Transportation of edible oil: Oil millers petition high court against monopoly of private tankers

Govt officials and organisations put on notice for March 2


Our Correspondent February 20, 2012

KARACHI: The Sindh High Court on Monday ordered for notices to be served on  several officials and organisations in a petition challenging the monopoly of tanker and container operators in the transportation of edible oil from Karachi’s port to other parts of the country.

The petitioner, Pakistan Vanaspati Oil Manufacturers Association, maintained that transportation of edible oil from Karachi Port and Port Qasim to other destinations inside Pakistan is a national service and a suspension results in the closure of ghee and oil mills which in turn leads to countrywide shortages of edible oil.

The petitioner submitted that they are forced to shut down their manufacturing units due to blackmailing by the tanker union which they dubbed a “mafia”.  They state that for the last two decades, this ‘mafia’ has allowed loading and transportation of edible oil by only those carrier trucks which have a ‘token’ from the Edible Oil Carriage Contractors Association and nobody else is allowed to enter the business. The respondent tanker union has monopolised and hijacked the transportation operation and after the vanaspati oil millers entered into an agreement with the National Logistics Cell (NLC) in December 2007, they started protests and resorted to threats of burning down the factories, the petitioner maintained.

Pointing out health hazards, the petitioner submitted that the same tanker is used for carrying molasses, crude oil and other types of liquid but no one can dare object because of the influence and power of the union. The petitioner also alleged that 100 to 200 litres of edible oil was pilfered from each tanker thus causing loss to the millers as they are accounted for the lower supply.

Referring to an incident of February 17, in which four NLC containers were set on fire and an FIR was lodged by an official of the NLC nominating Saifur Rahman, Bakhtawar, Aurangzeb, Mehmood, Zafar Minhas Asif besides 100 to 150 unidentified men, the petitioner maintained that the incident was aimed at retaining the monopoly of the tanker mafia over the business.

The petitioner appealed to the court to direct the respondent officials to pursue the case and ensure exemplary punishment to those who damage government property and also to examine and decide whether the commissioner of Karachi has the power to interfere in the agreement between the Vanaspati Oil Manufacturers Association and the NLC and whether the commissioner overstepped his authority by unilaterally cancelling the agreement between the petitioner and the NLC.

The bench comprising Justice Maqbool Baqar and Justice Nisar M Sheikh, after hearing the counsel for the petitioner, ordered putting the headquarters for freight services (operating the NLC), Rangers DG, secretaries to the governor and chief minister, commissioner, edible oil carriage contractors association and other respondents on notice for March 2.

Published in The Express Tribune, February 21st, 2012.

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