KARACHI, Dec 1: The Karachi Port Trust would spend Rs4,085 million on development projects at the port during the current fiscal year. The amount is 49 per cent (Rs1,340.6 million) more than Rs2,744.4 million allocated during the 2002-03.

“This increase is mainly due to some new projects being kept in the P&D and Engineering Division’s budget in order to replace some of the old and outlived craft and structures as well as to carry out some new structural works,” KPT sources said.

The trust has evolved a strategy to finance all the development projects from its own resources, and would not seek any project financing from world donor agencies, the sources said.

However, efforts to get foreign currency grants and soft-term loans from friendly countries would continue to finance foreign currency component of some of the big projects. The government has already agreed to meet foreign exchange requirements of the two major ongoing projects of KPT — reconstruction of Oil Pier-II and dredging of Karachi Port Channel.

The OP-II being a very old structure (1966) needs urgent attention to meet the growing demand of POL and other non-POL products. The OP-II presently handles 35,000 DWT tankers but after its reconstruction the capacity would be enhanced to 75,000 DWT and it would have a modern loading and unloading facilities and fire fighting system.

The oil pier would have an annual capacity to handle eight to 12 million tons of POL and non-POL products which would also enhance total handling capacity of the port for liquid bulk cargoes to 24-28 million tons per annum.

The KPT has already entered into an agreement with Chinese company for the reconstruction of the OP-II and, in this regard, a letter of commencement of work had been issued. As per stipulated completion period, the project would be completed by March 2005, the sources said.

The Karachi Port handles over 70 per cent of the country’s sea trade. However, due to low economic activity the port witnessed a sluggish activity during the past two years.

In order to optimize the port’s potentials and supplement the economy, the port needs to dynamically reposition itself and try to capture regional market of trans-shipment to a larger extent.

Without meeting the economies of scale the port could not sustain itself on local trade and there was urgent need to explore avenues of regional trade. About 98 per cent of container vessels operating in the region have a draught of 10 to 15 metres out of which 57 per cent of container vessels have 12 metres’ draught. Therefore deepening of existing channel to accommodate larger vessels to meet the economies of scale is urgently needed, sources added.

Consultants hired by the KPT have already carried out feasibility study in this regard. In the light of recommendations made by them the port authorities have invited international tenders for the project of deepening of channel and allied works. The evaluation of bids has already been carried out by KPT’s dredging committee and its report along with the consultants’ report have been submitted to the Board’s Port Planning & Dredging Committee for consideration, sources said.

The port authorities plan to utilize the Keamari Groyne area for deep draught container berths. Due to the Groyne’s proximity to the open seas, exposure to the pelagic environments would be considerable, whereas container handling requires calmer water.

Therefore, the KPT is also carrying out the analysis of the existing breakwater as well as requirement of additional protection facilities for the Groyne and breakwater, which is an integral part of this assignment and development work, the sources said.