ITOCHU Corporation, one of the leading companies of Japan, has shown interest in capital dredging of 45 kilometres long navigational channel to provide 15.5 metres all-weather draft for larger vessels at the Port Qasim.
The capital dredging plan would cost about Rs 5.5 billion, of which 40 percent would be provided by the PQA from its own financial resources, while the remaining 60 percent amount would be sought through soft loan.
The plan is divided into three parts: firstly, deepening of navigational channel to accommodate minimum 14-metre or 75,000 dead weight tonnage (DWT) vessels.
Secondly, installation of new modern navigational aids (Fixed Beacon) that would improve visibility during the high monsoon season.
Thirdly, enlarging of turning basin near the Qasim International Container Terminal (QICT).
Port Qasim Authority (PQA) chairman Vice Admiral M. Asad Qureshi told Business Recorder here late Friday night the project of deepening and widening of navigational channel has vital importance to the PQA and it will allow berthing of deep draft vessels.
The outer part of the navigational channel would be dredged to 17.5 metres while the inner part would be of 15.5 metres deep and if requires more dredging would be conducted, depending on the area, he added.
He said this would also enhance port capabilities and entails economies of scale and would change geo-economic status of the region by changing the status of the port from a regional hub to international main stream port.
The Port Qasim is also actively pursuing reduction in dwell time of cargo, which not only increase port efficiencies, but will also increase throughput at the port. He said the capital dredging of navigational channel would attract shipping companies operating large vessels at the Port Qasim that would help reduce freight charges for import and exports.
He said a three-member delegation led by ITOCHU Corporation Pakistan general-manager Yoshiki Yamashiro along with Tetsuji Shibato and Saqib Zafar Khan, assistant manager (project) discussed the capital dredging project. He said the delegation was briefed about the PQA activities, which is currently operating on around 60 percent berth utilisation factor.
Due to large cargo handling, the port requires development of new berths and terminals for increased capacity building. Vice Admiral M. Asad Qureshi said the port authority sought financial assistance on soft-term basis from any international financial institutions (IFIs).
"We are going to transform the port into a regional competitive port equipped with modern facilities," he added. "An increase of one metre in draught would reduce freight by at least two dollars per tonne of cargo, besides enabling the country to benefit from the economies of scale." This would make the port very cheap in the region, he said, adding the project would be completed in 30 months after the commencement of work.
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