KARACHI, Jan 5: The Karachi Port Trust (KPT) is embarking upon major development works for enhancing cargo handling capacity and accommodating larger-sized container ships belonging to fourth and fifth generation. The estimated cost of these projects, which are at different stages of execution, tendering and on drawing boards, is Rs88 billion.

Once these mega projects are completed the Karachi Port will become one of the most modern and automated ports of the region. It will start handling new generation vessels and will also be in a position to handle transit cargo and containers.

Most of these projects are being funded by the KPT from its own resources or will be given to the private sector on built, operate and transfer (BOT) basis. Therefore, funding of such projects will be of no problem as the developers will have to arrange funding. The projects will also be funded by the Asian Development Bank and other world agencies.

According to some estimates, the country's external trade (imports and exports) in the coming years was likely to reach $35 billion per annum and this would need more storage, handling and berthing space for larger-sized vessels.

Above all, tough competition under the free-market will also need efficient and modern ports with latest state-of-the-art equipments that could meet the challenges from other ports of the region.

"Inefficiency and higher costs will no more be acceptable by port users who will be facing tougher competition from other nations and their survival will entirely depend upon three major words -- quality, competitive price and prompt delivery," Pakistan Bed wear Exporters Association (PBEA) Chairman Shabir Ahmed said.

In the years to come, ports will have to play a major role in promoting country's goods and help exporters in retaining their world market share by providing cost effective, quick delivery and users-friendly services for ensuring timely delivery to end users.

Looking at the developing scenario the management of Karachi Port took major policy decision under the guidance of ministry of ports and shipping for the up gradation and modernization of port facilities. The focus has been on enhancing all-around capacity of the port in terms of berthing, cargo handling and storage.

In order to further enhance the handling capacity of liquid bulk cargo, the KPT awarded a reconstruction contract OP-II at a cost of Rs1.31 billion to a Chinese firm.

About 40 per cent of the work has been completed and after its completion it will have the capability to handle 90,000dwt tankers with 14.7 metre depth and 8mta capacity. It will also increase the handling capacity from the present 19mta to 24mta.

Similarly, at present reconstruction of Napier Mole Boat Wharf at a cost of Rs165 million is going on. This facility is nearly a hundred year old and its wharf (600 meters) is being used for berthing country crafts.

The port is equally giving importance to the up gradation of its floating crafts such as barges, pilot boats and tugs used for different works in the port area. In this regard contract for construction of two hopper barges has been awarded to a Chinese company at a cost of Rs250 million.

Having a futuristic look the management has already undertook such projects which could well put the port on the map of major ports of the region. As the new generation of container ships have started coming on the drawing boards, the Karachi Port has taken a major initiative to handle and cater for fourth and fifth generation ships.

This will involve the development of deep draught berths, and due to its strategic location Keamari Groyne is a natural choice. According to the plan, berths will be more than 16-metre deep, catering for over 300m long vessels. The project will be launched on BOT with the private sector. The estimated cost of the deep draught container berths is Rs33 billion.

Similarly, to meet the growing handling of bulk cargo, a terminal at a cost of Rs1.2 billion is being constructed at the East Wharves. The KPT will provide a 630-metre-long quay wall from berths 10-13, along with 215,000seq metre of terminal area. The award of the project to the private sector is in progress.

A cargo village, which is relatively a new concept in the port and shipping sector, will be constructed at an estimated cost of Rs18 billion. An area of 650 acres has been earmarked by the KPT for the development of cargo village out of which 330 acres will be used in the first phase with individual areas catering for containers, general and bulk cargo, processing plants, customs and other related facilities.

The cargo village will have direct access to M-10 and Lyari Express Way. After the development of master plan, the private sector will be invited to participate on the BOT basis.

In a well-chalked out and thought-out planning, the Karachi Port has embarked upon a 'landlord port strategy', a concept adopted by major international ports.

Accordingly, the roadmap leads to a scenario where the port authority will own the basic infrastructure, land, access and assets, and lease them out to operators on long-term basis while retaining the regulatory functions.

As a result of this strategy, the KPT has been encouraging the private sector participation and is adapting development plans for the commercial requirements. Accordingly, cost cuts, market expansion, organizational performance and quality corporate governance are being emphasized and addressed.

The port authorities are cognizance of the fact that they do have some social obligations towards the society in general and city of Karachi in particular.

To meet such obligations, the Karachi Port is setting up a desalination plant with a capacity of 100,000 to 500,000gpd at Manora at a cost of Rs29 million to address water shortage problem of the city. The award for the project is under process.

However, negotiations for a larger plant of four mgd at Keamari are presently going on and it will be awarded on the BOT basis. The plant will run through wind energy and the KPT will make available 10 to 15 acres of land. Its estimated cost is 18 million euros.

A landmark project of 'port tower' with a world class recreational facilities having an estimated cost of Rs20 billion will be given to the private sector on the BOT basis.

The 1400ft high port tower with commercial-cum-recreational centre will rise at the skyline on the Clifton beach. The main feature of the venture will be a commercial complex, residential estate, recreational facilities, resorts and a viewing gallery offering a panoramic view of the coastline and the city.

Other projects such as port club at an estimated cost of Rs600 million is going to be re-tendered as the previous foreign company failed to provide sufficient information to the satisfaction of the KPT.

Similarly, 'Port Grand', an establishment of food street, at old bridge of Native Jetty is already under way. Ground-breaking ceremony was held on May 23, 2004. The project is given to the private sector on the BOT basis.