After one-year delay, Pakistan International Bulk Terminal (PIBT) is expected to complete by mid 2016 to handle dirty cargo up to 12 million tons annually, said MD Marine Group of Companies Asim Siddiqui, here on Tuesday. "Cost of the PIBT has however grew by $50 million plus with delay in completion but its scope of work has also changed to benefit all the upcoming power production plants," he exclusively told Business Recorder.
With the PIBT cost escalation, now total investment of the project will stand at around $250 million from $185 million, he said, adding the delay helped improve scope of the sole dirty cargo handling terminal to envisage coal demand of upcoming power generation projects.
"The government has asked Pakistan Railways to prepare a feasibility report on linking the PIBT to main railroad to ease the coal supplies to upcountry, mainly for the proposed power projects in Punjab," he told newsmen during his visit to Karachi Press Club. "The government has already planned to acquire scores of locomotives of 4000 horsepower each from China to pull the dirty cargo supplies on a link railroad. The government also plans to establish the link track exclusively for freight trains along the main line," he added.
"At present Pakistan Railways operates cargo trains with locomotives of around 3000 horsepower which are incapable to drag huge load," he observed, saying that the development in railways sector will benefit the local businesses. According to the PIBT, the terminal will handle dirty cargo including cement, coal and clinker etc. The cargo terminal is being set up at Port Qasim. "With upcoming power projects in the country, there will be a big need for coal supplies," said Aasim.
About development of Gwadar seaport and economic corridor linking Pakistan and China through land routes, he observed that China has earmarked around $2.5 to $3 billion per year for development of the corridor in its annual budget. "China will surely go for investment to develop the corridor since it benefits to Chinese strategic and financial interests," he said, adding that the much needed corridor will scale down at least 6500 kilometre of cargo transportation distance for China. He pointed out that Gwadar port has now a big appeal for Chinese to transport its goods to its mainland from Pakistan through land routes.
He told the newsmen that the China's annual containerised cargo transportation stands at 22500 million whereas Pakistan can only handle 2.5 million of such freight. China continues to wait for its investment to pour in the economic corridor project, he said.
He said that the corridor will also help Pakistan to grab some four percent of China's total import and export cargo transportation share annually. China has allocated funds for economic corridor for next seven years and it is part of its investment plan in Pakistan, Aasim said.
"China is also building a 700 megawatts power generation plant in Pakistan, besides construction a motorway from Karachi to Lahore in collaboration with Pakistani government," he added. To a question, he said the continuing political instability may delay the Chinese investment in this connection but cannot stop from building the entire economic, power and roads projects. He, however, stressed for political harmony in the country to help the development take place without further delay. MD Marine Group of Companies hoped the development of economic corridor will also largely help generate jobs and business opportunities in the country. Besides, he estimated the cargo transportation will grow by four times from existing levels.
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