KARACHI: Pakistan is facing "problems" in getting its ships to cross through the Strait of Hormuz amid the Iran war, the country's maritime affairs minister said on Tuesday, stressing that the situation regarding the key oil route remains uncertain at the moment.
The war in Iran has disrupted global shipping routes, particularly fuel supplies passing through the strait. The Strait of Hormuz is a key artery through which roughly 20 percent of the world's oil and gas supplies are transported. Tehran has effectively shut the waterway by firing at and threatening to fire at vessels that cross it, driving oil prices higher as vessels opt for longer routes.
US-Iran tensions compounded on Saturday after talks between both sides in Islamabad concluded without a peace deal. US President Donald Trump ordered a US naval blockade of the strait on Sunday, triggering an angry and defiant response from Tehran.
Pakistan's Karachi port received its first container vessel to transit the Strait of Hormuz since the beginning of the war in February, officials said on Saturday. Officials said earlier vessels carrying oil, bulk and containerized cargo for Pakistan were diverted away from the Strait of Hormuz despite reports that Tehran had allowed limited shipments. Pakistan last month said Iran had allowed 20 Pakistan-flagged ships to cross through the strait.
"We are trying to get our shipments across the Strait of Hormuz," Pakistan's Maritime Affairs Minister Junaid Anwar Chaudhry told Arab News on the sidelines of an event in Karachi.
"But there are problems, just like there are problems all over the world. There are problems for Pakistan as well," he added.
Chaudhry noted that the situation regarding the strait is "not very clear right now," adding that it was changing on a day-to-day basis.
Pakistan has vowed to continue efforts to broker peace between the US and Iran. Chaudhry lauded Islamabad's peace efforts, saying that if they failed, it would further remain unclear whether the country's ships would pass through the Strait of Hormuz or not.
When asked about media reports that two Pakistani ships were recently denied entry into the strait, Chaudhry said he did not have the "latest update" on it.
PORTS OPERATING 'SMOOTHLY'
Pakistan has reported a sharp rise in port activity ever since the Iran war began and shipping routes were disrupted. Vessels, mostly carrying containerized cargo, are being diverted to Pakistan from major Gulf transshipment hubs such as Jebel Ali,
Fujairah and Khor Fakkan in the UAE and Salalah in Oman.
Chaudhry admitted that transshipment cargo put added pressure on Pakistani ports.
"But we have proven that no matter how much load comes, we are capable of handling the amount of transshipment in 24 days that we normally manage in a year," the minister said.
According to official data from Pakistan's ports, private terminals at the Karachi Port handled 8,313 transshipment containers from Mar. 1-24, with 133 vessel calls during the same period.
At Port Qasim, Qasim International Container Terminal handled 4,328 transshipment containers, registering a 2,302 percent increase compared to February levels.
Chaudhry said Pakistan's ports, despite the pressure, are operating "smoothly."
The minister said that time will tell whether transshipment traders will prefer Pakistani ports over its regional competitors. However, he said Islamabad had opened up its ports "to the whole world" amid tensions.
"All kinds of facilities are available on our ports, including bunkering," Chaudhry said. "The allied facilities that the ships needed, KPT [Karachi Port Trust] has provided them in a very good way."
Earlier this month, Pakistan's government allowed bulk and vehicle cargo handling at local ports under transshipment arrangements for the first time.
Asked if Saudi Arabia had finalized plans to build a long-awaited oil refinery in the southwestern Gwadar district, which houses a Chinese-operated port, the minister said he could not say anything "conclusive" about it.
"But we are ready to give opportunities to the whole world for investment in Port Qasim and Gwadar," he said.
"This time Pakistan also needs it."
