The Port Qasim Authority (PQA) plans to spend $95 million for purchasing of dredger and other necessary equipment to develop and improve channels in order to handle ships efficiently.
Official sources informed Business Recorder here on Tuesday that the PQA prioritised the capital dredging, which is an Asian Development Bank (ADB) supported project.
They said that the development would include the capital dredging work to keep the draft 14-14.5m in the basin, which would cost $65 million and purchase of a dredger costing $30 million.
Sources said that currently the PQA has a 45km long and 10-12m deep channel. This channel requires three million maintenance dredging, costing the authority about $8 million annually.
The PQA would also upgrade Vessel Traffic Management System (VTMS) and navigation aids such as beacons for safer and more efficient vessel traffic in the port, sources said.
Sources further said, in addition, the Port Qasim Authority needs computerised management and financial information system, besides tugs, surveillance and pilot boats as well as workshops.
They said there was a need to develop a master plan for the PQA to replace an older plan prepared five years ago.
In this respect, the Japan International Co-operation Agency (Jica) has been requested to develop the plan.
Sources said, to initiate policy and technical discussion on the possible ADB support for the port sector, an ADB mission also visited Pakistan last month and held discussions with the senior PQA officials.
The mission assured the government that they would finance economically viable projects in the port sector.
According to the bank, there were certain components in the expansion plan such as dredging, provision of navigation aids, and construction of breakwaters which, although economically beneficial, but not necessarily financially viable.
Sources said the PQA has a large vacant space for industry and provided basic infrastructure such as roads, electricity, water supply and sewerage to the PQA industrial zone.
The government has also decided to establish the proposed Textile City there, while the Karachi Export Processing Zone is also located near it.
Jetties and storage for oil, wheat and chemicals are financed on Build-Operate-Transfer or Build-Operate-Own basis.
The PQA is considering doubling lanes of intra-port roads also.
Sources said that the government is interested in the development of port sector in order to make it consistent with the WTO regime, which requires foreign assistance.