Import via Gwadar Port: Passco directed to transport wheat under G2G arrangements

ISLAMABAD: The Ministry of National Food Security and Research has directed Pakistan Agricultural Storage & Services Corporation (Passco) to transport wheat under G2G arrangements from Gwadar Port through shortest possible routes, well-informed sources told Business Recorder.

On March 1, 2023, Ministry of National Food security and Research informed the forum that the ECC in its meeting held on July 28, 2022 allowed remaining import of 0.80 MMTs of wheat through Trading Corporation of Pakistan (TCP) and directed MNFS&R to submit logistic plan of Passco for transportation of imported wheat for consideration of the ECC. It was reported that Passco’s storages were located in 13 Zones and 16 Districts of the country. Its storage capacity comprised of 29 silos and 335 godowns having covered storage capacity of 572,482 MTs. The remaining stock was being stored in open Gunjees in scientific ways and procedure.

Passco floated a tender on November 12, 2022 with the relaxation of conditions to facilitate participation of maximum bidders including reduction of performance guarantee from 10 to 8% and submission of earnest money of Rs.650 million for daily lifting of 6,000-6,500 MTs per vessels. The lowest bid offered by the NLC for Karachi sea ports was Rs. 9,420/MT, whereas for Gwadar sea port it was Rs. 16,457/MT on delivered basis at Passco’s storage destinations, inclusive of all taxes, tolls duties, etc. Therefore, transport contract was awarded to NLC for making appropriate arrangements for logistics arrangements at the ports. Meanwhile, Passco had made arrangements for jute/pp bags, Gunjees kits, AP tablets, Delta Metherin and polythene sheets for imported stock. State Bank of Pakistan, Finance Division and Federal Board and Revenue (FBR) had been requested to open LCs and early release of jute and polypropylene.

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The Ministry of National Food Security and Research further stated that Passco’s handling capacity at both sea ports in Karachi was approx 350,000 MTs/month. The TCP had almost wound-up its import operations at Karachi. Only two vessels carrying 120,000 MT imported wheat were waiting for berthing, whereas remaining import of 450,000 MT of wheat under G2G arrangements was expected to arrive at Gwadar soon. The upcountry transport market size was 200-250 vehicles per day, ie, 12,000 MTs/day. Accordingly, NLC had engaged almost 50 percent transport facility by engaging 100 trucks transporting 6,000 to 6,500 MTs/day per vessel for transporting the imported wheat to Passco’s premises.

The Ministry of National Food Security and Research argued that in case of simultaneous arrival of 2 vessels at sea ports, the entire transport facility would be utilized by Passco. It was apprised that Passco had signed MoUs with provinces for direct lifting of wheat from Karachi sea-ports in order to fast track transportation and to minimize cost of imported wheat. In this connection Provincial Governments of Punjab, Sindh and Khyber Pakhtunkhwa were allocated 16 vessels, ie, 8 vessels to Punjab (507,366 MTs), 5 vessels to Sindh (308,250 MTs) and 3 vessels to KP (204,000 MTs). For the remaining import of 450,000 MTs under G2G arrangements from Gwadar, Passco would start its lifting operations which would continue till the end of March, 2023.

The Ministry of National Food Security and Research apprised that for lifting the assigned quantity of 450,000 MTs of wheat under G2G arrangements from Gwadar Port NLC had been instructed to transport wheat through the shortest/most feasible route to PASSCO storage centres. Tentatively 200/250 vehicles would be required to transport average discharge of 10,000/12,000 MTs on daily basis. \ scanners would be deployed to clear vehicles. All concerned agencies, ie, Pak Customs, DPP, TCP, Passco would set up offices to facilitate operations.

Copyright Business Recorder, 2023