Nato supply remains suspended as transporters continue strike

Binding transporters to one logistics company is against free and fair market, says union.

PESHAWAR:

Nato  supplies to Afghanistan remain suspended as negotiations over transportation charges and insurance failed between transporters and logistics companies on Friday.

Transporters suspended the supply of goods to Nato forces from Torkham and Chaman borders on January 1, after differences developed with the logistics companies.

According to the All Pakistan Goods Transporters Union (APGTU) spokesperson, the transporters had asked the companies to double the transportation fares.

The transporters carrying goods for Nato forces from Karachi to Kabul had been charging between Rs200,000 to Rs250,000. After realising the risk involved, they demanded the fare be doubled.

“The entire route from Karachi to Kabul is not safe; in return for our services we are paid peanuts,” the spokesperson said.

Transporters also demanded life insurance up to Rs1 million for drivers and conductors and vehicles insurance as they are often targeted en route from Khyber Agency and Balochistan by militants.

For vehicles that get damaged or destroyed en route to Kabul, companies have been asked to assess and compensate damages through a body constituted of representatives from logistic companies and the transport union.

The logistics companies did not agree to meet the demands after which the union decided to continue their strike, said Shinwari. APGTU also opposed the new system which gives authorised companies monopoly over transporters. Vehicle owners are now bound to do business with the logistics company they register their vehicle with.

“If the logistics company, with which the vehicle is registered, does not have goods to transport, they [transporters] cannot make a deal to carry another company’s goods.”

Shinwari asserted the new strategy was unacceptable for the transporters. As done previously, transporters should be free to make deals with logistic companies which offer a better deal.

“Binding a vehicle with a company is against free market rules.  This benefits big businessmen instead of the transporters who bear all the risk,” he said. “Drivers and conductors who had lost their lives while transporting goods to Nato have never been compensated by the companies so far, he added.

Published in The Express Tribune, February 2^nd, 2013.