Five-year plan (2010-15): Rs 257.85 billion spending envisaged for ports upgradation

The next five-year plan envisages spending of about Rs 257.85 billion for upgradation of main ports including Karachi Port, Port Qasim and Gwadar Port, Business Recorder has reliably learnt. Informed sources said that according to the next five year plan, (2010-15) prepared by the Planning Commission in collaboration with concerned ministries and departments encompasses upgradation of three ports to be placed before the Cabinet for consideration.
According to a plan, Rs 132 billion will be spent on developing Karachi Port to be arranged as; Rs 75 billion under the self-finance programme, financial assistance of $175 million from the World Bank/International Finance Corporation (IFC) and Rs 57 billion to be gathered under private sector financing.
Under the plan, PQA envisages an expenditure of Rs 87.45 billion, (Rs 4.95 billion under the public sector for channel deepening, Rs 16.50 billion under the self-finance programme and Rs 66 billion through private sector financing. Whereas an amount of Rs 38.40 billion will be spent on Gwadar Port which is to be arranged as follows: Rs 10.18 billion under the public sector self- financing programme and Rs 28.22 billion through private sector financing.
Sources said KPT handles around 60 percent of seaborne trade. During financial year 2008-09, the port handled 38.7 million tonnes cargo with an average annual growth rate of 5.57 percent for last 10 years. Requirements of compatible facilities, changes in maritime transport and future requirements of trade and commerce, KPT has launched a number of projects, which are at different stages of planning, tendering and execution.
KPT has also explored private sector participation in port operations. Adopting the landlord port strategy, it has privatised all its containers handling and is in the process of privatising all its bulk and general cargo. This is in line with a long-term plan to privatise pilotage, tugging, dredging and engineering services.
PQA is a commercial-cum-industrial port currently catering for around 40 percent of entire seaborne trade. During financial year 2008-09, the port handled 25.03 million tonnes cargo with an average annual growth rate of 6 percent for last 10 years.
The authority has also launched a number of projects, both self-financed/executed and through private participation, which are in different stages of implementation. Under the self-financing programme, the port has undertaken various development projects relating to infrastructure and utilities, storm water, drainage and water supply in the industrial zones. The projects under private sector financing include; establishment of 2nd Container Terminal, Grain & Fertiliser Terminal, Coal, Clinker/Cement Terminal, Gas Port LNG Floating Terminal, 2nd Oil Terminal and 2nd IOCB.
The development and operation of Gwadar Port was entrusted to PSA Gwadar International Terminals Limited under a 40-year concession agreement in 2007. Last year, the port handled 1.55 million tonnes of bulk cargo. So far National Highway Authority (NHA) has not completed the road connections to the North, (M-8 & N-85), while GPA has not constructed the East Bay Expressway and handed over the free zone land for construction of warehousing.