KARACHI, April 24: The Karachi Port could become a global hub for the shipping sector connecting Central Asia, Afghanistan and the rest of the world if the current pace of development and automation is continued for providing state-of-the-art facilities to port users.

This was stated by Communications Minister Senator Babar Khan Ghouri on Saturday at a reception organized by the Karachi International Container Terminal on the occasion of completion of its Phase-II.

The upgradation of port facilities, he said, would enable the port to attract traffic to and from the Middle and Far East, and also attract transit trade to North India, the traditional hinterland for the Karachi Port.

The minister said that with the establishment of Gwadar Port, the country would be having greater impact on the shipping sector of the region and would open up new vistas by bringing in a deep change in the shipping routes of the region.

Commenting on the efforts of the KPT and KICT, the minister said: "Recent growth in country's exports required such port infrastructural developments as being presently undertaken and it is an excellent example of the public-private sector partnership and other organizations should emulate."

He said the current team involved in development activities of the port and shipping sector, including director general of Port and Shipping, Capt Anwar Shah and KPT team headed by its chairman vice-admiral Ahmad Hayat, are rendering great services to this sector.

Mr Ghouri said that it was a great pride that the KPT, which was primarily a public sector organization, was earning over Rs4 billion for the last two years and had been financing its projects from its own resources.

He also appreciated that welfare projects of the port town under taken by the KPT and said this would not only provide much-needed shelter to the families of a large number of workers, but would also help boost the construction industry.

The setting up of a desalination plant, the minister said, would remove the sufferings of the people of the port city and act as an example for others to follow so that portable water shortage could end and give relief to the masses.

The minister assured his full support for the development of resorts and clubs being undertaken by the KPT and said that such investments were needed to provide recreation facilities to the citizen.

KPT chairman Ahmad Hayat said: "It is indeed a matter of pride for both the KPT and the KICT to have completed the second phase project ahead of time. Serving as the backbone to regional trade, we are looking forward to continued success of the ports and shipping sector of the country through public-private partnership."

The KPT chief said in the years to come the country would be well-positioned as the preferred trade route for transit cargo as well as international trade carried out in this region.

He said the Karachi Port initiated its privatization process when the KICT was awarded to the container terminal in July 1996, and since then there had been no looking back. In 2002, the PICT was set up on East Wharves. Its phase-I has been completed with the arrival of two gantry cranes and many RTGs.

The recent political developments, he said, had placed the region in a central yet fragile position. A lot of extra effort has been made to make the Karachi Port investment friendly.

He said the KICT had proposed another expansion in its facilities by adding berth 26 and 27 to its terminal, deepening the entire 975m length of the quay wall to 14m for the KPT, and bringing two new gantry cranes and other equipment to the terminal with a total investment of $55 million.

The KPT chairman also briefly highlighted other development projects which are being undertaken by the port in the near future.

He said the cargo village, which started on a limited concept, would eventually spread over 1,250 acres with CFS, integrated container depots, warehouses, various processing industries, but special emphasis would be on food processing plants having their own quay walls, connected to the main channel.