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Viewing cable 09KARACHI349, BALOCHISTAN - MEETING WITH QUETTA-BASED TRUCKING FIRM

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Reference ID Created Released Classification Origin
09KARACHI349 2009-11-05 11:36 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Karachi
VZCZCXRO9786
RR RUEHLH RUEHPW
DE RUEHKP #0349/01 3091136
ZNR UUUUU ZZH
R 051136Z NOV 09
FM AMCONSUL KARACHI
TO RUEHC/SECSTATE WASHDC 1401
INFO RUEHIL/AMEMBASSY ISLAMABAD 0860
RUEHLH/AMCONSUL LAHORE 2763
RUEHPW/AMCONSUL PESHAWAR 4645
RUEHLO/AMEMBASSY LONDON 0357
RUEHNE/AMEMBASSY NEW DELHI 1906
RUEHBUL/AMEMBASSY KABUL 0310
RUEAIIA/CIA WASHDC
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RUEKJCS/SECDEF WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RHMFISS/JOINT STAFF WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHIL/ODRP ISLAMABAD PK
UNCLAS SECTION 01 OF 02 KARACHI 000349 
 
SIPDIS 
SENSITIVE 
 
E.O 12956: N/A 
TAGS: ECON ELTN ETRD MARR PGOV IR PK
 
SUBJECT: BALOCHISTAN - MEETING WITH QUETTA-BASED TRUCKING FIRM 
 
REF: KARACHI 127 
 
1.  (SBU) Summary:  In an October 16 meeting in Quetta, trucking 
firm GSM said a majority of their shipments go to Iran, with 
Pakistani rice the most common of a limited range of goods. 
Conversely, Iran ships a wide range of goods to Pakistan, including 
paraffin, kerosene, and industrial chemicals.  According to GSM 
Managing Director Attaullah Mengal, NATO supplies typically run 
smoothly through the Chaman border crossing with Afghanistan, only 
occasionally being held up by the Frontier Corps.  End summary. 
 
2. (SBU) CG Fakan, Pol, and Econ Offs met October 16 to discuss 
Balochistan's trucking industry with GSM and Co. Managing Director 
Attaullah Mengal.  GSM is one of eight Balochistan firms registered 
with the Pakistan International Freight Forwarders Association 
(PIFFA).  The eight firms together operate 140 trucks, providing 
international freight forwarding.  Of the 140 trucks, none are 
capable of carrying refrigerated or liquid cargo.  Mengal stated 
that trucks are rented from Iran when need to transport special 
cargo. 
 
3. (U) Of the 140 trucks, all are Volvo or Toyota.  Mengal described 
it as a "shame" that there are no American trucks.  He said he and 
the other truck owners want new technology and to do business with 
America.  The major impediment is access to spare parts and repairs, 
and lack of opportunity to purchase new trucks and equipment. 
 
Trade with Iran 
--------------- 
 
3. (SBU) Mengal said the majority of his shipments are bound for 
Iran, where the goods are then distributed domestically or 
transferred on to Central Asia.  The border crossing with Iran runs 
smoothly with goods passing back and forth freely with only nominal 
border fees and a common transit document shown to border officials. 
 Mengal said only a limited range of items are shipped into Iran, 
predominantly rice, and to a lesser extent bananas and mangoes, 
while a comparatively wide range (approximately 80 items) are 
shipped from Iran into Pakistan, including paraffin, kerosene, C6 (a 
chemical used in textile and fuel production), chemicals used for 
road construction, and vegetables and dried fruits. 
 
Chaman Gate 
----------- 
 
4. (SBU) GSM also ships items into Afghanistan through the Chaman 
border crossing, including NATO supplies.  Mengal explained how the 
Frontier Corps (FC), which controls the border crossing, allows NATO 
supplies through without bribes and with only occasional delays, 
while other "illegal goods" are regularly delayed and often require 
a bribe paid to the FC.  (Comment: When questioned about the nature 
of illegal goods, Mengal was unwilling to provide further details. 
End comment).  Mengal said that while the shipping route to Iran is 
safe, there are occasional attacks and incidents of banditry on the 
Afghanistan route, including on trucks carrying NATO supplies. 
(Note:  The FC regularly imposes delays along the route due to 
security issues or for other reasons.  End note) 
 
Connectivity with Karachi 
------------------------- 
 
5. (U) According to Mengal it takes approximately 18-20 hours to 
transport goods from Karachi to Chaman, if two drivers are used. 
The road is in poor condition throughout, with the worst section 
between Kalat and Chaman.  Because of the poor condition of the road 
network, items shipped to the west coast port at Gwadar (Reftel) had 
to be transported back east to Karachi before continuing on to other 
parts of Pakistan or Afghanistan.  "It makes no sense...people 
should just ship their items directly to Karachi and save the 
shipping costs."  He also complained that the Makran Coastal Highway 
(National Highway N10), which links Gwadar with Karachi, was poorly 
built and dangerous.  "I'm not an engineer but the road is lifted 
high off the ground for no apparent reason, resulting in many 
accidents."  He said the Japanese were working to improve the road 
from Wadh to Lasbela. 
 
6. (U) Mengal said the economic downturn and increasing diesel 
prices have somewhat hurt his business.  He explained that the eight 
 
KARACHI 00000349  002 OF 002 
 
 
PIFFA trucking firms in Balochistan set a standard shipping price, 
but when diesel prices increase it takes months for their prices to 
catch up - they often sign six month contracts with their customers. 
 When asked by the CG why the firms did not include a clause in the 
contracts to account for fluctuations in the cost of fuel Mengal 
appeared confused and said simply that the contracts had no such 
clause. 
 
FAKAN