PORT QASIM AUTHORITY
ACHIEVEMENTS & FUTURE PLANS
Nov 02 - 08, 2009
This brief provides an insight on achievements of Port Qasim Authority in improving infrastructure facilities, port development, development projects, cargo and ship handing and most significantly the industrial growth, along with future plans to further enhance capacity. Today, the port caters for more than 40% of the Pakistan seaborne trade. Besides catering for port facilities, it is one of the largest revenue source to the national exchequer.
Port Qasim has an impressive growth in all facets of port operation. Besides providing port facilities to around 40% of Pakistan seaborne trade, PQA is pursuing a large number of projects for capacity building attracting Foreign Direct investment (FDI) and simultaneously undertaking major infrastructure development to accelerate pace of industrialization in the country. PQA currently comprises eleven berths with handing capacity of 40 million tonnes per annum.
Cargo volume at the port during 2008-09 stood at 25.0 million tonnes comprising 19.4 million tonnes imports and 5.6 million tonnes export showing a marginal increase of 0.2% over planned targets despite global economic downturn. Imports showed a shortfall of 2% while exports registered an increase of 6 % over planned targets during the report period.
Shipping increased by 4% than planned targets during 2008-09. To facilitate the trade and to benefit from economies of scale, PQA has been endeavoring to increase port parameters/dimensions. Noteworthy feature is than PQA handled largest vessels with dimensions 12 meters draught, 305 meters LOA ever berthed in Pakistani waters.
During financial year 2008-09, PQA earned a total revenue of Rs. 6487.5 millions while expenditure during the report period stood at Rs. 4101.0 millions. After making provision for income tax at Rs. 835.2, PQA earned a net surplus of Rs. 1551.3 million during 2008-09.
CHANNEL MAINTENANCE DREDGING
Channel maintenance dredging works for 2008-09 has been completed. Work was awarded to M/s Dredging International Belgium a cost of Rs. 1416 million. Based on out survey, minimum depth of 14.2 meters in approach channel and 12.5 meters in the Inner channel has been achieved.
Capacity building, increase in operational capabilities and development of infrastructure facilities are the major constituents of port's a multi-pronged strategy. Significant achievements in port development include:
LIQUID CARGO TERMINAL
A dedicated Liquid cargo Terminal has been established by M/s. FWQ Enterprises (PVT) Ltd. (A Joint Venture Company of Malaysia and Pakistan) at a cost of US$ 25 million with handing capacity of 4 million tonnes per annum. Soft operation on the terminal commenced on March 30, 2009. A cargo volume of 0.34 million tonnes has handled up till 30th June 2009. the Terminal was formally commissioned by the President of Pakistan on 14th August 2009.
2ND CONTAINER TERMINAL
2nd Container Terminal is being developed by DP World at a cost of US$ 300 million with handling capacity of 1.175 million TEUs per annum. The Terminal is likely to be completed by end 2011. Thirty annum. The Terminal is likely to be completed by end 2011. Thirty five (35) % work has so far been completed.
GRAIN & FERTILIZER TERMINAL
A specialized Grain & Fertilizer Terminal is being development by M/s Fauji Akbar Portia at a cost of US$ 100 million with handing capacity of 4 million tonnes per annum. The Terminal is expected to be completed by end 2011. 30% work has so far been completed.
PORT QASIM CONTRIBUTING TOWARDS ENERGY SECTOR
GASPORT LNG FLOATING TERMINAL
To meet the energy demands, an LNG Floating terminal is being developed by M/s GasPort at a cost of US$ 160 million with handling capacity of 3 million tonnes per annum. The terminal is expected to be completed by end 2010. Design work is currently in progress.
COAL & CLINKER/CEMENT TERMINAL
A dedicated Coal & Clinker/Cement Terminal is being undertaken at a cost of US$ 175 million with handing capacity of 8 million tonnes per annum. the terminal is expected to be completed by end 2011. Implementation Agreement being negotiated.
2ND OIL TERMINAL
To handle increased volume of POL imports, a second Oil Terminal is planned to be developed at a cost of US$ 55 million with handling capacity of 9 million tonnes per annum. The terminal is expected to be completed by 2012. Technical & Financial proposals are currently being evaluated.
2ND STEEL JETTY
To handle increased volume of Pakistan Steel Mills and to accommodate Al-Twarqui Steel Mills imports, a second Iron Ore & Coal berth is planned to be developed at a cost of US$ 150 million with handing capacity of 8 million tonnes per annum. Outsourcing of the terminal is under active consideration. The development of the Terminal will be linked with Pastel Expansion program.
DEEPENING OF NAVIGATION CHANNEL
The project of Deepening & Widening of navigation Channel is very crucial to PQA. PQA plans deepening of navigation channel for all weather 14 meter draught vessels at a cost of US$ 200 million. Approval of ECNCE is awaited.
DEVELOPMENT OF INFRASTRUCTURE FACILITIES AND INDUSTRIES
PQA signed contracts with M/s national Logistic Cell (NLC) and M/s Frontier Works Organization worth Rs. 8.8 billion for infrastructure development i.e. roads, water supply sewerage and storm water drainage in Eastern Zone of Port Qasim spread over an area of 8300 acres. Equally significant feature is that Twenty three (23) various commercial undertakings including Ware Houses, Lubricant Plants, Empty Container Parks, Pharmaceutical Plants and Rice Processing units became operational during 2008-09. Likewise work on 63 various industrial and commercial units also commenced during 2008-09.
SIGNING OF MEMORANDUM OF UNDERSTANDING (MOU)
PQA signed two MOU during the report period as detailed below:
a. MoU with Matrix Consulting Group, USA
PQA signed an MOU with Matrix consulting Group of USA for establishment of 250 MW power plan, extendible to 500 MW at the port on 11th April 2009.
b. MoU with Veolia Water Solutions & Technologies. OTV
PQA signed an MoU with Veolia Water Solutions & Technologies-OTV, a French Company on June 29, 2009 to undertake study on establishment of a Desalination Plant at the port. The proposed Desalination Plant will produce clean and drinking water not only for PQA needs, its industrial areas but the Karachi Municipality as well.
FUTURE PLANS: MAJOR PROJECTS
Following are the major projects (planned 2007-2011) which will contribute significantly to the national economy:
. Diamond Bar Island City (M/s EMAAR)
. Textile City (M/s PTCL)
. World Trade Centre (M/s Expo City Limited)
. Desalination Plant by VEOLIA WATER Solutions & Technologies - OTV
. Oil Refinery (M/s Noor Financial Investment Co., Kuwait)
. Coal Power Project (M/s Metal Investment Holding Corporation)
. Procter & Gamble's Manufacturing Plant.
ACHIEVEMENT UNDER NTC OBJECTIVES
Port Qasim continues to pursue its vision under the NTC objectives to be the Port of first choice for customers and stockholders providing time-efficient and cost-effective Port services and facilitating Industrialization and making tangible contribution to economic development of Pakistan. In this respect following achievements are worth mentioning:
. Deepening of Channel for all weather 14 meter draught vessels and installation of VTMS
. Capacity increase 143% by 2012
. "Free Period" reduced from 7 to 5 days
. Across the board reduced port charges by 15% during 2005
. Reduction in storage charges by 12% in 2007.
. Further cost-based rationalization of port tariffs in hand,
. Development of Infrastructure (Projects valued Rs. 22 billion by 2012)
. 140 various industrial and commercial projects already operative at the port while 248 projects are under construction phase.
CONTRIBUTION TO ECONOMIC DEVELOPMENT
The Collectorate of Customs collected Rs. 90 billion during 2008-09 in the form of duties & taxes on imports passing through the port.
FDI amounting to US$ 361 million so far in the form of berths/Terminals. Further FDI at US$ 2.77 billion expected by 2012 in the form of various development projects.
FDI - US$ 7.0 billion expected in the form of Diamond Bar Island City.