Karachi Port Trust (KPT) is planning to extend its port limits beyond Khalifa Point in Balochistan to play a major role in providing marine services to upcoming petroleum projects.
In this regard, the KPT has sought help from the Ministry of Port and Shipping for extending port's limits and establishing some oil handling facilities, like Single-Point Mooring (SPM) at Khalifa Point, and to serve the existing and future oil refining projects in the proximity.
Sources told Business Recorder that in view of the country's private sector shortcomings of not having proper know-how of marine related services, infrastructure required to operate a mini-port as well as it also requires to operate oil handling facilities safely without endangering the marine environment.
The KPT intends to take over these projects independently for ensuring safe and smooth operation while fully complying with the national and international regulations and conventions. Interestingly, some local and foreign companies have also identified to establish their projects in the proximity of Khalifa Point.
The Khalifa Point is unsheltered and fully exposed to sea, which possesses a draught of over 20 metres within 4.5 nautical miles (NM) off the coast. The KPT, being the major country's port organiser, with over 100 years of experience of operation could easily operate such facilities. Presently, the KPT administers Karachi harbour enclosing an area of some 62 square kilometres.
It stretches from Sands Spit in the west to Chinna Creek in the east, of which 85 percent is covered by harbour water. The land area under KPT control covers all port installations, including Customs bonded areas and cargo storage yards.
A large portion of KPT land has been leased out to private and public sector agencies for setting up of port related warehouses, storage, tankages and industries.
The port also accommodates within its precincts the naval installations including Dockyard, the Karachi Shipyard and the Karachi Fish Harbour. The port itself occupies about 14 square km.
It may be mentioned that in mid-90s project of placing a SPM for handling of petroleum product was planned to be the third petroleum handling point for the country.
The then Ministry of Communication had directed Pakistan National Shipping Corporation (PNSC), Karachi Port Trust (KPT), and Port Qasim Authority to participate actively in one of the government initiated projects.
The first project was Parco with the collaboration of Iranian government planning to establish an oil refinery off the Balochistan coast. The project was based on the establishment of a refinery by Iran that imports the crude and exports the refined products through the same facility. The project could not materialise for some reasons.
Another project belonged to a Middle Eastern company that carried out feasibility study in 2005, which is still in pipeline and seeks government approval.