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NIMA POLICY PAPER Series # 007 September 2019 DHOWS IN DOLDRUMS: A SPOTLIGHT ON AN INFORMAL SEGMENT OF PAKISTAN’S MARITIME ECONOMY Author: Sajjad Ahmed Khrbey National Institute of Maritime Affairs (NIMA) Bahria University, Pakistan Category: Policy Paper Title: Dhows in Doldrums: A Spotlight on an Informal Segment of Pakistan’s Maritime Economy Author: Sajjad Ahmed Khrbey* Reviewed by: Syed Khawar Ali Shah, Vice Admiral (R) and Director General, NIMA Kanwar Muhammad Javed Iqbal, Lead Researcher, NIMA Edited by: Anam Ejaz, Junior Researcher, NIMA Photo Credits: Ms. Mehar-un-Nisa, Ex-Research Associate, NCMPR (Title page) Mr. Hassan Mansoor (published in Daily Dawn Newspaper, used as figure 3) Mr. Khurshid Ahmed (published in Arab News, used as figure 4) First Edition: September 2019 Property Rights: National Institute of Maritime Affairs, Islamabad * Commander Pakistan Navy and Deputy Director at NCMPR Karachi reachable at [email protected] All rights reserved. No part of this Policy Paper may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or information storage and retrieval system, without prior written permission of the publisher. A publication of the National Institute of Maritime Affairs (NIMA) - an independent and non-profit think tank. In the Policy Paper / Brief series, the NIMA publishes solicited / unsolicited policy advice on practical policy issues in the sphere of maritime affairs and sustainable development. The papers are written by NIMA’s regular or affiliated staff and are meant to provide clear-cut policy outlines which would promote peace, prosperity and sustainable development. National Institute of Maritime Affairs (NIMA) is a constituent unit of Bahria University. The establishment of NIMA under the aegis of Bahria University was conceived in order to meet the objectives of National Maritime Policy. The NIMA is envisioned to serve as a focal point in Pakistan, as well as in the region for the promotion of maritime sector by defining and translating the debates of the region into peace, prosperity and sustainable development. Contact Information: NIMA – National Institute of Maritime Affairs Bahria University, Head Office, Islamabad - Pakistan Tel: +92 51 9261968 Fax: +92 51 9261968 Email: [email protected] URL: https://www.bahria.edu.pk/nima Contents ACRONYMS ..........................................................................................................................ii 1. INTRODUCTION ........................................................................................................... 1 2. A BRIEF OVERVIEW OF DHOWS ................................................................................ 2 2.1. Origin of Dhows ...................................................................................................... 2 2.2. Types of Dhows ...................................................................................................... 2 2.3. Identification of Dhows by Origin ............................................................................. 3 3. TRADITIONAL BOAT BUILDING IN PAKISTAN ............................................................ 3 3.1. Wooden Boats – An Informal Industry ..................................................................... 3 3.2. Construction Process of Boat / Dhows .................................................................... 4 3.3. Financial and Other Aspects ................................................................................... 5 3.3.1. Construction Expenses .................................................................................... 5 3.3.2. Working Practices for Boat Building Business .................................................. 6 3.3.3. Crew Management........................................................................................... 6 3.4. Registration of Boats and Flag State ....................................................................... 7 4. PRACTICAL USE OF DHOWS ...................................................................................... 7 4.1. Trade through Dhows in Pakistan ........................................................................... 7 4.2. Modern Utilization Trends of Dhows ....................................................................... 8 5. RECOMMENDATIONS .................................................................................................. 9 BIBLIOGRAPHY ................................................................................................................. 11 Annex-A ....................................................................................................................... 12 Annex-B ....................................................................................................................... 15 i ACRONYMS UAE United Arab Emirates KFHA Karachi Fish Harbor Authority MMD Mercantile Marine Department KPT Karachi Port Trust DHA Defence Housing Authority NATO The North Atlantic Treaty Organization ii 1. INTRODUCTION Approximately 85% of international trade occurs via maritime transport by using either ocean transport, seaways or inland waterways, the role of maritime transport is considered to be crucial in international trades. These maritime trades are undertaken through large, medium and small ships and boats/dhows. While talking about the maritime trade in the Indian Ocean, the role of traditional wooden dhows cannot be overemphasized. These dhows sail throughout the year and especially are used with smaller secondary ports/anchorages. They have become a vital link with for trade with poorer and war torn countries like Somalia and Yemen. In Pakistan, Dhows have been engaged in cargo transportation since historic times. The trade through dhows is operated by Trading Agents. These agents are registered with local authorities and government agencies. Shippers complete paperwork and make payments in the agent’s office. These Trading Agents work on 3% of the freight value of the entire cargo as their commission. At present only three Trading Agents are engaged in the business of dhows in Pakistan they are M/s Noor Sons, M/s Al-Faizan and Lateef Trading Company. Whereas there were more than 20 companies operating in the past, most companies have left the business due to the deceasing trend of trade. One of the dhow shipping agents stated that only 80 to 100 Dhows from different countries come to Pakistan annually for trading, whereas, it was about 800 plus in the past (about 10 years back). At present, not a single Pakistani Dhow is engaged in trading. All the Dhows engaged in the transportation of goods from/ to Pakistan are not registered in Pakistan. They are mostly registered in Iran, UAE, Comoros, Togo, India etc. Registration in Pakistan was stopped in 2003 by the MMD department as quoted by one of the Trading Agents. Besides, there are so many other challenges to this very important economic activity. There is a growing fear that the traditional knowledge of dhow making in Pakistan is in danger of becoming extinct. This segment of maritime economy plays a significant role thus it is considered very important to preserve the traditional knowledge, bring innovations and mainstream it at par with emerging international trends. In the context above, this policy paper suggests necessary measures to strengthen and uplift the status of traditional dhow making and its business in Pakistan by highlighting the importance of traditional knowledge, significance in overall maritime economy of Pakistan, various issues and modern international utilization trends. This paper employs qualitative research methodology and has scrutenized the relevant primary and secondary sources of data / information with boat construction site visits and nine Key Informant Interviews of the relevant stakeholders i.e. Timber Merchants at Timber market, Boat Building Craftsman at Boat Building Yard at Machar Colony, Nakhodas (Captains) of Pakistani Dhows, the boat owner of biggest boat built in Pakistan, Dhows Trading Agents at Keamari, Nakhoda (Captain) of an Irani Dhow at Ghas Bandar Jetty KPT Karachi, Mercantile Marine Department Karachi, a Tour Operator at Marina 1 Club DHA Karachi and a Trading Agent at Kharadar Karachi. Pictures were taken during the field visit of boat construction site. Boat construction sites’ visits were done at Karachi and Gwadar for practical observations. 2. A BRIEF OVERVIEW OF DHOWS 2.1. Origin of Dhows Dhows, derived from the Arabic word dawa, are traditional boats used in the Indian Ocean, Persian Gulf and Red Sea regions. They were originally sailing vessels consisting of triangular sails. Conflicting theories exist as to whether dhows originated in India, the Middle East or East Africa; regardless, the dhow manufacturing industry was traditionally one of the most vital manufacturing industries of the Persian Gulf region. The Chinese till date, use traditional boats alike dhows, which go by the name of ‘Junks’. From as early as the 2nd century AD, junks were utilized to go to the sea and they developed at a fast pace in the period of the Song dynasty (960-1279). 2.2. Types of Dhows Dhows are different from other traditional cargo ships in various aspects. One of these is due to their structure and shape. The Dhows are also simple in their design, which enables them to have more space for hull cargo. Dhows have been designed for gulf-waters by enabling them to drift upon shallow waters and constructing them
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