process system is an essential requirement for efficient handling of air cargo. At present different agencies involved in the process i.e. Customs, CAA, airlines and cargo handling operators have their own IT systems without being interlinked to each other. PACCS introduced by Pakistan Customs under Customs Administrative Reforms (CARE) program has not yet been extended to the airports. For the system to work efficiently as a Single Window it is essential that the PACCS should be introduced at all international airports and IT systems of all agencies involved in air movement of cargo should be integrated with PACCS.

4. Jinnah International Airport, Karachi 4.1 Most of the international as well as domestic cargo transported by air is handled at Karachi. During 2004-05 Karachi airport handled 179,856 tonnes of cargo including 126,682 tonnes of international cargo. The cargo transported through Karachi airport has shown a continuous growth since 2001-02 at an average growth rate of 7.2%, although the cargo loaded for export during 2004-05 was a little less than 2003-04. Table 4.1: Cargo handled at Jinnah International Airport, Karachi

(Metric Tons)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 77,110 68,547 75,988 86,873 84,249 Un-loaded 31,863 27,771 30,490 32,187 42,025 Transit 960 573 595 599 408 Total 109,933 96,891 107,073 119,659 126,682 DomesticLoaded 18,241 19,540 23,486 24,231 29,277 Un-loaded 19,499 19,261 21,484 22,039 23,897 Total 37,740 38,801 44,970 46,270 53,174 Int'l + Domestic (incl. Transit)Loaded 95,351 88,087 99,474 111,104 113,526 Un-loaded 51,362 47,032 51,974 54,226 65,922 Total 147,673 135,692 152,043 165,929 179,856

-20,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

2000-01 2001-02 2002-03 2003-04 2004-05

International

Domestic

Int'l +Domestic

Source: CAA 4.2 Assuming that the growth rate of last four years is maintained the cargo throughput of Karachi airport would increase to about 400,000 tonnes by 2015-16. A substantial part of the cargo loaded at Karachi airport for export originates from Punjab. The actual cargo handled at the airport will depend on the growth in national GDP, the cargo handling facilities developed at Karachi and other airports in Pakistan especially Lahore, Islamabad, Sialkot and Multan, and availability of airline services with adequate cargo carrying capacity for various export destinations. Figure 4.1: Projected Throughput of Cargo at Karachi International Airport

-

100,000

200,000

300,000

400,000

500,000

600,0002000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Years

Tonn

es

International

Domestic

Int'l +Domestic

4.3 The projections shown in the graph above do not include the transit trade by air to CAR for which much scope exists. Under the modern multi-modal transport concept it is common to combine sea and air transport to achieve quick delivery at reduced cost. Because of the land routes through Afghanistan to CAR being blocked, Karachi is located in an ideal position for the cargo to CAR to be brought to Karachi by sea and then transited to final destination by air. However, such an operation requires a very efficient operation of the logistics, with the cargo arriving by sea moving to the airport after completion of all Customs formalities within a few hours for onward transit to final destination by air. Development of such a logistics chain could greatly increase the volume of cargo transported by air through Karachi.

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4.4 In terms of value the major commodities exported by air through Karachi airport are: apparel, clothing and made ups; leather garments and articles thereof; textile and fiber, knitted and woven fabrics; carpets and other textile flooring; electrical machinery and equipment, gems and jewelry; pharmaceutical products; fish and crustaceans; fruits and vegetables; and fresh meat. Table 4.2: Commodity Exports from Karachi Airport

Figure in million rupees Commodity 2001 2002 2003 2004 2005Live animals 03.3 52.8 512.5 51.2 71.8Meat & edible meat offal 02.2 126.6 346.9 543.4 535.3Fish & crustaceans, molluscs.. 228.6 710.9 1,033.1 1,149.7 1,535.1Food items 30.1 113.0 405.3 455.3 477.3Fruits & vegetables 364.7 483.8 498.9 622.2 803.4Pharmaceutical products 131.3 350.3 733.7 1,201.4 1,385.2Rubber & plastic articles 04.9 37.6 82.7 139.1 103.7Leather garments & articles thereof 7,333.9 7,467.0 10,764.8 12,357.7 15,083.5Textile & fibre 741.2 2,232.9 7,515.5 5,006.2 3,338.4Carpets & other textile flooring 423.3 444.5 64.1 817.9 946.3Kintted & woven fabrics 238.2 44.3 314.7 6,327.1 1,975.1Apparel, clothing & madeups 7,821.2 9,855.5 14,571.2 11,756.6 16,857.3Footwear, Guaitars & parts 16.7 44.1 83.6 152.3 200.5Stone & glassware 00.4 18.4 73.0 36.7 21.9Gems & jewellery 28.9 1,370.7 1,084.1 1,166.4 1,129.6Metal articles 18.9 27.4 38.2 41.0 72.2Electrical machinery & equipments 12.5 84.6 373.0 959.6 2,003.8Mechanical machinery & equipments 04.8 51.3 88.7 181.8 177.7Optical, photographic… 07.5 32.1 53.3 106.9 154.2Arms, ammunitions & accessories 00.0 38.8 119.4 48.9 10.4Furniture, bedding, mattress 157.1 54.9 12.6 13.3 15.2Toys, games & sports goods 09.1 21.2 58.8 220.1 179.2Miscellaneous items 36.2 47.9 131.3 180.5 365.6 TOTAL 17,615.0 23,710.6 38,959.3 43,535.4 47,442.8 Source: Compiled by study team from PRAL data 4.5 Maximum numbers of airlines on international routes from Pakistan operate from Karachi. The cargo is mainly transported in a combined operation on wide bodied aircraft passenger flights, which have spare cargo carrying capacity. A few foreign airlines like Lufthansa and Emirates have also operated exclusive cargo flights. Occasionally aircraft are also chartered by some operators for cargo operations only. 4.6 The statistics of cargo transported by various airlines show that nearly half of the cargo transported by air from Karachi airport is lifted by PIA. Other airlines lifting substantial volume of cargo are: Emirates Airline, Royal Airline, Saudi Arabian Airline, Lufthansa Airline, Swiss Airline, Aero Asia, Thai Airways, Cathy Pacific Airline, and Cargolux Airlines. Recently Air Blue and Etihad Airways have also started to lift reasonable volume of cargo. 4.7 PIA handles its own cargo, while most of the foreign airlines make use of the services of SAPS or Gerry’s Dnata. At present SAPS is handling the cargo of Malaysian Airlines, Royal Airline, Singapore Airline, Cargolux Airline, Etihad Airline, Iran Air and Lufthansa Airlines. Gerry’s Dnata is handling Emirate Airlines, Turkish Airlines, Air Lanka, Express Service and Air Blue. 4.8 The cargo handling facilities are scattered at different locations over various terminals and the cargo complex constructed by the Civil Aviation Authority in 2003. Imports by PIA are handled at Terminal 1. Imports by foreign carriers are handled by SAPS and Gerry’s Dnata at the Terminal 2 Air Freight Unit. The imports requiring immediate clearance like blood plasma, medicines, perishables, precious metals, courier services etc. are handled at Terminal 3. The cargo complex handles the cargo exported through foreign airlines. PIA has its own facility for export cargo next to the cargo complex. The domestic cargo is handled by PIA at yet another place

18

next to Terminal 1. DHL and TCS are developing their own handling area for the express services at another place on the road leading to the cargo complex. There is no proper arrangement for separate storage of dangerous goods. The facilities scattered over different areas create considerable difficulties for the cargo clearing service providers as adequate basic facilities like canteen and wash rooms are not available at all places. Table 4.3: Cargo Traffic by Airlines at Karachi Airport

(Tonnes)Name of Airline/ Operators 2000 - 2001 2001 - 2002 2002 - 2003 2003 - 2004 2004 - 2005

AERO ASIA AIRLINE 3,432 4,275 5,709 6,852 6,627AEROFLOAT AIRLINE 679 - - - - AIR CHINA LIMITED 699 441 500 547 717AIR FRANCE 3,577 807 - 1,328 1,618AIR SOFIA C/O (DHL) - - 75 2,154 2,058AIR BLUE - - - 175 3,829BANGLADESH BIMAN 540 721 907 599 1,366BHOJA AIR 428 - - - - CARGOLUX AIRLINES 2,483 5,095 6,895 6,176 4,630CATHAY PACIFIC AIRWAYS 1,761 1,558 3,370 6,426 4,748EGYPT AIR 716 253 1,274 441 - EMIRATES AIRLINES. 12,513 16,144 17,092 19,203 21,106ASSOCIATE 423 466 715 400 - ETIHAD AIRWAYS - - - - 1,876GULF AIR 2,115 2,338 3,140 4,103 4,058INDIAN AIRLINE CORP. 78 4 - - - IRAN AIR. 63 144 268 4,652 312KUWAIT AIRWAYS 371 265 372 230 - LUFTHANSA CARGO AG 9,280 6,979 8,128 - - LUFTHANSA AIRLINES - - - 9,363 3,754MALAYSIAN AIRLINES 1,888 1,458 2,409 2,695 3,333OMAN AIR 7 - 204 - - PAKISTAN INTERNL AIRLINES 81,064 72,520 71,514 72,201 85,240QATAR AIRWAYS 1,271 1,569 1,926 1,363 1,054ROYAL AIRLINE - 176 4,223 5,282 9,582ROYAL JORDANIAN 661 725 952 883 394SAUDI ARABIAN AIRLINES 8,619 7,423 9,196 8,443 7,414SHAHEEN AIR INTERNATIONAL 884 - 1,483 1,186 1,141SHAHEEN AIRLINE 521 538 737 516 414SINGAPORE AIRLINES 1,968 1,025 - - - SRILANKAN AIRLINES 343 386 797 - - SWISS AIR 4,312 4,380 4,347 4,901 8,677SYRIAN ARAB AIRLINES 379 285 155 183 262THAI AIRWAYS INTERNATIONAL 4,845 3,080 4,702 4,830 4,952TURKISH AIRLINES 231 247 357 290 284YEMENIA, YEMEN AIRWAYS 290 - - - -

Total 146,441 133,302 151,447 165,422 179,448 Source: Civil Aviation Authority 4.9 Present availability of space for cargo handling facilities and its adequacy for meeting the future requirement as indicated by CAA, PIA and other cargo handling service providers is shown in Table 4.4. 4.10 The Cargo Complex constructed recently by CAA for export cargo has a modern office block for administration and air cargo agents’ offices. There is adequate parking arrangement for trucks and other facilities for truck drivers. However, the examination area, where the cargo is received, does not have adequate covered area. The cargo lying there is exposed to sun and rain and frequently gets damaged. There are also complaints of lack of cool hall for perishable cargo. It is stated that the cargo handed over to the airlines is left in the open for the cooling period of 24 hours.

19

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During this period it frequently gets damaged or pilfered. Pye-dogs damaging the cargo were also mentioned by the exporters. 4.11 In the case of perishable commodities, missing a flight because of some reason, their condition deteriorates because of non-availability of suitable cooling arrangement. There are also complaints of inadequate scanning facilities, which result in delay in processing, need for the cargo being detained for 24 hours cooling period, and damage to packing and contents because of their physical examination. Table 4.4: Facilities of Cargo Handling Service Providers Item PIA SAPS Gerry’s

Dnata DHL* CAA**

(Consolidated for entire airport)

Available open plinth area 23,000 ft2 3,100 ft2 for exports

4,500 ft2 Not applicable

Exports 245,500 ft2Imports 18,000 ft2

Average utilization 100%peak period

80-90% 100 % Exp. 60% Imp. 80%

Anticipated requirement for next ten years

Double Not indicated 10,000 ft2 Same 30 to 40% increase

Available covered storage area

42,000 ft2 AFU 44,483 ft2 Exp 8,700 ft2, ICG 2,250 ft2

10,800 ft2 25,000 ft2 Exports 124,868 ft2Imports 225,351 ft2

Average utilization 70% 90% 70% Not indicated

Exp. 70% Imp. 90%


Double Not indicated 15,500 ft2 Same 50% increase

Available cold storage area 1,536 ft2

ventilated hall

Imp 755 ft2Exp 115 ft2

1,940 cft 2-8o C

Fridge 900 cft.

18,530 cft 2 to 8o C and 15 to 25o C

Average utilization 6 hrs per day

90% 95% Exports 20% Imports 80%


3.000 ft2 with chiller

Freezer van required

3,500 cft To be determined

50% increase

Area for Customs processing

8,000 ft2 1,000 ft2 3,500 ft2 2,700 ft2 Exports 4,200 ft2Imports 6,000 ft2


12,000 ft2 Not indicated 6,000 ft2 Same Same

Facilities like vehicle parking, drivers rest area, office spaces etc.

30,000 ft2 Offices AFU 1,453 ft2Exp 3,210 ft2

Adequate 35.000 ft2 Not indicate


50,000 ft2 Not indicated 10,000 ft2 Same Not indicated

* DHL is developing its own facilities, which are expected to be ready by 2007 ** Figures include all spaces operated by cargo service providers as well as CAA Sources: PIA, SAPS, Gerry’s Dnata, DHL and CAA 4.12 A sketch showing the layout of the CAA cargo sheds for exports in the cargo complex is produced on the next page. To reduce pilferage and provide security closed circuit TV cameras need to be installed in the entire area. Modern scanning machines of adequate capacity are also required to minimize manual examination and holding back the cargo for 24 hours cooling period.

21

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4.13 To reduce the complaints of pilferage CAA intends to arrange for the covered shed and grills (indicated in the sketch as backyard grills) to be erected behind the warehouses allocated to various airlines. The shed in examination area also needs to be extended in width to reduce the complaints of lack of covered area. However, this can be considered only as a temporary arrangement to meet the present requirements and will not be adequate for handling the projected growth in cargo traffic. 4.14 For efficiently handling the growing traffic projected for the next ten years there is an urgent need to develop an integrated cargo handling facility in the form of a cargo village in which all the international, domestic and transit cargo may be handled efficiently under a single window operating system. This cargo village should have adequate modern warehouses; cold storages; offices and amenities for Customs, airlines, banks, cargo handlers, freight forwarders, air cargo agents, transporters, and other service providers; and parking area for trailers, trucks, cars and other vehicles. Necessary space is available at present between Jinnah Avenue and the airport boundary from Terminal 1 to the road leading to Jinnah International Airport. CAA has a plan for development of the cargo village in private sector. This needs to be expedited. 4.15 To overcome the difficulties experienced by PIA, because of its cargo operations being scattered at different locations, it has already prepared a plan for integrating all its cargo operations at one location. Sketch showing the proposed plan of PIA is produced below. Execution of the plan has already been delayed for over a decade. It is feared that because of the financial constraints execution of the plan might be delayed. Necessary funds need to be allocated to ensure that the proposed plan gets executed at the earliest. 4.16 However, increasing the capacity of physical infrastructure only will not be sufficient for increasing the throughput of cargo moving through the airport. To match it there has to be adequate cargo carrying capacity on the aircrafts of the airlines calling at the airport. Suitable measures will have to be introduced to attract more foreign airlines to call at Karachi.

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PIA’s Proposed Plan for Expansion of Existing Cargo Complex

5. Allama Iqbal International Airport, Lahore 5.1 The next airport in terms of the volume of cargo handled by air is the Lahore airport. During 2004-05 it handled 85,552 tonnes of total cargo, of which 52,728 tonnes was the international cargo. The exports amounted to 36,942 tonnes. Since 2001-02 the cargo handled at Lahore airport has shown a steady growth at the average annual rate of about 11 %. The international cargo has grown at the rate of about 10%, while the domestic cargo has increased at the rate of about 12%. Table 5.1: Cargo handled at Lahore International Airport

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 26,595 25,323 27,439 36,595 36,946 Un-loaded 12,690 10,568 11,955 12,094 15,782 Transit - - - 14 - Total 39,285 35,891 39,394 48,703 52,728 DomesticLoaded 11,804 11,117 14,069 14,736 16,196 Un-loaded 8,557 9,562 10,825 12,902 16,628 Total 20,361 20,679 24,894 27,638 32,824 Int'l + Domestic (incl. Transit)Loaded 38,399 36,440 41,508 51,331 53,142 Un-loaded 21,247 20,130 22,780 24,996 32,410 Total 59,646 56,570 64,288 76,341 85,552

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2000-01 2001-02 2002-03 2003-04 2004-05

International

Domestic

Int'l +Domestic

Source: CAA 5.2 Assuming that the growth rate of last four years is maintained the cargo throughput of Lahore airport would increase from 85,544 tonnes in 2004-05 to about 268,000 tonnes by 2015-16. With commissioning of Sialkot International Airport the air cargo originating from Sialkot will no longer move from Lahore. However, area around Lahore is developing as an industrial hub and is also surrounded by fertile agricultural land. It is expected that the growth of various industries, especially ready made garments industry, and horticultural produce will adequately compensate it. Availability of airline services with adequate cargo carrying capacity for various export destinations would be a pre-requisite. Figure 5.1: Projected Throughput of Cargo at Lahore International Airport

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Years

Tonn

es

International

Domestic

Int'l +Domestic

5.3 The statistics for previous years providing the breakdown of commodities transported through Lahore airport were not readily available. However a limited data of the cargo moved through newly commissioned Allama Iqbal International Airport Lahore in less than 3 months was obtained through Pakistan Revenue Automation Limited (PRAL). It showed that In terms of value the major commodities exported by air through Lahore airport during this period were: apparel, clothing and made ups; leather garments and articles thereof; carpets and other textile flooring;

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electrical machinery and equipment; mechanical machinery and equipment; rubber and plastic materials; and fresh meat. Table 5.2: Partial Export Data Allama Iqbal International Airport Lahore

Figures in million Rupees Commodity April, May, June 2006Live animals 01.3Meat & edible meat offal 123.4Fish & crustaceans, molluscs.. 00.5Food items 04.3Fruits & vegetables 24.7Pharmaceutical products 55.0Rubber & plastic articles 764.7Leather garments & articles thereof 1,273.6Textile & fibre 71.7Carpets & other textile flooring 1,089.1Kintted & woven fabrics 87.4Apparel, clothing & madeups 1,914.6Footwear, Guaitars & parts 69.3Stone & glassware 03.8Gems & jewellery 10.7Metal articles 23.2Electrical machinery & equipments 1,027.4Mechanical machinery & equipments 1,054.1Optical, photographic… 265.7Arms, ammunitions & accessories 00.2Furniture, bedding, mattress 03.7Toys, games & sports goods 94.8Miscellaneous items 472.7 TOTAL 8,435.9 Source: Compiled by study team from PRAL data 5.4 Next to Karachi, Lahore is the busiest airport. All types of aircrafts are able to land here. PIA, Aero Asia, Shaheen and Air Blue are the domestic airlines lifting cargo on passenger flights in a combined passenger cum cargo operation. Emirates, Gulf Air, Kuwait Airways, Lufthansa, Qatar Airways, Saudi Arabian Airline, Royal Airline, and Thai Airways are the foreign airlines that have been lifting cargo regularly from Lahore airport. 5.5 The cargo handling agents and the airlines served by them are indicated in Table 5.3. Table 5.3: Airlines served by Service Providers at Lahore Airport PIA SAPS Gerry’s Dnata Others

Emirates Airline DHL PIA Lufthansa Cargo British World Cargo Expo. Aviation TCS Indian Airlines

Air Blue Aero Asia Uzbekistan Airlines

Thai Airways DHL Aviation (Exports) UFS (Air Blue) Etihad Airlines Non-scheduled flights Non-scheduled

flights Singapore Airlines Qatar Airlines Kuwait Airways Royal Airlines Gulf Air Shaheen Airways Saudi Arabian Airline TCS (URS)

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Table 5.4: Cargo Traffic by Airlines at Lahore International Airport (Tonnes)

Name of Airline/ Operators 2000 - 2001 2001 - 2002 2002 - 2003 2003 - 2004 2004 - 2005AERO ASIA AIRLINE 1,602 2,130 2,691 3,236 3,396 AIR BLUE - - - 90 1,482 AIR SOFIA C/O (DHL) - - - 5,091 5,274 BHOJA AIR 298 - - - - EMIRATES AIRLINES. 2,408 4,274 3,781 4,045 7,602 GULF AIR 1,413 2,440 3,369 3,618 3,523 INDIAN AIRLINE - - - 33 157 KUWAIT AIRWAYS 483 388 313 886 910 LUFTHANSA CARGO AG 9,089 4,717 8,483 - - LUFTHANSA AIRLINES - - - 9,999 5,753 PAKISTAN INTERNL AIRLINES 32,114 31,774 34,561 34,979 39,590 QATAR AIRWAYS 731 1,500 911 1,463 2,018 ROYAL AIRLINE - 115 1,985 4,915 7,327 SAUDI ARABIAN AIRLINES 4,043 3,572 3,149 3,109 3,057 SHAHEEN AIR INTERNATIONAL 210 775 330 308 531 SHAHEEN AIRLINE, KHI 260 277 238 411 408 SINGAPORE AIRLINES LTD. 2,843 1,478 - - - THAI AIRWAYS INTERNATIONAL 4,149 3,129 4,478 4,144 4,522

Total 59,643 56,569 64,289 76,327 85,550 Source: CAA 5.6 The newly constructed Allama Iqbal International Airport passenger terminal started operation in March 2005. However no provision was made for construction of a cargo terminal and the cargo is being handled through a temporary facility. This temporary facility lacks in many respects and there are complaints from exporters, air cargo agents, and Customs officials regarding the difficulties in working through these temporary facilities. The premises provided to the Customs officials are hazardous and most uncomfortable. A fire has already taken place there and records burnt. 5.7 Realizing this situation CAA has started work on construction of a cargo complex. The cargo warehouse of Gerry’s Dnata has been completed and is operational. The cargo warehouses of SAPS and PIA are expected to be ready by August and December 2006, respectively. However, the work on Customs block has not yet commenced and could take another 2 years for completion. In the meanwhile the Customs offices will have to be shifted to some other suitable place. Necessary arrangements need to be made immediately. 5.8 All the warehouses being developed by PIA, SAPS and Gerry’s Dnata need to be provided with video camera security arrangements, modern screening machines, temperature controlled cold rooms and strong rooms with lockers. Size of the new warehouses appears to be adequate to meet the anticipated requirements of next 10 years. However the available free land needs to be reserved for the future expansion requirements. Banking facilities, offices for air cargo agents, rest rooms for drivers, parking area for container trailers and other necessary amenities need to be provided. 5.9 The information provided by the cargo handling service providers is given in Table 5.5. However, it is to be noted that PIA and Gerry’s Dnata have provided information regarding their existing operational facilities, while SAPS has provided information in respect of the new facility which is expected to become operational by end August 2006. The area allocated to various cargo handling service providers is shown in the sketch of the Cargo Complex produced on the next page.

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Table 5.5: Facilities of Cargo Handling Service Providers Item PIA

(Existing facility) SAPS (New warehouse)

Gerry’s Dnata (Newly operational warehouse)

Available open plinth area Exports 6,500 ft2

Imports 10,200 ft2

21,5280 ft2 3,000 ft2

Average utilization 100%

70% 60 %


300% increase Nil 6,000 ft2


Exports 6,500 ft2

Imports 10,200 ft2

82,344 ft2

Exports 15,000 ft2

Imports 15,000 ft2


70% 80%


300% increase Not indicated 22,500 ft2

Available cold storage area 81 ft2

160 C

967 ft22 – 80 C

150 ft22-8o C


70% 10%


2,500 ft2 Nil 150 ft2


1,500 ft2 9,687 ft2 640 ft2


13,500 ft2 Nil 1,000 ft2


Open area 13,993 ft2 Adequate


22,000 ft2 Nil

Source: PIA, SAPS and Gerry’s Dnata

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6. Islamabad International Airport 6.1 The third airport handling large volume of cargo transported by air is the Islamabad airport. 47,583 tonnes of total cargo was handled during 2004-05. This included 28,508 tonnes of international cargo. The volume of cargo handled has shown continuous growth since 2000-01 at an average annual rate of 7.7%. The international cargo has grown at the rate of 8.4% and the domestic cargo at the rate of 6.8%. Table 6.1: Cargo handled at Islamabad International Airport

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 12,000 12,465 13,908 16,061 19,011 Un-loaded 7,080 7,136 7,824 8,643 9,497 Transit - - - - - Total 19,080 19,601 21,732 24,704 28,508 DomesticLoaded 6,587 6,984 6,653 7,102 7,401

Un-loaded 7,158 7,218 9,880 9,560 11,674 Total 13,745 14,202 16,533 16,662 19,075 Int'l + Domestic (incl. Transit)Loaded 18,587 19,449 20,561 23,163 26,412 Un-loaded 14,238 14,354 17,704 18,203 21,171 Total 32,825 33,803 38,265 41,366 47,583 Source: Civil Aviation Authority

-5,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

2000-01 2001-02 2002-03 2003-04 2004-05

InternationalDomestic

Int'l +Domestic

6.2 Assuming that the growth rate of last five years is maintained the cargo throughput of Islamabad Airport would increase from 47,583 tonnes in 2004-05 to about 110,000 tonnes by 2015-16. The projected air cargo traffic for Islamabad airport is shown in figure 6.1. Figure 6.1: Projected Throughput of Cargo at Islamabad Airport

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,0002000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Years

Tonn

es

International

Domestic

Int'l +Domestic

6.3 PRAL provided information of the value of commodities exported from Islamabad airport during the last 3 years. In terms of value the major commodities exported by air through Islamabad airport are: apparel, clothing and made ups; leather garments and articles thereof; rubber and plastic articles; optical and photographic items; electrical machinery and equipment; fruits and vegetables; and fresh meat. The manufactured items exported through Islamabad airport are mainly produced in Lahore, Sialkot, Gujranwala and Gujrat area.

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Table 6.2: Commodity exports from Islamabad International Airport Figure in million rupees

Commodity 2003 2004 2005Live animals 13.5 01.7 16.9Meat & edible meat offal 01.6 52.5 126.1Fish & crustaceans, molluscs.. 00.0 00.9 06.2Food items 72.1 33.9 38.6Fruits & vegetables 255.6 468.5 434.0Pharmaceutical products 03.7 07.8 09.9Rubber & plastic articles 10.5 242.9 1,562.8Leather garments & articles thereof 1,446.2 2,194.8 3,585.9Textile & fibre 00.3 01.7 64.3Carpets & other textile flooring 51.4 74.2 79.5Kintted & woven fabrics 30.4 26.9 39.6Apparel, clothing & madeups 725.9 2,504.8 4,565.1Footwear, Guaitars & parts 00.3 02.6 08.6Stone & glassware 00.1 01.5 01.9Gems & jewellery 25.3 29.0 51.2Metal articles 41.8 64.1 272.2Electrical machinery & equipments 54.0 80.4 234.1Mechanical machinery & equipments 122.5 208.7 182.4Optical, photographic… 991.2 1,523.2 1,102.0Arms, ammunitions & accessories 03.2 00.1 00.3Furniture, bedding, mattress 02.0 06.1 05.7Toys, games & sports goods 322.5 399.7 558.2Miscellaneous items 11.9 148.6 165.9 TOTAL 4,185.8 8,074.6 13,111.3 Source: Compiled by study team from PRAL data 6.4 Emirates, Gulf Air, Saudi Arabian Airlines, British Airways, Kuwait Airways and Qatar Airways are the main international airlines calling at Islamabad and lifting cargo. Besides PIA, private sector Pakistani airlines are also operating from Islamabad. However, more than 50% cargo is transported by PIA. Table 6.3: Cargo Traffic by Airlines at Islamabad International Airport


AERO ASIA AIRLINE 952 1,037 1,992 2,382 2,128AFGHAN AIRFORCE - 1 - - - AIR BLUE - - - 86 1,448ARIANA AFGHAN AIRLINES - - 6 10 - BHOJA AIR 93 - - - - BRITISH AIRWAYS 3,361 791 - 1,770 2,949CHINA XINJIANG AIRLINES 1 33 56 53 126EMIRATES AIRLINES. 2,515 4,506 4,151 4,697 5,040GULF AIR 632 1,453 1,896 2,134 2,933KUWAIT AIRWAYS 146 127 173 503 1,018PAKISTAN INTERNL AIRLINE 20,779 21,629 25,394 25,103 27,500QATAR AIRWAYS - - - 98 1,207ROYAL AIRLINE 3,359 3,014 2 - - SAUDI ARABIAN AIRLINES 3,359 3,014 3,081 3,377 2,454PAF C/O SAPS - - 34 - - SHAHEEN AIR INTERNATIONAL 622 903 1,153 878 611SHAHEEN AIRLINE, KHI 367 309 328 277 171

Total 36,186 36,817 38,266 41,368 47,585 Source: CAA

30

31

6.5 PIA, SAPS and Gerry’s Dnata are the main cargo handling service providers at Islamabad airport. PIA handles its own cargo and also provides services to the Chinese and Afghan airlines. SAPS serves British Airways, Qatar Airways, Saudi Arabian Airline, Emirates Airlines, Gulf Air, Kuwait Airways, Lufthansa, Shaheen Airlines and Air Blue. Availability of space for cargo handling facilities is very restricted and possibility of expansion limited because of the area being bound by the Chaklala Road leading to the airport and the airport apron. Brief statement of the available space and the requirement for efficiently handling the cargo indicated by the service providers is produced in Table 6.4. Table 6.4: Facilities of Cargo Handling Service Providers Item PIA

SAPS

Gerry’s Dnata

Available open plinth area 75,300 ft2

Open: 14,730 ft2 Sheds: 8,576 ft2

13,740 ft2

Average utilization

100 %


150,000 ft2 Open: 69,000 ft2

Sheds: 51,000 ft2Double


Exports 6,556 ft2

Imports 6,470 ft2

Baggage 4,590 ft2

Misc. 1,250 ft2

26,249 ft2

Exports 16,460 ft2

Imports 13,740 ft2


90%


500% increase 135,000 ft2 Three times

Available cold storage area Chiller 8*8*8 ft -100 C

395 ft2

Not available



1,500 ft2 2,000 ft2 Not indicated


Exclusive area not available. Carried out in open

4,000 ft2 1,000 ft2


10,000 ft2 19,500 ft2 2,000 ft2


None available 5,000 ft2 Not indicated


30,000 ft2 34,000 ft2 Double of existing

Source: PIA, SAPS and Gerry’s Dnata 6.6 SAPS and Gerry’s Dnata have adequate area to meet present requirements of traffic handled by them. They will need more space to efficiently handle the anticipated increased volume of traffic. However, the requirements indicated by them need careful reassessment. Because of the restrictions imposed by the built up area around these facilities the increased cargo handling facilities will have to be allocated at the new Islamabad Airport. 6.7 PIA handles more than 50% of the cargo. The space available to it for handling this cargo is not adequate. Proper segregation of different categories of cargoes cannot be maintained. Weighbridge and modern scanning machine are lacking. The grill and dangerous cargo rooms are cramped. Livestock is air freighted from here,

but there is no arrangement for their handling. Even the basic facilities like wash rooms for the Customs officials and others working at the premises are lacking. There is no parking space for the trailers bringing the containers loaded with cargo. To enable flow of traffic during the day their movement has to be restricted to night, and their parking on the road blocks the traffic. Security of the premises is inadequate. Figure 6.2: Line Plan of PIA Cargo Handling Terminal at Islamabad Airport

APRON

< <

| | | | | |

134

ft

| | |

< ------------ ------- -------------- ------- ------- --------- ------- ------ 562 ft ---------------------------------------- --------- ------------------ ---> | |< 128 ft > < ---- -------------- ------- ------- --------- ------- ------ 344 ft ---------------------------------------- --------- ------------------ ---> | |

| |

> |<-------- ---- 73 ft ----- --------> <---------- 72 ft ----- -----> <---- -- 61 ft -- ---> <-------------------- 99 ft --------- -------> <---- -- 52 ft -- ---> < < |

Domestic | | |

Import/ Import Export Unaccompanied Afghan 89 ft

| | Export Baggage Refugees | | |

| | | | | |

Gate Gate Examination Gate > | | Area < |

Gat

e

| | 351

ft

Gat

e

--------- < 76 ft

| |

Offices

Can

t- ee

n

31

ft

| 217

ft

| | | | | | > > | | < 26 ft > < | |

Parking | | |

52 ft

| | | | |

Gate > > >

CHAKLALA ROAD

Way

To

APR

ON

Gril

l

Verandah

Offices

Operational Area

6.8 As construction of the new airport will take a few years there is an urgent need for making some additional area of the airport available for this facility, rearranging the layout scientifically for proper segregation and smooth flow of cargo, and providing modern equipment like weighbridge, scanner, close circuit TV surveillance, fire fighting equipment etc. 6.9 The new Islamabad International Airport is planned at Fateh Jung. 3,200 acres land has been acquired. The project management consultant was appointed in January 2006 and mobilized in February 2006. Draft Master Plan for the airport is already in place. Completion on Phase I is planned for 2010. On completion of Phase I the airport will have capacity for 6.5 million passengers per annum and a dedicated cargo handling facility for initial capacity of 100,000 tonnes per annum with provision for future expansion. Multi-modal transport access arrangements are planned through 3 lane dual carriageway road and shuttle train service. Agreements have been executed with a number of international carriers to operate services from the Islamabad International Airport. 6.10 Before finalizing the Master Plan all the stakeholders need to be consulted to ensure that the cargo handling facilities are in keeping with the requirements of the trade, modern practices and regulatory requirements.

32

Figure 6.3: SAPS Cargo Handling Terminal at Islamabad Airport

33

7. Peshawar International Airport 7.1 Peshawar airport also handles substantial volume of cargo by air. During 2004-05 it handled 11,675 tonnes of cargo, which included 8,851 tonnes of international cargo. While the volume of domestic cargo has remained around 3,000 tonnes, there has been a consistent growth since 2000-01 in the volume of international cargo at an average annual rate of about 19 % resulting in total cargo growth rate of about 12 %. Table 7.1: Cargo Handled at Peshawar International Airport

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 1,958 2,039 4,585 5,256 6,070 Un-loaded 1,805 2,040 1,941 2,504 2,781 Transit - - - - - Total 3,763 4,079 6,526 7,760 8,851 DomesticLoaded 973 952 682 571 909

Un-loaded 1,986 2,286 2,413 2,075 1,915 Total 2,959 3,238 3,095 2,646 2,824 Int'l + Domestic (incl. Transit)

Loaded 2,931 2,991 5,267 5,827 6,979 Un-loaded 3,791 4,326 4,354 4,579 4,696 Total 6,722 7,317 9,621 10,406 11,675 Source: Civil Aviation Authority

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2000-01 2001-02 2002-03 2003-04 2004-05

International

Domestic

Int'l +Domestic

7.2 Assuming that the growth rate of last five years is maintained the cargo throughput of Peshawar airport would increase from 11,675 tonnes in 2004-05 to about 33,000 tonnes by 2015-16. The projected air cargo traffic for Peshawar airport is shown in Figure 7.1. It may be noted that Peshawar is very well located for airfreight of domestic as well as foreign cargo to CAR under multi-modal transport system. This opportunity needs to be exploited. Figure 7.1: Projected Throughput of Cargo at Peshawar Airport

-

10,000

20,000

30,000

40,000

50,000

60,0002000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Years

Tonn

es

International

Domestic

Int'l +Domestic

7.3 No statistical data regarding the commodity exports from Peshawar airport could be made available by PRAL. Various sources indicated that the main exports from Peshawar airport comprised fresh fruit and vegetables, animal casings, meat, livestock, dairy products, honey, tobacco, carpets and precious and semi-precious stones. Pharmaceuticals, surgical instruments, sports goods and leather garments originating from Rawalpindi-Sialkot area were also exported through Peshawar airport. The imports were mainly unaccompanied personal baggage and medicines. 7.4 PIA, Qatar Airways, Emirates, Gulf Air, Saudi Arabian Airlines and Aero Asia are the main transporters of cargo in combination with their passenger services. Air Blue

34

has started to lift cargo on introduction of its service in 2005. Recently Etihad has also started its service and started to lift cargo. In the past PIA has been carrying over 50% of cargo. However, with introduction of services by other airlines its share has been declining. Table 7.2: Cargo Traffic by Airlines


AERO ASIA AIRLINE 449 341 333 455 474 AIR BLUE - - - - 653 EMIRATES AIRLINES 931 485 589 794 1,220 GULF AIR 222 410 673 593 1,110 OMAN AIR 21 - - - - PAKISTAN INTERNL AIRLINES 4,214 5,177 6,599 5,892 4,762 QATAR AIRWAYS 566 639 1,140 1,760 1,601 ROYAL AIRLINE - - 60 - - SAUDI ARABIAN AIRLINES - - - 569 1,566 SHAHEEN AIR INTERNATIONAL 52 38 - 10 - SHAHEEN AIRLINE KHI 265 228 225 333 290

Total 6,720 7,318 9,619 10,406 11,676 Source: CAA 7.5 PIA and Aero Asia handle their own cargo, while the other airlines make use of the services of SAPS. The area available to PIA for its cargo terminal is restricted to about 20,000 ft2, which is absolutely inadequate for carrying out the operations efficiently. Covered areas are not adequate for storing the goods and getting them processed through necessary operations and examined by Customs. All the work has to be carried out by PIA and Customs staff in most uncomfortable environment lacking the basic facilities. There is no weighbridge for weighing of cargo or the scanner for security and Customs examination. Access to the terminal is through the passenger car parking area which makes it very difficult for the trucks and trailers to access the cargo terminal that has no parking space for these heavy vehicles.

7.6 Compared to that SAPS cargo terminal is spread over a much larger area of over 75,000 ft2. It has separate warehouses for the export and import cargo and open space for the trucks and trailers. The terminal is also equipped with weighbridge, modern scanner and other security features. Well equipped office space for the

35

36

SAPS, Customs and airlines staff is also available. It also has direct access for trucks and trailers. The terminal is at present being utilized at about 50% capacity. 7.7 To relieve the problems being faced at PIA cargo terminal it would be advisable to work out an arrangement whereby the under-utilized facilities of SAPS are also used by PIA under a mutually agreed arrangement till a new cargo terminal for use of PIA is built. It appears that some overtures in this direction had been made, but because of the business rivalry of the two organizations an acceptable agreement could not be reached. 7.8 A much larger cargo terminal with all modern facilities; including cold storage for perishable commodities, strong room with lockers for precious commodities and separated shed for livestock; needs to be developed for PIA operations. At present this has been obstructed because a substantial part of land allocated to CAA has been occupied by ASF. The Airport Manager, Peshawar has put up a proposal for expansion of the airport terminal by relocating ASF to PAF land and the present car park to army open land in the vicinity. It has been indicated that the proposal is being discussed by CAA with the concerned PAF and Army officials and plans for expansion and Upgradation of the airport involving building of a new terminal and dedicated cargo facilities have been prepared. Considering that all the organizations involved to enable execution of the plan are under the administrative control of the Ministry of Defence it should not be too difficult to get the proposal finalized and executed. It would greatly relieve the problems being faced at Peshawar airport.

37

38

8. Sialkot International Airport 8.1 Sialkot is a fast growing industrial city of Punjab. It specializes in production of export oriented high value goods like surgical instruments, sports goods and leather garments. The industry is lead by a dynamic Chamber of Commerce and Industry, which has developed a self financing and self-help culture. To develop the city the industrialists initially contributed 0.5% of their income towards the Development Fund. This contribution has now been reduced to 0.25%. City hospital, college and school have been built out of this fund. 8.2 To enable expeditious transport of goods for export to sea and air ports Sialkot Dry Port has been established in the private sector by taking land on lease from Pakistan Railways. The dry port owns a fleet of 100 flat-bed trucks for transport of the containers. Over 40 tons per day of Sialkot products are shipped abroad by air. The airports of Karachi, Lahore, Islamabad and Peshawar are used for these shipments. By arranging shipments through distant airports the exporters cannot exercise satisfactory control over it. Furthermore, damages and pilferages affect reputation of the exporters. 8.3 To overcome this situation SCCI decided to establish an airport at Sialkot. A private limited company by the name of Sialkot International Airport (Pvt) Ltd. was established and a Memorandum of Understanding was signed between the Government of Pakistan and SIAL, whereby 1,036 acres land for the airport was made available by the Government of Punjab and other government organizations like Customs, CAA, ASF and Pakistan Meteorological Department (PMD) agreed to provide the necessary services for operation of the airport. 8.4 Any industrialist from Sialkot contributing Rs 5,000,000 towards the equity of SIAL is entitled to become a member of the Board of Directors. At present there are 227 directors who have contributed this amount. 8.5 Work on construction of the airport started in January 2003. The runway capable of landing the larges aircraft has already been built. Building of the control tower, necessary offices and two cargo warehouses of 1,000 m2 each are nearing completion. Essential equipment for operation of the airport and handling of cargo has been imported. It is intended to commence the operation for cargo transport and subsequently develop it for passenger transport. It is intended to operate the first flight in December 2006 or early 2007. 8.6 The airport is well laid out and there is provision for construction of 20 cargo warehouses of 1,000 m2 capacity. PIA, SAPS, DHL have already shown interest in establishing their warehouses. SIAL is negotiating with various airlines to operate their services for Sialkot airport. Success of the airport will depend on attracting sufficient number of airline services to make the operation viable. The management of SIAL is very optimistic. SCCI is of the opinion that operation of the airport at Sialkot would enable them to enhance their exports and the volume of air cargo will increase three to four folds of the present level.

39

Figure 8.1: Plan of Sialkot International Airport

9. Multan International Airport 9.1 At present Multan airport is handling a limited volume of cargo, most of which is domestic. Total cargo handled during 2004-05 was 1,623 tonnes. Out of this the international cargo was limited to only 212 tonnes. Table 9.1: Cargo handled at Multan International Airport

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 108 13 - 60 208 Un-loaded 8 2 1 4 4 Transit - - - - - Total 116 15 1 64 212 DomesticLoaded 628 705 730 718 892 Un-loaded 641 539 595 702 519 Total 1,269 1,244 1,325 1,420 1,411 Int'l + Domestic (incl. Transit)Loaded 736 718 730 778 1,100 Un-loaded 649 541 596 706 523 Total 1,385 1,259 1,326 1,484 1,623 Source: Civil Aviation Authority

-200400600800

1,0001,2001,4001,6001,800

2000-01 2001-02 2002-03 2003-04 2004-05

International

Domestic

Int'l +Domestic

9.2 During the period 2000-05 the cargo movement from Multan airport has not shown any consistent growth pattern. Therefore, the past data could not be used for making growth projections. However, Multan is surrounded by large agricultural area. Kucchi Canal being developed at present will further increase this agricultural producing belt. Mango is the main produce of this area. At present it is transported to Karachi and Lahore by land for onward transport to distant destinations by air. Direct shipment by air from Multan has not been possible because the runway length does not allow landing of wide bodied aircrafts. The smaller aircrafts landing at Multan airport do not have the capacity for carriage of cargo. 9.3 A decision has already been taken to extend the runway and build a new terminal with cargo handling facilities. PCI has been approved. CAA is at present in the process of selecting a consultant for planning and designing a new terminal building with other allied facilities including a cargo terminal of international standard. The project is estimated to cost about US$ 50 million and completed in 2009. Figure 9.1: Projected Throughput of Cargo at Multan Airport

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Years

Tonn

es International

Domestic

Int'l +Domestic

9.4 Once the new facilities are established the airlines will have to be persuaded to operate the services with wide bodied aircrafts. On the assumption that with availability of new facilities the wide bodied aircrafts will start calling at Multan airport the growth of international cargo has been projected at 20% during 2005-06, gradually declining to 10% by 2015-16 and thereafter maintaining this growth rate. For the domestic cargo the average growth rate of 3.2% for the past five years has

40

been used for future projections. On these assumptions the cargo handled at Multan airport will increase from 1,623 tonnes in 2004-05 to about 22,000 tonnes in 2015-16. 9.5 Only partial data of exports for the months of April, May and June 2006 could be made available by PRAL. This shows apparel, clothing, made ups, footwear and food items as the main exports from Multan. The market sources indicated textile made ups, embroidered clothing, leather garments, shoes and sheep casings to be the major exports from Multan. There was much scope for export of fruits and vegetables, especially mangoes. But because of lack of cold storage facilities and wide bodied aircraft to lift the cargo this potential was not being exploited. Pakistan Horticulture Development and Export Board (PHDEB) has planned an Agro Processing Zone in Multan. It is likely to be located in Phase II of the Industrial Estate not too far from the airport. The proposed facilities will include post-harvest treatment, cold storage and processing. Table 9.2: Commodity Exports from Multan Airport (Partial Data) Figure in million rupees Commodity April, May, June 2006Food items 10.2Textile & fibre .2Carpets & other textile flooring 1.2Apparel, clothing & madeups 79.8Footwear, Guaitars & parts 32.8Gems & jewellery .3Miscellaneous items .1 TOTAL 124.6 Source: Compiled by study team from PRAL data 9.6 Only PIA and Aero Asia have been operating from Multan airport. Recently Aero Asia has also suspended its service. Inducing more airlines to operate their services from Multan will be critical for increasing the export of cargo by air from Multan. Multan airport at present has about 5,000 ft2 of open plinth area and about 4,000 ft2 of covered area for handling cargo. In case of the projected growth in cargo traffic being achieved the cargo handling facilities would need to be enhanced to meet the requirements. Table 9.3: Cargo traffic by Airlines at Multan Airport


AERO ASIA AIRLINE 140 69 77 238 107 PAKISTAN INTERNL AIRLINES 1,245 1,191 1,247 1,246 1,516

Total 1,385 1,260 1,324 1,484 1,623 Source: CAA

41

10. Faisalabad International Airport 10.1 Faisalabad airport handles limited volume of cargo. During 2004-05 only 1,223 tonnes of total cargo was handled at Faisalabad. For the period 2001-05 the domestic cargo has varied between 1,070 and 1,226 tonnes. The cargo carrying capacity of the passenger aircrafts operating on this route has been the limiting factor. The international cargo has been negligible. Table 10.1: Cargo Handled at Faisalabad International Airport

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 6 39 - 1 6 Un-loaded 42 10 - 3 6

Transit - - - - - Total 48 49 - 4 12 DomesticLoaded 946 669 729 812 779 Un-loaded 512 401 394 423 432 Total 1,458 1,070 1,123 1,235 1,211 Int'l + Domestic (incl. Transit)Loaded 952 708 729 813 785 Un-loaded 554 411 394 426 438 Total 1,506 1,119 1,123 1,239 1,223 Source: Civil Aviation Authority

-

200

400

600

800

1,000

1,200

1,400

1,600

2000-01 2001-02 2002-03 2003-04 2004-05

International

Domestic

Int'l +Domestic

10.2 With the development of motorways to Lahore and Islamabad the airports in these cities with international flights are now within easy access involving a few hours drive. Another airport at Sialkot is being developed and this will also be easily accessible to the exporters from Faisalabad. Therefore Faisalabad offers little potential for handling international cargo. For the domestic cargo over the period 2001-05 there has been an average annual growth of 3.1%. This growth rate has been applied for the projections of domestic cargo. On this assumption the cargo handled at Faisalabad airport will increase from 1,223 tonnes in 2004-05 to about 1,700 tonnes in 2015-16. Figure 10.1: Projected Throughput of Cargo at Faisalabad Airport

-

500

1,000

1,500

2,000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Years

Tonn

es

International

Domestic

Int'l +Domestic

10.3 Faisalabad is the centre of textile industry in Pakistan. Most of the export products are transported by sea. The items to be delivered urgently air freighted from Karachi, Lahore or Islamabad. The data provided by PRAL shows that the limited shipments made by air from Faisalabad during 2003-05 consisted of apparel, clothing, made ups and cotton cloth.

42

Table 10.2: Commodity Exports from Faisalabad Airport

Commodity 2003 2004 2005Apparel, clothing & made ups 15.6 183.3 140.5Cotton cloth 4.3 11.4 4.4Miscellaneous 2.2 147.1 48.2Total 22.1 341.9 193.2

Figures in million Rupees

Source: Compiled by study team from PRAL data 10.4 The main carriers from Faisalabad airport have been PIA and Aero Asia. Recently Air Blue has also introduced a daily domestic service. The main complaint of the airlines is that the cargo sheds are placed far away from the apron and these create difficulty in handling the cargo. The cargo sheds need to be shifted close to the apron. Table 10.3: Cargo Traffic by Airlines at Faisalabad Airport


AERO ASIA AIRLINE - 5 22 69 103 PAKISTAN INTERNL AIRLINES 1,507 1,113 1,101 1,170 1,120

Total 1,507 1,118 1,123 1,239 1,223 Source: CAA

43

11. Quetta International Airport 11.1 Quetta airport is also handling a limited volume of cargo. Most of this cargo is domestic. During 2004-05 total volume of 1,515 tonnes of cargo was handled. Out of this 1,446 tonnes was domestic cargo. The international cargo mainly comprises unaccompanied baggage of passengers from Dubai. Table 11.1: Cargo Handled at Quetta International Airport

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 31 16 - 6 3

Un-loaded 20 10 24 42 66 Transit - - - - - Total 51 26 24 48 69 Domestic 1

Loaded 487 487 487 578 645 Un-loaded 727 705 727 720 801 Total 1,214 1,192 1,214 1,298 1,446 Int'l + Domestic (incl. Transit)Loaded 518 503 518 584 648 Un-loaded 747 715 747 762 867 Total 1,265 1,218 1,265 1,346 1,515 Source: Civil Aviation Authority

-

200

400

600

800

1,000

1,200

1,400

1,600

2000-01 2001-02 2002-03 2003-04 2004-05

International

Domestic

Int'l +Domestic

11.2 Main produce of Quetta region is fruit and seasonal vegetables mainly harvested in the summer months of June, July and August. No statistics of the exports from Quetta were available. The market sources indicated that grapes are exported to Bangladesh. Till a few years back these were exported by air. But, with introduction of refrigerated containers and good road connection to Karachi, the grapes are now exported to Bangladesh by sea in refrigerated containers on the basis of door to door service. The production of fruit and vegetables is very much dependent on the weather. Drought of a few years back greatly damaged the orchards, adversely affecting their output. 11.3 As the fruit processing facilities are not yet available in the growing areas, the fruits and vegetables are transported by road to the markets in Karachi and Lahore. To attract air freight PIA offers special concessionary rates for air freight of cargo to Karachi, Lahore and Dubai. The domestic cargo is also picked up and delivered at PIA terminal in town. Some times fruit and vegetables are air freighted to Karachi for processing and export by air. The study team witnessed a consignment of coriander (dhanya) being air freighted to Karachi by PIA. 11.4 Besides the horticultural products, occasionally machinery items are exported and imported to meet immediate repairs and replacement requirements of some plants. Figure 11.1: Projected Throughput of Cargo at Quetta Airport

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Years

Tonn

es International

Domestic

Int'l +Domestic

44

11.5 The average annual growth rate during the period 2001-05 for the total international cargo was 12.8% and for the domestic cargo 4.9%. Future projections have been worked out using the same growth rates. On these assumptions the total air cargo handled at Quetta airport will increase from 1,515 tonnes in 2004-05 to about 2,700 tonnes in 2015-16. 11.6 PIA has been the consistent service provider at Quetta airport. A number of other airlines have also been providing occasional service. Recently Air Blue has started a daily service between Quetta and Karachi and Shaheen Airline twice a week service to Lahore. Table 11.2: Cargo Traffic by Airlines at Quetta International Airport


AIR BLUE - - - - 123 ASMAN AIRLINE 37 - - - - INT'L COMMITTEE RED CROSS - 10 - - - PAKISTAN INTERN'L AIRLINES 1,228 1,208 81 1,346 1,387 SHAHEEN AIR INTERNATIONAL - - - - 5

Total 1,265 1,218 81 1,346 1,515 Source: CAA 11.7 The exports and imports have to be cleared at the airport because of the Customs requirements. Quetta airport has a 15*25 ft warehouse for import consignments and a 12*12 ft warehouse for export consignments. A 21*18 ft cool room fitted with 2 air conditioners has also been built at the demand of exporters, but it has not been used. The traders complain that the bank and quarantine facilities are not available at the airport and much time is wasted in going to town for these. They also complain that in case of a flight getting delayed the cargo is left in the open and it gets damaged. Suitable sheds may be provided to avoid damage to cargo. The scanner installed at the airport is very old of 8 kg capacity. A modern scanner of larger capacity is needed to avoid damage to cargo by opening it for inspection. The weighing machine is also of very small capacity. A larger capacity weighing machine is required.

45

12. Gwadar International Airport 12.1 Gwadar has a small airport with short runway, which restricts it use to small aircraft. PIA has been operating its service to Gwadar with Fokker aircraft. Because of limited cargo carrying capacity of these aircraft very little cargo is handled at Gwadar airport. Over the last five years the total cargo handled annually has been around 80 tonnes. The unloaded cargo on international and domestic services is mainly unaccompanied baggage. The loaded cargo is mainly fish sent by local influential persons to their friends as gift. Table 12.1 Cargo Handled at Gwadar International Airport

(Tonnes)Year 2000-01 2001-02 2002-03 2003-04 2004-05InternationalLoaded 1 1 3 3 1

Un-loaded 31 25 21 22 2 Transit - - - - - Total 32 26 24 25 3 DomesticLoaded 23 15 19 10 17

Un-loaded 28 32 37 46 50 Total 51 47 56 56 67 Int'l + Domestic (incl. Transit)Loaded 24 16 22 13 18

Un-loaded 59 57 58 68 52 Total 83 73 80 81 70 Source: Civil Aviation Authority

-10

203040

506070

8090

2000-01 2001-02 2002-03 2003-04 2004-05

International

Domestic

Int'l +Domestic

12.2 After recent grounding of Fokker aircrafts PIA is now operating the service with the recently acquired ATR 42-500 aircrafts. Air Blue has also started a service from Karachi to Gwadar with 17 seats Beachcraft 1900. These aircraft do not have the capacity for carrying cargo. Moreover with development of Coastal Highway, which enables transport from Karachi to Gwadar within 8 to 10 hours, at present there is not much demand for carriage of air cargo. 12.3 With development of Gwadar port, Gwadar is being transformed from a fishing village to an industrial and commercial centre for transport of cargo to CAR. First phase of Gwadar port is nearing completion. GDA has prepared a Master Plan for development of Gwadar and efforts are being made to develop necessary infrastructure for the entrepreneurs to be attracted to invest in establishing industries and other commercial enterprises. 6,000 acres area has also been earmarked for establishment of a new international airport. CAA is already in the process of acquiring the land and working out a plan for development of this airport. 12.4 To provide land connectivity to CAR through shorter routes a highway from Gwadar to Chaman is being developed through Turbat, Hoshab, Panjgur, Naag, Basima and Sorab. To provide access to Torkham through Indus Highway another road link is planned from Turbat to Hoshab, Awran, Khuzdar and Ratodero. 12.5 Electric supply has been arranged from Iran Work is in hand for supply of gas, and arrangements are being made for installation of a 2 million gallons per day capacity desalination plant for ensuring water supply. All these are the basic requirements for the industrial activity to take off. At present the smuggled diesel and petrol is freely available at relatively cheaper price of Rs. 15 to 25 per litre. 12.6 The main business activity that is taking place at present is the sale and purchase of land by the so called ‘land mafia’. This is escalating the price of land to uneconomic levels. Measures need to be adopted to make sure that the land is allotted to only those who have a genuine requirement for establishing an industry or

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some other commercial enterprise; and in case of the indicated enterprise not being established within a specified period the allotment may be cancelled. 12.7 Another major hindrance in starting industrial and commercial activity is the non-availability of local skilled personnel. There is an urgent need for establishing a polytechnic institute in Gwadar to develop skills in basic trades like electrician, mason, plumber, carpenter, mechanic etc. so that the workers may become available for constructing the industrial establishments. 12.8 Moreover, the area adjacent to the port reserved for industries needs to be declared as a Free Trade Zone, free from duties and local taxes, like Jabal Ali in Dubai to attract investment. 12.9 Once the industry starts to take off the time will be ripe for the new airport to come in operation. The new airport should be planned with adequate provision for modern cargo handling facilities so that it may be used for trade with CAR by air.

New Airport

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13. Air Cargo Business Process 13.1 Efficient handling of cargo requires expeditions completion of all the business processes involved in getting the cargo on board the aircraft after its arrival at the airport for the export cargo and clearance of cargo from the airport after its unloading from the aircraft for the import cargo. Nearly 98% of all air cargo is handled at Karachi, Lahore, Islamabad and Peshawar airports. An effort was made to make an assessment of the time involved in completion of export and import business processes at these airports. Unfortunately no records are maintained for completion of business processes. Therefore, reliance had to be made on the empirical information received from the concerned agencies. And even that information was not complete in many respects and varied from agency to agency. On the basis of whatever information became available the charts produced below have been prepared for the export and import business processes. Chart 1. Export Business Process

Sl. Concerned Karachi Lahore Islamabad PeshawarNo. organization Approx. Time Approx. Time Approx. Time Approx. Time

1 Arrival of loaded cargo truck Shipper / agent 20 - 30 mins 1 - 2 hrs 1/2 hr 2 hrs2 Filing of shipment Bill Shipper / agent --- 20 - 30 mins 3 hrs Not indicated

(Registration to obtain machine No.)

3 Entry in Air Freight Unit - Customs inspection Customs 10 mins Varibale 1/2 hr Not indicated - CAA Security check CAA ---

4 Weighing of truck 30 - 60 mins 10 - 30 mins 1/2 hr 10 minStacking / labelling in examination area Airline / GHA 1 hrs

ANF 20 - 30 mins 30 mins 1 hr. Not indicated

6 Quality certification 1/2 hr - Animals Concerned - Plants Governmental Variable Variable Variable - Fish Offices Not indicated Not indicated Not indicated - Agricultural produce

7 Customs formalities Not indicated - Composition checks - Valuations checks Customs 2 - 6 hrs 30 mins - 2 hrs 2- 3 hrs - Duties / Taxes etc. - Allow loading

Shipper / agent 1 - 4 hrs. 5 hrs 1 hr. before arr. / airline of aircraft

9 Security requirements 24 hrs 24 hrs - Cooling period Airline 24 hrs 24 hrs 24 hrs - Electronic screening Airline Subject to volume 1 hr 15 min / ton

10 Palletzing / loading on aircraft Airline 2 - 3 hrs 30 mins to 2 hrs 2 hrs 1 hr/3 ton pallet ANF = Anti Narcotic Force, CAA = Civil Aviation Authority, GHA = Ground Handling Agency

Process

Narcotics check5

8 Handing over to airline

Chart 2: Import Business Process

Sl. Karachi Lahore Islamabad PeshawarNo. Operator Approx. Time Approx. Time Approx. Time Approx. Time

1 Off loading 30 mins - 2 hrs. 2- 3 hrs 45 mins - Segregation of cargo Airline / GHA 2 hrs 3 hrs 1 hr. - AFU (Commercial) 2 hrs 8:30 - 16:30 - Grill (unaccompanied) 1/2 hr - 1 hr. 8:30 - 16:30 - ICG (immediate clearance) 1/2 hr. - Bond (Airline equipment) 1/2 hr. - Transit (Domestic distribution) 45 mins - 1 hr. 2 hrs

2 Delivery order issuance Airline 10 mins 10 mins 3 hrs Office hrs3 Customs process Customs 4 - 6 hrs Variable 4 hrs Variable

(Examination, appraisement,

evaluation of duties & taxes)

4 Provincial stamps & duties Prov. Govt. 10 mins --- --- ---5 Thoroughput charges CAA 10 mins --- --- ---

ANF = Anti Narcotic Force, CAA = Civil Aviation Authority, GHA = Ground Handling Agency

Process

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13.2 The organizations working at the airports like CAA, Customs, airlines and the ground handling agents have their own computerized system, but these are not interlinked with each other. To simplify and expedite the cargo handling operations at the airports it is imported that IT systems of all the agencies working at the airports are integrated in to a single window operation. PACCS of Customs developed under CARE programme offers an excellent opportunity for achieving this objective. PACCS needs to be extended to all the airports by Pakistan Customs at the earliest and arrangements made for the IT systems of all the other organizations to be integrated with it.

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14. Recommendations General

1. PACCS may be introduced by Pakistan Customs at all airports and IT systems of CAA, airlines, air cargo agents and cargo handling agents may be integrated with it to function as a Single Window.

2. Aircraft landing charges and fuel prices charged at Pakistani airports may be

compared with the regional airports and rationalized to make them comparable with the charges at the regional airports.

3. CAA may establish suitable adjudication mechanism at each airport for quick

resolution of disputes relating to throughput charges.

4. Modern scanners of adequate capacity for the cargo load may be installed at all airports for screening of cargo.

5. All stakeholders should be consulted during the planning stages of new airports

at Islamabad and Gwadar and new terminal facilities at other ports to ensure that the cargo handling facilities are adequate and in keeping with the latest cargo handling practices and regulatory requirements.

6. PIA may introduce appropriate security arrangements in its aircraft for transport

of gems and jewelry at a reasonable cost.

7. The procedures of all organizations involved in transport supply chain may be streamlined to facilitate development of sea-air-road multi-modal transport logistics.

Karachi Airport

8. To eliminate damage and pilferage of cargo the backyard area of airlines warehouses in CAA Cargo Complex AFU may be covered with sheds and caged. The sheds in examination area of AFU also need to be extended on both sides to cover the open area between the shed and the airline warehouses and the open space for receiving the cargo. Security against pilferage may be strengthened. A modern scanner of adequate capacity may be installed.

9. PIA Cargo Complex may be expanded to integrate all export, import and

domestic cargo operations at one place. Necessary funding arrangement for early execution of this expansion may be made. There should be suitable provision for temperature controlled cool rooms for perishable commodities, chiller room for medicines, strong room with lockers for valuables, modern scanners and closed circuit TV monitoring.

10. The scattered cargo handling facilities at Karachi Airport may be integrated by

developing a Cargo Village with modern warehousing and cold storage, and all other modern equipment required in such a facility. Necessary offices, other amenities and parking spaces may also be provided.

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Lahore Airport 11. Construction of a permanent Customs block at the Cargo Complex of Allama

Iqbal international Airport may be taken in hand immediately. In the meanwhile suitable offices may be made available for the Customs staff to carry out their functions in a comfortable environment.

12. Suitable cold rooms for perishable commodities, chillers for medicines, strong

rooms with lockers, scanners, and close circuit TV surveillance may be provided in the warehouses of all cargo handling agents including PIA. Separate space may be allocated for hazardous cargo.

13. Banking facilities, offices for air cargo agents, rest rooms for drivers, parking area

for container trailers and other necessary amenities may be provided. Islamabad Airport

14. PIA Cargo Terminal may be expanded by getting some more space allocated for it from the airport apron area, and the layout of the terminal improved on scientific lines to enable proper segregation, sorting, examination and flow of cargo. Weighbridge and modern scanner of adequate capacity may be provided. Close circuit TV surveillance may be introduced. Separate provision may be made for handling livestock and hazardous cargo.

15. At the new Islamabad Airport a modern cargo complex may be built along with

the airport terminal during the initial stages of building the airport. All stakeholders may be consulted during the planning stage.

Peshawar Airport

16. To meet immediate requirement of smoothly handling PIA cargo suitable arrangements on mutually acceptable terms may be worked out between PIA and SAPS to make use of the spare capacity in SAPS premises for handling export cargo of PIA.

17. Arrangements may be worked out by the Ministry of Defence in coordination with

CAA, ASF, Army and Air Force to expand the Peshawar Airport Terminal as proposed by CAA Works Section, Peshawar Airport and all modern facilities may be provided in the expanded cargo terminal.

Sialkot Airport

18. SIAL may be provided all the facilities for efficient operation of Sialkot Airport as agreed in the memorandum of Understanding between SIAL and the Government of Pakistan.

Multan Airport

19. Runway may be extended and new cargo terminal built as already approved by the Government.

20. Modern scanner, weighbridge, CCTV and other modern facilities may be

provided in the new cargo terminal. Faisalabad Airport

21. Cargo shed may be shifted close to the apron if practicable.

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Quetta Airport

22. Installation of larger capacity modern scanner and weighbridge may be considered on the basis of operational requirements.

Gwadar Airport

23. At Gwadar basic issues relate to development of infrastructure for attracting industrial and commercial activity. The important actions that need to be taken are:

(i) Curb escalation of land prices by restricting transfer of property and making it

incumbent on the allottees to establish within a specified period the enterprise for which the land has been allotted.

(ii) Establish a polytechnic institute for training of craftsmen like electricians,

masons, plumbers, carpenters, mechanics etc. so that the development activity can take place.

(iii) Make the industrial area a Free Trade Zone exempt from levy of Customs

duty and other taxes like Jabal Ali in Dubai to attract investment.

24. New Airport may be built to commence operation when the industry starts to take off and a modern cargo complex may be built along with the airport.

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Annex-I

LIST OF PARTICIPANTS OF THE MEETING HELD ON 29-04-2006 TO DISCUSS AIR CARGO HANDLING FACILITIES AT AIRPORTS

1. Syed Asif Shah, In chair

Secretary Commerce

2. Mr. Qamar H. Jafarey Manager (Cargo), PIA, Karachi

3. Mr. Tariq Ahad Nawaz Chief (IC), CBR

4. Mr. Muhammad Saeed Asad, Secretary (Export), CBR

5. Mr. Alqera Atiq, General Manager (Coordination), Civil Aviation Authority, Karachi

6. Mr. Shahid Anwar Khan DS (P&D), Aviation Wing, Ministry of Defence

7. Mr. Muhammad Uris Jumani Director, Federal Bureau of Statistics

8. Ch. Mohammad Saeed President, FPCCI, Karachi

9. Mr. Mohammad Iqbal Chief Operation Officer, Pakistan Horticulture Development and Export Board, Lahore

10. Mr. K. K. Suri Consultant, Export Promotion Bureau, Karachi

11. Mr. Muhammad Ashraf Khan, Sr. JS (Import/Trade Policy), Ministry of Commerce

12. Mr. Abrar Ahmad Khan JS (Export), Ministry of Commerce

13. Syed Irtiqa Ahmed Zaidi Economic Consultant, Ministry of Commerce

14. Mr. Samiullah Deputy Chief (Import), Ministry of Commerce

15. Mr. Qaseem A. Subhani Assistant Chief (Research), Ministry of Commerce

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Annex-II

TOR FOR THE STUDY ON THE CREATION/ IMPROVEMENT OF CARGO HANDLING FACILITIES AT AIRPORTS IN PAKISTAN

Ministry of Commerce intends to make projections of the requirements of air cargo

handling facilities required at all the airports of Pakistan for the next ten years in order to

facilitate quick transportation of commercial goods. In this connection the Ministry of

Commerce has decided to commission a short-term study to assess the existing cargo

handling facilities and the facilities required in the future at all our airports. The

consultants would be hired for the purpose to complete the study in 4 week’s time, and

will cover the following in the study:

1. An assessment of the major air cargo generation points/industries, nature of

cargo, quality of packaging and existing capacity/potential of import and export markets.

2. A thorough assessment of air cargo handling facilities presently available at each of the airports in Pakistan, and future requirements.

3. An assessment of the volume and nature of cargo handled at each airport during

the last five years (with year-wise breakup), and the volume of cargo that could not be handled due to lack of capacity at the airports.

4. An assessment of the volume and nature of exportable commodities being

produced in the respective surrounding areas of each airport. 5. An assessment of the requirement of cargo handling facilities at each of the

airports for handling commercial cargo for the next 10 years for domestic as well as international trade.

6. The existing facilities and those required in the future for handling of perishable

commodities should also be covered in the study. 7. For the purpose of collecting data, the Consultant will interact with Exporters,

Federation of Pakistan Chambers of Commerce & Industries, Pakistan International Freight Forwarders Association and Government Departments, like Ministry of Defence, Civil Aviation Authority, Pakistan International Airlines, Central Board of Revenue, Statistics Division, National Logistic Cell, Export Promotion Bureau, Pakistan Horticulture Development & Export Board, etc.

_________

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Annex-III

Organizations and Persons Contacted

Karachi: (1) Mr. Tahir Qamar General Manager (MIS) Civil Aviation Authority Terminal 1, Karachi Airport, Karachi Tel: 924 8792, Fax: 924 8794

(2) Mr. Ansar Zaidi Corporate Manager (MIS) Civil Aviation Authority Terminal 1, Karachi Airport, Karachi Tel: 924 8187

(3) Mr. Khalid Mahmood Statistical Officer Federal Bureau of Statistics 1-B, Sindhi Muslim Cooperative Housing Society, Karachi Tel: 438 8748 Ext. 313

(4) Mr. Arshad Awan Sr. Project Manager Pakistan Revenue Automation (Pvt) Ltd. Customs House, Karachi Tel: 921 4133

(5) Syed Yousuf Abbas Airport Manager & First Class Magistrate Civil Aviation Authority Level VI, Jinnah International Airport, Karachi Ph: 467 1657, 924 8690 Fax: 924 8146

(6) Mr. Ghaffar A. Mughal Senior Manager – Cargo Complex Export Cargo Terminal, Jinnah International Airport, Karachi. Ph: 467 1850, 467 1719, 467 1720; Cell: 0333 313 2163

(7) Mr. M. Shahid Latif General Manager Cargo Pakistan International Airlines Head Office, Karachi Airport, Karachi. Ph: 457 1844, 467 4017; Cell: 0300 826 8187

(8) Mr. Qamar H. Jafarey Product Manager Cargo Pakistan International Airlines Head Office, Karachi Airport, Karachi. Ph: 467 4264, 467 4582

(9) Mr. Akbar Abdullah Vice President The Federation of Pakistan Chambers of Commerce & Industry Federation House, Main Clifton Road, P.O. Box 13875, Karachi Ph: 587 3691, 93 – 94, Fax: 587 4332

(10) Mr. Jamshed Qureshi Patron in Chief Air Cargo Agents Association of Pakistan C-32-2, KDA Scheme No. 1, Main Karsaz Road, Karachi Ph: 021-4540971-4, Fax: 021-4542447

(11) Mr. Zafar Mahmood Vice Chairman Export Promotion Bureau 5th Floor, Block A, Finance and Trade Centre, Shara-e-Faisal, Karachi Ph: 920 6484, Fax: 9206461

(12) Dr. Muhammad Usman Director Export Promotion Bureau 5th Floor, Block A, Finance and Trade Centre, Shara-e-Faisal, Karachi Ph: 920 6812, Fax: 9206461

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(13) Mr. K. K. Suri Int’l Trade & Economic Consultant – Consultant to Minister of State & Chairman Export Promotion Bureau Government of Pakistan, Karachi Ph: 920 6487 – 90 Ext 242, 920 1504, Fax: 664 7515

(14) Agha Shahab Ahmed Khan Member Managing Committee, Chairman Export, Sub-Committee (2005-06) Karachi Chamber of Commerce & Industry Aiwan-e-Tijarat Road, Karachi-74000 Ph: 2416091-94 2415435-39 Fax: 2416095, 2410587 – 0300-2020840 Email: [email protected]

(15) Mr. Mohammad Salim Kapadia Member Managing Committee, Former SVP Karachi Chamber of Commerce & Industry Aiwan-e-Tijarat Road, Karachi-74000 Ph: 2416091-94 2415435-39 Fax: 2416095, 2410587 Email: [email protected] ; [email protected]

(16) Mr. Abdul Majeed Memon Sr. V. President Karachi Chamber of Commerce & Industry Aiwan-e-Tijarat Road, Karachi-74000 Ph: 2416091-94 2415435-39 Dir: 2411583 Fax: 2416095, 2410587 Email: [email protected]

(17) Mr. M. Muzzamil Husain Executive Director Shahi Textiles L-25C/22, Federal B Area, Karachi-75950 Ph: 6343601-4 Fax: 6312522– Email: [email protected]; [email protected]

(18) Mr. Babar Badat, Chairman, PIFFA M.D., Transfreight Corporation (Pvt.) Ltd 8-B, 2nd Floor, Pak Chambers, 23 West Wharf Road, Karachi Ph: 231 5034-6 Fax: 2204576-2202105-2310404; 0300-8225222 Email: [email protected]

(19) Mr. Salim R. Baxamoosa Chief Executive Universal Freight Systems (Pvt) Ltd. Freight House, 50-H, Block-6, PECHS, Karachi Ph: 4538361, 64, 65 Fax: 4549515 Email: [email protected]

(20) Mr. Ufaq Ali General Manager –Pakistan Gerry’s – Dnata 5041 Jinnah Terminal, Karachi Airport, Ph: 4671551 Fax: 4582262 Email: [email protected]

(21) Mr. Khalid Mahmood Statistical Officer Federal Bureau of Statistics Government of Pakistan 1-B, SMCHS, Karachi-74400 Ph: 4388748, Ext. 323 Fax: 4523819

(22) Mr. Yousuf Khan Officer Pakistan Revenue Automation (Pvt) Ltd. New Customs House, Karachi Ph: 111-772-772 Cell: 0300-2473731

(23) Mr. Shabir Ahmad Chairman Pakistan Bedwear Exporters Association 11 Timber Pond Keamari Road Karachi Ph: 285 1311-13 Fax: 285 1429 Email: [email protected]

(24) Mr. Mohsin Abbas Dharsi Chairman Air Cargo Agents Association of Pakistan Fabeha Castle, 168 Block B S.M.C.H.S. Karachi Tel : 453 4411 Fax : 455 4350 Email : [email protected]

mailto:[email protected]











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(25) Mr. Asif Bashir Ahmad Director Plans and Development Civil Aviation Authority of Pakistan B-6, KDA Scheme 1 Shahrah-e-Faisal, Karsaz Karachi Tel: 431 3826 Fax: 431 3827 Cell: 0333-3221634/3222 4774 Email: [email protected]

(26) Mr. Nusratullah Khan Director Operations Civil Aviation Authority of Pakistan Level 6, Jinnah International Airport Karachi Tel: 924 8745/924 8778 Fax: 924 8744

Islamabad / Rawalpindi: (1) Mr. Shahzada Bashir Ahmed Cargo Terminal Manager Pakistan International Airlines Cargo Terminal, Islamabad Airport, Islamabad Ph: 902 4388 Fax: 928 0978; Cell: 0300 526 9420

(2) Grp. Capt. (R) Qaiser Khan Yusaf Zai Manager Cargo Services Shaheen Airport Services Islamabad International Airport, Rawalpindi Ph: 559 0562, 559 0380, Fax: 559 2340; Cell: 0333 522 5511

(3) Mr. Muhammad Ashfaq Hussain Airport Manager Civil Aviation Authority Islamabad International Airport, Islamabad Ph: 908 0337, 923 1202 Fax: 928 0339.

(4) Mr. Bashir Ahmed Sial Commercial Officer Civil Aviation Authority Islamabad International Airport, Islamabad Ph: 903 1269; Cell: 0345 5064306

(5) Mr. Majid Shabbir Secretary Islamabad Chamber of Commerce & Industry Aiwan-e-Sanat-o-Tijarat Road, G – 8/1, Islamabad, Pakistan Ph: 225 0526, 225 3145, Fax: 225 2950; Cell: 0300 510 5424 & 0304 520 9190

(6) Mr. Qaiser Iqbal Raja Senior Vice President Customs House Agents Association Suite 2, Ground Floor, Al-Syed Building, Jilani Road, Opposite Shaheen Cargo Complex, Islamabad International Airport, Islamabad Ph: 595 0070; Cell: 0300 856 3966

(7) Mr. Arif Khan Chief Executive Haven International Traders (Importers & Exporters) Hafiz Building, Office # 3, Basement Main Street, Opposite Shaheen Cargo Complex, Islamabad International Airport, Islamabad Ph: 559 2017; Cell: 0345 507 2268

(8) Mr. Malik Ijaz Hussain Malik & Co. (Customs, Clearing, Forwarding, Import & Export) Office # 4, Saad Building, Opposite Shaheen Cargo Complex, Islamabad International Airport, Rawalpindi Ph: 550 4585, Fax: 559 2397; Cell: 0300 975 2661

(9) Mr. S. Akhtar H. Bukhari Managing Director Pakistan International Movers (Customs, Clearing, Freight Forwarding & Shipping Agency) Basement Shalimar House, Opposite Shaheen Cargo Complex, Islamabad International Airport, Rawalpindi Ph: 595 0621, 550 6259 Fax: 559 9247; Cell: 0333 510 7048

(10) Mr. Maqbool Hussain Managing Director Nobel International Services – (International Freight Forwarders, Customs Clearance, Import, Export, Air/Sea/Land & Rebate Advisor) #1 Chishti Plaza, Opposite Shaheen Cargo Complex, Islamabad International Airport, Rawalpindi Ph: 559 2659, Fax: 550 6918; Cell: 0300 955 3855


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(11) Mr. Zubair Ahmed Malik Vice President The Federation of Pakistan Chambers of Commerce & Industry Islamabad Chamber of Commerce & Industry Aiwan-e-Sanat-o-Tijarat Road, G – 8/1, Islamabad, Pakistan Ph: 225 0526, 225 3145, Fax: 225 2950

Peshawar: (1) Sqn. Ldr. S. Zahoor Ali Shah (R) Airport Manager Civil Aviation Authority Peshawar International Airport, Peshawar Ph: 921 1508, 921 1525 Fax: 921 1507.

(2) Mr. M. Nasar Khan Cargo Manager Pakistan International Airlines 33, The Mall, Peshawar – Pakistan Ph: 921 2383, 921 2370 – 9 / 224 Fax: 921 2393

(3) Group Captain Fazl-e-Akbar (R) General Manager Shaheen Airport Services Peshawar International Airport, Peshawar Ph: 527 8207, 528 5384 Fax: 527 2547; Cell: 0333 914 2360.

(4) Mr. Zia-ul-Haq Sarhadi Member Executive Committee, Chairman – Railway, Dry Port Standing Committee , Sarhad Chamber of Commerce & Industry Chairman – Frontier Customs Agents Group Peshawar Ph: 221 2980, 221 9280 Fax: 221 1980; Cell: 0300 859 0110

(5) Mr. Ghazanfar Bilour President Sarhad Chamber of Commerce & Industry Sarhad Chamber House, G T Road, Peshawar, NWFP, Pakistan Ph: 921 3313 – 15, Fax: 921 3316.

(6) Mr. Inayat Khan Senior Vice President Sarhad Chamber of Commerce & Industry Sarhad Chamber House, G T Road, Peshawar, NWFP, Pakistan Ph: 921 3313 – 15 Fax: 921 3316.

(7) Mr. Khalid Sultan Khawaja Member Managing Committee, Chairman – Standing Committee on Customs & Dry Ports (NWFP) C/o. Tariq Sultan & Co., Hospital Road, Peshawar City, Pakistan Ph: 221 2166 – 7, Fax: 221 3346

(8) Mr. Mohammad Asif Khan Exporter Continental Trading Corporation Room # 12, 2nd Floor, Hussain Plaza, Khyber Bazaar, Peshawar-25120, Pakistan Ph: 256 3310, 256 3320 Fax: 221 8235.

(9) Mr. Faqir Hussain Chairman All Pakistan Commercial Exporters Association Suite # 1, 2nd Floor, Al-Jalil Market, Namak Mandi, Peshawar, Pakistan Ph: 221 3396, 256 8801 Fax: 221 3520; Cell: 0300 859 8853, 0321 903 9999

(10) Mr. Atsif Rashid Khawaja Chief Executive Freight Systems (Pvt) Limited 9/10B, Al-Jalil Market, Namak Mandi, Peshawar, Pakistan Ph: 221 1588, 221 1589 Fax: 256 8432; Cell: 0300 859 1588

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Lahore: (1) Mr. Sohail Ahmed Chohan Deputy Airport Manager Civil Aviation Authority Allama Iqbal International Airport, Lahore Ph: 924 0575, 924 0601 Ext: 3002

(2) Major (R) Nabeel Hassan Cargo Manager Civil Aviation Authority Allama Iqbal International Airport, Lahore Ph: 924 0601 Ext: 3058

(3) Mr. Abbas Ali Babar AC Customs LAFU Allama Iqbal International Airport, Lahore Ph: 924 0475

(4) Mr. Muhammad Mohsin Rafiq DC Customs (Traffic) Allama Iqbal International Airport, Lahore Ph: 924 0471

(5) GP Capt (R) Younas Senior Manager SAPS Allama Iqbal International Airport, Lahore Ph: 663 2781

(6) Mr. Javed Saddiq ATCO Civil Aviation Authority Allama Iqbal International Airport, Lahore Ph: 924 0601 Ext: 2313

(7) Mr. Muhammad Sarfraz AM PIAC Cargo Allama Iqbal International Airport, Lahore Ph: 903 44364

(8) Engr. Muhammad Yaqoob Naeem Manager Project (PIAC) Allama Iqbal International Airport, Lahore Ph: 903 44456

(9) Mr. Wesley King Cargo Manager Allama Iqbal International Airport, Lahore Ph: 663 2363

(10) Mr. Tariq Saleem Manager Cargo (Admin) Allama Iqbal International Airport, Lahore Ph: 663 9361

(11) Mr. Zakawat Ul Hassan Airport Manager Civil Aviation Authority Allama Iqbal International Airport, Lahore Ph: 904 0508 PABX: 924 0601 Fax: 661 1507

(12) Mr. Shaukat Ali Awan Chief Meteorologist Pakistan Meteorological Department (Ministry of Defence), Government of Pakistan Flood Forecasting Division, 46 – Jail Road, Lahore-54000 Ph: 920 0208 Fax: 920 0209 Cell: 0300 446 2808

(13) Mr. Tahir Malik Vice Chairman Air Cargo Agents Association of Pakistan Suit # 1, 2nd Floor, Sharjah Centre, Shadman Market, Lahore Ph: 111 872 326 Fax: 587 1166, 587 1172

(14) Mr. Naved Arif Director General Export Promotion Bureau, GoP 62 – Garden Block, Garden Town, Lahore Ph: 903 0652 & 3 UAN: 111 444 111 Fax: 923 0608

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(15) Mr. Shahid Hamid Khawaja President Lahore Customs Agents Group Customs Dry Port, Mughalpura, Lahore Ph: 721 0125, 724 0125, 724 6272, 843 5775 Fax: 723 5507 Cell: 0333 422 5535

(16) Mr. Riaz Ahmed Qaiser General Secretary Lahore Customs Agents Group (LCAG) Convener Standing Committee on AFU (LCCI) Cargo Complex, Allama Iqbal International Airport, Lahore Ph: 663 3874 Cell: 0333 421 1910

(17) Mr. S. Ashfaq Hussain Bukhari Director Prime Freight Systems (Pvt) Limited 76 – Shadman Colony # 1, Lahore Ph: 755 1812 & 3, 755 2357 & 8 Fax: 755 0206 Cell: 0320 481 1180

(18) Mian Muhammad Sarwar Javaid Proprietor Basaltic Trading Consultants 50-G, LDA Flats, Block N, Model Town Ext., Lahore Ph: 516 1715 Cell: 0300 840 3341

Faisalabad: (1) Mr. Mansoor Alam Inspector Customs & Central Excise Faisalabad Cell: 0300 667 4075

(2) Mr. Safdar Awan District Manager Faisalabad Air Blue Shop No.14, Kohinoor 1 Plaza, Jarranwala Road, Faisalabad. Ph: 854 4905, 854 5528 Cell: 0300 866 0521

(3) Mr. Kashif Elahi District Manager Marketing & Airport Ops. Aero Asia 37, Regency Arcade, The Mall, Faisalabad Ph: 264 1092, 262 7023 &4, 262 3503 Fax: 257 7805 Airport: 257 7804 5528

(4) Mr. Asem Khurshid Director - Khurshid Spinning Mills & Chief Executive - A K Exports 133, Regency The Mall, Faisalabad Ph: 261 0025 - 30 Fax: 261 0027

(5) Mr. Tahir Mahmood Deputy Manager Finance Civil Aviation Authority Faisalabad International Airport, Faisalabad Ph: 257 8384 PABX: 257 7841 – 44 Ext: 203 Cell: 0300 865 2587

(6) Mr. Amanuallah Alvi Airport Manager & 1st Class Magistrate, Civil Aviation Authority Faisalabad International Airport, Faisalabad Ph: 257 8827 PABX: 257 7841 – 44 Ext: 201 Fax: 257 8657

(7) Mr. S H Owais Jafri AFO Civil Aviation Authority Faisalabad International Airport, Faisalabad Ph: 257 7841 Ext: 237 Cell: 0333 650 9471

(8) Mr. Manzoor ul Hassan Station Manager Pakistan International Airlines Faisalabad International Airport, Faisalabad Ph: 257 7745 Fax: 257 7876 Cell: 0301 865 0385

(9) Syed Jawad Hussain Director Export Promotion Bureau, GoP Gulistan Colony # 2, Sheikhupura Road, Faisalabad Ph: 921 0287

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Sialkot: (1) Mr. Ayaz Mahmood Deputy Director Export Promotion Bureau, GoP Paris Road, Sialkot Ph: 925 0081, 925 0083 Fax: 925 0082

(2) Mr. Muhammad Nawaz Ch. General Manager Sialkot International Airport 95 – A, Muradia Road, Model Town Sialkot Ph: 355 5333, 325 7181 & 2 Fax: 325 7834 Cell: 860 2828

Multan: (1) Mr. Aleem Sattari Cargo Sales Manager Pakistan International Airlines 65 – Abdali Road, Multan Ph: 920 0069, 920 0024 Ext: 212 Fax: 920 0071

(2) Mr. Khawaja Muhammad Yousuf Chairman Pakistan Tanners Association Shaheed Yunus Dastgir Road, Multan Ph: 512 201 Fax: 512 911, 573 611

(3) Mr. Khawaja Muhammad Abdullah President The Multan Chamber of Commerce & Indistry Shahrah-e-Aiwan-e-Tijarat-o-Sanat, Multan. Ph: 454 3530, 451 7087 Fax: 457 0463

(4) Mr. G A Bhatti Secretary The Multan Chamber of Commerce & Indistry Shahrah-e-Aiwan-e-Tijarat-o-Sanat, Multan Ph: 451 7087, 454 3530 Fax: 457 0463 Cell: 0300 731 1934

Quetta: (1) Mr. Qamar Anjum Deputy Director Export Promotion Bureau Shara-e-Iqbal, Quetta Ph: 081-9201109 Fax: 081-9202053

(2) Engr. Maqbool Ahmed Qazi Chief Technical Officer Civil Aviation Authority Quetta Air Port Shara-e-Iqbal, Quetta Ph: 081-2880233, 081-2880213-17 Fax: 081-2880211

(3) Mr. Khalid Bashir Airport Manager Quetta Air Port Shara-e-Iqbal, Quetta

(4) Mr. Muhammad Siddque Kakar President Chamber of Commerce & Industry, Quetta Quetta Ph: 081-2821943, 2835717 Fax: 081-2821948

(5) Mr. Mohammad Ahmed Durrani Secretary Chamber of Commerce & Industry, Quetta Quetta Ph: 081-2821943, 2835717 Fax: 081-2821948

(6) Mr. Shahid Latif Paracha Chief Executive City Express Logistics, Quetta Suite # 10, Usman Complex, First Floor, Shara-e-Haji, Model Town, Quetta. Ph: 081-2834632-40 Fax: 081-2831287 Cell: 0321-8040802 Email: [email protected]. www.cityexpress.com.pk


http://www.cityexpress.com.pk/

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(7) Mr. Tariq ul Haq Mian Station Manager Pakistan International Airlines Quetta Ph: 081-9203869

(8) Mr. Amjad Hussain Incharge Cargo Pakistan International Airlines Quetta Ph: 081-9203869

Gwadar: (1) Mr. Ahmed Bakhsh Lehri Director General Gwadar Development Authority Governor House Road, Gwadar Ph: 081-9201675, 086-0864-211775, 0864-2100953 Fax: 0864-210953 Cell: 0300-3821193

(2) Mr. Iftikhar Ahmed Airport Manager Gwadar International Airport Gwadar Ph: 086-4315046-47 – Fax: 086-4315048 Cell: 0333-2283512

(3) Mr. Muhammad Iqbal Baloch District Sales Manager Pakistan International Airlines Gwadar Ph: 086-210951, 210060, 210952 Cell: 0300-2064087

(4) Mr. Naveed Ahmed Executive Engineer / XEN Gwadar Port Authority Ministry of Ports & Shipping, Govt. of Pakistan, Gwadar Ph: 021-9204434-42, 086-4210064, 086-4210073 – Fax: 086-4210075, 021-9204447 Cell: 0300-2662400

(5) Capt. A. Raziq Durrani Director Operations Gwadar Port Authority Ministry of Ports & Shipping, Govt. of Pakistan, Gwadar/Karachi Ph: 021-9204434-42, 086-4210064, 086-4210073 – Cell: 0300-9249109 Email: [email protected]

(6) Mr. M. Asghar Aziz Sanjarani President Gwadar Chamber of Commerce & Industry GCCI House, Gwadar, Balochistan Ph: 0864-212192 Karachi Address: Wachani Village, Street No.2, Maula Madad Bus Stop, Chakiwara Shershah Road, Lyari Town, Karachi Ph: 021-2548344 021-2548345, Cell: 0300-3572508

National Trade and Transport Facilitation Committee (A standing Committee established by the Ministry of Commerce, Government of Pakistan)

NTTFC Secretariat, 1 Floor, Azeem Avenue Tel : +92-21-524 2568 - 69 st

2-C 13-Lane, Bukari Commercial Area, Fax : +92-21-524 2570 Khayaban-e-Shujaat, DHA Phase VI, Website : www.nttfc.org Karachi Email : [email protected]

Documents

Study AirCargo Pakistan