VA in transport consists of aggregate of VA from air transportation, ports and shipping, pipelinesand mechanized and non-mechanized road transportation. In FY09, overall transportation posteda growth of 2.7 percent, compared with 2.2 percent growth in FY08. VA in transport in FY08 washeld back due to sharp deceleration in water and road transport and a continued decline inrailways, airlines and pipeline transport (see
Aggregate cargo handling activities witnessed a marginal decline in FY09 as a sharp fallin imports was largely offset by a strong surge in cargo handling of exports (see
). While cargohandling at KPT witnessed a slight increase, it fell at PQA during FY09. Specifically,KPT handled cargo volume of 38.7 million tons in FY09, up by 4.4 percent. DuringFY09, cargo handling at PQA dropped by 5.3 percent. It is important to note here that theexpansion in the existing port facilities as well as rising activities at Gwadar suggest thatthe growth in water transport and storage would see strong growth going forward. Inaddition, storage activities in FY09 were positively impacted by increase in warehousingservices for agricultural produce (mainly wheat, sugar and rice) and build up of fertilizer inventories in FY09.
In contrast to increased activities in shipping, port and air transport, value addition from PakistanRailways (PR) declined further in FY09. Aggregate revenue of Pakistan Railways increased by25 percent in FY09, however increase in total expenditure was greater than increase in revenues.Considerable decline in development spending in PR in FY09 was major reason holding back administrative reorganization in FY09. Pakistan Railways did not manage to curtail totalexpenditures even in the backdrop of declining fuel prices in FY09. Resultantly even after exhibiting increase in both freight and passenger traffic in FY09, VA from Pakistan Railwaysended up in negative.
Value addition in communications emanates mainly from cellular, fixed (land) lines, postal andcourier services. Mobile communication has exhibited significant growth in recent years and their contribution is about two-third of the total growth in transport, storage and communications inFY08. This strong growth was aided by inflow of foreign investment, growth in franchisingservices and the obvious fact that aggressive initiatives of mobile services providers were aimedat capturing the untapped market potential up to FY08. Cellular density as a percent of total population grew from 6.25 percent in July-2004 to 60.3 percent of the population by June 2009.