Brief on KPT performance

By 1852, Karachi was an established city with a population of about 14,000 with a prosperous trade in over-seas markets. However, the existing Port started taking shape in 1854, when the projects of dredging the main navigable channel and the construction of a mole or causeway joining the main harbour with the rest of the city were undertaken.
About 5 years later, construction of Manora Breakwater, Keamari Groyne, the Napier Mole Bridge, Native Jetty and the Chinna Creek were started which gave initial shape to the port. KPT was established in 1887. The construction of the wharves started in 1882, and by 1914 the East Wharves and the Napier Mole Boat Wharf had been completed.
During the period between 1927 and 1944, the West Wharves of the Port, the lighterage berths and the ship-repairing berths were constructed. Most of these facilities were obsolete by the time Pakistan came into existence in 1947. Since then, the port administration has embarked on extensive development of the port on modern lines. Today KPT is the premier port of Pakistan and handles about 65 % of country's cargo.
VISION: "To Transform Karachi Port into a Modern, Competitive, User Friendly Port and a Transhipment Hub of the Region".
ADMINISTRATION: The Karachi Port is administered by a Board of Trustees, comprising Chairman and 10 Trustees. The Chairman is appointed by the Federal Government and is also the Chief Executive of Karachi Port Trust. The remaining 10 Trustees are equally distributed between the public and the private sector.
The five public sector Trustees are nominated by the Federal Government. The seats for private sector Trustees are filled by elected representatives of various private sector organisations. This way all port users find a representation in the Board of Trustees.
Karachi Port Trust has Six Division namely Operation, Planning and Development, Finance, Administration, Engineering and Civil Works & Estate. Each Division is headed by a General Manager and supported by Head of Departments.
KARACHI HARBOUR: Karachi Port has a 11.5 km long, 12.2 m deep channel. It has 30 dry cargo berths, 13 berths on West Wharves, 17 berths on East Wharves and 3 liquid cargo berths for POL & Non-POL products. This makes a grand total of 33 berths. The port provides round the clock safe navigation for all vessels including modern container ships and tankers up to 75,000 DWT. The port facilities are very well backed up with goods transit and storage areas, with rail and road services for handling, storage and clearance of cargo.
OUR STRATEGY: Consequently, KPT is encouraging private sector participation, and is adapting its development plans to the commercial requirements. Accordingly, Cost Cuts, Market Expansion, Organisational Performance and Quality Corporate Governance are being emphasised and addressed.
LAND LORD STRATEGY: KPT adopted Landlord Port Strategy in 1997 wherein Port Authority shall own the basic infrastructure, land, access and facilities, and lease them out to operators on long term basis while retaining the regulatory functions.
EFFICIENCY AND PORT STATISTICS: Presently 4977 workers and 313 officers are employed in KPT. Since Independence of Pakistan, growth of cargo at the Port of Karachi has been steady. Increasing from 2.5 million tons per annum to the present volume of 37.19 million tons per annum, the total volume breaks down to 25.51 million tons is dry cargo including 1.213 million TEUs of Containers and 11.67 million tons of liquid cargo.
Total numbers of ships visited during 2007-08 were 2,122. The growth in trade is being handled without any queuing of ships or the dwell time, confirms the fact that the efforts by KPT to develop this port into a premiere port of the region have so far been successful.
FINANCIALS: Our revenue has consistently increased with average growth of around 11%. While revenue has increased, through effective management we have kept the expenses at the minimum, resulting in a consistently growing net Surplus.
This growth in revenue is in spite of the fact that KPT has reduced its wet charges twice, by 15% each time, totalling over 30% in 3 years. All this surplus is needed for the many mega development projects being undertaken to bring the Port at Par with the other regional facilities.
FACILITIES TO PORT USERS:
Karachi Port Trust has facilitated the Port users in providing following:
--Established Import and Export Terminals
-- Facilitated Export
-- Facilitated Transhipment of cargo
-- Provided round the clock custom facilities
-- Started E-Wharfage .
COMPUTERIZATION & AUTOMATION: Computerization & Automation of the Cargo Handling System, Bill Management System, Vessel Tracking System, Visual Management System, surveillance of ship movements, Interactive Voice Response System, Ship Vetting Cell, Entry/ Exit Control System are some of the milestones achieved by KPT towards our strategy of enhancement of port performance, Cost cuts, Quality corporate governance, and expanding KPT's market share in the global perspective.
DEVELOPMENT PROJECTS HINTERLAND CONNECTIVITY:
1. KPT has not only improved the hinterland connectivity of the Port but also proved itself as a proactive stakeholder, aware of its social and civic responsibilities towards the city of Karachi. KPT has contributed in improvement of road infrastructure. Major projects completed in the past at a total cost of Rs 1.36 (B) which includes Jinnah Bridge phase-II costing Rs 1040 (M), Mai-Kolachi Bypass costing 93 (M), Four bridges at River Lyari costing Rs 211 (M) and West Wharf road costing Rs 16 (M).
2. KARACHI PACKAGE To support the City District Government Karachi being a major stake holder under the directive of President of Pakistan, KPT has sponsored and executed major road development / rehabilitation projects. As the projects were a gift to the City of Karachi, special attention was given to planning as well as in execution to set the quality standards in the Public Sector.
All the projects were planned to provide free traffic for and designed to cater the needs of next 25 years. Attention was given to proper drainage system, lighting for improved visibility at night time supplemented with LED's light motifs as decoration and other monuments etc.
All the four projects under Tameer-e-Karachi package have been successfully completed at the total cost of Rs 2.5 (B) and have been handed over to City District Government for maintenance & upkeep as per existing policy.
A. KPT FLYOVER AT KORANGI ROAD (KPT INTERCHANGE) It is a three tier bridge construction, first of its kind in Pakistan. Constructed at Korangi Road over cross section of Shaheed-e-Millat, previously known as Hino Chowrangi. The project facilitate signal free traffic in each direction. The structure supplemented with development of about 10 acres of park in between with decorative lights etc for better environment converted the colossal structure into a monument. Cost of project is Rs 900 (M).
B. DEVELOPMENT & REHABILITATION OF ROAD FROM MAI KOLACHI TO SUBMARINE CHOWK INCLUDING UNDERPASSES Under this project the road from Mai Kolachi to Submarine Chowk has been widened by one additional lane in each direction and strengthened for heavy traffic . The road has been provided with proper storm water drainage system, improved road lights for better visibility, and decorative lights etc. The project also includes construction of Underpass at crossing of Khyaban-e- Iqbal and Roomi, which has been put in operation in since 2005. Cost of project is Rs 740 (M).
C. DEVELOPMENT & REHABILITATION OF M. T. KHAN ROAD FROM JINNAH BRIDGE TO PISC BRIDGE Under this project road from PIDC Bridge to M.A .Jinnah Bridge has been widened supplemented with proper road services & fixtures etc. The project also includes a Flyover at cross section of M.T. Khan and Mai Kolachi Road. This has been planned and designed in a manner which made possible traffic movement without signal. Cost of project is Rs 376 (M).
D. DEVELOPMENT & REHABILITATION OF M. A. JINNAH ROAD (FROM KEAMARI TO JINNAH BRIDGE) This project includes development and rehabilitation of M.A. Jinnah Road between Jinnah Bridge Phase-1 and Keamari Boating Basin, including a Overpass KPT Gate No 15. The overall main carriageway has been remodeled as an urban expressway, expanded from existing width of 3 lanes to 4/5 lanes on each side with the provision of proper drainage system and lighting. Cost of project is Rs 460 (M).
3. KARACHI INTERNATIONAL CONTAINER TERMINAL ( KICT) KICT, is already operational at the West Wharf. KICT over the years has developed in phases. Previously with only two phases functional, terminal area of 135,122 sq.m. had an annual capacity of 400,000 TEU. Cost of Phase I & II is USD 65 million.
4. KICT- Phase III In this phase, the terminal shall have an overall area of 260,000 sq.m with an additional investment of US $55 million. Terminal capacity shall be increased to 700,000 TEUs. The 973 m long berths of the terminal will be deepened to cater for 14 meter draught container ship. The Terminal is equipped with 6 gantry cranes, 15 RTGs, 4 Top lift, 4 empty handler, 50 chasis etc. Phase-III was inaugurated by Honourable Prime Minister in November, 2008.
5. PAKISTAN INTERNATIONAL CONTAINER TERMINAL (PICT) KPT has awarded a second Container Terminal on BOT in June 2002. This Terminal at Berths 6-9 East Wharf has 600 m quay wall with - 13.5 m depth over an area of 207,000 sq.m, Terminal planned capacity is 450,000 TEUs. PICT has also developed in Phases. In Phase-I Two modern gantry cranes and associated equipment were deployed. This was a US $75 million project. Work in Phase-II has also been completed in May 2006 with additional deployment of one more ship to shore gantry crane.
6. PAKISTAN DEEP WATER CONTAINER PORT As the new generation of Container ships comes on the drawing boards, Karachi Port takes the initiative of bracing itself to handle and cater for fifth and sixth generation ships. This involves the development of deep draught berths and due to its strategic location Keamari Groyne is the natural choice.
Feasibility carried out and completed in 2005 recommended the establishment of Deep Draft Berths The berths shall have 18 m depth, with 5 km of quay wall. Provision of 10 berths have been made in the KPT long term plan. The project shall be carried out in phases and on public private partnership. Cost of project is US $1.6 billion.
7. PDWCP PHASE-1 The phase comprises 4 berths at 16 m depth extendable to 18 m with a quay wall of 1500 km. It is awarded to M/s Hutchison Port Holdings, Hong Kong on BOT. KPT infrastructure development includes quay wall, dredging and reclamation, and marine protection works at a cost of USD 1140 M. HPH Terminal development and operations costs to USD 457 M.
In 25 years of lease period KPT will earn around USD 1.142 B, Lease Amount USD 0.412 B, Wharfage and Wet Charges USD 0.970 B. Advance lease rent already received to KPT is US $50 million against US $100. Expected start of operation is in 2011. PDWCP Phase-1 comprises of 4 development milestones.
The contract for Dredging and Reclamation have been awarded to M/s CWE. The tenders for Marine Protection Works are being re-invited. The tender documents for Navigational Aids are under preparation.
8. CARGO VILLAGE AND INDUSTRIAL PARK/ OFF DOCK FACILITY Setting up of a satellite facility in the vicinity of the Port, enveloping all the port requirements, is a recent concept all over the world. A study conducted in the year 2005 by M/s Louis Berger, USA recommended setting up of Cargo Village. 1500 acres of land is proposed for the project with individual areas catering for containers, general and bulk cargo, processing plants, customs and other related facilities.
KPT infrastructure development includes Dredging and Reclamation, Connectivity to M-10 and Lyari Expressway, Internal road and rail links, Construction of quay wall of 2 km, with a draft of 16 m. Private sector will construct facilities according to zoning areas of project master plan.
Dredging and Reclamation will be completed in 18 months. Quay wall, Road and Rail Links will be completed in 24 months. The overall project completion will be in 2014. Expected revenue generation is Rs 2.54 (B) per annum.
Under the near term or short-term horizon, the following types of zones are to be created in the Cargo Village:
-- Warehouse complex for container handling
-- Container storage Yard for empty boxes
-- Bonded warehouse facilitates
-- Dangerous goods storage & disposal area
-- Truck parking facility
-- Market & commercial zone
-- Office buildings & "one window" facilities
-- Container repairs & cargo handling equipment workshop, including services for O&M of heavy vehicles
-- Area to house utilities (electricity, water, gas & telephone)
-- Water treatment plant & solid waste disposal center
-- Cold storage and food processing plants for perishables (fruits, fish, vegetables, meat etc)
-- Social services club, restaurant, convention hall and other recreation facilities
-- Firefighting and cargo village security set-up
-- Mosque, library, and medical-aid emergency center
The primary focus for the medium term plan would be the development of the following facilities:
-- Intermodal yard
-- Refrigerated cargo wharf, warehousing and processing facilities
-- Additional warehousing or export processing
-- Power plant and water treatment
-- Facilities for inter coastal shipping using 2nd channel
The long term development phase would focus on the following activities:
-- Deepening and development of associated engineering works for the 2nd channel to accommodate larger refrigerated vessels
-- Expansion of refrigerated cargo operations
-- Development of grain silos
9. SETTING UP OF LIQUID NATURAL GAS (LNG) LNG is coming up as the fuel of the future. Presently it is being introduced in many countries and progressively being marketed all over the world. KPT is also in a process of setting up LNG import facilities at its premises. For which two sites have been identified. 100 acres have been earmarked in Cargo Village at Western Backwaters. Discussions with M/s Shell International are in advanced stage.
10. RECONSTRUCTION OF BERTHS KPT has 30 dry cargo berths and 560 m quay wall at Napier Mole Boat wharf for country crafts. NMB Wharf has been recently built. 4 berths were reconstructed in near past and PICT was established there. 5 berths at KICT are recently reconstructed. KPT plans to reconstruct remaining berths in phases.
A. PHASE -1 Berths 10-14 are being reconstructed in phase-1 at 16 m designed depth. Design consultancy conducted by M/s Scott Wilson Ltd of UK. The contract for phase-1 is awarded to M/s Ssangyong of South Korea. Consultancy for supervision awarded to M/s Lyon Associates of USA and M/s Techno Consult of Pakistan. Work commenced in March 2008. The project will complete in period of 2 years time. The total cost of phase is Rs 5.5 B, which will be financed by KPT's own resources.
B. PHASE-2 In Phase-2 berths 15-17A including SRB's will be reconstructed at a 16m designed depth. The detailed design has been completed; the concept has been approved by CDWP of Planning Commission. Financing from World Bank is in process. The cost of Phase-2 will be Rs 6 billion
11. RECONSTRUCTION OF KEAMARI BOAT BASIN, BABA & BHIT ISLAND JETTIES It includes reconstruction of old berths at Boat Basin, Baba island jetty and rehabilitation of jetty at Bhit island. Single tender received is in process of discharge. The project is on hold due to status Quo for the court due to litigation filed by M/s. Molasses Export Corporation (MEC).
PROCUREMENT OF CRAFTS:
12. Crafts and Equipments
To keep pace with the upgrade of various facilities our old crafts are also being replaced through self financing, these are:
PROCURED:
-- 1 Trailer Suction Hopper Dredger with 6000 m3 capacity: Euro 50.73 M
-- 2 hopper barges: USD 4.334 M
-- 1 Backhoe Dredger: Euro 12 M
UNDER PROCUREMENT:
-- 4 Hopper Barges - 1000 m3: US $22 (M)
-- 1 Fire Fighting Vessel: US $10 (M)
-- 2 Passenger Boats: US $8 (M)
2 Shipping Tugs: US $18(M)
2 Harbour cranes & 1 dredge Tug: USD 270 (M)
13. PORT GRAND (FOOD COURT) Another project is the establishment of a Food Street, at our Native's Jetty Bridge and its adjoining area within rotary of Jinnah Bridge. The project is offered on Build Operate and Transfer basis for 21 years. This scenic coastal stretch, has ample area for landscaping, walkways and joy rides, dinner cruises etc. The project is expected to be completed in March 2009.
14. PORT FOUNTAIN Water Jet Fountain project was announced by the Minister for Ports & Shipping on the occasion of Independence Day. Ministry of Ports & Shipping vide letter No 5(37)/04-P&S-1, Islamabad, dated 1st February 2005 instructed KPT to ensure that the "Port Water Jet" is constructed/inaugurated in the given time frame.
The KPT Board vide resolution BR No 195 dated 16th February 2005, approved the award of contract for construction of a 500 feet high Water Jet Fountain at Oyster Rock-KPT to M/s. Invent Water Treatment Ltd (IWTL) UK on turnkey basis at the total cost of Rs 224,369,946/-. The Ministry of Ports and Shipping, Islamabad vide its letter No 5(37)/2004-P&S-1, dated 18th January 2005 has conveyed the approval of B.R. 126, dated 24-11-2004. The Project was inaugurated on 15-01-2006.
15. FUTURE PLANS
A. DESALINATION PLANT AT MANORA, KEAMARI AND TPX AREA In compliance of Prime Minister's directive conveyed by Services General Administration & Co-ordination Department Government of Sindh, that " Port Qasim Authority, KPT, Pakistan Steel Mills and City District Government should install desalination plant for meeting their water/electricity requirement", Karachi Port Trust has planned to establish Desalination Plants of 200,000 imperial Gallons per day. Feasibilities are being prepared for other locations.
To implement the Prime Minister directives , proposals were invited through press for Establishment of Desalination Plants of 200,000 Gallons capacity at Manora. Last date for receiving and opening of proposals is 25th November 2008.
B. WIND POWER PLANT In order to utilise the coastal wind KPT has planned to set up Wind Power Plant under the advice of Alternate Energy Development Board. Technical Feasibility prepared by AEDB, site for the fixing of wind mast for collection of wind data has been selected. Financial pre-feasibility is under preparation by AEDB.
C. BENAZIR SHAHEED HOSPITAL In order to improve the living condition of the people living in the KPT vicinity, KPT in collaboration with Ministry of Health, Govt. of Pakistan plans to construct a Hospital. The Hospital would be named after the former Prime Minister of Pakistan, Shaheed Mohtarma Benazir Bhutto. Land has been reserved by KPT. Construction will be financed by UAE Trust under control of Ministry of Health Government of Pakistan. Hospital will be administered through Board of Governors. Expenditure for running and maintaining the Hospital will be the responsibility of Ministry of Health, Government of Pakistan.
D. BUND/EMBANKMENT TO CHECK ENCROACHMENT IN CHINNA CREEK BACKWATER An area of about 218 acres has been encroached at extension of Keamari Township, Majeed /Dock Colony & Sikandarabad. These encroachment are continuously extending towards the Chinna Creek Backwater. To check the encroachment of valuable KPT land from land grabber a Bund/Embankment is proposed to be constructed with road connection from Keamari to Clifton.
The road in Chinna Creek water will be connected with M.A. Jinnah road in front of KPT Hospital which provide facility for to and fro movement between Clifton & Keamari. Technical & Financial proposals for the appointment of Consultants invited . Last date of receipt of proposal is 15 November 2008.
E. SHORT STUDY FOR DEVELOPING THE PERIPHERY OF PORT FOR EFFICIENT OPERATIONS KPT has initiated a short study for developing the periphery of port for efficient operations. The Scope of Work of the Consultant is to examine the existing practices that the port is observing for handling of different cargo, (commodity wise), review the existing cargo storage capacity (commodity wise) available at port and propose measures for prompt handling of cargo. This will include Road, rail and pipeline connectivity.
16. MARINE POLLUTION ISSUE Karachi is the largest Metropolitan city of Pakistan having a large coast line being badly affected by over 400 MGD of polluted sewerage disposed in the sea. Existing treatment capacity of the city is 151 MGD.
However, actual treatment of only 90 MGD is being done due to inadequate collection point. Around 300 MGD of sewerage is bypassing the treatment plant and directly falling in the Arabian Sea. There are mainly seven sources disposing sewerage in the sea namely Lyari river, Nehra-e-Khayam, Frere nallah, Pitcher nallah, Kalary nallah, Railway Nallah and Malir River.
This is badly affecting the maintenance cost of KPT flotilla because solid waste/plastic bags/ fishing nets often get stuck up in the propeller of crafts. Besides a large area of mangroves plants are dying due to this pollution which is hampering the sea species.

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S No Name of Trustees              Representative

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1.   Mrs Nasreen Haque,  Chairperson          Federal Government

2.   Vice Admiral Sikandar

     Viqar Naqvi Vice Chairman   Pakistan Ship owner Association

3.   Mr Babar Bashir Nawaz      Federal Government

4.   Mr Jameel Yusuf Ahmed,     Federal Government

5.   Mr Munir Qureshi           Federal Government

6.   Mir Muhammad Khaskheli      Federal Government

7.   Mr Shahzad Murad           Federal Government

8.   Mr Waqar A. Malik          Overseas Investor Chamber of

                                 Commerce & Industry

9.   Mr Maqsood Ismail          Chamber of Commerce & Industry

10.  Mr Iqbal Umer              Karachi Cotton Association

11.  Syed Pervez Alam            Labour Trustee

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