The Hindu Business Line : Ministry mulls revival of Mumbai-Karachi sea link

FOLLOWING a recent thaw in the Indo-Pakistan relations, the Ministry of Shipping is exploring the possibility of reopening the sea-borne trade link between the ports of Mumbai and Karachi.

As a matter of fact, the initiative has been uncorked by a section of the shipping liners, exporters and importers in Mumbai, who have recently proposed to the Ministry of Shipping and the Pakistan High Commission to have a re-look at the issue of opening the sea link between Mumbai and Karachi, which has been closed for trade for the last about two and half decades.

Although it will eventually be a political decision between the two governments after taking into account various factors, the Ministry has asked the exporters and importers to submit some data on the implications of taking up the issue with Pakistan and the likely volume of traffic that may move between the two ports. Shipping analysts say that if the two countries manage to have this historic tryst with destiny, the Mumbai-Karachi sea-corridor will experience a significant movement of cargoes.

It is too early to predict if the proposal will sail through due to the several thorny issues that are attached to it, but exporters and importers believe that this is the best time to make a beginning to open the sea corridor. This is especially so in the light of the fact that India has officially proposed dates for technical-level talks with Pakistan for resumption of the Samjhauta Express, while other issues such as Munabao-khokhrapar rail-link, Mumbai to Karachi ferry service and Srinagar-Muzzafarabad bus service being on the cards.

Even though, officially, there is no trade between Mumbai and Karachi, goods worth $500 million are moving between the two ports "clandestinely" through Dubai port every year, trade sources told Business Line. Cargoes such as tyres, medicines, chemicals and engineering goods are mainly exported from India through this route, while there had been some imports of sugar to India from Pakistan in the past. "Indian exporters export the products to Dubai and from there it is re-exported to Pakistan," informed sources said.

Shipping analysts believe that if the Mumbai-Karachi sea trade link is opened, traffic could immediately surge to $1 billion and reach $2 billion within a period of three to four years. "At present, the movement of cargo from Mumbai to Karachi via Dubai involves some five days, but a direct route will reduce the time to a little over 2 days. And the freight costs will come down by about 30 to 50 per cent," a senior official of Shipping Corporation of India (SCI) said.

Sources said shipping lines, including Indian ship owners, are willing to deploy vessels if the Mumbai to Karachi sea corridor is officially opened to trade. "Of course this is a long process. But at least we have made a beginning," an official of a Mumbai-headquartered shipping line pointed out.

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Ministry mulls revival of Mumbai-Karachi sea link