According to the vessel line-up data compiled by CoalMint Research, Pakistan’s coal imports have surpassed its previous year total, in the first 9 months of CY18.
Imports during Jan’18-Sep’18 have reached 11,595,165 MT thereby crossing the previous year’s total of 10,738,658 MT attained in CY17. The country’s imports in the 9-month period of CY18 have recorded a remarkable growth of 46% than the corresponding total of 7,956,402 MT from CY17.
Pakistan’s imported coal demand has been boosted by the commencement of the coal-fired power plants under the CPEC and the cement sector, which support the rising infrastructure projects in the country.
In addition to power plants and cement factories, major consumers of imported coal include export-oriented industries like big textile mills, which generate heat by burning coal instead of diesel to save money.
Coal Imports in Sep’18:
Pakistan’s coal imports were stable on the month in Sep’18.
The country’s import of 1,219,089 MT coal in Sep’18 had slightly came down from 1,234,333 MT in Aug’18, but was still 74% higher on the year from 702,559 MT in Sep’17.
Coal Imports from Indonesia rose 16% M-o-M to 368,840 MT in Sep’18 against 318,603 MT in Aug’18. While, coal sourcing from its major supplier-South Africa had fell 2% M-o-M to 744,014 MT in Sep’18.
Remaining coal quantity was procured from Mozambique and US.
Port Handling Charges becoming a menace for importers:
Market reports from Pakistan have highlighted the issue of significant increase in port handling charges at Pakistan International Bulk Terminal (PIBT) in Port Qasim, after the court order turned it into the country’s sole handler of coal cargoes.
Amid pollution concerns, the apex court had decided to shift coal unloading from Karachi to Qasim port starting from Aug’18.
It seems like the decision has been duly obeyed by the importers as all the vessels in Sep’18 were berthed at port Qasim, as per the CoalMint’s vessel-line up data.
Port charges at PIBT were already high in comparison to Port Karachi, because of its advanced systems and machinery. Besides, the report has claimed that there has been a 40% increment in charges following the court’s order.
Commercial importers in Pakistan have echoed their voices against the raised charges claiming that they will have to pass on the rate effect to the customers. Importers have requested the ministry to intervene in this matter which will only hurt the country’s economy and its competitiveness.
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