Work on the deepening of channel to 14.5 depth at Gwadar port has commenced to enable mother-ships call on the port and trans-shipment could take place from this port.
The works are being undertaken with the funding from Public Sector Development Programme (PSDP), pending finalisation of loan agreement as part of preferential loan from China.
While officially the deepening of channel is expected to be completed by June, shipping circles believe the completion of works may be delayed for a few months.
According to the project information book of the government of Pakistan, the Ministry of Ports and Shipping and Gwadar Port Authority for 2004-05 financial year, the development of Gwadar deep-water port is being undertaken in two phases.
The deepening of channel to 14.5-metre is an extension of Phase-I, which comprises three multi-purposes berths of 602-metre total length, which will also accommodate roll-on roll-off vessels, a 100-metre service berth, 4.25-kilometre approach channel dredged to 11.5 metre-12.5 metre and demarcated with buoys and turning lights.
Besides turning circle, it consists of berthing area, cargo handling/operation facilities, ancillary buildings and operation equipment and floating craft, all what is required for a functional port.
Gwadar deep water port is the third port of Pakistan, Karachi Port and Qasim Port being the other two. Situated on the Balochistan coast, it is about 537 kilometres from Karachi and 120 kilometres from the Iranian border.
Located at the mouth of Persian Gulf and outside the Strait of Hormuz, it enjoys high commercial and strategic importance.
Phase-II will include six berths for container handling (total length 2,010 metres), one grain and one bulk handling berth (305 metre each), two berth oil terminal (688 metre length) and breakwater.
On the completion of Phase-I, the next phase will be offered to private sector/international investors on build, own, operate (BOO)/build, operate, transfer (BOT) basis. The estimated cost of Phase-II, which will commence on the completion of Phase-I, is 865 million dollars (Rs 51,900 million).
According to the official project overview, for the construction of Phase-I, China provided a funding of 198 million dollars, comprising grant, soft loan and buyer's credit. The government of Pakistan is contributing 50 million dollars as counter financing.
The revised PC-I, amounting to 248 million dollars, was approved by the Executive Committee of the National Economic Council (ECNEC) in February 2002.
As a covenant of the protocol, the main port, infrastructure, equipment and craft etc (Contract-I) has been designed, supervised and constructed by Chinese side, while the ancillary building and access road, etc, (Contract-2) are the responsibility of Pakistan side.
The Fourth Harbour Engineering Investigation and Design Institute (FHDI) of China has prepared the basic design of the complete Phase-I works, ie, contracts 1 and 2. Peoples' Republic of China (PRC) awarded the work of Contract-I to China Harbour Engineering Company of China.
FHDI prepared the detailed design and issued construction drawings to the contractor, while the First Design Institute of Investigation Engineering (FDINE) of China was appointed by the PRC to supervise the works.
As agreed between the governments of China and Pakistan, Pakistan was to appoint consultants from their side to supervise the total work (contracts- 1 and 2). Accordingly, Gwadar Port Authority has appointed Techno-Consult International to provide restricted supervision for contract-I works, detail design and provide full supervision of contract-II works.
Most of the works of Contract-I has been completed. Contract-II works are in progress and are expected to be completed in the 2005-06 financial year.